The News International Team
9:50 am SBI: With the government indicating that it won’t continue to fund public sector banks (PSBs), SBI chairperson Arundhati Bhattacharya said they could look at issuing shares with differential voting rights to raise funds to meet the Basel-III capital adequacy norms.
“The writing on the wall is very clear…they (PSBs) have to think of differential voting rights. It is time to lay out some kind of road map on how much the banks need to do and how much support it would get,” she said while talking to reporters on the sidelines of a conference.
The government yesterday allowed PSBs to raise up to Rs 1.60 lakh crore from markets by diluting government holding to 52 percent in phases so as to meet Basel III norms. Pitching for consolidation in the banking sector, Bhattacharya said that it was important to have three-four major banks.
9:30 am Buzzing: Investors queued up to buy more shares of OnMobile Global after board members announced buyback price of equity shares. The stock is locked at 5 percent upper circuit at Rs 72.60 on the Bombay Stock Exchange and there were pending buy orders of 225,992 shares, with no sellers available, at 9:30 hours IST.
“The board of directors of the mobile technology and services provider on Thursday decided on buyback of company’s equity shares of Rs 10 each from open market through stock exchange mechanism,” said the company in its filing.
The company will buyback shares at a price not exceeding Rs 86 per equity share payable in cash for an aggregate amount not exceeding Rs 49 crore.
Don’t miss: Bet on IT; rupee to break all-time low in late ’15
After the deep cut seen on Thursday, the market has opened marginally higher today. The Sensex is up 33.58 points at 27635.59 and the Nifty is up 9.10 points at 8302.00. About 400 shares have advanced, 164 shares declined, and 26 shares are unchanged.
Hindalco, Tata Power, Infosys, BHEL and Bharti Airtel are top gainers in the Sensex. Among the losers are Tata Motors, Dr Reddy’s Labs, GAIL, HDFC and Sesa Sterlite.
The Indian rupee opened lower by 11 paise at 62.44 per dollar against 62.33 Thursday.
The dollar was firmer against most of its major peers thanks to upbeat US retail sales data, while nervousness over falling oil prices kept the Canadian dollar pinned near a five-year low.
Pramit Brahmbhatt of Veracity said, “We expect the local equity market to trade sideways and take cues from global markets for further direction. Any upper movement in the dollar will keep rupee under pressure. Expect the rupee to trade in a range of 62-62.70/dollar.”
Asian equity markets made gains, as a positive lead from Wall Street overnight offset concerns about a further decline in oil prices.
In the US, stocks advanced, cutting weekly losses, but euphoria over increased retail sales in November faded as oil fell to another five-year low and renewed worries of a government shutdown. Crude dropped below USD 60 a barrel.
In Europe, shares close mixed even as data showed that the uptake of a low-rate loan programme by the ECB met market expectations. The loans have been less than the ECB originally hoped for when the scheme was first announced.
Central banks outside the ECB were also in focus. The Swiss central bank kept policy on hold but Norway’s bank decided to cut interest rates in a surprise move. The central bank of Russia raised its key interest rate by 1 percent.
In commodities, crude slide continues, Nymex crude falls below USD 60 a barrel, the first time in five years that it breached the psychologically-important support level, as oil markets extended this week’s losses on oversupply concerns. Brent too slips below USD 64. From the precious metals space, gold prices remained flat, retreating from seven-week high as the dollar extended gains.