The News International Team
12:30pm HDFC Bank share sale soon
HDFC Bank is expected to sell shares worth up to Rs 10,000 crore as early as this week, with an offering that will include overseas and domestic stock, sources with direct knowledge of the matter said today.
India’s largest lender by market capitalisation, which is also listed in New York, last week received government approval for the share sale on the condition that its foreign ownership should not exceed 74 percent.
While HDFC Bank has said it does not have any immediate capital requirement, the share sale will help it build a buffer as credit growth picks up with an expected recovery in the economy.
Nine investment banks including Bank of America Merrill Lynch, JPMorgan and Morgan Stanley are set to manage the share sale, said sources who declined to be named as the information is not public, reports Reuters.
12:20pm Market Expert
The government needs to move faster on the divestment process, as institutional investors are concerned about the government’s approach to the fiscal deficit, feels Gautam Trivedi, MD & CEO, Religare Capital.
In an interview with CNBC-TV18, Trivedi says market is having high expectations from the Railway Budget as well as Union Budget.
On the positive side, he says foreign investor interest remains strong even as domestic institutions have been booking profits. He expects corporate earnings to grow 10-15 percent this year.
Trivedi is cautious on banks, particularly state-owned banks, as he feels the fourth quarter numbers could be even worse than the third quarter ones. HDFC Bank is his top pick in the banking space.
12:10pm Bonds Update
Bonds fell while the rupee trimmed earlier gains as the central bank held benchmark interest rates steady at 7.75 percent today after easing monetary policy just three weeks ago.
The 10-year benchmark bond yield gained 4 basis points to 7.68 percent while the rupee trimmed intraday gains to 61.76 per dollar, reports Reuters.
12:00pm Market Check
A sudden sharp fall in the market dragged the Nifty below the 8750 level, weighed by banking & financials and realty stocks. Key indices lost over a percent from session highs.
The 30-share BSE Sensex declined 203.94 points to 28918.33 and the 50-share NSE Nifty fell 64.15 points to 8733.25. The broader markets also lost in-line with frontline peers.
About 1125 shares have advanced, 1393 shares declined, and 265 shares are unchanged on the Bombay Stock Exchange.
The rupee too gave up some intraday gains while bond yields hardened post RBI policy.
The Reserve Bank of India kept key policy rates unchanged. The bank cut statutory liquidity ratio by 50 basis points to 21.5 percent. Governor Raghuram Rajan says more data is awaited for further action on the rates front. He left January 2016 inflation target unchanged at 6 percent.
Punjab National Bank extended losses to near 6 percent post an earnings disappointment. Significant worsening was seen in asset quality with gross NPAs rising to near 6 percent. Profits and net interest income too missed street estimates.