India’s stock market started slightly higher on Tuesday with the key equity indices Sensex and Nifty opening in green. The headline indices very quickly pared off the opening gains and traded flat as the subdued sentiments over the PNB’s fraud continue to weigh. The benchmark BSE Sensex gained 139.28 points or 0.41% to open at 33,913.94 and NSE Nifty added 12.6 or 0.12% to begin at 10,391. Almost all of the broader and sectoral indices fell into negative territory in the opening deals with Nifty PSU Bank index shedding the most led by the slump in shares of fraud-hit PNB.
Shares of Bharti Airtel, Tata Steel, Dr Reddy’s, TCS, Axis Bank, and Infosys emerged as the notable gainers in the early trades rising up to 1.6% whereas shares of Kotak Mahindra Bank, Adani Ports, IndusInd Bank, State Bank of India fell up to 1.1%. Among the sectoral indices of NSE, Nifty PSU Bank index faced major jolt for the fifth straight day as the shares of Punjab National Bank extended losses diving over 4% to hit a fresh 52-week low of Rs 111. Up until, 9:40 am, Sensex hovered between the range of 33,931.9 and 33,753.5.
As the third-quarter corporate earnings season has concluded, domestic markets are likely to be steered by the GDP growth rate due later this month on 28 February. In a major development yesterday, a letter written by the alleged diamond merchant Nirav Modi to PNB came to light. According to PTI reports, Nirav Modi in his letter to the bank has said that the estimated fraud amount of Rs 11,400 crore is inflated by the bank as against the actual liability and moreover, Nirav Modi clarified that his uncle has nothing to do with this matter.
Shares of PNB, Vakrangee, Union Bank of India, Indian Overseas Bank, Just Dial, Religare Enterprises, Allahabad Bank were the top losers among the ‘A’ group stocks of Bombay Stock Exchange while Balrampur Chini and Arvind surged up to 3%. A cyclical recovery was seen in the markets, as at 10 am, the 30-share barometer Sensex was trading up 145.54 points at 33,920.2 whereas the wider share indicator Nifty was trading 24.75 points higher at 10,403.15.