Indian stock markets ended on a negative note on Monday, 21 May 2018, with the benchmark Sensex index losing 232 points as 1970 stocks on BSE settled in the red, on the other hand, PSU banks gained whereas pharma, auto and real estate stocks plunged.
Indian stock markets ended on a negative note on Monday, 21 May 2018, with the benchmark Sensex index losing 232 points as 1970 stocks on BSE settled in the red, on the other hand, PSU banks gained whereas pharma, auto and real estate stocks plunged. PSU bank shares stole the show on Monday after the following the mega resolution of Rs 36,400 crore of Bhushan Steel as it was the largest NPA among RBI’s list of 12 big accounts identified last year. The move was thoroughly welcomed by the state-run banks as shares of Bank of India, PNB, Union Bank of India, Canara Bank, IDBI Bank, Syndicate Bank, SBI, Indian Bank, Bank of Baroda and Allahabad Bank jumped more than 2%.
A sustained drop in the shares of HDFC, HDFC Bank, Kotak Mahindra Bank, Sun Pharma, Yes Bank, HUL, Tata Motors steered BSE Sensex to lose as many as 209 points out of the 232 point fall. A sell-off was seen in shares pharma stocks as Sun Pharma, Dr Reddy’s shed over 4% each.
Out of the 2,802 total traded stocks on BSE on Monday, 680 scrips advanced, 1,970 declined whereas 152 shares remain unchanged at the end of trading. The S&P BSE Sensex closed down 232.17 points or 0.67% at 34,616.13 while NSE Nifty settled at 10,516.7, down by 79.7 points or 0.75% on Monday. During the day, BSE Sensex shuttled between the range of 34,973.95 and 34,593.82.
Earlier last week, a Tata Steel acquired controlling stake of 72.65% in the debt-ridden Bhushan Steel Ltd for around Rs 36,000 crore. The move is seen to help in cleansing the banking system as well as boost lenders profitability. An unidentified finance ministry official was seen in a PTI report as saying that the remaining 11 NPA cases which are in the pipeline will easily bring to the table over Rs 1 lakh crore and the amount coming from resolution under the Insolvency and Bankruptcy Code (IBC) will directly add to the bottom line and help in reduction of NPAs of the public sector banks.