Most of the shares of PSU banks including State Bank of India and Punjab National Bank which surged up to 48% in yesterday's session extended gain in the opening trade.
Indian stock markets opened marginally lower on Thursday after making new all-time highs in Wednesday’s trade led by the announcement of Rs 2.11 lakh crore mega move of Modi government to recapitalise the NPA-laden PSU banks. BSE Sensex shed 17.33 points or 0.05% to open at 33,025.17 points while NSE Nifty lost 3.55 points or 0.03 % to start at 10291.8 points. Most of the shares of PSU banks including State Bank of India and Punjab National Bank which surged up to 48% in yesterday’s session extended gain in the opening trade. The benchmark Sensex shuttled between 33,074.91 and 32,835.06 points.
Shares of State Bank of India and Punjab National Bank hit a fresh record high, rising as much as 7.79% to Rs 351.3 and 14.55% to Rs 231.45 respectively. Other PSU bank stocks which also extended gains include Indian Bank – 7.2%, Bank of Baroda – up 6.8%, Union Bank of India – up 8.56% while Canara Bank, Bank of India, Oriental Bank of Commerce, Andhra Bank, Allahabad Bank, IDBI Bank and Syndicate Bank gained up to 6%.
Besides SBI, the stocks of ICICI Bank, L&T, Axis Bank, Infosys, M&M advanced up to 1.6% on Sensex whereas HDFC, HDFC Bank, Power Grid, Asian Paints, Kotak Mahindra Bank, and Dr Reddy’s lost up to 2.2%. Heavyweight shares such as HDFC Bank, HDFC, and Reliance Industries contributed the most to the Sensex decline. Collectively these three stocks alone shaved off about 110 points while SBi, L&T and Infosys helped to trim the losses.
Shares of Yes Bank lost 2.72% to hit the day’s low of Rs 318 ahead of its Q2 results on NSE. Other major companies which are scheduled to announce their second-quarter results today include Biocon, Crompton Greaves Consumer Electricals, Cummins India, Equitas Holdings, GIC Housing Finance, Indiabulls Ventures, Jubilant Foodworks, L&T Finance Holdings, Shoppers Stop, Sharda Cropchem, SREI Infrastructure Finance, Vijaya Bank, Whirlpool of India and United Spirits.
US stocks fell on Wednesday, with the Dow Industrials and S&P 500 indexes suffering their worst day in seven weeks, on a batch of soft quarterly earnings and a rise in bond yields, Reuters reported. The Dow Jones Industrial Average fell 112.3 points, or 0.48% to end at 23,329.46, the S&P 500 lost 11.98 points or 0.47% to 2,557.15 and the Nasdaq Composite dropped 34.54 points or 0.52% to 6,563.89.