Share markets in India are presently trading on a negative note. Sectoral indices are trading on a mixed note with stocks in the realty sector and metal sector witnessing selling pressure, while FMCG stocks and energy stocks are trading in green.
The BSE Sensex is trading down by 95 points (down 0.2%), while the NSE Nifty is trading down by 36 points (down 0.3%). The BSE Mid Cap index is trading down by 0.1%, while the BSE Small Cap index is trading down by 0.4%.
Note that Nifty had gained over 900 points in two sessions after Finance Minister Nirmala Sitharaman conducted a surgical strike on the negative sentiments hurting the economy with her stimulus measures.
As per Research analyst Apurva Sheth, Nifty could take a breather after the biggest up move in a decade. But that doesn't mean there won't be any trading opportunities for traders. The Midcap and Smallcap segments have enough room to catch up with the largecaps.
In news from the IT sector, Quess Corp has received approval for the acquisition of the remaining 49% stake in Trimax Smart Infraprojects (TSIPL), a subsidiary company. Post completion of acquisition, TSIPL will become a wholly-owned subsidiary of the company.
Earlier, Quess Corp had entered into a joint venture (JV) with Trimax IT Infrastructure and Services (Trimax IT), thereby acquiring 51% in the equity share capital of Trimax Smart Infraprojects, for implementing smart city projects in Ahmedabad.
Meanwhile, NIIT Technologies has entered into a partnership with Fenech Financial to develop joint go-to-market programs designed to accelerate digital transformation of clients' finance functions in the banking and financial services industry.
As part of the partnership, NIIT Technologies and Fenech will collaborate globally to deliver intelligent services, built on F3 platform, integrated with NIIT Technologies' cognitive frameworks, digital experience, and process re-engineering capabilities.
Quess Corp share price and NIIT Technologies share price are presently trading up by 0.2% and 0.8%, respectively.
Moving on to news from the banking sector, Yes Capital, one of the promoter entities of Yes Bank, has sold 1.8% stake in the bank for Rs 2.4 billion.
Shares of the private sector lender tumbled 5% in early trade today on back of the above news.
In a filing to exchanges on Thursday, Yes Bank said, "YES Capital (India) Private Ltd ("YCPL"), part of the promoter group of YES Bank, has today sold 1.8% shareholding in the Bank."
It added that proceeds from the stake sale by Yes Capital will be utilized to prepay its entire balance outstanding NCDs of Yes Capital subscribed by various schemes of Franklin Templeton Asset Management (India) Pvt. Ltd.
In September 2017, Yes Capital had placed rated, zero-coupon NCDs worth Rs 6.3 billion with Franklin Templeton. The NCDs were scheduled to mature in October 2020.
Note that last week, another promoter entity Morgan Credits had sold 2.3% stake in the bank for Rs 3.4 billion, to prepay a certain part of its outstanding dues to Reliance Nippon Life AMC.
In a regulatory filing on Wednesday, Yes Bank had said that "the bank has received strong interest from multiple foreign as well as domestic private equity and strategic investors for this capital raise and remains firmly on course to raising growth capital subject to the necessary approvals."
The above developments come at a time when concerns are being raised over the bank's exposure in the NBFC Altico Capital which has recently defaulted on interest payment.
Yes Bank share price is presently trading down by 1.4%.
In other news, Punjab National Bank (PNB) has received approval for raising funds through Additional Tier-1 Basel-Ill compliant perpetual bonds amounting up to Rs 30 billion in one or more tranches.
The bank's board of directors at its meeting held on September 26, 2019, have approved the same.
PNB share price is presently trading up by 0.2%.
Speaking of banks, lower NPA ratio and sustenance of high CASA, in the future, could signal the banks' fitness levels to lend more.
But what could go unnoticed is the efficiency potential of the merged entities.
Post-merger, the employee per branch ratio of the consolidated PSU entities could be in the range of 7 to 9 per branch. This would be almost half that of their private sector counterparts like HDFC Bank and Kotak Bank.
India's Top 6 Public Sector Banks Are Getting Fitter
Leaner operations would mean use of technology to support growth.
So, we won't be surprised if the PSU entities leverage technology at a much bigger scale than their private sector peers, in a few years.
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