After opening the day in green, share markets in India witnessed volatile trading activity throughout the day and ended the day on a negative note. Sectoral indices traded mixed, with stocks in the IT sector and stocks in the banking sector, leading the losses.
At the closing bell, the BSE Sensex stood lower by 341 points (down 1%) and the NSE Nifty closed down by 95 points (down 1%). The BSE Mid Cap index ended the day down 0.1%, while the BSE Small Cap index ended the day flat.
The rupee was trading at Rs 73.35 against the US$ in the afternoon session. Oil prices were trading at US$ 76.14 at the time of writing.
Asian stock markets finished mixed. As of the most recent closing prices, the Hang Seng was up by 0.5% and the Shanghai Composite was down by 0.9%. The Nikkei 225 was down by 0.1%. Meanwhile, European markets too were trading on a mixed note. The FTSE 100 was up by 0.1%. The DAX, was down by 0.8% while the CAC 40 was down by 0.3%
Indian indices are in a correction mode. The average stock has crashed over 46% from its 52-week high.
The Average Stock Has Crashed 46% From Its 52-Week High
In news from stocks in the steel sector. In another apparent win for the insolvency regulations, the world's largest steelmaker ArcelorMittal said it has been chosen by the lenders to take over debt-laden Essar Steel for about Rs 420 billion.
ArcelorMittal said its resolution plan for Essar Steel, which the lenders auctioned to recover over Rs 490 billion of unpaid loans, includes an upfront payment of Rs 420 billion to settle debt and a further Rs 80 billion of capital injection into the company to support operational improvement, increase production levels and deliver enhanced levels of profitability.
The development comes a day after promoters of Essar Steel offered to pay lenders Rs 544 billion, including Rs 475 billion upfront cash payment to clear all dues of lenders and pull out the firm from insolvency proceedings.
However, the Committee of Creditors have issued ArcelorMittal and its partner Japan's Nippon Steel & Sumitomo Metal Corp a Letter of Intent (LoI) declaring them as the successful applicant.
Moving on to news from stocks in the banking space. IDFC Bank has proposed to change its name to 'IDFC First Bank Ltd' as it is in the process of amalgamating non-banking financial company (NBFC) Capital First with itself.
The Board of Directors of IDFC Bank at its meeting decided to seek approval of the Reserve Bank of India (RBI)to rename the bank as 'IDFC First Bank Limited', the new private sector lender said in a regulatory filing.
The change of name would further require approvals of statutory/ regulatory authorities including the Registrar of Companies, Shareholders and other Stakeholders, as may be required.
The bank also said that the amalgamation of Capital First with IDFC Bank "is now at an advanced stage" and has received approvals from the Competition Commission of India, stock exchanges, RBI and the shareholders and creditors of all the parties involved.
The bank is currently awaiting approval from the National Company Law Tribunal.
Capital First and IDFC Bank, with this merger in an all-stock deal, would create an Rs 880 billion combined entity. The share swap ratio for the merger is fixed at 139:10, meaning IDFC Bank will issue 139 shares for every 10 shares of Capital First.
IDFC Bank share price ended the day down 2.2%, while Capital First share price ended the day down by 2.4%.
Comments
Log in or sign up to join the conversation.