Sensex Extends Losses; FMCG And Energy Stocks Witness Selling

After opening the day marginally lower, share markets in India extended their losses and are presently trading on a negative note. Sectoral indices are trading mixed with stocks in the consumer durables sectorFMCG sector and energy sector witnessing maximum selling pressure, while realty stocks are trading in the green.

The BSE Sensex is trading down by 211 points (down 0.6%), while the NSE Nifty is trading down by 64 points (down 0.6%). The BSE Mid Cap index is trading down by 0.8% and the BSE Small Cap index is trading down by 0.6%.

The rupee is trading at Rs 71.42 against the US$.

In the news from the banking sectorYes Bank share price is in focus today. The stock of the lender witnessed selling pressure after the Reserve Bank of India (RBI) warned the lender of regulatory action for disclosure of NIL divergence report in violation of the confidentiality clause.

Last week, the lender had received "no observation on divergence" in the bank's asset classification and provisioning in the RBI's Risk Assessment Report for FY2018 and shares of the bank recorded its sharpest intra-day rally since its listing on back of the above news.

As per an article in The Economic Times, against the Rs 7.5 billion of gross NPAs reported by Yes Bank as on March 31, 2016, the RBI assessment showed the tally at Rs 49.3 billion, leading to a divergence of Rs 41.8 billion.

Reportedly, the divergence increased to Rs 63.4 billion in FY17 which was the main reason former CEO Rana Kapoor's tenure was reduced last year by the central bank.

Note that the stock of the lender plunged to its lowest levels in over two years in November.

Losses were seen after credit rating agencies ICRA and CARE ratings downgraded the bank's debt instruments.

ICRA downgraded domestic long-term ratings of the bank's senior debt instruments to 'ICRA AA' from 'ICRA AA+' and its subordinate debt instruments to 'ICRA AA-' from 'ICRA AA'.

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