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28
June 2018
I had
mentioned in Wednesday’s closing report that Nifty, Sensex were headed lower.
The major indices of the Indian stock markets suffered a correction on Thursday
and closed with losses over Wednesday’s close. Globally, investor sentiments
were weighed down in the ongoing trade war concerns among major economies. In the
domestic indices, selling pressure was witnessed on consumer durables, banking
and capital goods stocks. On the NSE, there were 463 advances, 1,270 declines
and 329 unchanged. The trends of the major indices in the course of Thursday’s
trading are given in the table below:
The
Indian rupee touched an all-time low and breached the 69 per dollar mark on
Thursday due to high crude oil prices and weak macro-economic fundamentals.
Public
sector Indian Bank on Thursday said the Board of Directors have decided to
annul their earlier decision to declare dividend at Rs6 per equity share as it
has not provided fully for the mark-to-market (MTM) loss. Indian Bank shares
closed at Rs346.60, down 0.19% on the NSE.
State-run
lender UCO Bank, which is aspiring to be back in profit, is aiming at recovery
of bad loans of around Rs4,000 crore during the current fiscal, its MD and CEO
R.K. Takkar said. The Kolkata-headquartered lender is hopeful of making net
profit and coming out of the Prompt Corrective Action (PCA) framework of the
Reserve Bank of India (RBI) in the next two years, he said. "We are
looking at various avenues -- main is recovery. Our PCR (Provisioning Coverage
Ratio) is quite healthy at more than 60%. So, once NCLT resolutions happen, either
through OTS (one-time settlement) or normal recovery channels, it will help us
not only reducing our NPAs but also writing back the provisions and booking
some profit, depending on how much haircut we will have to take," he said.
The lender has exposures to nine of the 12 large stressed accounts, identified
by the Reserve Bank of India to get resolved under the Insolvency and
Bankruptcy Code (IBC). The bank's overall exposure to these nine accounts was
around Rs4,300 crore. The RBI had initiated a PCA against the bank in May last
year in view of high non-performing assets and negative return on assets. Its
gross non-performing assets, in absolute term, went up to Rs30,549.92 crore as
on March 31, 2018, over 35% year-on-year jump from Rs22,540.95 crore in the
year-ago. As provisioning for stressed assets increased, during the last
fiscal, it incurred a net loss of Rs4,436 crore compared to Rs1,851 crore for
the previous fiscal. UCO Bank shares closed at Rs18.05, down 1.10% on the NSE.
In
a move aimed at bridging revenue and fiscal deficits and raising funds for the
cash-crunched state exchequer, the Punjab cabinet approved the disinvestment of
three ailing public sector units (PSUs). The process of divestment of the
loss-making Punjab Communications Ltd, Punjab Financial Corporation and Punjab
State Industrial Development Corporation will be carried out by a core group of
officers to be set up under the chairmanship of the Chief Secretary. The
decision has been taken based on the recommendations of Punjab Governance
Reforms and Ethics Commission, a spokesman said here after a cabinet meeting.
The decision was taken as the cabinet felt the disinvestment of the three PSUs
would help in raising funds for capital expenditure and infrastructure
development, funding social welfare schemes and improving the performance of
PSUs by instilling professional and corporate business ethics, the spokesman
said. Punjab earned only Rs4.90 crore as dividend in 2017-18 from its 50-odd
PSUs, while the state resources locked up in these PSUs amount to Rs7,614
crore. The total amount of outstanding government loans of these PSUs is around
Rs25,393 crore and the unpaid loan against the government guarantee stands at
Rs18,312 crore approximately (as on March 31, 2018). The cabinet noted that the
central government had collected around Rs1 lakh crore from the strategic and
non-strategic disinvestment of Central Public Sector Enterprises in 2017-18,
taking advantage of the market conditions.
The
top gainers and top losers of the major indices are given in the table below:
The
closing values of the major Asian indices are given in the table below:The Total Investment & Insurance Solutions
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Major Indices (The Total
Investment & Insurance Solutions)
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