All sectoral indices ended in the green with metals, pharma, IT, PSU banks and realty indices gaining the most. Sensex and Nifty ended lower, dragged by selling across the board amid weak global cues. Small and mid cap indices also declined over 2 percent each. The disinvestment programme has been deferred as the Centre would require more time to seek the Parliament's nod on changes in the law that would clear the privatisation of the selected state-run banks.
The judgement covers loans above Rs 2 crore as loans below this got blanket interest on interest waiver in November last year.
The government, they said, would resort back to recapitalisation bonds bearing a coupon rate for capital infusion in these banks. Apart from the Budget-related triggers, the macro factors are improving as the economy re-opens also added to the strength in the rally. But, structurally things remain weak, suggest experts. Private banks saw buying, but PSU banks were hammered. So were realty and metal stocks.
Travel and tourism stocks were in demand. Volatility indicator showed traders are fearful now. Equity investors grew richer by Rs 1. Equity investors grew richer by Rs 2.
Equity benchmarks Sensex and Nifty opened on a tepid note on Thursday amid negative cues from global markets. Similarly, Nifty slipped 5. Pattern analysis of the weekly charts showed the breakout that occurred when Nifty moved past the 15,, zone is still very much in force.
After each move on the higher side, the market has consolidated for some time, only to resume its uptrend. Have you read these stories? Bahrain approves Covaxin for emergency use Updated: Nov 12, , Twitter wants Bharat Ratna for Wade Climate draft backs away from end to fuel subsidies Why you shouldn't invest on a tip from an Insta Reel.
ET NOW. Brand Solutions. Video series featuring innovators. ET Financial Inclusion Summit. Malaria Mukt Bharat. Wealth Wise Series How they can help in wealth creation. Honouring Exemplary Boards. Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. Mergers have given balance sheets more heft to handle additional stress. Investors have got another reason to rejoice. The largest lender, State Bank of India SBI , showed a reduction in its gross bad loan pile and reported a record quarterly profit for the March quarter.
However, there are several red flags that investors risk missing in this rally. The jury is still not out on asset quality, despite early signs that the health of the loan book has turned for the better for public sector lenders. Ltd pointed out. This may apply to most PSBs because of their large presence in these areas. A look at the special mention accounts SMAs of big lenders indicated that new stress is building up.
Notwithstanding the handholding during the first wave of the pandemic, small businesses are finding themselves challenged yet again on revenues and margins. This puts pressure on their repayment capacity. In their disclosures during a qualified institutional placement of shares, Bank of Baroda and Punjab National Bank also showed a considerable build-up of these accounts for the December quarter.
Before the pandemic, loan growth had dropped to 6. In FY21, loan growth was a mere 5. Public sector lenders have seen a sharper drop in growth.
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