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Wednesday,23-June-2021

Business

Market opens in green, Sensex rises 400 points

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Bombay-Stock-Exchange

The key Indian equity indices opened on a positive note on Wednesday with the BSE Sensex rising over 400 points during the initial trade.

It surged as much as 404 points to touch an intraday high of 51,430.43 points.

Healthy buying was witnessed in auto and IT stocks.

At 9.28 a.m., Sensex was trading at 51,321.07, higher by 295.59 points or 0.58 per cent from its previous close of 51,025.48.

It opened at 51,404.68 and has so far touched an intraday low of 51,292.93 points.

The Nifty50 on the National Stock Exchange was trading at 15,193.30, higher by 94.90 points or 0.63 per cent from its previous close.

The top gainers on the Sensex were IndusInd Bank, Bajaj Finance and Mahindra & Mahindra while the only losers were ONGC, Bharti Airtel and Kotak Mahindra Bank.

Business

SBI may need to raise only up to Rs 9K cr in capital in FY22

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SBI-building

Country’s largest bank State Bank of India may raise only up to Rs 9,000 crore in capital through additional tier I bonds (AT1 bonds) in current financial year (FY22) and could consider additional raising plan only next year to further enhance it’s capital adequacy profile.

Official sources said that the bank is sitting with a sound capital adequacy ratio (CAR) of 13.74 per cent and expects loan growth to touch close to 9 per cent in FY22. This would prevent the bank from raising full quanta of Rs 14,000 crore Tier-I capital raising plan that its board approved early this year.

The SBI Central Board on Monday approved plan to raise up to Rs 14,000 crore in capital through additional tier I bonds (AT1 bonds) by way of issuance of Basel lll compliant debt instrument in rupee and/or US dollar in FY 22.

Sources said that most of the capital raised by the SBI would be used to finance the maturity of AT1 and Tier-II bond coming up this year. The maturity amount works to about Rs 9,000 crore that could be financed through the capital raised by the bank this year.

An SBI executive said that permission for Rs 14,000 crore capital raising plan is an enabling provision and the actual issuance will depend on the market conditions and credit growth in the system.

Sources said that the centre has approved the capital raise plan of the bank, but it could not be verified with the officials. Concurrence of the centre is important as it is promoter of the bank with 57.63 per cent stake as of March 31, 2021.

SBI’s Common Equity Tier I (CETI) was 10.02 per cent in March 2021 higher than regulatory requirement of 7.97 per cent. Its AT-1 level was 1.42 per cent in March 2021, up from 1.23 per cent in March 2020.

With CETI higher than regulatory requirements, SBI is not hard pressed to raise capital and would approach the board and shareholders for requisite approvals as and when need arises.

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Business

Equity indices shed gains post gap-up opening

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Bombay-Stock-Exchange

The key Indian equity indices pared their initial gains after a gap-up opening to trade on a flat-to-negative note on Wednesday morning.

Selling pressure was witnessed in oil and gas, power and banking stocks.

Around 10.15 a.m., Sensex was trading at 52,555.34, lower by 33.37 points or 0.06 per cent from its previous close of 52,588.71.

It opened at 52,912.35 and has so far touched an intra-day high of 52,912.35 and a low of 52,534.70 points.

The Nifty50 on the National Stock Exchange was trading at 15,761.25, lower by 11.50 points or 0.07 per cent from its previous close.

Manish Hathiramani, technical analyst with Deen Dayal Investments said: “The Nifty resisted around the 15,900 levels yesterday so we still have to get past that for the markets to start moving up. If we can get past this level with ease, we should be targeting 16,100.”

“A good support lies at 15,400 and as long as that does not break on a closing basis, dips can be utilised to enter long positions. If we fail to cross 15,900, the markets might become range bound in 15,400-15,900.”

The top gainers on the Sensex so far were Maruti Suzuki India, Bajaj Finance and Sun Pharmaceutical Industries, while Tech Mahindra, Kotak Mahindra and UltraTech Cement were the major losers so far.

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Business

Microsoft 2nd US firm to pass $2 trillion market cap

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Microsoft

Tech giant Microsoft reached a $2 trillion market capitalisation in trading, joining a small group of global companies that have crossed that threshold — including Apple.

Apple reached its own $2 trillion market cap back in August 2020.

Despite hitting $2 trillion in intraday trading on Tuesday, Microsoft’s valuation was about $300 million shy of the high-water mark by the time markets closed, AppleInsider reported.

Like Apple, Microsoft has benefitted from the work-from-home and remote education boom created as a result of the Covid-19 pandemic. Since March 2020, when lockdowns began, Microsoft’s stock has surged 64 per cent.

Back in April, the company reported that its sales had risen 19 per cent year-over-year to $41.7 billion in the first quarter of 2020.

As of writing, Apple’s market valuation standards at $2.24 trillion, the report said.

Some analysts believe the Cupertino tech giant could become the first to hit a $3 trillion market cap within a few years.

Along with the technology giants, oil company Saudi Aramco also once surpassed the $2 trillion mark. On Tuesday, its market valuation was $1.88 trillion.

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