Sensex down 48 points on heavy selling
Mumbai: The much-awaited correction in the stock prices was seen on Tuesday as there was across the board selling, pushing down the benchmark indices. The statement from the finance minister Jaswant Singh, on SEBI's probe into bank stocks' volatility also affected the market sentiment, with most of the public sector bank stocks closing sharply lower from Monday's closing. The market moved in a narrow range in the first couple of hours of trading. However, there was heavy selling in the last 90 minutes of trading from both domestic and foreign institutional investors, pulling down the 30-share BSE Sensex by 47.79 points (1.43 per cent). On the NSE, the much broader 50-share S&P CXN Nifty closed 15.30 points (1.36 per cent) lower at 1,037.80.
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Tie-up talk lifts Bank of Punjab
Mumbai: On a day when almost all banking stocks lost ground on the bourses, the stock of Bank of Punjab climbed a few notches on the back of consistent buying. According to dealers, the counter has been buzzing with rumours that there is likely to be a `big corporate development' at the bank and most are putting their money on a strategic alliance with a foreign bank. Bank of Punjab has reportedly been on the look out for a suitable match for sometime now and this time the noise around potential contenders seem to indicate a Canadian twist. The Bank's share price gained 3.63 per cent on the BSE to close at Rs 20 with 10.04 lakh shares being traded. On the NSE, the stock ended at Rs 19.85, up 2.85 per cent with 32.35 lakh shares being traded.
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PSU bank stocks lose most in panic selling
Kolkata: Public sector banks witnessed panic selling on Tuesday following confusion over the Central Government's stance on the recent volatility in these counters. The stocks of Punjab National Bank, Canara Bank, State Bank of India, Andhra Bank, Bank of Baroda, Indian Overseas Bank and Oriental Bank of Commerce came under substantial selling pressure. As a result, the BSE-PSU index (dominated by PSU banks) fell 58.08 points or 2.67 per cent to 2116.70 points. Domestic institutions such as UTI and LIC reportedly sold PSU bank shares. Private mutual funds and some banks also reportedly reduced their portfolio. It was the third time in the last fortnight that the PSU bank stocks reacted sharply to North Block statements. The market players made a negative interpretation of the finance minister's statement on Monday that his ministry had directed the Securities and Exchange Board of India (SEBI) to look into the "abnormal'' price movement in the PSU bank stocks over the past several weeks. The PNB stock closed at Rs 141.80 (Rs 150.70) while the Canara Bank counter finished at Rs 95.80 (Rs 103.30) on the NSE. SBI was down at Rs 354.70 at close against Rs 363.40 in the previous closing. Bank of Baroda finished at Rs 97.95 (Rs 106.70
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Kotak provides online facility for Maruti IPO
New Delhi: Kotakstreet.com the online retail broking arm of Kotak Securities Ltd, has announced that it would provide online application facility for the IPO of Maruti Udyog Ltd. Under this facility, the customer can apply for the shares online on kotakstreet in the ``kotakstreet — IPO Section'' from June 12 to June 19, a Kotak release said. Offered free of cost, the facility provides flexibility for applying, modifying and even cancelling bids online, it said. ``The provision of facility of online applications would create convenience for customers and reduce paperwork and processing time for transactions from the customers' end'', Narayan SA, CEO & executive director, Kotak Securities Ltd, said.
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Tata Steel: Outlook positive, buy July futures
Mumbai: The outlook on Tata stock is positive. The upside price target is Rs 167. The risk is that the stock may decline to Rs 140 and trade at that level at the horizon. Consider buying the July futures on the stock. At the current level, you will be exposed to a 10-point downside on the futures position. There is no cost-effective hedge to protect this downside. The reason is that July puts are yet to be traded. Hedging with June puts will not be gainful because time decay will erode the hedging effectiveness as the puts near expiration. If the stock rises to Rs 167 at the horizon, the July futures will generate Rs 30,600 per contract. If the stock declines to Rs 140, the position will lose Rs 19,800. The payoffs do not include margin requirements. The horizon is 19 days. The market lot is 1,800.
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