Sensex Ends Day In Red; Metal Stocks Lose The Most

After opening the day flat, Share markets in India witnessed selling pressure and are ended the day in red. At the closing bell, the BSE Sensex closed lower by 281 points and the NSE Nifty finished down by 97 points. The S&P BSE Mid Cap finished down by 0.1% while S&P BSE Small Cap finished up by 0.1%. Gains were largely seen in consumer durable stocks, capital good stocks and bank stocks.

Asian stock markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.4%, while the Nikkei 225 & the Hang Seng fell 1.32% and 0.1% respectively. European markets are mostly lower today with shares in France off the most. The CAC 40 is down 0.3% while Germany’s DAX is off 0.2% and London’s FTSE 100 is higher by 0.1%.

Rupee was trading at Rs 65.01 against the US$ in the afternoon session. Oil prices were trading at US$ 57.30 at the time of writing.

In news from stocks in the banking sector. Axis Bank share price ended the day on a weak note after hitting a fresh 52-week high in the day as the bank unveiled capital raising plans.

The private lender’s board of directors on Friday agreed raising of Rs 116 billion through the issue of preferential equity shares and convertible warrants to Bain Capital, Life Insurance Corporation of India (LIC) and others.

Axis Bank said that its board has given its approval for a proposal to raise equity capital from the market at a time when the spotlight is on worsening asset quality. The board approved plans to raise capital worth Rs 116.2 billion by issue of equity of equity linked securities on a preferential basis, by the way of a 9% stake sale to Bain Capital and other investors including LIC.

Last week, various media reports highlighted the bank was looking to raise as much as US$ 1 billion from a group of investors after an increase in bad loans. The reports have named U.S. group Bain Capital, Singapore state investor GIC and Canada Pension Plan Investment Board among potential investors.