In line with negative cues across global markets, the BSE Sensex today opened below the dotted line, continuing with the downtrend seen in yesterday's session. However, towards the afternoon session, there seemed to be a bit of a recovery on account of bargain hunting. However, the optimism soon faded and the Sensex once again moved lower in the final hours of trade. The Indian stock market finally closed the day, and the week 5% in the negative. While BSE-Sensex recorded a decline of around 199 points, losses on the NSE-Nifty came in at around 56 points (1.1%). The BSE Mid Cap and BSE Small Cap indices were also not spared and closed lower by around 0.8% and 1.1% respectively. Around 2 stocks declined for every one that advanced on the Sensex today. FMCG stocks were the only sectoral gainers while metal and capital goods stocks felt the heat.
Other Asian indices closed in the negative today on sustained weakness seen in global economies whereas Europe is also trading in the red currently. The rupee was trading at Rs 49.53 to the dollar at the time of writing.
Yes Bank, and Malayan Banking Berhad (Maybank), Malaysia's top bank and largest financial services group recently entered into an agreement to collaborate on cross-border investment banking advisory, corporate banking, trade finance, remittances and other allied services. This partnership will help increase trade and investment flows in the Indo-South East Asia corridor. This will help them service their clients better and increase the partnership between the two countries.
Indian Oil Corporation, India's biggest oil refiner, plans to raise its borrowing limit by Rs 300 bn to Rs 1.1 trillion. The company believes that its borrowings may increase sharply on account of high under-recoveries on sales of diesel, kerosene and LPG. Its current borrowing limit is Rs 800 bn, and on account of continued losses on account of selling its products below the market rate, it fears that it may exceed this limit. Its loss is compensated through a mix of discounts on crude oil from ONGC and Oil India Ltd and through compensation from the government. However, this government subsidy does not always come in time, and hence the company has to borrow from the market. Global crude prices have also been extremely volatile on account of economic uncertainty. Even after the revision in prices of diesel, kerosene and LPG in June 2011, IOC still incurs a revenue loss of Rs 6.05/litre of diesel and Rs 23.26/litre of kerosene and Rs 267 on a domestic LPG cylinder.