India to Pump Capital in Struggling Banks, Sensex Falls 1.8%
6:00 PM Mumbai – Central government is planning to pump $1.2 billion in state controlled banks and may need to do more if monsoon arrival is delayed. BEML won an order from Delhi Metro Rail Corporation. Aurobindo Pharma plans to invest ₹900 crore in drug development projects.
Market indexes in Mumbai fell sharply on the worries that the delayed monsoon may impact the economic growth in the current fiscal year and banks led the decliners.
Banks fell sharply after Deputy Governor Reserve Bank of India S.S. Mundra said the government’s plan to inject $1.2 billion or ₹7,000 crore in the banking sector may not be enough in recapitalizing state-controlled banks.
BSE Bankex index dropped 1.4%. ICICI Bank fell 1.3%, Punjab National Bank 2%, State Bank of India 2.2%, Yes Bank 1.9% and HDFC Bank 0.5%.
Rupee slipped 15 paisa to 63.98 against one U.S. dollar.
The Sensex Index declined 469.52 or 1.8% to close at 26,370.98. The CNX Nifty decreased 159.10 or 1.9% to 7,965.35.
Gainers & Losers
Adani Ports and Special Economic Zone Limited slipped 2.6% to ₹304.85 after the port services provider received an approval to develop Vizhinjam port in Kerala.
The Kerala State Government approved the ₹6,500 crore lone bid from Adani to develop the port.
Aurobindo Pharma Ltd declined 2.7% to ₹1,266.40 after the natural and ayurvedic medicine maker plans to invest ₹900 crore in various activities including capacity expansion, clinical trials and product filings in this year.
AstraZeneca Pharma India Limited surged 20% to ₹1,147.70 after the drug maker launched Forxiga, a breakthrough treatment for Type 2 diabetes mellitus.
Anik Industries Limited jumped 2.1% to ₹24.75 after the milk products maker’s board plans to restructure its dairy businesses.
BEML Limited gained 0.6% to ₹1,227.50 after the rail coaches and mining equipment maker received an order worth ₹645 crore from Delhi Metro Rail Corporation.
Cambridge Technology Enterprises Limited edged up 0.2% to ₹24 after the software developer formed a partnership with the U.S.-based Apica Systems.
Engineers India Limited jumped 2.6% to ₹203.20 after the construction services provider secured orders worth ₹150 crore in the Middle East.
Electrosteel Steels Limited climbed 6.6% to ₹4.02 after the steel maker received indicative term sheets for investment in the company from Tata Group as well as from a financial investor based in Singapore.
Jugnoo, the online hyper local marketplace plans to raise $5 million from Paytm and Snow Leopard Technology Ventures.
National Buildings Construction Corporation Ltd rose 0.8% to ₹745.80 after the infrastructure developer signed an agreement with a Malaysian firm for exploring areas for re-development around New Delhi Railway Station.
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc