Monday February 4, 12:30 PM
Banking in focus... |
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By Equitymaster.com
The markets are drifting lower on increasing selling pressure in software stocks. Banking stocks are in limelight. Private sector banking stocks are attracting demand in expectation of strategic stake sale by these banks. Volumes are also healthy on these counters.
The BSE Sensex is at 3,319 (down 15 points) and the NSE Nifty is at 1,076 (down 6 points). The rupee is trading at Rs 48.55 per US dollar.
Banking stocks are in demand. Old private sector banks, Federal Bank (FED.BO, news) and Vysya Bank (VYSA.BO, news) have flared up sharply. ING group's Bank Brussels Lambert (BBL), had indicated to increase its stake in Vysya Bank subject to the Reserve Bank of India's (RBI) approval. BBL also aims to acquire management control of the bank. BBL currently holds 20% stake in the bank. ING also has a separate joint venture in the insurance sector with Vysya Bank, in which it holds a 26% stake, while Vysya Bank holds 49%. Vysya Bank's stock is up 18%.
ICICI (ICIC.BO, news) is down by 9% on BSE. ICICI declared an interim dividend of Rs 5.5 per share on January 24. The scrip is now trading at its ex-dividend price and it is in no delivery period on the BSE.
Media stocks are up selectively. Zee is back in action, up by 5%. Balaji and Sri Adhikari (SBTV.BO, news) Bros. are the other gainers.
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