Wednesday March 14, 10:30 AM
Down and under... |
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By Equitymaster.com
The Indian markets have been subjected to a severe bout of profit booking in early trades today on worries of a global slowdown. Not even a single stock on the Nifty is trading in the green. Banking, cement and software stocks are facing the brunt of selling pressure. Even the CNX Midcap index is down 2%, indicating pessimism among investors.
The BSE Sensex is trading at 12,624 (down 358 points) while the NSE Nifty is trading at 3,665 (down 105 points). The rupee is trading at 44.10 to the dollar.
According to a leading business daily, UTI Bank (UTBK.BO, news) expects its loan portfolio to grow by 30% to 40% in FY08. After strengthening its core banking business, the bank will enter insurance and other financial services in a couple of years. It is also on an expansion drive overseas and will concentrate on the UK, Africa and Central Asia going forward. It is also planning to raise US$ 554 m during the year. This amount is part of the US$ 1 bn medium-term note (MTN) programme of the bank launched in the current financial year. It has already raised US$ 446 m under the MTN. The bank will utilise the proceeds to fund overseas expansion. The bank has recorded 60% growth in loans till December 2006. The management expects the credit growth in FY08 to be robust despite a slowdown expected in the banking industry. The plans of the bank are well in line with its long-term strategy of being a strong player in the banking arena. The, stock along with its peers ICICI Bank (ICBK.BO, news) and HDFC Bank (HDBK.BO, news) , is trading 4% lower.
In the US markets, worries about sub prime lending, the economy and the weak dollar led to the markets ending in the red yesterday. The Dow Jones, the S&P and the tech laden NASDAQ, all ended 2.5% lower. Oil prices settled lower at US$ 57.9 per barrel. As regards global markets, while the European markets ended into the red, the Asian markets are also trading lower currently.
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