Key benchmarks further extended losses and hit fresh intraday low in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 266.18 points or 0.67% at 39,684.28. The Nifty 50 index was down 78 points or 0.65% at 11,887.60.
Benchmarks opened lower and extended losses as the session progressed. Negative cues from other Asian shares put pressure on domestic bourses. Losses in HDFC, ICICI Bank and Kotak Mahindra Bank weighed on the benchmarks indices.
In broader market, the BSE Mid-Cap index was down 0.45%. The BSE Small-Cap index was down 0.23%.
The market breadth, indicating the overall health of the market, was negative. On BSE, 876 shares rose and 1158 shares fell. A total of 119 shares were unchanged.
Mortgage finance major HDFC was down 1.11%% at Rs 2165.95.
Banks stocks witnessed selling pressure. Among private sector banks, Kotak Mahindra Bank (down 1.66%), ICICI Bank (down 1.17%), RBL Bank (down 1.15%), Federal Bank (down 0.74%), HDFC Bank (down 0.41%) and Axis Bank (down 0.39%), declined. While IndusInd Bank was the only gainer in the pack. It inched up 0.15%.
Yes Bank was down 3.16%. The bank informed on Tuesday that Mukesh Sabharwal, non-executive independent director, tendered his resignation on 10 June 2019. He was appointed as an independent director and spent over 7 years with the Bank since 25 April 2012. Sabharwal mentioned that he wants to devote quality time on his academic pursuits and hence has tendered his resignation.
Credit rating agency Moody's Investors Service has placed Yes Bank's foreign currency issuer rating of Ba1 under review for downgrade. Moody's has also placed the bank's long-term foreign and local currency bank deposit ratings of Ba1, foreign currency senior unsecured MTN program rating of (P)Ba1, and Baseline Credit Assessment (BCA) and adjusted BCA of ba2 under review for downgrade. The announcement was made after market hours yesterday, 11 June 2019.
The review for downgrade takes into account Moody's expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank's sizeable exposure to weaker companies in the sector. At the end of March 2019, Yes Bank's exposure to Indian housing finance companies (HFC) and non-bank finance companies (NBFC) represented 6.4% of its total exposure. In addition, Yes Bank had a 7% direct exposure to the commercial and residential real estate sector as of the same date, which is also under pressure, because liquidity conditions have worsened for the real estate sector, just like with the HFCs and NBFCs.
Among PSU banks, Jammu and Kashmir Bank (down 6.80%), Allahabad Bank (down 0.95%), Union Bank (down 0.88%), State Bank of India (down 0.86%), Bank of India (down 0.51%) and Bank of Baroda (down 0.41%), declined. While Syndicate Bank (up 0.72%), Oriental Bank of Commerce (up 0.44%) and Punjab National Bank (up 0.25%), increased.
Central Bank of India was down 0.63% to Rs 23.70. The stock hit an intraday low of Rs 23.60, which is also a 52-week low for the counter.
Reliance Capital and Reliance Home Finance dropped 2.72% and 3.66%, respectively, after Price Waterhouse & Co Chartered Accountants LLP resigned as one of the statutory auditors. Pathak H.D. & Associates took charge as as the sole statutory auditor until conclusion of the AGM for the year ended 31 March 2021.
Varun Beverages was up 0.35% after the company announced that its board will meet on 17 June 2019, to consider issue of bonus shares.
Adani Green Energy was up 2%. Gautam S. Adani & Priti G. Adani (on behalf of Gautam S. Adani Family Trust) and Gautam S. Adani & Rajesh S. Adani (on behalf of S. B. Adani Family Trust) (Sellers) announced Offer for sale up to 67,24,766 and 8,68,59,534 equity shares, respectively (representing up to 0.43% and 5.55% of the paid-up equity share capital of the company, respectively), cumulatively aggregating up to 9,35,84,300 Equity Shares (cumulatively representing 5.98% of the paid-up equity share capital of the company), by way of an offer for sale through the stock exchange mechanism (OFS). The Floor Price for the OFS is Rs 43 per share. The announcement was made after market hours yesterday, 11 June 2019.
Welspun Enterprises was down 0.41%. The company said its wholly-owned subsidiary, Welspun Delhi Meerut Expressway, received Rs. 27.09 crore (excluding GST) as Bonus from National Highways Authority of India (NHAI) for early completion of Delhi-Meerut Expressway Package-1 on June 28, 2019, 332 days ahead of the scheduled completion date.