After opening the day lower, share markets in India traded weak throughout the day and are currently trading in the red. Sectoral indices are trading on a mixed note with stocks in the consumer durables sector and stocks in the metal sector trading in green, while stocks in the FMCG sector and stocks in the pharma sector are leading the losses.
The BSE Sensex is trading down by 107 points (down 0.3%), and the NSE Nifty is trading lower by 30 points (down 0.3%). Meanwhile, the BSE Mid Cap index is trading up by 0.3%, while the BSE Small Cap index is trading up by 0.5%. The rupee is trading at 64.15 to the US$.
In news from the banking & finance sector, HDFC is in focus today. The mortgage lender plans to raise Rs 20 billion by issuing bonds on a private placement basis in a bond issue that opens today.
The issue opens today and will close the same day. HDFC said that it will specifically address the persons who are eligible for the debenture issue and no other person can apply for it.
HDFC plans to use the proceeds of the issue to augment the long-term resources of the corporation. The proceeds of the present issue would be utilised for financing and refinancing the housing finance business requirements of the corporation.
With the current development, HDFC is set to join the ever-growing list of Indian companies opting to raise funds via bond issues.
Increasing Bond Issues by Indian Companies
Indian companies raised a record US$ 46.5 in debt and equity in 2017, the highest amount in the last decade. 64% of these funds are from the financial sector. What is interesting is that the energy and power sector was the second highest in raising funds. Also, amongst the financial sector companies, Power finance corp. Ltd (PFC) which raised US$ 3.5 billion was one of the largest fundraisers.
At the time of writing, HDFC share price was trading up by 0.1%.
