After opening the day in green, share markets in India witnessed choppy trades and are currently trading marginally below the dotted line. Sectoral indices are trading on a mixed note with stocks in the healthcare sector and stocks in the IT sector leading the gains. Stocks in the metals sector are trading in red.
The BSE Sensex is trading down by 15 points (down 0.1%), and the NSE Nifty is trading down by 17 points (down 0.2%). Meanwhile, the BSE Mid Cap index is trading up by 0.1%, while the BSE Small Cap index is trading flat. The rupee is trading at 64.99 to the US$.
In news from stocks in the banking sector. Axis Bank share price is among the top gainers on the bourses and hit a 52-week high today.
The surge came in after the bank said that its board will meet this week to consider a proposal to raise equity capital from the market at a time when the spotlight is on worsening asset quality.
India’s third largest private lender’s board plans to meet on 10 November to consider the fundraising proposal. Any fundraising approved by its board would be put to shareholders for a vote.
Last week, various media reports highlighted the bank was looking to raise as much as US$ 1 billion from a group of investors after an increase in bad loans. The reports have named U.S. group Bain Capital, Singapore state investor GIC and Canada Pension Plan Investment Board among potential investors.
Axis Bank had reported a 36% increase in net profit at Rs. 4.3 billion in the second quarter ended September despite a rise in bad loans. Axis Bank’s gross non-performing assets rose to 5.9% in the quarter gone by, from 4.2% a year ago.
In the previous quarter too, the bank witnessed deteriorating asset quality. Axis Bank reported a gross non-performing asset (GNPA) ratio of 5%, a rise of 249 basis points year on year.
Asset Quality Deteriorates Further for Banks
