Sensex reclaims 44,000-mark after flat note start, Nifty nears 12,900; Laskhmi Vilas Bank down 20%
New Delhi | Jagran Business Desk: Equity benchmark Sensex on Wednesday reclaimed the 44,000 mark after trading on a flat note in early trade, tracking gains in financial stocks and positive cues from other Asian markets. After touching its lifetime intra-day high of 44,051.66, the 30-share BSE index was trading 55.15 points or 0.13 per cent higher at 44,007.86.
Similarly, the broader Nifty50 on the National Stock Exchange was trading at 12,865.65, lower by 8.55 points or 0.07 per cent from its previous close.
On the other hand, HUL, Titan, Tech Mahindra, Nestle India and TCS were among the losers. In the previous session, BSE Sensex settled 314.73 points or 0.72 per cent higher at its new closing record of 43,952.71. Nifty too finished 93.95 points or 0.74 per cent up at its lifetime peak of 12,874.20.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,905.35 crore on Tuesday, according to provisional exchange data. "Domestic markets look to be flat amid mixed global trends. However, Nifty is poised to touch the psychological 13,000 mark shortly as underlying strength remains intact," said Arjun Yash Mahajan, Head Institutional Business at Reliance Securities.
Shares of Lakshmi Vilas Bank plunged 20 per cent on Wednesday after the Centre placed it under moratorium. Following an application submitted by the Reserve Bank of India (RBI), the Central government on Tuesday brought Lakshmi Vilas Bank under moratorium for 30 days, and restricted withdrawals by depositors to Rs 25,000 each.
The Centre issued the moratorium notification under Section 45 (2) of the Banking Regulation Act, 1949. The moratorium came into effect from 6 p.m. on Tuesday and will be in place up to December 16, 2020. The notification also stays the commencement or continuance of all actions and proceedings against Lakshmi Vilas Bank.Currently, its shares on the BSE are trading at Rs 12.40, lower by Rs 3.10 or 20 per cent from its previous close.
Posted By: Abhinav Gupta