Nifty Energy got a Boost from Possible BPCL Stake Sale, but why NBFCs got a hit

Nifty Energy got a Boost from Possible BPCL Stake Sale, but why NBFCs got a hit

Investing.com  | Sep 13, 2019 18:32

Today was an interesting day in the Indian markets with several positive news boosting Nifty index by 0.85%. Global factors and domestic factors were strong enough for a Nifty gap-up opening today.

The thaw in US-China trade war boosted the sentiments across the world with US President Donald Trump saying that he preferred a comprehensive trade deal with China. On the domestic front, a better than expected Industrial production growth of 4.3% in July on a year-over-year basis cheered investors. The strong IIP numbers along with continued benign inflation of 3.21% in August makes it almost certain that the RBI will cut interest rates yet again in its meeting on September 30th.

Another positive news that drove the Nifty Energy index up by 2.24% in today’s trade was the possible stake sale of Bharat Petroleum Corp. Ltd. (NS:BPCL) by the government to a global oil company. The government owns about 53% stake in BPCL, and it is looking to sell the controlling stake to raise money to fund welfare and infrastructure projects. The slowing economic growth has meant that the government is finding it difficult to meet its revenue targets, and this stake sale will help it achieve this goal. BPCL stock was jumped by 6.3% while Indian Oil (NS:IOC) was up 4.6% in today’s trade.

However, among the series of good news today, there was bad news of Altico defaulting on the interest payments. Altico is a lender to real estate companies, and the interest payment default shows that the real estate sector’s struggles in India continue. Altico's default suggest that all is still not well with the NBFCs sector despite improving financials. NBFCs stocks struggled in today’s trade, with L&T Finance Holdings Ltd (NS:LTFH) and Edelweiss Financial (NS:EDEL) declining by 2.9% and 2.2% respectively in a favorable market.

Investing.com

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
easy money
easy money

Buy drreddy on Monday 16/9Buy 2740SL 2717TI 2752T2. 2784T3. 2799  ... (Read More)

Sep 14, 2019 04:29 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+