Asian stocks are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 0.70% while the Hang Seng is down 0.64%. The Nikkei 225 is trading down by 0.89%. US stocks closed sharply lower hit by uncertainty surrounding trade policy and weakness in shares of technology and internet companies.
Back home, India share markets opened the day on a flat note. The BSE Sensex is trading higher by 12 points while the NSE Nifty is trading higher by 2 points. The BSE Mid Cap index and BSE Small Cap index both opened the day up by 0.1%.
Sectoral indices have opened the day on a mixed note with PSU stocks and bank stocks witnessing buying interest. While, metal stocks and healthcare stocks have opened the day in red. The rupee is trading at 65.04 to the US$.
SBI share price surged 2.4% in the opening trade after the bank increased its base rate (BR) and benchmark prime lending rate (BPLR) by 5 bps with effect from 1 April 2018. While its base rate has been increased from 8.65% to 8.70% per annum, its BPLR has been increased from 13.40% to 13.45% per annum.
Reportedly, creditors will get 12.3% equity in Bhushan Steel. As of 1 February this year Bhushan Steel had a total debt of Rs 571.6 billion.In the news from the steel sector. As per an article in a leading financial daily, Tata Steel Ltd. has offered Rs 352 billion in cash, and conversion of the remaining debt of about Rs 270 billion into equity, to take over Bhushan Steel Ltd.
The company has a financial debt of Rs 560.5 billion and operational debt of Rs 10.5 billion. Further, Bhushan Steel has a liquidation value of Rs 145.4 billion.
Tata has also offered Rs 12 billion to its operational creditors depending on the criticality to run the company.
Speaking of indebted companies, we had a look at the debt to equity (D/E) ratio of the 30 companies that form part of the BSE Sensex.