Interest-rate sensitive bank, realty and auto stocks were trading on a mixed note today as the Reserve Bank left the key interest rate unchanged. (Reuters)

Interest-rate sensitive bank, realty and auto stocks were trading on a mixed note today as the Reserve Bank left the key interest rate unchanged.

Shares of IndusInd Bank were trading 0.91 per cent up, ICICI Bank gained 0.73 per cent, HDFC Bank rose by 0.47 per cent, Punjab National Bank climbed 0.45 per cent and SBI went up by 0.30 per cent, respectively on BSE.

On the contrary, Axis Bank, Bank of Baroda and Yes Bank shares lost as much as 1 per cent.

The BSE bank index was quoting 0.22 per cent higher at 19,960.19.

“Overall, the RBI policy was in-line with expectations. There were no expectations of any action in the policy rates and the RBI has acted in-line,” said Jimeet Modi, CEO, SAMCO Securities.

Among realty scrips, Unitech advanced by 2.26 per cent, DLF was up 1.74 per cent and Mahindra Lifespace Developers rose by 1.24 per cent.

On the other hand, Indiabulls Real Estate slipped 1.33 per cent, Sobha Ltd was down 1.26 per cent and Godrej Properties lost 1.07 per cent.

The BSE realty index was trading with a gain of 0.36 per cent at 1,348.71.

In the auto space, Tata Motors, Ashok Leyland, Hero MotoCorp, Maruti Suzuki and Bajaj Auto were ruling in the negative zone.

The auto index was trading 0.33 per cent down at 18,901.20.

In the broader market, the benchmark BSE Sensex was trading flat at 26,184.89, up 39.22 points, at 1240 hours.

Meanwhile, RBI Governor Raghuram Rajan today left the key interest rate unchanged, as widely expected, in view of retail inflation rising to 4-month high and likelihood of capital outflows on a possible US Fed rate hike later this month.

The Reserve Bank, which has lowered interest rate by 125 basis points or 1.25 per cent this year, including a larger- than-expected 50 basis points cut at the last monetary policy review in late September, left the benchmark lending rate (repo) at 6.75 per cent.

The cash reserve ratio, or the amount of deposits banks park with RBI, has also been left unchanged at 4 per cent.

The wheel will be supplied from SSWL’s Chennai plant in India with the first supplies planned to start from February 2016. (Photo: Reuters)

Steel Strips Wheels (SSWL) share price gained as much as 6.83 per cent on Tuesday after the company informed stock exchanges that it has secured an export order from Jaguar Land Rover (JLR).

In a BSE filing, the company said, “This order is one of SSWL’s biggest export order. The company will supply to JLR’s UK and one more European facility.”

At 12.45 pm, the share price of SSWL was trading 4.93 per cent up at Rs 395.80. The scrip opened at Rs 383.10 and had touched a high and low of Rs 403 and Rs 381, respectively, in trade so far. Sensex was up 41.53 points, or 0.16 per cent, at 26,187.20.

The wheel will be supplied from SSWL’s Chennai plant in India with the first supplies planned to start from February 2016.

For the latest quarter ended September 30, 2015, Steel Strips Wheels posted net profit of Rs 15.03 crore, up 28.27 per cent, against Rs 11.72 crore in the corresponding quarter a year ago.

Steel Strips Wheels is engaged in the manufacturing of single piece steel wheel rims in the range of 10 to 30 inches dia for scooters, passenger cars, utility vehicles and tractors.

Diagnostic chain Dr Lal PathLabs today fixed price band at Rs 540-550 for its initial public offer (IPO) which will hit the capital market on December 8. (Reuters)

Diagnostic chain Dr Lal PathLabs today fixed price band at Rs 540-550 for its initial public offer (IPO) which will hit the capital market on December 8.

The IPO, which would close on December 10, would be made through an offer of sale of up to 1.16 crore equity shares representing 14.04 per cent stake in the company by promoters and other existing shareholders.

The company has fixed the price band from Rs 540 to Rs 550 per equity share. At the lower price band, the company would raise Rs 626 crore and would garner Rs 638 crore at the upper stock price.

Those participating in the share sale include Dr Lal PathLabs promoter and CMD Arvind Lal, Vandana Lal as well as Wagner Ltd, Westbridge Crossover Fund and Sanjeevini Investment Holdings Ltd.

All proceeds from the offer would go to promoters and investors. The company said it may offer a discount of up to Rs 15 on the offer price.

“The company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders,” Dr Lal PathLabs CEO Om Manchanda told reporters here.

According to Manchanda, with Rs 235 crore cash on books, the company is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry.

The company plans to expand its presence in central and eastern region of the country and aims to come up with with national reference laboratories in Kolkata and Lucknow similar to one in Delhi, Manchanda said.

As on September 30, 2015, the firm had 171 clinical laboratories, 1,554 patient service centres and over 7,000 pick up points.

Its revenue rose 20 per cent to Rs 662.5 crore, while the profits rose 30.7 per cent to nearly Rs 95 crore in the last fiscal from fiscal 2013.

In the six months ended September 30, 2015, the company reported a revenue of Rs 407 crore.

Kotak Mahindra Capital and Citigroup Global Markets India are the book running lead managers for the IPO.

MMTC stocks will be in focus as the state-owned trading firm said it will invest about Rs 6,000 crore to double the capacity of Neelachal Ispat Nigam (NINL) in the next four years. (Photo: Reuters)

The BSE Sensex and NSE Nifty may open in positive terrain on Tuesday after India’s economy grew by 7.4 per cent in July-September, outpacing China to become the fastest growing major economy.

Asian shares also edged up on Tuesday, as investors awaited Chinese factory surveys later in the session amid persistent concerns about cooling growth in the world’s second-biggest economy.

Below are the stocks that are likely in focus today:

MMTC: State-owned trading firm MMTC said it will invest about Rs 6,000 crore to double the capacity of Neelachal Ispat Nigam (NINL) in the next four years.

Rate sensitive stocks: Stocks of auto, realty and banking companies will be in focus as RBI will hold its monetary policy review on Tuesday. It is widely expected that RBI may maintain a status quo on key inaterst rates.

United Breweries Ltd: Promoter firm McDowell Holdings’ pledged stake in United Breweries Ltd (UBL) has come down to 3.02 per cent, after lender Yes Bank invoked the pledge on part of the shares encumbered with it.

Oil marketing companies: Stocks of Oil marketing companies will be in focus as the price of petrol was on Monday cut by 58 paise per litre and that of diesel by 25 paise, reversing the trend of increasing rates, on global cues.

Torrent Power: Torrent Power Ltd has sought shareholders’ approval for allowing its lenders to convert their loans into equity by passing a special resolution.

Natco: The drug firm on Monday said it has received shareholders’ approval for amalgamation of its subsidiary Natco Organics into the company.

Allahabad Bank: The bank on Monday said it may partially or completely divest its stake in the insurance joint venture Universal Sompo General Insurance (USGI).

Tata Global Beverages: The company , which has entered the branded instant coffee business under Tata Coffee Grand, will source beans from its plantations in South India and use the company’s tea network to market the product.

Manappuram Finance: The company on Monday said it will raise Rs 2,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.

IVRCL:  Amid speculation over demerger of its property development and EPC business, debt-ridden company on Monday said the senior lenders of the company will meet this week under the Corporate Debt Restructuring (CDR) mechanism.

Pidilite Industries: The adhesives and industrial chemicals maker has acquired Chemifix trademark and other brands associated with PVAC adhesives business from Sri Lanka-based CIC Holdings Plc.

Spicejet:  SpiceJet, which is firming up its ambitious fleet expansion plans, is evaluating possible partnership with Gulf’s low cost airline FlyDubai.

Sanofi India: Sanofi Pasteur, the vaccines division of Sanofi, has said that it is launching ShanIPV, an injectable inactivated polio vaccine (IPV) in the country.

Commercial paper (CP) outstanding in the system has touched a record high of R3.44 lakh crore, data from the Reserve Bank of India (RBI) show. CPs are money market instruments through which companies raise short-term funds. RBI database provides figures till June 2011— a time when CP outstanding were in the range of R1.23 lakh crore.

Dwijendra Srivastava, chief investment officer-debt at Sundaram Asset Management Company, says that a drop in the issuances of certificate of deposits (CDs) have led to a good demand for CPs from mutual funds. CDs are term money market instruments through which banks raise short-term funds.

“Mutual funds have a significant demand for short-term papers. Considering that CD issuances have dropped considerably over the last few quarters, the demand for CP has gone up, which in turn, has also helped trim the borrowing costs for the corporate borrowers. This is why we are seeing such a strong growth in CP issuances,” Srivastava said.

The Reserve Bank of India data show that in the fortnight ended November 15, companies issued CPs worth Rs70,150 crore. This was the third time that fortnightly CP issuances crossed the Rs70,000-crore level after having hit this mark in June and October this year.

Ajay Manglunia, executive vice-president-debt at Edelweiss Securities, says the attractive yields also contributed to the increase in CP issuances.

“The minimum base rate in the banking system is still way above the yields prevalent in the CP market. As a result, companies prefer to raise short-term funds through this segment,” he added.

The lowest base rate in the banking system currently stands at 9.30%.

However, companies can issue two to three months of CPs at yields close to 7.70% — marking a difference of 160 basis points.