Sensex Closes on a Negative Note; HDFC Finishes Down by 1.6%

Indian share markets began the trading week on a negative note and finished in red for a fourth straight session amid weak global markets.  

At the closing bell, the BSE Sensex stood lower by 115 points, while the NSE Nifty finished down by 35 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished down by 0.5% respectively. Losses were largely seen in pharma and consumer durable stocks.   

Asian markets finished broadly lower today as China’s bond market witnessed a sell-off last week amid tightening of short-term credit by China's central bank. European markets are mixed.

The rupee was trading at 67.80 against the US$ in the afternoon session. Oil prices were trading at US$ 51.28 at the time of writing.

According to a leading financial daily, ONGC’s overseas arm - ONGC Videsh (OVL) has raised US$1 billion through a US dollar bonds issue to finance its acquisition of 15% stake in Russia’s second biggest oil field Vankor. The proceeds of the issue would go to refinance a US$1.2 billion bridge loan the company had taken from a group of foreign banks to make payments for the US$1.268 billion acquisition.

ONGC’s share price finished the trading day down by 0.1% on the BSE.

Moving on to news from stocks in investment and finance sector.  According to an article in The Financial Express, the Reserve Bank of India (RBI) has granted mortgage major Housing Development Finance Corporation (HDFC) a permission to raise another Rs 30 billion through masala bonds. The masala bonds are rupee denominated bonds where the investor takes the currency fluctuation risk while the borrowers don't bear the risk. Such bonds are ways to raise capital in overseas in rupees rather than in local currency.

HDFC’s share price ended the day down by 1.6%.