Moneycontrol Bureau12:50 pm Bank woes: The struggle on bad loans that soared to menacing proportion in 2016 would continue in the new year as many more industrial units, especially in the MSME sector, may turn defaulters due to the cash shortage following demonetisation.
The withdrawal of high-value cash will also hit the bottom line of banks that have been busy exchanging old notes and issuing valid currency at the cost of credit growth and loan recovery.
The banking sector came almost to a standstill for nearly two months after the surprise announcement by Prime Minister Narendra Modi on November 8 scrapping Rs 500 and 1,000 notes.
Out of the 27 public sector banks, 14 posted losses, aggregating Rs 34,142 crore, last fiscal and the trend has not shown any improvement in the first half of 2016-17.
12:30 pm Market outlook: CNBC-TV18 Dilip Bhat, Joint MD, Prabhudas Lilladher expects some kind of a pre-Budge rally. This rally will largely pin its hopes on PM assuaging sentiments in terms of taxes. “I think a talk on those lines will help sentiments." The FII flows were negative for the quarter ending December, and it has taken a toll on the Nifty. Whether this will turn positive for the new year or not will have to be watched, he said. From the Rs 15 lakh crore money that has come back into the bakning usystem, some of it will percolate into the market. And it will provide a tailwind.Don't miss: Buy, sell, hold: 6 stocks to watch out on 2016 last trading day
The market remains in full spirit for gains as investors trade for last time in 2016. The Sensex is up 263.31 points or 1 percent at 26629.46 and the Nifty is up 74.90 points or 0.9 percent at 8178.50. About 1691 shares have advanced, 570 shares declined, and 145 shares are unchanged.
ITC, ICICI Bank, Adani Ports, Sun Pharma and SBI are top gainers while Bharti Airtel, Tata Motors and Tata Steel are losers in the Sensex. Midcap index is also up.
Crude oil, rubber and metals were set to end 2016 on Friday with strong gains, bouncing back from several years of losses on the back of output cuts and expectations of firmer demand. Benchmark zinc, steel rebar and rubber have all rallied around 60 percent this year, while Brent crude has climbed more than 50 percent.
Crude oil output cuts announced by OPEC, stronger-than-expected demand in top commodities market China and expectations of higher infrastructure spending in the United States after the victory of Republican candidate Donald Trump all boosted prices.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
