Sensex dips 378 pts, Dena Bank down 20 per centhttps://indianexpress.com/article/business/market/sensex-dips-378-pts-dena-bank-down-20-per-cent-5522570/

Sensex dips 378 pts, Dena Bank down 20 per cent

The sentiment was also subdued after reports said the government was contemplating direct transfers worth Rs 4,000 an acre per season for farmers, among other incentives, which will likely have a substantial financial implication on the exchequer.

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The 30-share BSE Sensex fell by 377.81 points, or 1.05 per cent, to end at 35,513.71. The broader NSE Nifty plunged 120.25 points, or 1.11 per cent, to 10,672.25.

India’s benchmark indices on Thursday plunged for the second straight session as investors fretted over the fiscal impact of the government’s proposed farm package. The 30-share BSE Sensex fell by 377.81 points, or 1.05 per cent, to end at 35,513.71. The broader NSE Nifty plunged 120.25 points, or 1.11 per cent, to 10,672.25.

The sentiment was also subdued after reports said the government was contemplating direct transfers worth Rs 4,000 an acre per season for farmers, among other incentives, which will likely have a substantial financial implication on the exchequer.

Shares of Dena Bank and Vijaya Bank fell after the Cabinet approved their amalgamation with Bank of Baroda. The scrip of Dena Bank plunged 19.78 per cent to settle at Rs 14.40. Vijaya Bank tanked 6.76 per cent to end at Rs 47.60.Bank of Baroda closed unchanged at Rs 119.40. As per January 2 closing price and based on announced swap ratios, Vijaya Bank’s 1,000 shares value stands at Rs 51,050 against which its shareholders have been awarded Bank of Baroda’s shares worth Rs 47,939, translating into a loss of 6 per cent. Likewise, in the case of Dena Bank, 1,000 shares of the bank, value stands at Rs 17,900, and on swap, they receive BoB’s shares worth Rs 13,118, translating into a loss of 27 per cent,” Elara Securities Research said in a report. The Cabinet on Wednesday approved amalgamation of Dena Bank and Vijaya Bank with Bank of Baroda (BoB). The boards of the three banks have also cleared the share-swap ratio for the proposed amalgamation. As per the Scheme of Amalgamation announced by BoB, shareholders of Vijaya Bank would get 402 equity shares of BoB for every 1,000 shares held in the bank. In the case of Dena Bank, the shareholders would get 110 shares of BoB for every 1,000 shares owned in the bank. Jet Airways, which was downgraded to the default grade by ICRA after it delayed loan repayment, fell by another 6.41 per cent to Rs 246.85.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Markets continued to trade on a negative bias on account of added worries over a slowing world economy and rising domestic fiscal deficit.”