Sensex trades flat amid volatility, Laskhmi Vilas Bank down 20%

Mumbai: The key Indian equity indices traded on a flat note Wednesday morning with weak global cues.

At 9.38 a.m., Sensex was trading at 43,912.94, lower by 39.77 points or 0.09 percent from its previous close of 43,952.71 points.

It opened at 43,978.58 and has so far touched an intra-day high of 44,051.66 and a low of 43,816.15 points.

The Nifty50 on the National Stock Exchange was trading at 12,865.65, lower by 8.55 points or 0.07 percent from its previous close.

Shares of Lakshmi Vilas Bank plunged 20 percent Wednesday after the Centre placed it under moratorium.

Following an application submitted by the Reserve Bank of India (RBI), the Central government Tuesday brought Lakshmi Vilas Bank under moratorium for 30 days, and restricted withdrawals by depositors to Rs 25,000 each.

The Centre issued the moratorium notification under Section 45 (2) of the Banking Regulation Act, 1949. The moratorium came into effect from 6 p.m. Tuesday and will be in place up to December 16, 2020.

The notification also stays the commencement or continuance of all actions and proceedings against Lakshmi Vilas Bank.

Currently, its shares on the BSE are trading at Rs 12.40, lower by Rs 3.10 or 20 percent from its previous close.

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