 "Sensex sheds 499 pts; Bank of Baroda, ICICI Bank results disappoint")
Markets closed lower on Friday with Nifty breaking a ten-day winning streak as Bank of Baroda and ICICI Bank December 2014 results disappointed investors.
The 30-share Sensex ended down by 499 points at 29,183 and the 50-share Nifty slipped 143 points at 8,809. In early trades, the Sensex had hit an all-time high of 29,844.16 and Nifty touched the life-time high of 8,996.60.
Coal India too contributed to this decline. The stock fell almost 4% on Friday due to the government’s offer for sale (OFS), which opened for subscription. The Rs 22,000-crore worth Coal India offer for sale (OFS)— the biggest-ever in Indian capital market -- was fully subscribed on Friday.
Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 1,723.77 crore on Thursday, as per provisional stock exchange data.
Sectors & Stocks
BSE Bankex plunged by over 3% followed by other indices such as Consumer Durables, Metal, Capital Goods, FMCG, Healthcare and Oil & Gas, all dropping by 1% each. However, Realty, IT and Power sectors ended in positive zone.
Financial shares witnessed selling pressure as results of two key banks didn't meet expectations. PSU banking major Bank of Baroda's disappointing third quarter earnings. SBI and PNB were down 4-5% each. Bank of Baroda slumped over 11% after reporting a sharp 68% year on year (yoy) drop in net profit at Rs 334 crore for the third quarter ended December 31, 2014 (Q3), due to higher provisions for stressed loans and tax provisions.
Private sector banking leader ICICI Bank dipped over 5% to Rs 358 on National Stock Exchange (NSE) after the bank said that its net non performing assets (NPA) for the quarter ended December 2014 (Q3) stood at 1.27% against 1.09% in September quarter. The gross NPA was at 3.40% as against 3.12% a quarter ago.
HDFC was down nearly 3% post its earnings. The mortgage lender posted a 12% rise in net profit for the third quarter of FY15 at Rs 1,425 crore on the back of higher loan growth.
Bharti Airtel slipped by over 1%. Airtel M Commerce Services Ltd (AMSL), a wholly owned subsidiary of the country’s largest telecom service provider Bharti Airtel, said on Thursday that it would apply to the Reserve Bank of India (RBI) for a licence and Kotak Mahindra Bank would acquire 19.90 per cent stake in it.
Other notable losers were Dr Reddy's, TCS, Mahindra & Mahindra, Tata Motors, Axis Bank and Hindalco.
NTPC gained over 1%. The company has restricted the building of three new solar power projects to domestic manufacturers, even as India pushes for overseas companies to lead fresh investments into a renewable energy drive. Also, the company is due to release its Q3 results later during the day.
BHEL rose over 1%. The company has announced commissioning of 600 MW thermal power project in Odisha.
Shares of real estate companies were in demand on the bourses in otherwise subdued market. HDIL, DB Realty, Indiabulls Real Estate, Kolte-Patil Developers, Unitech, DLF, Anant Raj, Parsvnath Developers and Mahindra Lifespace Developers rallied between 4-10% on BSE.
HCL Technologies zoomed 9% to Rs 1,796 after reporting a better than expected consolidated net profit at Rs 1,915 crore for the second quarter ended December 31, 2014 (Q2).
Local Currency
At 15:30 AM, the rupee was stronger at 61.97 versus Thursday's close of 61.86/87 to the dollar,. Month-end dollar demand from importers to keep the rise limited, traders.
Global Markets
Asian shares wavered between positive and negative territory on Friday, as a late earnings-led surge on Wall Street helped counter persistent concerns over global growth and sagging Chinese shares.
The Shanghai Composite Index lost 1%, set for a fourth consecutive day of declines, as this week's investigations into stock margin trading made investors wary.
Japan's Nikkei stock average added about 0.4%, clawing back some of the 1.1% lost the previous session, its biggest one-day drop in two weeks.
The 30-share Sensex ended down by 499 points at 29,183 and the 50-share Nifty slipped 143 points at 8,809. In early trades, the Sensex had hit an all-time high of 29,844.16 and Nifty touched the life-time high of 8,996.60.
Coal India too contributed to this decline. The stock fell almost 4% on Friday due to the government’s offer for sale (OFS), which opened for subscription. The Rs 22,000-crore worth Coal India offer for sale (OFS)— the biggest-ever in Indian capital market -- was fully subscribed on Friday.
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However, midcaps and smallcaps didn't fall as much. The BSE Midcap and Smallcap indices fell between 0.3-0.4%. Market breadth on the BSE ended weak with 1,257 advances against 1,603 declines.
Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 1,723.77 crore on Thursday, as per provisional stock exchange data.
Sectors & Stocks
BSE Bankex plunged by over 3% followed by other indices such as Consumer Durables, Metal, Capital Goods, FMCG, Healthcare and Oil & Gas, all dropping by 1% each. However, Realty, IT and Power sectors ended in positive zone.
Financial shares witnessed selling pressure as results of two key banks didn't meet expectations. PSU banking major Bank of Baroda's disappointing third quarter earnings. SBI and PNB were down 4-5% each. Bank of Baroda slumped over 11% after reporting a sharp 68% year on year (yoy) drop in net profit at Rs 334 crore for the third quarter ended December 31, 2014 (Q3), due to higher provisions for stressed loans and tax provisions.
Private sector banking leader ICICI Bank dipped over 5% to Rs 358 on National Stock Exchange (NSE) after the bank said that its net non performing assets (NPA) for the quarter ended December 2014 (Q3) stood at 1.27% against 1.09% in September quarter. The gross NPA was at 3.40% as against 3.12% a quarter ago.
HDFC was down nearly 3% post its earnings. The mortgage lender posted a 12% rise in net profit for the third quarter of FY15 at Rs 1,425 crore on the back of higher loan growth.
Bharti Airtel slipped by over 1%. Airtel M Commerce Services Ltd (AMSL), a wholly owned subsidiary of the country’s largest telecom service provider Bharti Airtel, said on Thursday that it would apply to the Reserve Bank of India (RBI) for a licence and Kotak Mahindra Bank would acquire 19.90 per cent stake in it.
Other notable losers were Dr Reddy's, TCS, Mahindra & Mahindra, Tata Motors, Axis Bank and Hindalco.
NTPC gained over 1%. The company has restricted the building of three new solar power projects to domestic manufacturers, even as India pushes for overseas companies to lead fresh investments into a renewable energy drive. Also, the company is due to release its Q3 results later during the day.
BHEL rose over 1%. The company has announced commissioning of 600 MW thermal power project in Odisha.
Shares of real estate companies were in demand on the bourses in otherwise subdued market. HDIL, DB Realty, Indiabulls Real Estate, Kolte-Patil Developers, Unitech, DLF, Anant Raj, Parsvnath Developers and Mahindra Lifespace Developers rallied between 4-10% on BSE.
HCL Technologies zoomed 9% to Rs 1,796 after reporting a better than expected consolidated net profit at Rs 1,915 crore for the second quarter ended December 31, 2014 (Q2).
Local Currency
At 15:30 AM, the rupee was stronger at 61.97 versus Thursday's close of 61.86/87 to the dollar,. Month-end dollar demand from importers to keep the rise limited, traders.
Global Markets
Asian shares wavered between positive and negative territory on Friday, as a late earnings-led surge on Wall Street helped counter persistent concerns over global growth and sagging Chinese shares.
The Shanghai Composite Index lost 1%, set for a fourth consecutive day of declines, as this week's investigations into stock margin trading made investors wary.
Japan's Nikkei stock average added about 0.4%, clawing back some of the 1.1% lost the previous session, its biggest one-day drop in two weeks.