Weekly: Markets end lower on CIL sale, NPA woes

The 30-share Sensex ended down 96 points at 29,183 and the 50-share Nifty closed 27 points lower at 8,809

After a sharp fall on Friday, the benchmark indices ended the week marginally lower. This followed the Coal India equity offering, even as a rise in the non-performing assets of ICICI Bank and Bank of Baroda weighed on bank stocks.

For the week, the BSE Sensex ended with a loss of 96 points at 29,183, while the National Stock Exchange Nifty closed 27 points lower at 8,809. The BSE mid-cap index ended 0.4 per cent higher at 10,739, while the small-cap index ended 0.3 per cent lower at 11,329.

While markets were closed on Monday on account of Republic Day, Tuesday saw markets ending at a record closing high, owing to gains in financials and ITC. Stocks of capital goods companies gained on hopes of order inflows, after a breakthrough in the Indo-US treaty for civilian nuclear projects.

On Wednesday, the markets ended flat, amid a volatile trading session, as investors booked profits ahead of the expiry of January derivatives contracts. On Thursday, the indices ended at record closing highs, with the Nifty gaining for the 10th consecutive session, the longest rally since April 2014. This followed the expiry of January derivatives contracts.

A sharp drop in banking stocks following weak results, as well as the Coal India offering, saw the markets post their biggest drop in three weeks on Friday. In terms of sectors, the BSE realty index surged eight per cent through the week. However, the metals, public sector undertaking and bank indices slipped one-three per cent.

Coal India was the top Sensex loser, its stock falling eight per cent due to the government’s offer for sale. The Rs 22,000-crore Coal India offering, the biggest in the Indian capital market, was fully subscribed on Friday.

ICICI Bank lost 2.5 per cent after the bank said its net non-performing assets for the quarter ended December 2014 stood at 1.27 per cent, against 1.09 per cent in the previous quarter.

Public sector lender Bank of Baroda slumped 13 per cent after reporting a sharp 68 per cent year-on-year drop in net profit at Rs 334 crore for the quarter ended December, owing to higher provisions for stressed loans and tax.

Week ahead
Market participants will track the Reserve Bank of India’s monetary policy review, scheduled for February 3.

Major companies set to announce their December quarter earnings next week include, ACC, JSPL, Lupin, Bharti Airtel, Hero MotoCorp, Tata Power. On the global front, data on Purchasing Managers’ Indices, as well as an announcement by the Bank of England and US non-farm payrolls, will be keenly watched.