High volatility was witnessed as key benchmark indices recovered after paring intraday gains in mid-afternoon trade. The S&P BSE Sensex was up 87.86 points or 0.44%, up 77.51 points from the day's low and off 40.33 points from the day's high. Bank stocks dropped. MMTC was locked at 5% upper circuit, with the stock recovering on bargain hunting after recent steep slide. The market breadth, indicating the overall health of the market, was negative.
Key benchmark indices pared initial gains triggered by good Q1 result from IT major TCS. Key benchmark indices extended gains in morning trade. The Sensex hit over 7-week high. The CNX Nifty hit 7-week high. Key benchmark indices held positive zone in mid-morning trade. Key benchmark indices pared gains in early afternoon trade as Asian stocks dropped. Key benchmark indices recovered after hitting fresh intraday lows in afternoon trade. High volatility was witnessed as key benchmark indices recovered after paring intraday gains in mid-afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 178.30 crore on Thursday, 18 July 2013, as per provisional data from the stock exchanges.
At 14:18 IST, the S&P BSE Sensex was up 87.86 points or 0.44% to 20,216.27. The index jumped 128.19 points at the day's high of 20,256.60 in mid-afternoon trade, its highest level since 30 May 2013. The index rose 10.35 points at the day's low of 20,138.76 in afternoon trade.
The CNX Nifty was up 12.65 points or 0.21% to 6,050.70. The index hit a high of 6,066.85 in intraday trade, its highest level since 31 May 2013. The index hit a low of 6,027 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,211 shares declined and 969 shares gained. A total of 146 shares were unchanged.
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Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Bank stocks dropped. Among private sector bank stocks ICICI Bank (down 2.45%), and Yes Bank (down 2.95%) declined.
Axis Bank dropped 3.56%. The bank's net profit jumped 22.14% to Rs 1408.93 crore on 15.86% increase in total income to Rs 9059.12 crore in Q1 June 2013 over Q1 June 2012. The result was announced during trading hours on Thursday, 18 July 2013.
Kotak Mahindra Bank fell 2.37%. The bank during market hours on Thursday reported 42.61% rise in net profit to Rs 402.82 crore on 28.94% rise in total income to Rs 2652.40 crore in Q1 June 2013 over Q1 June 2012. Gross non-performing assets surged to Rs 995.39 crore as on 30 June 2013, from Rs 758.11 crore as on 31 March 2013 and Rs 684.68 crore as on 30 June 2012. The ratio of the bank's gross non-performing assets (NPAs) to gross advances increased to 1.95% as on 30 June 2013, from 1.55% as on 31 March 2013 and 1.6% as on 30 June 2012. The ratio of the bank's net non-performing assets (NPAs) to net advances increased to 0.98% as on 30 June 2013 from 0.64% as on 31 March 2013 and 0.8% as on 30 June 2012.
Private sector banking major HDFC Bank fell 0.51%. The bank on Wednesday, 17 July 2013 reported 30.08% rise in net profit to Rs 1843.86 crore on 17.94% growth in total income to Rs 11588.56 crore in Q1 June 2013 over Q1 June 2012.
Among PSU bank stocks, State Bank of India (down 0.89%), Canara Bank (down 3.4%), Union Bank of India (down 3.27%), Bank of India (down 3.11%), Bank of Baroda (down 3.41%) and Punjab National Bank (down 0.84%) declined.
Oriental Bank of Commerce slipped 2.04%. The bank today said it has put on hold the implementation reduction in base rate by 25 basis points to 10%. The bank had on 9 July 2013 announced that reduction in base rate from 10.25% to 10% would be applicable from 22 July 2013.
UCO Bank slumped 7.34%, with the stock extending intraday fall. The stock extended post result slide as sticky loans rose in Q1 June 2013 over Q1 June 2012. The state-run bank during market hours today reported 41.01% rise in net profit to Rs 511.11 crore on 5.93% rise in total income to Rs 4668.81 crore in Q1 June 2013 over Q1 June 2012.
The bank's ratio of net non-performing assets (NPAs) to net advances increased to 3.15% as on 30 June 2013, from 2.23% as on 30 June 2012, but decreased from 3.17% as on 31 March 2013. The ratio of gross NPAs to gross advances increased to 5.58% as on 30 June 2013, from 3.88% as on 30 June 2012 and 5.42% as on 31 March 2013.
UCO Bank's capital adequacy ratio (CAR) as Basel II norms stood at 13.72% as on 30 June 2013, as against 12.33% as on 30 June 2012 and 14.15% as on 31 March 2013. CAR as per Basel III norms stood at 13.44% as on 30 June 2013.
The bank's provisions and contingencies jumped 81.3% to Rs 741.30 crore in Q1 June 2013 over Q1 June 2012.
The Reserve Bank of India (RBI) early this week announced measures to tighten liquidity in the banking system to arrest slide in rupee against the dollar.
MMTC was locked at 5% upper circuit at Rs 52.95, on bargain hunting after sliding 76.14% in prior 26 trading sessions. The stock hit a 52-week low of Rs 49.55 in intraday trade today, 19 July 2013. On 13 June 2013, the Government of India (GoI) sold 9.33% stake in MMTC via Offer for Sale (OFS) through stock exchanges mechanism at an indicative price of Rs 60.86 per share, at a discount of 71.21% to the closing price of the stock of Rs 211.45 on 12 June 2013.
Manappuram Finance (up 10%), DB Corp (up 7.71%), Honeywell Automation (up 4.35%), Engineers India (up 3.97%) and KSK Energy Ventures (up 3.9%) were the top gainers from the BSE Mid-Cap index.
Manaksia (up 11.78%), Asahi India Glass (up 7.23%), ITI (up 6.23%), State Trading Corporation of India (up 5.92%) and PNB Gilts (up 5.26%) were the top gainers from the BSE Small-Cap index.
Prime Minister Dr. Manmohan Singh today, 19 July 2013, that the economy may grow slower than previously expected 6.5% for the year to March 2014. India is committed to bringing its current account deficit under control and reducing demand for gold and petroleum products, he said.
European stock markets slipped from an almost seven-week high on Friday, 19 July 2013, as technology firms dropped in the wake of disappointing earnings from US heavyweights Google Inc. and Microsoft Corp. and as mining firms tracked most metals prices lower. Key benchmark indices in UK, France and Germany were down by 0.47% to 0.53%.
Asian markets declined as fund managers shift money from Asia to the US amid concerns that growth is slowing in China and Japan's economic reforms may be losing steam. Key benchmark indices in Indonesia, South Korea, Singapore, Taiwan, China fell 0.01% to 1.62%. Hong Kong's Hang Seng rose 0.08%.
Japanese shares beat a sharp retreat after opening comfortably higher, with a wave of selling ahead of weekend elections in the country. The Nikkei 225 Average was off 1.48%. The volatility in Tokyo came ahead of the country's upper house elections this weekend, in which the ruling Liberal Democratic Party (LDP) is expected to easily clinch a majority. The LDP already has a majority in the lower house of the parliament, and a majority in the upper chamber of the Diet is widely expected to strengthen Prime Minister Shinzo Abe's government in its attempt to revive the Japanese economy.
Trading in US index futures indicated that the Dow could fall 31 points at the opening bell on Friday, 19 July 2013. US stocks rose on Thursday, 18 July 2013, after the second day of congressional testimony from Federal Reserve Chairman Bernanke and some upbeat earnings results, including from Morgan Stanley. The Dow Jones Industrial Average and S&P 500 reached record closing highs, with sentiment also boosted by Moody's Investors Service lifting its outlook on US credit ratings to stable and reaffirming the country's AAA sovereign rating.
Federal Reserve Chairman Ben Bernanke spent a second day on Capitol Hill on Thursday, discussing the outlook and Fed rate policy with the Senate Banking Committee. Bernanke said yesterday it was "way too early to make any judgment" about starting tapering in September. Tighter financial conditions as a result of rising yields over the past two months are "unwelcome," Bernanke said in response to a question from the Senate Banking Committee following his testimony yesterday. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
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