A range bound movement was witnessed as the two key benchmark indices languished in red in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was down 204.24 points or 0.73% at 27,880.92. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty 50 index was currently down 73.10 points or 0.84% at 8,605.15. The Sensex was trading below the psychological 28,000 level after falling below that level in in morning trade.
The Sensex lost 238.59 points or 0.85% at the day's low of 27,846.57 in mid-morning trade, its lowest level since 5 August 2016. The barometer index rose 58.12 points or 0.21% at the day's high of 28,143.28 at onset of trading session. The Nifty lost 84.65 points or 0.98% at the day's low of 8,593.60 in mid-morning trade, its lowest level since 5 August 2016. The index rose 11.85 points or 0.14% at the day's high of 8,690.10 at onset of trading session.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,534 shares fell and 699 shares rose. A total of 108 shares were unchanged. The BSE Mid-Cap index was currently off 0.9%. The BSE Small-Cap index was currently off 0.82%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, Asian stocks witnessed a mixed trend as global investors assess the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices. US stocks eked out small gains yesterday, 9 August 2016, with the Nasdaq Composite index posting a fresh record close, as investors kept an eye on falling oil prices.
Bank stocks declined. Among private bank stocks, ICICI Bank (down 1.75%), Axis Bank (down 0.77%), IndusInd Bank (down 1.83%), Federal Bank (down 1.33%), HDFC Bank (down 0.94%), Kotak Mahindra Bank (down 0.24%), and Yes Bank (down 0.28%) declined.
Among PSU bank stocks, Syndicate Bank (down 2.14%), Andhra Bank (down 1.8%), Allahabad Bank (down 1.75%), State Bank of India (SBI) (down 0.62%), Punjab National Bank (down 1.89%), Bank of Baroda (down 0.85%), Canara Bank (down 2.09%), IDBI Bank (down 1.54%), Bank of India (down 1.49%) and Union Bank of India (down 1.81%) dropped.
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UCO Bank lost 3.67% after the bank reported net loss of Rs 440.56 crore in Q1 June 2016 compared with net profit of Rs 256.70 crore in Q1 June 2015. UCO Bank's total income declined 8.53% to Rs 4727.93 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
The bank's gross non-performing assets (NPA) stood at Rs 22597.70 crore as on 30 June 2016 compared with Rs 20907.73 crore as on 31 March 2016 and Rs 10894.41 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 17.19% as on 30 June 2016 compared with 15.43% as on 31 March 2016 and 7.3% as on 30 June 2015. The ratio of net NPA to net advances stood at 10.04% as on 30 June 2016 as against 9.09% as on 31 March 2016 and 4.53 as on 30 June 2015.
UCO Bank's provisions and contingencies surged 63.8% to Rs 1250.50 crore in Q1 June 2016 over Q1 June 2015.
Indian Overseas Bank (IOB) fell 3.62% after the bank reported net loss of Rs 1450.50 crore in Q1 June 2016 compared with net profit of Rs 14.76 crore in Q1 June 2015. The bank's total income declined 12.05% to Rs 5868.44 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
IOB's gross non-performing assets (NPA) stood at Rs 33913.15 crore as on 30 June 2016 as against Rs 16451.20 crore as on 31 March 2015 and Rs 30048.63 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 20.48% as on 30 June 2016 as against 9.40% as on 31 March 2015 and 17.40% as on 30 June 2015. The ratio of net NPA to net advances stood at 13.97% as on 30 June 2016 as against 6.31% as on 31 March 2015 and 11.89% as on 30 June 2015.
The bank's provisions and contingencies (excluding tax provisions) rose 222.17% to Rs 2137.81 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank was at 47.61% as on 30 June 2016.
Lupin lost 2.77% on reports that a foreign brokerage downgraded shares of the Indian drug maker to sell after the announcement of the first quarter results. Shares of Lupin had declined 5.03% to settle at Rs 1,607.60 yesterday, 9 August 2016, after the company's announcement of the results during trading hours. The brokerage reportedly said that the competition in top US products will weigh on the company's growth. Lupin's key complex products lack visibility of launch. Lupin is likely to post single digit earnings per share growth in the year ending March 2018, it added. Meanwhile, another foreign brokerage reportedly maintained underperform rating on Lupin. It reportedly said that risk-reward ratio is unfavourable for the stock. Q1 has been a peak profit quarter for Lupin. The brokerage cut its estimates on Lupin's earnings per share for the year ending March 2017 (FY 2017).
Lupin's consolidated net profit rose 55.1% to Rs 882 crore on 40% growth in net sales to Rs 4313.60 crore in Q1 June 2016 over Q1 June 2015.
Realty stocks edged lower. DLF (down 0.57%), Indiabulls Real Estate (down 2.87%), Housing Development and Infrastructure (down 2.26%), D B Realty (down 0.85%), Unitech (down 4.69%), Sobha (down 0.72%), Godrej Properties (down 2.64%), Hubtown (down 0.48%), Oberoi Realty (down 0.9%) and Parsvnath Developers (down 2.19%) fell.
Container Corporation of India rose 1.43%. The company's net profit fell 13.9% to Rs 178.48 crore on 5.7% decline in net sales to Rs 1339.22 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
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