A bout of volatility was witnessed as barometer index, the S&P BSE Sensex, languished in negative zone in early afternoon trade. The 50 unit CNX Nifty was currently trading flat. The Sensex was currently off 15.38 points or 0.05% at 28,404.74. The Nifty was currently up 0.65 points or 0.01% at 8,604.10. The market breadth indicating the overall health of the market was negative.
Bank stocks edged lower. HDFC Bank dropped amid volatility after announcing good Q1 results.
Earlier, the 50-unit CNX Nifty hit 13-1/2-week high in morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 714.40 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 848.76 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian stocks edged higher on the tail of strong corporate earnings in the US and China's stabilizing markets. US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
At 12:17 IST, the S&P BSE Sensex was down 15.38 points or 0.05% at 28,404.74. The index fell 65.31 points at the day's low of 28,354.81 in early trade. The index gained 97.94 points at the day's high of 28,518.06 in morning trade.
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The CNX Nifty was up 0.65 points or 0.01% at 8,604.10. The index hit a high of 8,646.75 in intraday trade, its highest level since 17 April 2015. The index hit a low of 8,588.25 in intraday trade.
The BSE Mid-Cap index was down 32.47 points or 0.29% at 11,217.63. The BSE Small-Cap index was down 22.95 points or 0.2% at 11,740.39. The decline in both these indices was higher than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,400 shares fell and 1,061 shares rose. A total of 102 shares were unchanged.
Bank stocks edged lower. Among public sector banks, Union Bank of India (down 1.04%), Punjab National Bank (down 0.81%), IDBI Bank (down 0.69%), UCO Bank (down 1.12%), Bank of India (down 0.63%), Canara Bank (down 0.26%), Corporation Bank (down 0.19%), Bank of Baroda (down 0.49%) and Allahabad Bank (down 0.79%) edged lower. Oriental Bank of Commerce (up 0.2%), United Bank of India (up 0.21%), Central Bank of India (up 0.23%), United Bank of India (up 0.21%) and Oriental Bank of Commerce (up 0.23%) edged higher.
Among private sector banks., Axis Bank (down 0.85%), ICICI Bank (down 0.4%), Yes Bank (down 0.68%) and IndusInd Bank (down 0.55%) edged lower. Kotak Mahindra Bank (up 0.02%) edged higher.
HDFC Bank dropped amid volatility after announcing Q1 results. The stock was off 0.52% at Rs 1,109.75. The stock hit a high of Rs 1,127.90 and a low of Rs 1,102.20 so far during the day. HDFC Bank's net profit rose 20.7% to Rs 2695.70 crore on 26.3% growth in total income to Rs 16503 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 21 July 2015.
The bank's net revenue (net interest income plus other income) rose 26% to Rs 8850.70 crore in Q1 June 2015 over Q1 June 2014. Net interest income rose 23.5% to Rs 6388.80 crore in Q1 June 2015 over Q1 June 2014. The net interest margin (NIM) stood at 4.3% in Q1 June 2015.
Other income (non-interest revenue) rose 33% to Rs 2461.90 crore in Q1 June 2015 over Q1 June 2014. The cost-to-income ratio in Q1 June 2015 was at 45.2% as against 45.3% in Q1 June 2014.
The bank's provisions and contingencies rose 50.78% to Rs 728 crore in Q1 June 2015 over Q1 June 2014.
HDFC Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 0.95% as on 30 June 2015 as against 0.93% as on 31 March 2015 and 1.07% as on 30 June 2014. The ratio of net NPAs to net advances stood at 0.27% as on 30 June 2015 as against 0.25% as on 31 March 2015 and 0.32% as on 30 June 2014. Total restructured loans (including applications under process for restructuring) stood at 0.1% of gross advances as on 30 June 2015, as against 0.2% of gross advances as on 30 June 2014.
The bank's Capital Adequacy Ratio (CAR) stood at 15.7% as on 30 June 2015 as against 16.8% as on 31 March 2015 and 15.1% as on 30 June 2014. Tier-I CAR was at 12.8% as on 30 June 2015 compared to 11.1% as on 30 June 2014.
Meanwhile, the three-week long monsoon session of Parliament begins today, 21 July 2015. The government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition, and the Prime Minister yesterday, 20 July 2015, urged parties to work collectively to break the logjam.
Meanwhile, a Rajya Sabha Select Committee has reportedly adopted a report endorsing majority provisions of the Goods and Services Tax (GST) Bill after the Centre agreed to compensate states for revenue loss for 5 years even as Congress filed a dissent note. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 20 July 2015, that the Southwest Monsoon was vigorous over West Madhya Pradesh and active over Gangetic West Bengal, East Rajasthan, Coastal Karnataka and South Interior Karnataka during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 20 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 9% above the LPA in Northwest India until 20 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas stock markets, Asian stocks edged higher today, 21 July 2015, on the tail of strong corporate earnings in the US and China's stabilizing markets. In mainland China, the Shanghai Composite index was up 0.73%. In Hong Kong, the Hang Seng index was up 0.76%. In other Asian markets, key benchmark indices in Singapore, Japan, Taiwan and South Korea were up 0.08% to 0.93%. Indonesian stock market was shut for a holiday.
Several Bank of Japan (BoJ) board members said the impact of the bank's massive stimulus might be fading, according to minutes of its June meeting released yesterday, 20 July 2015. The nine-member board agreed underlying inflation, which excludes volatile food and energy prices, would continue to improve in the long term, the minutes showed.
US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
In Europe, Greece reportedly repaid the roughly 2 billion euros ($2.2 billion) it owed to the International Monetary Fund (IMF) yesterday, 20 July 2015. The country is paying its bills using a 7.16 billion euro bridging loan secured last week after it agreed to a series of harsh reforms. The measures, which have to be put into law, should result in the country receiving its third bailout.
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