Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was down 171.45 points or 0.61% at 27,746.02. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was down 38.60 points or 0.45% at 8,527.25. The Sensex fell 176.82 points, or 0.63% at the day's low of 27,739.07 in afternoon trade, its lowest level since 19 July 2016. The barometer index rose 72.87 points, or 0.26% at the day's high of 27,988.76 in early trade, its highest level since 18 July 2016. The Nifty shed 41.15 points, or 0.48% at the day's low of 8,524.70 in afternoon trade. The index rose 19.40 points or 0.23% at the day's high of 8,585.25 in early trade, its highest level since 18 July 2016.
The market breadth indicating the overall health of the market turned negative from positive. On BSE, 1,275 shares fell and 1,167 shares rose. A total of 183 shares were unchanged. The BSE Mid-Cap index was currently up 0.41%. The BSE Small-Cap index was currently up 0.28%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks were mixed ahead of the monetary policy meet of European Central Bank. The European Central Bank (ECB) is expected to keep monetary policy unchanged after the conclusion of a monetary policy meeting of the ECB governing council today, 21 July 2016. Market participants are looking forward to ECB President Mario Draghi's news conference for hints on future easing moves from the ECB.
Asian stocks witnessed a mixed trend. Japanese stocks edged higher on expectations that Japan's central bank Bank of Japan may announce stimulus package for the economy after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. The Nikkei 225 Average settled 0.77% higher. Meanwhile, latest media reports suggested that the Japanese government is arranging to compile an economic stimulus worth 20 trillion yen ($187 billion) to vault Japan out of more than a decade of deflation. US stocks closed at record highs yesterday, 20 July 2016, buoyed by a surge in tech stocks after a flurry of corporate earnings beat lowered expectations.
HDFC Bank was down 0.4% to Rs 1,227.15 after the bank's gross non-performing assets increased to Rs 4920.89 crore as on 30 June 2016 compared with Rs 4392.83 crore as on 31 March 2016 and Rs 3652.23 crore as on 30 June 2015. The stock hit a high of Rs 1,239.50, which was also a record high for the stock. HDFC Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.04% as on 30 June 2016 compared with 0.94% as on 31 March 2016 and 0.95% as on 30 June 2015. The ratio of net NPAs to net advances stood at 0.32% as on 30 June 2016 as against 0.28% as on 31 March 2016 and 0.27% as on 30 June 2015.
The bank's net profit rose 20.2% to Rs 3238.90 crore on 17.1% growth in total income to Rs 19322.60 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 21 July 2016.
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The bank's net interest income (NII) rose 21.8% to Rs 7781.40 crore in Q1 June 2016 over Q1 June 2015, driven by average assets growth of 20.2% and a net interest margin (NIM) of 4.4% in Q1 June 2016.
The bank's provisions and contingencies rose 19.05% to Rs 866.70 crore in Q1 June 2016 over Q1 June 2015.
HDFC Bank announced after market hours yesterday, 20 July 2016 that S&P Global Ratings (S&P) has affirmed its 'BBB-' long-term issue ratings on the senior unsecured bonds issued by the Bahrain branch of the bank. S&P has also removed its ratings on these bonds from CreditWatch which were earlier placed with Negative implications.
It may be recalled that in February 2016, S&P had put the bonds issued by HDFC Bank, Bahrain branch on CreditWatch with Negative implications consequent to a downgrade in the rating of Bahrain.
The latest development from S&P comes in the aftermath of HDFC Bank modifying its existing structure of the bonds. Under the revised structure, if any event materializes thereby restraining the bank's ability to service the bonds from Bahrain branch, the bank will service the bonds from any branch in India or from the Hong Kong branch.
Capital goods stocks dropped. BEML (down 0.15%), Bharat Heavy Electricals (Bhel) (down 1.32%), Thermax (down 1.79%), Crompton Greaves (down 0.41%) and Siemens (down 1.05%) declined. Havells India rose 1.23%.
L&T fell 0.65%. L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of L&T, in consortium with EMAS CHIYODA Subsea (ECS), a 50:50 joint venture company owned by Ezra Holdings and Chiyoda Corporation, has announced the conclusion of a large EPCI contract from Saudi Arabian oil giant and the biggest oil company in the world, Saudi Aramco.
The contract valued at over $1.6 billion is for the development of the second phase of Hasbah Offshore Gas field situated off the Coast of Saudi Arabia. LTHE's share in the contract value is approximately over 60%. Coming in as the first major contract from Saudi Aramco after the finalization of the long term agreement executed by Saudi Aramco with LTHE - ECS Consortium in June last year, the order is an affirmation of the superior capabilities of LTHE - ECS Consortium. The announcement was made during market hours today, 21 July 2016.
The BSE Capital Goods index had outperformed the market over the past one month till 20 July 2016, advancing 4.81% compared with Sensex's 3.9% rise. The index had also outperformed the market in past one quarter, gaining 15.4% as against Sensex's 8.02% rise.
Realty stocks were mixed. D B Realty (up 1.96%), Sobha (up 0.31%), Indiabulls Real Estate (up 3.19%), Unitech (up 0.72%), NBCC (India) (up 2.56%), and Godrej Properties (up 0.94%) edged higher. DLF (down 0.79%), Oberoi Realty (down 1.31%) and Housing Development & Infrastructure (HDIL) (down 0.05%) declined.
The BSE Realty index had outperformed the market over the past one month till 20 July 2016, advancing 7.33% compared with Sensex's 3.9% rise. The index had also outperformed the market in past one quarter, gaining 20.25% as against Sensex's 8.02% rise.
Welspun Corp surged 5.49% after the company announced that it has entered into a definitive agreement with an American midstream major to supply over 274 kilometers or 1.84 lakh metric tonnes of heavy wall, large diameter, 18 meters length, longitudinal saw line-pipe for a prestigious Gas Project in Americas. With the addition of the order, current order book of the company has crossed 9.58 lakh metric tonnes worth Rs 5500 crore. The announcement was made during market hours today, 21 July 2016.
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