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Market extends losses; breadth positive

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Capital Market
Last Updated : May 07 2020 | 11:05 AM IST

Key domestic barometers extended losses in morning trade. At 9:28 IST, the barometer index, the S&P BSE Sensex, was down 161.40 points or 0.51% at 31,524.35. The Nifty 50 index was down 40.80 points or 0.49% at 9,225.10. Selling in index major Hindustan Unilever (HUL) put pressure on bourses.

The S&P BSE Mid-Cap index was up 0.23% while the S&P BSE Small-Cap index gained 0.34%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 995 shares rose and 654 shares fell. A total of 88 shares were unchanged. In the Nifty 50 index, 25 shares advances and 25 shares declined.

Shares of HUL was down 2.26% at Rs 1964.50 witnessing intense volatility in early trade as GlaxoSmithKline Pte and Horlicks reportedly sold 5.7% stake in the FMCG major in a deal valued at Rs 24,750 crore or nearly $3.3 billion.

After a gap down opening, HUL hit an intraday low of Rs 1902.30 in early trade. Bargain buying emerged at lower level, which pushed the stock higher in morning trade. Shares of HUL were currently down 1.98% at Rs 1970.

The counter witness a spurt in volume. On NSE, 16.45 crore shares were traded so far as against an average daily volume of 38.65 lakh shares reported in the past one quarter. On BSE, 69.15 lakh shares were traded so far as against an average daily volume of 1.08 lakh shares reported in the past one quarter.

Q4 Results Today:

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Solara Active Pharma (up 2.7%), SKF India (up 0.43%), RBL Bank (up 1.29%), Gillette India (down 0.33%), Cyient (up 1.51%) and 5paisa Capital (down 5.26%) are some of the companies that will announce their Q4 March 2020 result today.

Earnings Impact:

HCL Technologies rose 2.19% to Rs 531. The IT firm's consolidated net profit rose 3.8% to Rs 3154 crore on a 2.5% increase in revenue to Rs 18590 crore in Q4 March 2020 over Q3 December 2019. The earnings before interest and tax (EBIT) stood at Rs 3,881 crore in Q4 FY20, up 5.8% from Rs 3,670 crore in in Q3 FY20. EBIT margin was at 20.9% as on 31 March 2020 as compared 20.2% as on 31 December 2019.

Yes Bank jumped 11.39% at Rs 29.35 after the bank reported a net profit of Rs 2628.61 crore in Q4 March 2020 as against a net loss of Rs 1506.64 crore in Q4 March 2019.

The bank generated an extraordinary income (net of tax) of Rs 6,296.94 crore during the quarter on account of writing down of certain Basel III additional tier-1 (AT-1) bonds amounting to Rs 8,415 crore.

Excluding this extraordinary item, Yes Bank reported a net loss from ordinary activities of Rs 3,668.33 crore in Q4 March 2020 compared with a net loss from ordinary activities of Rs 1,506.64 crore in Q4 March 2019.

Total income rose 44.4% to Rs 12,115.53 crore in Q4 March 2020 over the corresponding period last year. The bank's provisions and contingencies rose 33.1% to Rs 4,872.34 crore in Q4 March 2020 over Q4 March 2019.

The bank's gross non-performing assets (NPAs) stood at Rs 32,877.59 crore as on 31 March 2020 as against Rs 40,709.20 crore as on 31 December 2019 and Rs 7,882.56 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 16.80% as on 31 March 2020 as against 18.87% as on 31 December 2019 and 3.22% as on 31 March 2019. The ratio of net NPAs to net advances stood at 5.03% as on 31 March 2020 as against 5.97% as on 31 December 2019 and 1.86% as on 31 March 2019.

The bank's net interest income (NII) fell 49.16% to Rs 1,274 crore in Q4 FY20 from Rs 2506 crore in Q4 FY19. Net interest margin (NIM) stood at 1.9% in Q4 March 2020 as compared to 3.1% in Q4 March 2019. The bank's CASA (current account to savings account) ratio stood at 26.6% as on 31 March 2020 as compared to 33.1% as on 31 March 2019.

The bank's deposit base has seen a reduction of 53.70% to Rs 105,364 crore as on 31 March 2020 from Rs 2,27,610 crore as on 31 March 2019. Its advances fell 29% to Rs 1,71,443.29 crore as on 31 March 2020 from Rs 2,41,499.60 crore as on 31 March 2019.

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First Published: May 07 2020 | 10:28 AM IST

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