Banking stocks and index heavyweights Reliance Industries (RIL) and HDFC led gains for the two key benchmark indices. The barometer index, the S&P BSE Sensex, gained 249.76 points or 0.9% at 28,109.36, as per the provisional closing data. The Nifty 50 index gained 80 points or 0.93% at 8,672.15, as per the provisional closing data. The Sensex provisionally settled above the psychologically important 28,000 mark after surpassing that level in early trade. Positive cues from Asian markets aided the upmove on the domestic bourses.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,406 shares declined and 1,251 shares advanced. A total of 181 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.83%. The BSE Small-Cap index was provisionally up 0.21%. Both these indices underperformed the Sensex.
Bank stocks gained after State Bank of India (SBI) reported smaller-than-expected decline in net profit in Q1 June 2016 and also reported less than expected increase in bad loans. Shares of SBI surged.
The Sensex jumped 343.67 points or 1.23% at the day's high of 28,203.27 in late trade, its highest level since 9 August 2016. The barometer index up 41.31 points or 0.15% at the day's low of 27,900.91 at onset of the trading session. The Nifty surged 92.15 points or 1.07% at the day's high of 8,684.30 in late trade, its highest level since 10 August 2016. The index rose 12.30 points or 0.14% at the day's low of 8,604.45 at onset of the trading session.
The total turnover on BSE amounted to Rs 3968 crore, higher than turnover of Rs 3406.04 crore registered during the previous trading session.
In overseas stock markets, European stocks traded mixed. Main Asia markets rose after the three main indices in the US attained record closing high overnight. Chinese stocks rose after release of a slew of economic data. In mainland China, the Shanghai Composite index settled 1.6% higher. In Hong Kong, the Hang Seng index settled 0.83% higher. In Japan, the Nikkei 225 Average closed 1.1% higher. Industrial output in China rose 6% in July from a year earlier, slowing from 6.2% in June, data from the National Bureau of Statistics showed. Retail sales grew 10.2% in July from a year earlier, slowing from a 10.6% increase in June. Fixed asset investment from January to July increased by 8.1% from a year earlier, the slowest rate in more than 16 years.
US stocks edged higher yesterday, 11 August 2016, with the Dow Jones Industrial Average, the Nasdaq Composite index and the S&P 500 index closing at record highs, amid sharp gains in crude oil prices and strong quarterly results from retailers.
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Index heavyweight Reliance Industries (RIL) gained 2.02% to Rs 1,032.95. The stock hit a high of Rs 1,041.75 and low of Rs 1,014.90 in intraday trade.
Index heavyweight and housing finance major HDFC advanced 2.19% to Rs 1,378.25. The stock hit high of Rs 1,381 and low of Rs 1,352.80 in intraday trade.
Index heavyweight and software major Infosys dropped 1.54% to Rs 1,060.50. The stock hit high of Rs 1,078.85 and low of Rs 1,060 in intraday trade.
Hindalco Industries gained 2.5% after net profit jumped 381.29% to Rs 294.07 crore on 10.96% decline in total income to Rs 7716.53 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 12 August 2016. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 34.45% to Rs 1350.90 crore in Q1 June 2016 over Q1 June 2015.
The company said that it has delivered a robust operational performance in adverse macroeconomic conditions. Its operational performance was also supported by deflationary energy prices, the company said. Hindalco said that the high level of imports continue to impact domestic sales volumes. The company continues to focus on operational excellence, higher value addition, customer centricity and cash conversation to tide over these issues, Hindalco said in a statement.
State Bank of India (SBI) jumped 7.29% after after the bank reported smaller-than-expected decline in net profit in Q1 June 2016 and also reported less than expected increase in bad loans. The bank's net profit fell 31.72% to Rs 2520.96 crore on 9.38% rise in total income to Rs 48928.60 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 12 August 2016.
The bank's gross non-performing assets (NPAs) stood at Rs 101541.18 crore as on 30 June 2016 as against Rs 98172.80 crore as on 31 March 2016 and Rs 56420.77 crore as on 30 June 2015. The ratio of gross NPAs to gross advances stood at 6.94% as on 30 June 2016 as against 6.50% as on 31 March 2016 and 4.29% as on 30 June 2015. The ratio of net NPAs to net advances stood at 4.05% as on 30 June 2016 as against 3.81% as on 31 March 2016 and 2.24% as on 30 June 2015.
The bank's provisions and contingencies rose 85.34% to Rs 7413.10 crore in Q1 June 2016 over Q1 June 2015. Provisions for non-performing assets jumped 88.76% to Rs 6339.56 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank was at 61.57% as on 30 June 2016.
On a consolidated basis, SBI's net profit fell 77.81% to Rs 1046 crore on 9.90% rise in total income to Rs 69414.82 crore in Q1 June 2016 over Q1 June 2015.
Sun Pharmaceutical Industries edged lower after announcing Q1 results. The stock fell 0.88%. The company's consolidated net profit surged 265.84% to Rs 2033.71 crore on 21.29% growth in total income to Rs 8400.09 crore in Q1 June 2016 over Q1 June 2015. The strong growth in bottom line in Q1 June 2016 was due to base effect. The company's bottom line in Q1 June 2015 was adversely impacted by exceptional expense of Rs 685.17 crore.
Meanwhile, the India Meteorological Department (IMD) in its weekly monsoon update issued yesterday, 11 August 2016, said that for the country as a whole, cumulative rainfall during this year's monsoon season was 3% above the long period average (LPA) until 10 August.
Meanwhile, there is extended weekend for traders in the stock market. The market remains closed on Monday, 15 August 2016, for Independence Day holiday.
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