Key benchmark indices provisionally closed the lackluster trading session with small losses. The barometer index, the S&P BSE Sensex lost 24.81 points or 0.08% at 32,584.35, as per the provisional closing data. The Nifty 50 index fell 16.05 points or 0.16% at 10,218.40, as per the provisional closing data.
Key indices opened the session lower and languished in negative terrain till afternoon trade on profit booking after the two key indices hit record highs yesterday, 17 October 2017. Indices entered into positive terrain for a brief phase in mid-afternoon trade, before hovering around the flat line. Overall trading sentiment was dull ahead of a long Diwali holiday weekend.
Stock markets remain closed tomorrow, 19 October 2017 on account of Diwali Laxmi Pujan and again on Friday, 20 October 2017 on account of Diwali Balipratipada. However, markets will remain open for Muhurat trading tomorrow, 19 October 2017. The Muhurat trading session on account of Diwali Laxmi Pujan will be between 18:30 IST to 19:30 IST tomorrow, 19 October 2017.
The Sensex rose 61.16 points or 0.18% at the day's high of 32,670.32 in mid-afternoon trade. The index lost 146.31 points or 0.44% at the day's low of 32,462.85 in morning trade, its lowest level since 16 October 2017. The Nifty rose 2 points or 0.01% at the day's high of 10,236.45 in mid-afternoon trade. The index lost 58.70 points or 0.57% at the day's low of 10,175.75 in morning trade, its lowest level since 16 October 2017.
Among the secondary indices, the S&P BSE Mid-Cap index provisionally closed unchanged. The S&P BSE Small-Cap index also provisionally closed flat.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,390 shares declined and 1,292 shares rose. A total of 129 shares were unchanged.
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Telecom stocks declined. Bharti Infratel (down 3.22%), Reliance Communications (down 1.47%), Idea Cellular (down 1.67%) and Bharti Airtel (down 0.96%) fell.
Axis Bank tumbled 9.28% at Rs 465.55 on sharp rise in bad loans after reporting Q2 results. The bank's net profit rose 35.5% to Rs 432.38 crore on 0.9% increase in total income to Rs 13820.62 crore in Q2 September 2017 over Q2 September 2016. The result was announced after trading hours yesterday, 17 October 2017.
The bank's gross non-performing assets (NPAs) stood at Rs 27402.32 crore as on 30 September 2017 as against Rs 22030.87 crore as on 30 June 2017 and Rs 16378.65 crore as on 30 September 2016. The ratio of gross NPAs to gross advances stood at 5.9% as on 30 September 2017 as against 5.03% as on 30 June 2017 and 4.17% as on 30 September 2016. The ratio of net NPAs to net advances stood at 3.12% as on 30 September 2017 as against 2.3% as on 30 June 2017 and 2.02% as on 30 September 2016.
The bank's provisions and contingencies fell 13.3% to Rs 3140.41 crore in Q2 September 2017 over Q2 September 2016.
Meanwhile, Axis Bank said that after review the bank has decided to keep the marginal cost of funds based lending rates (MCLRs) of the bank unchanged with effect from 18 October 2017. The announcement was made after trading hours yesterday, 17 October 2017. Axis Bank's MCLRs for overnight loans will be 7.8%, the rate for one month will be 7.8% and for three months it will be 8%. The rate on 6-month loans will be 8.15% and for one-year loans the rate will be 8.25%, the bank said. MCLR on two-year loans will be 8.3% and for three-year loans the rate will be 8.35%.
Wipro rose 2.07% at Rs 295.50 after consolidated net profit rose 5.13% to Rs 2189.60 crore on 1.48% decline in net sales to Rs 13423.40 crore in Q2 September 2017 over Q1 June 2017. The result was announced after trading hours yesterday, 17 October 2017. The results are as per International Financial Reporting Standards (IFRS).
Wipro said that it expects revenues from its IT services business to be in the range of $2.014 billion to $2.054 billion in Q3 December 2017.
Wipro's chief executive officer and member of the board, Abidali Z. Neemuchwala said that the company surpassed the milestone of $2 billion in quarterly revenues for IT services on the back of rigorous execution of its strategy. The company's unique digital capabilities powered growth in top clients and positions it well to drive its clients' digital transformation.
Wipro's chief financial officer, Jatin Dalal, said that productivity gains generated by the company's HOLMES automation suite and operational efficiencies overcame the incremental impact of wage hikes and expanded IT services margin to 17.3%.
UltraTech Cement dropped 0.2% at Rs 4,080 after consolidated net profit fell 31.1% to Rs 423 crore on 19.83% growth in net sales to Rs 6840 crore in Q2 September 2017 over Q2 September 2016. The result was announced during market hours today, 18 October 2017.
UltraTech Cement said that increased depreciation and higher interest cost relating to the acquired cement plants resulted in lower net profit in Q2. The quarter continued to witness increasing cost trends, attributable to increase in fuel prices.
The company's board of directors at a meeting held today, 18 October 2017, approved an investment of Rs 194 crore for putting up a 4 lakh metric tonnes capacity wall care putty plant to cater to the rising demand for putty. The plant is expected to be commissioned during Q2 FY 2020.
In its outlook, the company said that the government spending on infrastructure, rural and affordable housing will be the key demand drivers of cement. The company is well positioned across the country to cater to the demand.
Overseas, European shares edged higher as investors monitored the latest batch of earnings and economic data releases.
Asian stocks were mixed as investors in the region looked to China's Party Congress for signs on future policy direction in the world's second-largest economy. The 19th National Congress of the Communist Party of China commenced in Beijing today, 18 October 2017. In his opening remarks, Chinese President Xi Jinping was quoted as saying that his nation's prospects as bright but made a rare acknowledgement of severe economic challenges. Among the grave issues Xi said were insufficiently addressed are a widening income gap and problems in employment, education, medical care and other areas, reports suggested.
US stocks closed mostly higher yesterday, 17 October 2017. The Dow Jones industrial average rose and broke above 23,000 for the first time on an intraday basis.
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