A divergent trend among various index constituents resulted in small losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 38.68 points or 0.15% at 25,841.70, as per the provisional closing data. The Nifty 50 index fell 12.75 points or 0.16% at 7,899.30, as per the provisional closing data. The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,312 shares declined and 1,244 shares gained. A total of 169 shares were unchanged. The BSE Mid-Cap index was provisionally up 0.08%. The BSE Small-Cap index was provisionally up 0.02%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2566 crore, lower than turnover of Rs 3238.40 crore registered during the previous trading session.
In overseas stock markets, European stocks edged lower dragged down by fall in auto shares amid investor concerns that the emissions scandal could spread to more car makers. The European Central Bank (ECB) yesterday, 21 April 2016, left monetary policy unchanged as expected. ECB President Mario Draghi retained a hawkish stance when he said that he would use all the tools at his disposal for as long as needed.
Earlier during the global day, most Asian stocks edged lower following overnight losses for US stocks. US stocks closed lower yesterday, 21 April 2016, as big declines in defensive sectors such as consumer staples, telecom and utilities weighed on the main indexes.
Car maker Maruti Suzuki India rose 3.04% as Japanese yen weakened against the dollar. A weak yen is expected to boost operating margins for Maruti Suzuki India. Maruti is scheduled to announce its Q4 March 2016 results on 26 April 2016.
Index heavyweight Reliance Industries (RIL) was down marginally by 0.04% to Rs 1,040.45 ahead of its Q4 March 2016 earnings after trading hours. The stock hit a high of Rs 1,047.75 and low of Rs 1,030.50 in intraday trade.
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Shares of public sector banks extended previous session's gains triggered by reports that provisioning for non-performing asset will be lower than anticipated in Q4 March 2016. Punjab National Bank (up 2.03%), Bank of Baroda (up 2.79%), State Bank of India (SBI) (up 2.99%), Union Bank of India (up 0.49%), Canara Bank (up 2.58%), and Bank of India (up 0.57%) edged higher.
As per recent media reports, the Reserve Bank of India (RBI) has pruned the list of companies whose loans need to be provided for against the risk of default. Lower than anticipated provisioning for non-performing asset could restrict the negative impact on banks' bottom line in Q4 March 2016. RBI has reportedly informed banks individually that they don't have to provide in the March quarter for outstanding loans to 20 firms out of the 150 it had listed in December. The decision was prompted partly by the steps taken by companies to cut debt, according to reports. Banks were forced to make substantial provisions in the December quarter following an asset quality review (AQR) ordered by the central bank. Due to this, a number of banks reported losses in Q3 December 2015.
Shares of private sector banks were mixed. ICICI Bank (down 0.36%), Yes Bank (down 0.75%) and Kotak Mahindra Bank (down 1.26%) declined. Axis Bank gained 1.37%.
HDFC Bank rose in volatile trade after reporting good Q4 results. The stock rose 0.18% to Rs 1,093. The stock hit high of Rs 1,100.90 and low of Rs 1,085.65 in intraday trade. The bank's net profit rose 20.21% to Rs 3374.22 crore on 21.14% rise in total income to Rs 18862.61 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 22 April 2016.
The bank's gross non-performing assets (NPAs) stood at Rs 4392.83 crore as on 31 March 2016 as against Rs 4255.20 crore as on 31 December 2015 and Rs 3438.38 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 0.94% as on 31 March 2016 as against 0.97% as on 31 December 2015 and 0.93% as on 31 March 2015. The ratio of net NPAs to net advances stood at 0.28% as on 31 March 2016 as against 0.29% as on 31 December 2015 and 0.25% as on 31 March 2015. The bank's provisions and contingencies rose 14.88% to Rs 662.45 crore in Q4 March 2016 over Q4 March 2015.
IndusInd Bank rose 0.69% on strong Q4 March 2016 results. The bank's net interest margin rose 26 basis points on year-on-year basis to 3.94% in Q4 March 2016. The private sector bank said that growth in total deposits stood at industry beating 25% in Q4 March 2016. Growth in current and savings accounts (CASA) deposits stood at 29% in Q4 March 2016. The CASA ratio edged up to 35.2% as on 31 March 2016 from 35% as on 31 December 2015. The growth in the bank's loan book stood at industry beating 29% in Q4 March 2016. Shares of IndusInd Bank had lost 1.35% to settle at Rs 971.65 yesterday, 21 April 2016, as the fourth quarter results showed increase in the bank's sticky loans.
IndusInd Bank's net profit rose 25.25% to Rs 620.35 crore on 23.38% growth in total income to Rs 4044.49 crore in Q4 March 2016 over Q4 March 2015. The bank announced the results during trading hours yesterday, 21 April 2016.
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