Key benchmark indices continued to hover in negative terrain in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex was down 95.09 points or 0.34% at 28,082.37. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty 50 was currently down 20.65 points or 0.24% at 8,688.30. The market breadth indicating the overall health of the market was negative. On BSE, 1,432 shares fell and 1,259 shares rose. A total of 204 shares were unchanged. The BSE Mid-Cap index was currently down 0.37%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.09%, outperforming the Sensex.
In overseas stock markets, European stocks edged higher with corporate earnings dominating market moves. Asian stocks witnessed a mixed trend. US stocks registered impressive gains yesterday, 24 October 2016, on flurry of M&A deals, part of the single largest week for M&A since the dot-com era. More than five multi-billion dollar deals were announced over the past week. Latest data showed that the Markit flash US manufacturing purchasing managers' index rose to 53.2 in October from 51.5 in September.
Kotak Mahindra Bank rose 0.13% after the bank announced strong Q2 September 2016 results during trading hours today, 25 October 2016. The bank's net profit rose 42.81% to Rs 813.29 crore on 13.46% increase in total income to Rs 5243.58 crore in Q2 September 2016 over Q2 September 2015.
The bank's gross non-performing assets (NPAs) stood at Rs 3180.66 crore as on 30 September 2016 as against Rs 3058.81 crore as on 30 June 2016 and Rs 2655.38 crore as on 30 September 2015. The ratio of gross NPAs to gross advances stood at 2.49% as on 30 September 2016 as against 2.50% as on 30 June 2016 and 2.35% as on 30 September 2015. The ratio of net NPAs to net advances stood at 1.20% as on 30 September 2016 as against 1.21% as on 30 June 2016 and 1.05% as on 30 September 2015.
The bank's provisions and contingencies (excluding tax provisions) rose 12.11% to Rs 197.76 crore in Q2 September 2016 over Q2 September 2015.
Net Interest Income (NII) rose 19% to 1995 crore in Q2 September 2016 over Q2 September 2015. Net Interest Margin (NIM) was reported at 4.47% in Q2 September 2016, up from 4.30% Q2 September 2015. Advances rose 13% to Rs 126015 crore as on 30 September 2016 compared with Rs 111662 crore as on 30 September 2015
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Average Savings deposits grew by 35% to 30,678 crore in Q2 September 2016 over Q2 September 2015. Average Current Account deposits grew by 28% to 19,273 crorein Q2 September 2016 over Q2 September 2015. CASA (current and savings account) as on 30 September 2016 stood at 39%. TD Sweep deposits as on 30 September 2016 were 6.4% of the total deposits.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 0.91%), GVK Power & Infrastructure (down 0.15%), NHPC (down 0.58%), Adani Power (down 4.08%), Reliance Infrastructure (down 0.72%) and Reliance Power (down 0.41%) declined. NTPC rose 0.07%.
Tata Power Company was down 1.56%. The company during market hours today, 25 October 2016 said that its wholly owned subsidiary Tata Power Renewable Energy (TPREL) announced the signing of the power purchase agreement (PPA) for a 100 megawatts (MW) solar project at Anantapuram solar park in Andhra Pradesh with the Solar Corporation of India (SECI). The commercial operations date (COD) of the project as per the PPA is 16 October 2017. The project has been secured through bidding in the open category under the Jawaharlal Nehru National Solar Mission (JNNSM).
Power Grid Corporation of India rose 1.08% after the company said that POWERGRID NM Transmission, a wholly owned subsidiary of the company secured through Tariff Based Competitive Bidding (TBCB) successfully completed and declared commercial operation of the element Nagapattinam Pooling Station - Salem 765kV D/C Line on 23 October 2016. The announcement was made after market hours yesterday, 24 October 2016,
Separately, the company said that its board of directors in a meeting held on 22 October 2016 accorded approval for amendment to Investment of 'North Eastern Region Strengthening Scheme - IV (NERSS - IV)' at an estimated cost of Rs 409.19 crore with commissioning schedule of 24 months from the date of investment approval.
State run coal miner Coal India dropped 0.67%.
Auto stocks were mixed. Ashok Leyland (down 1.14%), Eicher Motors (down 1.02%), Tata Motors (down 1.15%), and Bajaj Auto (down 1.63%) declined. Maruti Suzuki India (up 0.87%), Hero MotoCorp (up 0.3%), and TVS Motor Company (up 3.01%) gained.
Mahindra & Mahindra (M&M) fell 2.11%. M&M unveiled plans to refocus its two wheeler business, to target premium niche segments. With the acquisition of controlling stake in Classic Legends, M&M aims to co-create a lifestyle mobility company with exciting and relevant partners across products & services, and enter into previously untapped segments using iconic brands like BSA and JAWA. Classic Legends acquired BSA Company including all its existing global brand rights. Classic Legends signed an exclusive Brand License agreement with JAWA, for India and select geographies in Asia.
Both BSA & JAWA have heritage value and consumer followings in many parts of the world. BSA which has a global appeal will be primarily suited to international markets, and JAWA with its cult following in India is more suited to the domestic market. Classic Legends would leverage the best global capabilities in design and engineering, along with the expertise available at Mahindra Racing's technical development centre in Italy, to design and launch products that capture the brand DNA and ethos, of these iconic brands. The announcement was made during market hours today, 25 October 2016.
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