A lacklustre trend was witnessed as key benchmark indices hovered near the flat line in afternoon trade At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 3.89 points or 0.02% at 25,876.49. The Nifty 50 index was currently up 2.75 points or 0.03% at 7,914.80. The market breadth indicating the overall health of the market was positive. On BSE, 1,267 shares gained and 1,034 shares declined. A total of 167 shares were unchanged. The BSE Mid-Cap index was currently up 0.35%. The BSE Small-Cap index was currently up 0.23%. Both these indices outperformed the Sensex.
In overseas stock markets, main European markets edged lower in early trade. 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. Most Asian markets 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.
Aurobindo Pharma gained after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Esomeprazole Magnesium Delayed-release Capsules USP, 20 mg and 40 mg. The stock rose 2.55%. The launch of this product is based on the settlement terms/litigation outcome with AstraZeneca. The drug is used in the treatment of gastroesophageal reflux disease. It has an estimated market size of $4.2 billion in the US for the twelve months ended February 2016, according to IMS data.
Car maker Maruti Suzuki India rose 2.9% as Japanese yen weakened against the dollar. A weak yen is expected to boost operating margins for Maruti Suzuki India. The company is scheduled to announce its Q4 March 2016 results on 26 April 2016.
IT stocks were mixed. HCL Technologies (down 1.1%) and Wipro (down 0.39%) edged lower. Tech Mahindra rose 2.12%.
IT major Infosys declined 0.36% to Rs 1,222. The stock hit high of Rs 1,229 and low of Rs 1,210.60 so far during the day.
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TCS rose after the company today, 22 April 2016, announced winning a long-term contract from full service carrier Vistara. The stock was up 0.06% to Rs 2,423.60. The stock was volatile. The stock hit high of Rs 2,435 and low of Rs 2,404.95 so far during the day. As per the agreement, TCS will provide a broad range of IT services in the area of IT Management, application maintenance and application development to help Vistara achieve its goal in customer experience, operational excellence as well as cost leadership. The announcement was made during market hours today, 22 April 2016.
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 1.81%), Bank of Baroda (up 2.66%), State Bank of India (SBI) (up 2.37%), Union Bank of India (up 1.67%), Canara Bank (up 2.29%), and Bank of India (up 2.29%) edged higher.
As per 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. Axis Bank (up 0.38%) and Yes Bank (up 0.1%) gained. ICICI Bank (down 0.08%) and Kotak Mahindra Bank (down 0.73%) declined.
HDFC Bank rose after reporting good Q4 results. The stock rose 0.27%. 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.
IndusInd Bank rose 1.29% 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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