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SBI jumps after announcing strong Q4 result

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Last Updated : May 23 2015 | 12:01 AM IST

A bout of volatility was witnessed as key benchmark indices extended intraday gains after trimming intraday gains in afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest levels in more than four weeks. The Sensex was currently trading above the psychological 28,000 mark, having alternately moved above and below that mark so far during the trading session. Earlier, the Sensex had moved past the psychological 28,000 mark in mid-morning trade. The market breadth indicating the overall health of the market was positive. The Sensex was currently up 240.72 points or 0.87% at 28,050.07. In overseas markets, Chinese stocks led gains in Asian stocks.

Shares of banking giant State Bank of India (SBI) jumped after reporting strong Q4 March 2015 result. Realty stocks were mixed. Telecom stocks slipped.

Meanwhile, the Southwest Monsoon has reportedly further advanced and arrived over Sri Lanka.

Meanwhile, Finance Minister Arun Jaitley reportedly said at a news conference today, 22 May 2015, to mark the first year of Prime Minister Narendra Modi's government in power that India should bring down its effective tax rate to global levels.

Foreign portfolio investors sold shares worth a net Rs 186.26 crore yesterday, 21 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 404.01 crore yesterday, 21 May 2015, as per provisional data released by the stock exchanges.

Meanwhile, the government yesterday, 21 May 2015, announced an overhaul of the country's foreign direct investment (FDI) policy rules for overseas Indians.

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In the overseas market, European stocks edged lower. Chinese stocks led gains in Asian stocks. US stocks ended slightly higher yesterday, 21 May 2015, sending the S&P 500 to a fresh record.

At 13:15 IST, the S&P BSE Sensex was up 240.72 points or 0.87% at 28,050.07. The index jumped 242.60 points at the day's high of 28,051.95 in afternoon trade, its highest level since 23 April 2015. The index gained 19.26 points at the day's low of 27,828.61 in early trade.

The Nifty was up 62.30 points or 0.74% at 8,483.30. The index hit a high of 8,483.60 in intraday trade, its highest level since 23 April 2015. The index hit a low of 8,420.60 in intraday trade.

The BSE Mid-Cap index was up 64.15 points or 0.6% at 10,671.07. The BSE Small-Cap index was up 51.60 points or 0.46% at 11,252.46. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,287 shares rose and 1,151 shares fell. A total of 118 shares were unchanged.

The total turnover on BSE amounted to Rs 1646 crore by 13:15 IST.

Shares of banking giant State Bank of India (SBI) jumped after reporting strong Q4 March 2015 result. The stock was up 5.18% at Rs 304.35. The stock hit a high of Rs 305 and a low of Rs 290.10 so far during the day. SBI's net profit jumped 23.06% to Rs 3742.02 crore on 14.54% increase in total income to Rs 48616.41 crore in Q4 March 2015 over Q4 March 2014. The result hit the market during trading hours today, 22 May 2015.

Realty stocks were mixed. Realty major DLF fell 0.89% to Rs 123.15. The stock hit high of Rs 125.65 and low of Rs 122.60 so far during the day.

Housing Development and Infrastructure (down 2.18%), D B Realty (down 0.09%), Unitech (down 0.35%) and Parsvnath Developers (down 0.46%) declined. Oberoi Realty (up 0.31%), Godrej Properties (up 2.42%) and Sobha (up 1.05%) rose.

Indiabulls Real Estate rose 2.65% after consolidated net profit jumped 123.48% to Rs 93.13 crore on 84.49% rise in total income to Rs 630.70 crore in Q4 March 2015 over Q4 March 2014. The company announced results after market hours yesterday, 21 May 2015.

Telecom stocks slipped. Idea Cellular (down 1.65%), Bharti Airtel (down 0.07%), MTNL (down 0.12%), Tata Teleservices (Maharashtra) (down 0.81%) and Reliance Communications (down 0.39%) declined.

Meanwhile, the government yesterday, 21 May 2015, announced an overhaul of the country's foreign direct investment (FDI) policy rules for overseas Indians. Investment by NRIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will now be deemed to be domestic investment at par with the investment made by residents. This decision is meant to provide clarity in the FDI policy as such investment is not included in the category of foreign investment, a government statement said. The measure is expected to result in increased investments across sectors and greater inflow of foreign exchange remittance leading to economic growth of the country, the statement said.

Meanwhile, Finance Minister Arun Jaitley reportedly said at a news conference today, 22 May 2015, to mark the first year of Prime Minister Narendra Modi's government in power that India should bring down its effective tax rate to global levels. Jaitley said that India must remove discretion, phase out exemptions and bring the effective corporate tax rate down to global levels.

It may be recalled that Jaitley had announced in his speech on the Union Budget 2015-16 presented in parliament on 28 February 2015 that the rate of corporate tax will be cut to 25% from 30% over a period of next four years.

Meanwhile, the Southwest Monsoon has reportedly further advanced and arrived over Sri Lanka. According to private weather forecaster Skymet, the monsoon has covered entire Andaman Sea, some more parts of southeast, southwest and eastcentral Bay of Bengal. Weather conditions are looking favourable for the advancement of the Southwest Monsoon indicating its timely onset over Kerala, Skymet said yesterday, 21 May 2015 on its website.

In overseas markets, European stocks edged lower today, 22 May 2015. Key benchmark indices in Germany and France were off 0.07% to 0.16%. In UK, the FTSE 100 index was up 0.39%.

Confidence in France's manufacturing sector rose in May to the highest level in nearly four years as business leaders revised up their assessment of recent output. Confidence in the manufacturing sector rose further above the long-term average of 100 to reach 103 in May, the highest level since August 2011, statistics agency Insee said today, 22 May 2015. The figure for April was revised to 102 from 101 previously.

Chinese stocks led gains in Asian stocks today, 22 May 2015. In mainland China, the Shanghai Composite index was up 2.83%. In Hong Kong, the Hang Seng index was up 1.73%. In other Asian markets, key benchmark indices in Singapore, Indonesia, South Korea and Taiwan were up 0.01% to 1.1%.

In Japan, the Nikkei 225 was up 0.3%. The Bank of Japan today, 22 May 2015, kept its policy on hold, saying the country's economy is improving moderately. The BOJ's nine-member policy board voted 8-1 to leave its policy framework unchanged, keeping the bank's annual asset purchases at 80 trillion Yen ($660 billion). The BOJ last expanded its easing measures in October.

US stocks ended slightly higher yesterday, 21 May 2015, sending the S&P 500 to a fresh record. The main indexes continued to trade in narrow ranges in the absence of a major catalyst to move prices either direction. Investors mostly brushed off a flurry of weaker-than-expected economic data a day after minutes from Federal Reserve's last meeting signaled a June interest-rate hike was unlikely.

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First Published: May 22 2015 | 1:10 PM IST

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