After languishing in red in afternoon trade, key benchmark indices extended losses in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was off 133.40 points or 0.5% at 26,704.74. The decline for the Sensex was higher in percentage terms than that for the 50-unit CNX Nifty index. The Nifty was currently off 30.40 points or 0.37% at 8,081.35. Index heavyweight and cigarette major ITC tumbled after reporting flat bottom line in Q2 September 2015. Another index heavyweight L&T edged lower in choppy trade ahead of the announcement of its sector quarter results.
The Sensex hit 3-1/2-week low when it lost 164.57 points or 0.61% at the day's low of 26,673.57 in mid-afternoon trade. The Nifty also hit 3-1/2-week low when it fell 39.15 points or 0.48% at the day's low of 8,072.60 in mid-afternoon trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,399 shares fell and 1,078 shares rose. A total of 197 shares were unchanged. The BSE Mid-Cap index was currently up 0.13%, outperforming the Sensex. The BSE Small-Cap index was current off 0.45%. The decline in this index in percentage terms was lower when compared with the Sensex's decline.
In overseas stock markets, European stocks rose after a fresh batch of corporate earnings reports and as investors eyed the release of euro zone inflation data due later in the trading session. Asian stocks edged lower after Japan's central bank Bank of Japan refrained from introducing further easing, keeping its annual asset purchase target at 80 trillion yen ($660 billion), despite building expectations of stimulus amid disappointing economic data. US stocks finished slightly lower yesterday, 29 October 2015, succumbing to weaker-than-expected readings on gross domestic product and pending home sales a day after the Federal Reserve signaled a December rate increase remains possible.
Index heavyweight and engineering and construction major L&T edged lower in volatile trade ahead of the announcement of its second quarter results. The stock was currently off 2.15% at Rs 1,440. The stock hit high of Rs 1,498 and low of Rs 1,439.30 so far during the day.
ITC tumbled after reporting flat bottom line in Q2 September 2015. The stock was currently off 4.53% at Rs 333.90. The stock hit a high of Rs 351 and a low of Rs 331.40 so far during the day. The company's net profit rose 0.25% to Rs 2431.25 crore on 1.32% decline in total income from operations (net) to Rs 8904.23 crore in Q2 September 2015 over Q2 September 2014. The result was announced during trading hours today, 30 October 2015.
ITC said that the company's performance in Q2 September 2015 remained subdued due to unprecedented pressure on cigarette industry volumes in the country, lack of trading opportunities for the company in its agri-commodities business and sluggish demand environment in the FMCG industry.
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Bank stocks saw mixed trend. Among private bank stocks, HDFC Bank (down 0.23%), IndusInd Bank (down 0.24%) declined. Axis Bank rose 0.85%.
ICICI Bank edged higher in volatile trade after reporting good Q2 results. The stock was currently up 0.61% at Rs 273.10. The stock hit a high of Rs 278.10 and low of Rs 271.60 so far during the day. ICICI Bank's net profit rose 11.85% to Rs 3030.11 crore on 8.17% growth in total income to Rs 16106.22 crore in Q2 September 2015 over Q2 September 2014. The result was announced during market hours today, 30 October 2015.
The bank's provisions and contingencies rose 10.9% to Rs 942.16 crore in Q2 September 2015 over Q2 September 2014. The bank's provision coverage ratio stood at 57.4% as on 30 September 2015.
ICICI Bank's net non-performing assets (NPA) stood at Rs 6828 crore as on 30 September 2015, higher than Rs 6402 crore as on 30 June 2015. The net NPA ratio stood at 1.47% as on 30 September 2015, higher than 1.4% as on 30 June 2015.
Meanwhile, the board of directors of ICICI Bank, at its meeting held today, 30 October 2015, approved the sale of 9% shareholding in ICICI Lombard General Insurance Company to its joint venture partner Fairfax Financial Holdings. The proposed transaction values ICICI Lombard General Insurance Company at Rs 17225 crore ($2.6 billion). After the latest stake-sale, ICICI Bank will hold 64% stake in ICICI Lombard General Insurance Company and Fairfax will hold 35% stake.
Kotak Mahindra Bank surged after reporting second quarter results. The stock was currently up 3.15% at Rs 684.50. The stock hit a high of Rs 693.30 and a low of Rs 662.50 so far during the day. The bank's net profit rose 28.12% to Rs 569.50 crore on 63.94% increase in total income to Rs 4621.38 crore in Q2 September 2015 over Q2 September 2014. The results are not comparable due to the merger of ING Vysya Bank with Kotak Mahindra Bank which became effective from 1 April 2015.
Yes Bank extended gains registered yesterday, 29 October 2015, triggered by the bank's strong Q2 September 2015 results. The stock was currently up 2.42% at Rs 761.50. The stock had risen 1.95% to settle at Rs 743.50 yesterday, 29 October 2015. The bank's net profit rose 26.49% to Rs 610.41 crore on 19.69% rise in total income to Rs 3995.34 crore in Q2 September 2015 over Q2 September 2014.
Shares of state-run banks also witnessed a mixed trend. IDBI Bank (down 3.09%), Union Bank of India (down 1.22%), Bank of Baroda (down 0.71%) and Canara Bank (down 0.91%) dropped. State Bank of India (SBI) (up 0.17%), Punjab National Bank (up 0.19%) and Bank of India (up 0.09%) edged higher.
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