Key benchmark indices slipped into the negative zone from positive zone in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was down 120.88 points or 0.43% at 27,930.98. The decline in the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 23.35 points or 0.27% at 8,615.15. The Sensex was currently trading below the psychologically important 28,000 level after falling below that level in afternoon trade. The market breadth indicating the overall health of the market turned negative from positive in afternoon trade. On BSE, 1,037 shares rose and 1,514 shares declined. A total of 139 shares were unchanged. The BSE Mid-Cap index was currently down 0.2%. The BSE Small-Cap index was currently down 0.18%. The losses for both these indices were lower than the Sensex's decline in percentage terms.
The Sensex lost 131.61 points or 0.46% at the day's low of 27,920.25 in afternoon trade, its lowest level since 27 July 2016. The barometer index rose 232.99 points or 0.83% at the day's high of 28,284.85 in morning trade, its highest level since 10 August 2015. The Nifty lost 27.50 points or 0.31% at the day's low of 8,611 in afternoon trade, its lowest level since 27 July 2016. The index rose 72.80 points or 0.84% at the day's high of 8,711.30 in morning trade, its highest level since 16 April 2015.
In overseas stock markets, European and Asian shares rose as the chances of a US interest-rate increase diminished, after the nation's economic growth for the second quarter came in below expectations. The odds of a September US interest rate rise dropped to 12% from 18%, Fed Funds futures data showed, after the US economy grew at just 1.2% in the second quarter from a year earlier, well below estimates, data showed on Friday, 29 July 2016. Low US interest rates could support demand for emerging-market assets.
In mainland China, the Shanghai Composite closed 0.87% lower. In Hong Kong, the Hang Seng index was currently up 1.19%. China's official manufacturing purchasing managers' index slipped below 50 in July, indicating a contraction in the nation's factory activity for the first time in five months, official data showed today, 1 August 2016. The index fell to 49.9 in July from 50 a month ago. China's official non-manufacturing purchasing managers' index, a gauge of activity outside factory floors, climbed to 53.9 in July from 53.7 in June, the National Bureau of Statistics said today, 1 August 2016. A reading above 50 indicates an expansion, while a figure below that level indicates a contraction.
Strong earnings from Amazon and Google parent Alphabet lifted US stocks mostly higher on Friday, 29 July 2016, countering a disappointing report on second-quarter US economic growth.
Bank stocks edged lower. Among public sector banks, Bank of Baroda (down 3.12%), Union Bank of India (down 2.12%), Indian Bank (down 2.21%), IDBI Bank (down 1.72%), Corporation Bank (down 1.8%), Bank of India (down 0.81%), State Bank of India (down 0.61%) and Punjab National Bank (down 0.77%) declined.
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Among private sector banks, Yes Bank (down 0.64%) and Kotak Mahindra Bank (down 1.26%) edged lower. IndusInd Bank (up 1.02%) and Axis Bank (up 0.75%) edged higher.
Index heavyweight HDFC Bank was off 0.93% at Rs 1,235. The stock hit a high of Rs 1,258.85 and a low of Rs 1,234.25 so far during the day.
ICICI Bank lost 3.84% at Rs 252.75 after net profit fell 24.99% to Rs 2232.35 crore on 6.06% increase in total income to Rs 16759.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016.
ICICI Bank's gross non-performing assets (NPAs) stood at Rs 27193.58 crore as on 30 June 2016 as against Rs 26221.25 crore as on 31 March 2016 and Rs 15137.61 crore as on 30 June 2015. The ratio of gross NPAs to gross advances stood at 5.87% as on 30 June 2016 as against 5.82% as on 31 March 2016 and 3.68% as on 30 June 2015. The ratio of net NPAs to net advances stood at 3.35% as on 30 June 2016 as against 2.98% as on 31 March 2016 and 1.58% as on 30 June 2015. The bank's provisions and contingencies (excluding tax provisions) rose 163.19% to Rs 2514.52 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank was at 57.1% as on 30 June 2016.
The bank said it continued to achieve robust growth in current and savings account (CASA) deposits. ICICI Bank's total CASA deposits increased by 18% to Rs 191348 crore as on 30 June 2016 over 30 June 2015. The bank's CASA ratio was 45.1% at 30 June 2016 compared to 45.8% at 31 March 2016 and 44.1% at 30 June 2015. The average CASA ratio was at 41.7% in Q1 June 2016 compared to 40.5% in Q4 March 2016 and 41.1% in Q1 June 2015. Total deposits increased by 15% to Rs 424086 crore at 30 June 2016 over 30 June 2015. The bank had a network of 4,451 branches and 14,073 ATMs at 30 June 2016.
On a consolidated basis, the bank's net profit fell 22.17% to Rs 2515.85 crore on 9.03% increase in total income to Rs 24483.75 crore in Q1 June 2016 over Q1 June 2015.
IT stocks were mostly higher. TCS (up 3.05%), Wipro (up 2.42%) and HCL Technologies (up 2.16%) rose. Oracle Financial Services Software (down 2.36%) and Tech Mahindra (down 0.97%) edged lower.
Index heavyweight and software major Infosys was up 0.34% at Rs 1,077.65. The stock hit a high of Rs 1,082.65 and a low of Rs 1,069 so far during the day.
Ashok Leyland fell 3.72% at Rs 91.90 after the company reported 5% fall in total sales to 10,492 units in July 2016 over July 2015. Ashok Leyland reported 7% fall in sales of medium and heavy commercial vehicles (M&HCV) to 8,182 units in July 2016 over July 2015. Sales of light commercial vehicles (LCV) rose 4% to 2,310 units in July 2016 over July 2015. The company announced the monthly sales volume data during market hours today, 1 August 2016.
The outcome of a monthly survey showed that the performance of India's manufacturing economy continued to improve in July, with a stronger expansion in new business contributing to faster increases in output and buying levels. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to a four-month high of 51.8 in July from a reading of 51.7 in June-indicating a further improvement in overall business conditions across the sector.
Meanwhile, investors are awaiting the progress on the Goods and Services Tax (GST) constitutional amendment bill in parliament. According to reports, the government on Friday, 29 July 2016, listed the much-awaited GST bill for consideration and passage in Rajya Sabha's agenda for this week. Minister of state for parliamentary affairs Mukhtar Abbas Naqvi, while making a statement regarding government business for the week starting 1 August in the Upper House, reportedly said that the GST constitutional amendment bill will be taken up for consideration and passage in the Rajya Sabha. The government is keen to get the GST Bill approved during the Monsoon Session of Parliament ending on 12 August 2016.
The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of opposition to the bill in its current form by the Congress party. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax.
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