Key benchmark indices jumped in early trade on positive Asian cues. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit record high in opening trade. The Sensex retraced after hitting the 29,000 mark. The Sensex was currently up 95.52 points or 0.33% at 28,984.38. The market breadth indicating the overall health of the market was strong.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 2065.49 crore yesterday, 21 January 2015, as per provisional data.
Among global markets, most Asian shares were trading higher as investors bet the European Central Bank will unveil a bond-buying stimulus programme later in the day in an attempt to revive the flagging euro zone economy. The US stock market ended Wednesday's choppy trading day with modest gains, extending its winning streak to three sessions, as investors widely expect the European Central Bank to deliver on monetary stimulus at its key meeting today, 22 January 2015.
At 9:25 IST, the S&P BSE Sensex was up 95.52 points or 0.33% at 28,984.38. The index rose 124.02 points at the day's high of 29012.88 in opening trade, also a life time high. The index rose 63.62 points at the day's low of 28,952.48 in opening trade.
The CNX Nifty was up 15.35 points or 0.18% at 8,744.85. The index hit a high of 8,754.65 in intraday trade, also a life time high. The index hit a low of 8,742.05 in intraday trade.
The BSE Mid-Cap index was up 16.64 points or 0.16% at 10,718.88, underperforming the Sensex. The BSE Small-Cap index was 52.35 points or 0.46% at 11,475.23, outperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 911 shares advanced and 440 shares declined. A total of 41 shares were unchanged.
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Among the 30 Sensex shares, 27 rose and the remaining shares fell. Sesa Sterlite (up 3.56%), Bajaj Auto (up 1.23%) and ITC (up 0.92%), edged higher from the Sensex pack.
Bharti Airtel (down 1.8%), NTPC (down 1.39%) and Maruti Suzuki India (down 0.07%), edged lower from the Sensex pack.
L&T Finance Holdings rose 2.01%. The stock hit high of Rs 71.90 and low of Rs 70.90. The company's consolidated profit after tax jumped 65.56% to Rs 181.60 crore on 23.19% growth in total income to Rs 1611.52 crore in Q3 December 2014 over Q3 December 2013. The result was announced after trading hours yesterday, 21 January 2014. Loans & Advances as on 31 December 2014 grew by 20% year on year (y-o-y) to Rs 45225 crore as compared to Rs 37820 crore as on 31 December 2013. The growth in Loans & Advances was aided by strong disbursement growth of 32% on a y-o-y basis across B2C products i.e. tractors, two wheelers, housing and microfinance in the retail business and operational projects in renewables, roads and non-infrastructure segments in the wholesale business.
On absolute basis, gross non-performing assets (NPA) edged up to Rs 1326.58 crore as on 31 December 2014, from Rs 1228.22 crore as on 30 September 2014 and Rs 1067.16 crore as on 31 December 2013. Gross NPA stood at 3.01% as a percentage of gross advances as on 31 December 2014, higher than 2.96% as on 30 September 2014. Net NPA stood at 1.98% as a percentage of gross advances as on 31 December 2014, lower than 2% as on 30 September 2014.
L&T Finance Holdings said that the company continued to make additional provisions in Q3 December 2014, increasing the provision coverage to 35% at the consolidated level. In line with the conservative provisioning policy, the company carries about Rs 190 crore of provisions in excess of RBI norms, L&T Finance Holdings said.
The investment management business continued to see accretion of equity assets on the back of both market movement and improved gross and net sales, L&T Finance Holdings said.
L&T Finance Holdings said that the focus of the management in the near term will remain on strengthening the balance sheet and be prepared to effectively take advantage of the upcoming growth cycle. After a significant asset accretion in the wholesale business in Q3 December 2014, the management expects a slight moderation in the company's asset growth in Q4 March 2015 on the back of sell down of certain underwritten projects. L&T Finance Holdings expects to achieve a healthy asset growth of around 20% for this financial year.
Kotak Mahindra Bank was down 1.05%.
ING Vysya Bank was down 1.94% to Rs 959.20. The stock hit high of Rs 980 and low of Rs 955.85. The private sector bank's net profit fell 12.93% to Rs 145.69 crore on 13.8% increase in total income to Rs 1693.30 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 21 January 2015. Provisions and contingencies jumped 167.31% to Rs 61.51 crore in Q3 December 2014 over Q3 December 2013. Provisions and contingencies rose 23.86% to Rs 61.51 crore in Q3 December 2014 over Q2 September 2014.
On absolute basis, the bank's gross non-performing assets (NPAs) before technical write off edged up to Rs 764.01 crore as on 31 December 2014, from Rs 635.84 crore as on 30 September 2014 and Rs 582.69 crore as on 31 December 2013. The ratio of gross NPA to gross advances edged up to 1.86% as on 31 December 2014, from 1.59% as on 30 September 2014 and 1.68% as on 31 December 2013. The ratio of net NPA to net advances edged up to 0.66% as on 31 December 2014, from 0.42% as on 30 September 2014 and 0.21% as on 31 December 2013.
Kotak Mahindra Bank and ING Vysya Bank have announced amalgamation of ING Vysya with Kotak in the ratio of 725 shares of Kotak for every 1,000 shares of ING Vysya.
In his foreword to the fourth edition of the annual Status Paper on Government Debt which gives detailed analysis of the government's debt position released yesterday, 21 January 2015, Finance Minister Arun Jaitely has said that the overall liabilities of the Central Government are on a medium-term declining trajectory with low roll-over risk, notwithstanding the slight increase in a couple of years in recent past due to stimulus spending in the wake of the global financial crisis. The share of public account liabilities in the total liabilities of the General Government are also on a declining trend. The average interest cost, which is stable and well below nominal GDP growth rate, indicates that India is comfortably placed in terms of sustainability parameters of public debt, Jaitley said. The government's debt portfolio is characterized by prudent risk profile with share of short-term debt within safe limits. Most of the debt is of domestic origin insulating the debt portfolio from currency risk. The limited external debt is almost entirely from official sources on concessional terms, providing safety from volatility in the international financial markets. The relatively long maturity of debt and its predominantly fixed-coupon character point to low roll-over and interest rate risks, Jaitley said.
Most Asian shares were trading higher as investors bet the European Central Bank will unveil a bond-buying stimulus programme later in the day in an attempt to revive the flagging euro zone economy. Key benchmark indices in Japan, Hong Kong, Indonesia, Singapore, South Korea and Taiwan were up by 0.11% to 0.48%. Key benchmark index in China was off 0.20%.
The US stock market ended Wednesday's choppy trading day with modest gains, extending its winning streak to three sessions, as investors widely expect the European Central Bank to deliver on monetary stimulus at its key meeting today, 22 January 2015.
In Europe, the governing council of the European Central Bank (ECB) is scheduled to undertake monetary policy review today, 22 January 2015. The ECB may announce a large-scale bond-buying program today, 22 January 2015, aimed at spurring Europe's ailing economy.
Meanwhile, uncertainties over the status of Greece including its possible exit from the eurozone are likely to persist until the early election in the country on 25 January 2015. Greece is set to hold snap elections on 25 January 2015 after it failed to elect a new president in a third round of voting late last year. The Greek leftist opposition party Syriza leads opinion polls ahead of national elections on 25 January 2015. Syriza has demanded debt relief from the eurozone and promised to roll back the austerity and reform measures that the country has undertaken in exchange for the international bailout that the government negotiated in 2012.
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