Key benchmark indices languished in negative zone in mid-afternoon trade, with the Nifty 50 index hitting one-week low. At 14:15 IST, the barometer index, the S&P BSE Sensex, was off 49.06 points or 0.18% at 27,725.82. The losses for the Nifty were higher in percentage terms than those for the Sensex. The Nifty was currently down 26.45 points or 0.31% at 8,548.85.
The Nifty fell 33.95 points or 0.4% at the day's low of 8,541.35 in mid-afternoon trade, its lowest level since 4 August 2016. The index rose 25.85 points or 0.3% at the day's high of 8,601.15 in early afternoon trade. The Sensex lost 77.55 points or 0.28% at the day's low of 27,697.33 in early trade, its lowest level since 4 August 2016. The barometer index rose 127.51 points or 0.46% at the day's high of 27,902.39 in early afternoon trade.
In overseas stock markets, European stocks edged higher helped by well-received corporate updates from the likes of Belgium's KBC and Germany's Henkel. Asian stocks witnessed mixed trend. US stocks closed slightly lower yesterday, 10 August 2016, with the S&P 500 index and Nasdaq Composite index retreating from record levels as crude-oil futures slumped following data on supply and production. The US Energy Information Administration reported an increase crude supplies last week, while Saudi Arabia revealed record crude production in July. Saudi Arabia is Organization of the Petroleum Exporting Countries (OPEC)'s largest oil producer.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,560 shares fell and 971 shares rose. A total of 141 shares were unchanged. The BSE Mid-Cap index was currently down 0.73%. The BSE Small-Cap index was currently down 0.47%. The losses for both these indices were higher than the Sensex's decline in percentage terms.
Bank stocks edged lower. Among PSU bank stocks, Allahabad Bank (down 3.72%), Corporation Bank (down 3.31%), Syndicate Bank (down 2.08%), State Bank of India (SBI) (down 2.07%), Punjab National Bank (down 3.72%), Canara Bank (down 2.1%), IDBI Bank (down 1.35%), Bank of India (down 2.77%) and Union Bank of India (down 2.62%) dropped.
Bank of Baroda lost 8.81% after the bank reported 59.74% slump in net profit to Rs 423.62 crore on 2.99% decline in total income to Rs 11877.91 crore in Q1 June 2016 over Q1 June 2015. The result was announced before trading hours today, 11 August 2016. The bank's gross non-performing assets (NPAs) stood at Rs 42991.68 crore as on 30 June 2016 as against Rs 40521.04 crore as on 31 March 2016 and Rs 17273.95 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 11.15% as on 30 June 2016 as against 9.99% as on 31 March 2016 and 4.13% as on 30 June 2015. The ratio of net NPA to net advances stood at 5.73% as on 30 June 2016 as against 5.06% as on 31 March 2016 and 2.07% as on 30 June 2015.
The bank's provisions and contingencies (excluding tax provisions) surged 234.16% to Rs 2004.07 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank stood at 60.17% as on 30 June 2016.
Among private bank stocks, HDFC Bank (up 0.24%), Kotak Mahindra Bank (up 0.54%), ICICI Bank (up 0.36%), Axis Bank (up 0.65%) rose. IndusInd Bank shed 0.35%.
Yes Bank lost 1.93% to Rs 1,240.35 on reports the bank is contemplating to raise about $1 billion through issue of shares to qualified institutional buyers. The private sector bank said in a clarification to the stock exchanges that the shareholders at the AGM held on 7 June 2016 approved raising of equity capital aggregating upto $1 billion through the issue of new shares by way of qualified institutional placement (QIP) and or American depository receipts (ADR)/global depository receipts (GDR). The rights issue was not contemplated at the AGM. The shareholders approval is valid till 2017. The bank added that the capital raising plan remains unchanged. However, no merchant bankers have been appointed by the bank so far for this future capital raising event.
Power generation stocks declined. Reliance Infrastructure (down 1.06%), CESC (down 0.25%), Torrent Power (down 2.4%), Reliance Power (down 1.08%), Adani Power (down 0.37%), JSW Energy (down 5.34%) edged lower. Tata Power Company (up 0.34%), NHPC (up 0.77%), Jaiprakash Power Ventures (up 1.29%) rose.
NTPC rose 0.22%. The company announced that it has commissioned a 50 megawatts (MW) capacity of NP Kunta Ultra Mega Solar Power Project at Anantapuram. With this, the commercial capacity of NTPC group has become 45,928 MW. The announcement was made after market hours yesterday, 10 August 2016.
State-run coal-mining giant Coal India was off 0.09% at Rs 337.70. The stock hit a high of Rs 339 and a low of Rs 333.30 so far during the day.
Shares of state-run power transmission major Power Grid Corporation of India shed 0.32%.
Shares of state-run power sector finance firms edged lower. Rural Electrification Corporation lost 1.3%.
Power Finance Corporation fell 1.31% to Rs 214.80. The stock turned ex-dividend today, 11 August 2016, for final dividend of Rs 0.60 per share for the year ended 31 March 2016 (FY 2016). Before turning ex-dividend, the stock offered a dividend yield of 0.27% based on its closing price of Rs 217.65 on the BSE yesterday, 10 August 2016..
Suven Life Sciences rose 2.74% after net profit rose 58.2% to Rs 32.58 crore on 31.7% rise in net sales to Rs 133.23 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 10 August 2016. Suven Life Sciences' earnings before interest, taxes, depreciation and amortization (EBITDA) rose 56.34% to Rs 47.90 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin surged to 34.80% in Q1 June 2016 from 28.84% in Q1 June 2015.
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