The market sharply pared gains in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 50.50 points or 0.14% at 35,480.93. The Nifty 50 index added 7.05 points or 0.07% at 10,478.05.
Profit selling emerged as the Sensex and the Nifty jumped almost 6% in the past four sessions.
In the broader market, the S&P BSE Mid-Cap index rose 0.40% while the S&P BSE Small-Cap index lost 0.13%.
The market breadth was positive. On the BSE, 1398 shares rose and 1032 shares fell. A total of 136 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 168.96 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 454.48 crore in the Indian equity market on 23 June, provisional data showed.
Buzzing Index:
The Nifty PSU Bank index added 1.09% to 1,540.45. The index has added 13.9% in five sessions.
Jammu and Kashmir Bank (up 7.16%), Bank of India (up 5.09%), Central Bank of India (up 2.59%), Indian Overseas Bank (up 2.30%), Canara Bank (up 0.66%), Punjab & Sind Bank (up 0.58%) and UCO Bank (up 0.35%) advanced.
Indian Bank (down 1.96%), Bank of Maharashtra (down 1.32%), SBI (down 0.88%) and Punjab National Bank (down 0.27%) declined.
Bank of Baroda jumped 4.96% to Rs 52.95 after the bank posted a net profit of Rs 506.59 crore in Q4 March 2020 compared with a net loss of Rs 991.37 crore in Q4 March 2019. Net Interest Income (NII) increased by 5.02% to Rs 6,798 in the fourth quarter from Rs 6,473 crore in the same period last year. Global net interest margin (NIM) during Q4 FY20 increased to 2.67% from 2.62% and domestic NIM increased to 2.78% from 2.68%.
The ratio of gross NPAs to gross advances stood at 9.40% as on 31 March 2020 as against 10.43% as on 31 December 2019 and 9.61% as on 31 March 2019. The ratio of net NPAs to net advances stood at 3.13% as on 31 March 2020 as against 4.05% as on 31 December 2019 and 3.33% as on 31 March 2019.
Union Bank of India fell 5.84% to Rs 33.85. The bank reported a standalone net loss of Rs 2,503.18 crore in Q4 March 2020 as compared with net loss of Rs 3,369.23 crore in Q4 March 2019. Standalone total income jumped 17.5% to Rs 11,306.99 crore in Q4 March 2020 over Rs 9,621.01 crore in Q4 March 2020. The bank's provisions and contingencies dropped 39.27% to Rs 3,501.69 crore in Q4 March 2020 over Rs 5,766.15 crore in Q4 March 2019.
The ratio of gross NPAs to gross advances stood at 14.15% as on 31 March 2020 as against 14.86% as on 31 December 2019 and 14.98% as on 31 March 2019. The ratio of net NPAs to net advances stood at 5.49% as on 31 March 2020 as against 6.99% as on 31 December 2019 and 6.85% as on 31 March 2019.
Global Markets:
Asian shares rose across the board on Wednesday as investors remain upbeat on the outlook for a re-opening of the global economy even as cases of the coronavirus looked to be accelerating to new peaks.
Several US states are witnessing record infections while the death toll in Latin America surpassed the 100,000 mark on Tuesday. White House health advisor Dr. Anthony Fauci warned on Tuesday that parts of the U.S. are beginning to see a disturbing surge of Covid-19 cases.
The European Union is even prepared to bar US travellers because of the surge of cases in the country, putting it in the same category as Brazil and Russia, according to reports from a US-based media company.
The Bank of Japan reportedly said: It is still unclear when the spread of COVID-19 will subside on a global basis, as the spread is continuing in emerging economies in particular. It seems inevitable that the negative impact on the global economy, including Japan, will become prolonged without effective vaccines and medicines.
Due to expectations for the future, prices in financial markets have been high compared with the current severe situation of the real economy. It is necessary to closely monitor future developments in the markets to see whether there will be a correction in asset prices, the BoJ added.
The US stock market finished session higher on Tuesday, 23 June 2020, as investor sentiment was bolstered by assurances from President Trump about the US-China trade deal, improving economic data, and speculation of additional stimulus to bolster the economy. The continued strength on Wall Street was also widely attributed to White House adviser Lawrence Kudlow statement that tax rebates and direct mail cheques are on the table in the next coronavirus relief bill.
The Commerce Department released a report showing a substantial increase in new home sales in the month of May. The report said new home sales spiked by 16.6 percent to an annual rate of 676,000 in May from a significantly downwardly revised rate of 580,000 in April.
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