With a sharp setback in the index heavyweight ICICI Bank counter after the bank reported an increase in sticky loans, key benchmark indices extended losses in mid-afternoon trade. The barometer index, the S&P BSE Sensex, hit its lowest level in more than a week. The 50-unit CNX Nifty hit one-week low. The market breadth indicating the overall health of the market was negative. The Sensex was currently off 489.03 points or 1.65% at 29,192.74.
Coal India dropped as bidding continued for the divestment of up to 10% government stake in the state-run firm through the stock exchanges mechanism. Power equipment major Bharat Heavy Electricals (Bhel) hit 52-week high. Shares of Adani Enterprises also hit 52-week high. Reliance Anil Dhirubhai Ambani (ADA) group stocks were in demand on renewed buying. In pharma pack, Aurobindo Pharma scaled record high.
Meanwhile, a deluge of new share sales could soak liquidity from the secondary equity markets in the coming months. After the big ticket divestment of Coal India which is underway through the stock exchanges mechanism today, 30 January 2015, divestment of government stake in ONGC, Power Finance Corp (PFC) and Rural Electrification Corporation has been lined up through the next two months, according to media reports. Many private companies are also considering raising funds, according to reports. On Wednesday, 28 January 2015, HDFC Bank received Cabinet Committee on Economic Affairs' approval to raise up to Rs 10000 crore from foreign investors. Early this week, Tata Motors announced plans to raise Rs 7500 crore through a rights offer. State Bank of India (SBI) said early this week that the bank's Committee of Directors for Capital Raising has decided to take enabling approval from the shareholders of the bank for raising additional equity share capital up to Rs 15000 crore by way of follow-on-public issue or rights issue or private placement, including qualified institutions placement (QIP)/global depository receipt (GDRs)/American depository receipt (ADRs) and/or any other mode(s) or a combination(s) thereof.
Earlier, the Sensex and the 50-unit CNX Nifty, both, reversed direction after hitting record high at the onset of the trading session and hit one-week low.
In the foreign exchange market, the rupee reversed intraday gains against the dollar as key equity benchmark indices in India slumped.
Brent crude oil futures edged lower amid a supply glut.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1723.77 crore yesterday, 29 January 2015, as per provisional data.
In overseas markets, European stocks rose after the release of upbeat data from France and Spain. Asian stocks edged lower. US stocks registered broad-based gains yesterday, 29 January 2015, after weekly US jobless claims fell to the lowest level in 14 years.
At 14:15 IST, the S&P BSE Sensex was down 489.03 points or 1.65% at 29,192.74. The index plunged 520.49 points at the day's low of 29,161.28 in mid-afternoon trade, its lowest level since 22 January 2015. The index jumped 162.39 points at the day's high of 29,844.16 at the onset of the trading session, a record high for the index.
The CNX Nifty was down 147.20 points or 1.64% at 8,805.15. The index hit a low of 8,798.45 in intraday trade, its lowest level since 23 January 2015. The index hit a high of 8,996.60 in intraday trade, a record high for the index
The market breadth indicating the overall health of the market was negative. On BSE, 1,533 shares declined and 1,177 shares gained. A total of 108 shares were unchanged.
The BSE Mid-Cap index was off 41.87 points or 0.39% at 10,729.21. The BSE Small-Cap index was off 37.52 points or 0.33% at 11,341.23. The fall in these two indices was lower than the Sensex's decline in percentage terms.
ICICI Bank tumbled 6.46% after declaring Q3 result during market hours today, 30 January 2015. The bank's net profit rose 14.09% to Rs 2889.04 crore on 8.91% increase in total income to Rs 15526.88 crore in Q3 December 2014 over Q3 December 2013.
ICICI Bank's net non-performing assets (NPA) edged up to Rs 4831 crore as on 31 December 2014, from Rs 3997 crore as on 30 September 2014 and Rs 3121 crore as on 30 December 2013. The net NPA ratio edged up to 1.12% as on 31 December 2014, from 0.96% as on 30 September 2014 and 0.81% as on 31 December 2013. Net loans to companies whose facilities have been restructured were Rs 12052 crore as on 31 December 2014, higher than Rs 11020 crore as on 30 September 2014 and Rs 8602 crore as on 30 December 2013.
The bank's ratio of current and savings account (CASA) deposits to total deposits improved to 44% as on 31 December 2014, from 43.7% as on 30 September 2014. The bank's average CASA ratio was at 39.3% in Q3 December 2014.
Coal India lost 3.71% to Rs 361.25. The stock was volatile. The stock hit high of Rs 364 and low of Rs 360.50 so far during the day. Bids were received for a total of 18.82 crore shares amounting to 59.62% of the base issue size for divestment of the government's 5% stake in the state-run coal major, till 13:55 IST, as per data from the stock exchanges. The government has put on block 31.58 crore shares of Coal India, constituting 5% equity with an option to sell additional up to 31.58 crore shares through the stock exchanges mechanism. The floor price for the offer for sale (OFS) of Coal India's shares has been set at Rs 358 per share. The OFS commenced today, 30 January 2015, at 9:15 IST and will close at 15:30 IST.
The government has reserved 20% of the size of the sale for retail investors. Retail investors will be offered a discount of 5% to the bid price entered by them in accordance with the Sebi OFS circulars.
Bharat Heavy Electricals (Bhel) gained 2.3% to Rs 293.75 after hitting a 52-week high of Rs 297.35 in intraday trade.
Adani Enterprises gained 3.82% to Rs 606.30 after hitting a 52-week high of Rs 613.25 in intraday trade.
Aurobindo Pharma rose 1.91% to Rs 1,246 after scaling a record high of Rs 1,249.20 in intraday trade.
Reliance Anil Dhirubhai Ambani (ADA) group stocks were in demand on renewed buying. Reliance Communications (up 2.92%), Reliance Infrastructure (up 6.38%), Reliance Capital (up 4.4%) and Reliance Power (up 2.92%) gained.
ICRA rose 2.49% to Rs 3,400. The stock was volatile. The stock hit high of Rs 3,512.15 so far during the day, which is a record high for the counter. The stock hit a low of Rs 3,370 so far during the day. ICRA's consolidated net profit rose 21% to Rs 17.78 crore on 15% growth in total income to Rs 85.23 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced after market hours yesterday, 29 January 2015.
ICRA's growth in top line is attributable to 891% jump in other income in Q3 December 2014 over Q3 December 2013. ICRA's operating income rose 12% to Rs 82.98 crore in Q3 December 2014 over Q3 December 2013.
Esab India fell 3.26% after net profit declined 27.8% to Rs 5.10 crore on 0.4% growth in net sales to Rs 109.77 crore in Q4 December 2014 over Q4 December 2013. The Q4 result was announced after market hours yesterday, 29 January 2015.
SKS Microfinance jumped 5.41% after net profit rose 91.62% to Rs 41.05 crore on 48.13% increase in total income to Rs 206.89 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced after market hours yesterday, 29 January 2015.
SKS Microfinance's board at its meeting held on 29 January 2015 approved a proposal for making an application to Reserve Bank of India (RBI) for getting a license for Small Finance Bank based on the Guidelines for Licensing of Small Finance Banks in the Private Sector issued by RBI on 27 November 2014 and clarification issued on 1 January 2015.
In the foreign exchange market, the rupee reversed intraday gains against the dollar as key equity benchmark indices in India slumped. The partially convertible rupee was hovering at 61.93, compared with its close of 61.875 during the previous trading session.
Brent crude oil futures edged lower amid a supply glut. Brent for March settlement was off 17 cents at $48.96 a barrel. The contract had gained 66 cents a barrel or 1.36% to settle at $49.13 a barrel during the previous trading session.
The Reserve Bank of India (RBI) is widely expected to keep its main lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review next week. The sixth bi-monthly monetary review from the RBI is scheduled on Tuesday, 3 February 2015. The central bank may focus on the details of the upcoming Union Budget 2015-16 which is scheduled on 28 February 2015, before taking a call on further monetary policy easing. The RBI surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy. The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India rose to 5% in December 2014 from 4.4% in November 2014. Over the long term, the RBI aims to restrict consumer price inflation to 4%, within a two-per-cent band.
European stocks rose today, 30 January 2015, after the release of upbeat data from France and Spain. Key benchmark indices in UK, France and Germany were up 0.18% to 0.4%.
German retail sales rose less than expected in December, but the annual figures suggest that consumption continued to act as a pillar to economic growth in the final quarter of last year. Retail sales in December rose 0.2% in calendar- and inflation-adjusted terms compared with November, the Federal Statistics Office said Friday.
Asian stocks edged lower today, 30 January 2015. Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan were off 0.09% to 1.59%. Key benchmark indices in Japan and Indonesia were up 0.39% to 0.51%.
Japan's industrial output rose a seasonally adjusted 1% in December from the previous month, government data showed today, 30 January 2015 signaling the economy may have started to recover slowly following last year's consumption tax hike. The rise in December came after a 0.5% fall in November.
Taiwan's economy expanded more slowly in the fourth quarter, as falling oil prices hurt petrochemical exports, though demand for electronics remained strong. Taiwan's gross domestic product rose 3.17% from a year earlier in the final quarter of 2014, the lowest rate in five quarters, and 1.17% from the previous quarter, an initial official reading showed today, 30 January 2015. The economy expanded 3.63% in the third quarter of 2014.
Trading in US index futures indicated that the Dow could fall 83 points at the opening bell today, 30 January 2015. US stocks closed higher yesterday, 29 January 2015 as an upturn in oil prices and a rally in Apple and Boeing shares helped offset some disappointing earnings and lingering questions over US monetary policy.
In economic news, the number of people who applied for US unemployment-insurance benefits plunged 43,000 to 265,000 in the week that ended Jan. 24, hitting the lowest tally in 14 years, according to Labor Department data released yesterday, 29 January 2015.
Separately, pending home sales cooled in December, which the National Association of Realtors attributed to fewer homes available for sale and a slight rise in prices. The pending home sales index fell 3.7% during December, though the year-on-year gain was 11.7%, the highest since June 2013.
The US Commerce Department releases its first estimate of fourth-quarter GDP today, 30 January 2015.
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