Banking shares led losses for key benchmark indices. At 14:16 IST, the barometer index, the S&P BSE Sensex, was down 130.67 points or 0.47% at 27,785.22. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was down 32.90 points or 0.38% at 8,532.95.
A bout of volatility was witnessed as the two key benchmark indices lost ground after trimming losses in mid-afternoon trade. The Sensex fell 176.82 points, or 0.63% at the day's low of 27,739.07 in afternoon trade, its lowest level since 19 July 2016. The barometer index rose 72.87 points, or 0.26% at the day's high of 27,988.76 in early trade, its highest level since 18 July 2016. The Nifty shed 41.15 points, or 0.48% at the day's low of 8,524.70 in afternoon trade. The index rose 19.40 points or 0.23% at the day's high of 8,585.25 in early trade, its highest level since 18 July 2016.
The market breadth indicating the overall health of the market was negative. On BSE, 1,378 shares fell and 1,176 shares rose. A total of 194 shares were unchanged. The BSE Mid-Cap index was currently up 0.31%. The BSE Small-Cap index was currently up 0.31%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks edged lower ahead of the outcome of the monetary policy meeting of the European Central Bank (ECB). The ECB is expected to keep monetary policy unchanged after the conclusion of a monetary policy meeting of the ECB governing council today, 21 July 2016. Market participants are looking forward to ECB President Mario Draghi's news conference for hints on future easing moves following the UK's vote last month to leave the European Union. It is the ECB's first policy meeting since the Brexit vote.
Asian stocks witnessed a mixed trend. Japanese stocks edged higher on expectations that Japan's central bank Bank of Japan may announce stimulus package for the economy after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. The Nikkei 225 Average settled 0.77% higher. Meanwhile, latest media reports suggested that the Japanese government is arranging to compile an economic stimulus worth 20 trillion yen ($187 billion) to vault Japan out of more than a decade of deflation. US stocks closed at record highs yesterday, 20 July 2016, buoyed by a surge in tech stocks after a flurry of corporate earnings beat lowered expectations.
Kotak Mahindra Bank (KMBL) edged lower after the private sector bank reported increase in bad loans. The stock was off 2.4% at Rs 763.25. The bank's gross non-performing assets increased to Rs 3058.81 crore as on 30 June 2016 compared with Rs 2838.11 crore as on 31 March 2016 and Rs 2421.77 crore as on 30 June 2015. The ratio of gross non-performing assets (NPAs) to gross advances stood at 2.5% as on 30 June 2016 as against 2.36% as on 31 March 2016 and 2.31% as on 30 June 2015. The ratio of net NPAs to net advances stood at 1.21% as on 30 June 2016 as against 1.06% as on 31 March 2016 and 1.04% as on 30 June 2015.
The bank's net profit rose 290.96% to Rs 741.97 crore on 11.69% growth in total income to Rs 5120.03 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 21 July 2016. KMBL's net interest income (NII) rose 20% to Rs 1919 crore in Q1 June 2016 over Q1 June 2015. Net interest margin (NIM) improved to 4.37% in Q1 June 2016 from 4.18% in Q1 June 2015. The bank's provisions and contingencies declined 41.2% to Rs 179.51 crore in Q1 June 2016 over Q1 June 2015.
On consolidated basis, KMBL's net profit rose 106.57% to Rs 1067.10 crore on 23.21% growth in total income to Rs 7866.88 crore in Q1 June 2016 over Q1 June 2015.
Ambuja Cements (up 1.28%) and ACC (up 4.56%) edged higher after parent company LafargeHolcim received the approval of the Cabinet Committee on Economic Affairs for the streamlining of its ownership structure in India. ACC and Ambuja Cements are both subsidiaries of LafargeHolcim, the world leader in the building materials industry. Through intragroup restructuring, LafargeHolcim will increase its shareholding in Ambuja to 61.14% and Ambuja in turn will acquire LafargeHolcim's 50.05% stake in ACC. The transaction will be effected through a merger of Holcim India Private Ltd. (HIPL), a wholly owned financial holding subsidiary, with Ambuja. In a two stage deal, Ambuja will first acquire, through a purchase, a 24% stake in HIPL for a cash consideration of Rs 3500 crore, followed by a stock merger between HIPL and Ambuja. As part of the merger, LafargeHolcim will receive 58.4 crore new equity shares of Ambuja resulting in an increase of its ownership in Ambuja from the current 50.28% to 61.14%.
UltraTech Cement was up 2.29% at Rs 3,641.20. The stock hit a record high of Rs 3,651 in intraday trade.
Most power generation stocks declined. JSW Energy (down 2.93%), Torrent Power (down 1.49%), Tata Power (down 1.11%), NTPC (down 1.02%), Reliance Infrastructure (down 0.8%), CESC (down 0.71%), Adani Power (down 0.7%), Reliance Power (down 0.58%) and GMR Infrastructure (down 0.07%), edged lower. Jaiprakash Power Ventures was up 2.40%.
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