After seeing a range bound movement in positive zone in early afternoon trade, key benchmark indices slipped into the red in afternoon trade. The losses for the benchmark indices were currently small. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently off 4.55 points or 0.02% at 27,671.49. The BSE Mid-Cap index slipped into the red from green.
FMCG stocks edged higher ahead of the first forecast of the June-September southwest monsoon for 2015 from the India Meteorological Department (IMD) expected today, 22 April 2015. Yes Bank dropped amid volatility after the company reported Q4 March 2015 earnings.
Foreign portfolio investors bought shares worth a net Rs 17488.73 crore yesterday, 21 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1364.83 crore on yesterday, 21 April 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher as some strong corporate earnings offset fears of Greek economic woes. In Asia, Japan's Nikkei Stock Average closed above 20,000 for the first time in 15 years to after the country registered a trade surplus in March for the first time in nearly three years. US stocks closed mixed yesterday, 21 April 2015, as the Nasdaq jumped back above 5,000 but the Dow was dragged lower by mixed earnings news.
At 13:15 IST, the S&P BSE Sensex was down 4.55 points or 0.02% at 27,671.49. The index fell 14.60 points at the day's low of 27,661.44 in afternoon trade. The index jumped 151.62 points at the day's high of 27,827.66 in early trade
The CNX Nifty was down 11.40 points or 0.14% at 8,366.35. The index hit a low of 8,362.20 in intraday trade. The index hit a high of 8,423.20 in intraday trade.
The BSE Mid-Cap index was down 25.27 points or 0.24% at 10,481.44. The decline in the index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was up 8.04 points or 0.07% at 11,340.93, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,282 shares rose and 1,211 shares fell. A total of 103 shares were unchanged.
FMCG stocks edged higher ahead of the first forecast of the June-September southwest monsoon for 2015 from the India Meteorological Department (IMD) expected today, 22 April 2015. Dabur India (up 1.01%), Nestle India (up 0.76%), Colgate-Palmolive (India) (up 0.6%), Hindustan Unilever (up 3.1%) and Bajaj Corp (up 2.89%) edged higher. Marico (down 0.45%), Godrej Consumer Products (down 1.52%) and Britannia Industries (down 0.15%) edged lower.
FMCG companies derive substantial sales from rural India. Good and timely rains will boost agricultural income and rural demand. On the other hand, a deficient rainfall could hit agriculture income adversely which in turn would hit rural demand for consumer goods.
Shares of state-run banks dropped. Canara Bank (down 2.65%), Corporation Bank (down 0.84%), Oriental Bank of Commerce (down 1.51%), State Bank of India (down 1.5%), Punjab National Bank (down 0.62%), IDBI Bank (down 0.98%), Syndicate Bank (down 1.25%), Bank of Baroda (down 0.03%) and Bank of India (down 1.28%) edged lower. Vijaya Bank (up 0.98%), Bank of Maharashtra (up 0.93%) and Dena Bank (up 0.1%) edged higher.
Shares of private sector banks were mixed. Axis Bank (up 1.16%), HDFC Bank (up 0.59%) and ICICI Bank (up 0.02%) edged higher. IndusInd Bank (down 0.23%) edged lower.
Yes Bank fell 0.08% at Rs 783.90. The stock hit a high of Rs 801 and a low of Rs 776.60 so far during the day. Yes Bank's net profit rose 28.07% to Rs 550.99 crore on 22.07% growth in total income to Rs 3678.83 crore in Q4 March 2015 over Q4 March 2014. The result was announced during market hours today, 22 April 2015.
Yes Bank's net interest income (NII) rose 35.8% to Rs 977.10 crore in Q4 March 2015 over Q4 March 2014. Non interest income rose 32.5% to Rs 590.40 crore in Q4 March 2015 over Q4 March 2014. The bank's CASA (current and savings account) ratio increased to 23.1% as on 31 March 2015, from 22% as on 31 March 2014.
Yes Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 0.41% as on 31 March 2015 compared with 0.42% as on 31 December 2014 and 0.31% as on 31 March 2014. The ratio of net NPAs to net advances stood at 0.12% as on 31 March 2015 compared with 0.1% as on 31 December 2014 and 0.05% as on 31 March 2014.
The bank's provisions and contingencies rose 74.79% to Rs 126.36 crore in Q4 March 2015 over Q4 March 2014. The bank's specific loan provision coverage was at 72% as on 31 March 2015.
As per Basel III, Yes Bank's Tier I capital stood at 11.5% and total CRAR stood at 15.6% with CET I ratio at 11% as on 31 March 2015.
Commenting on the company's financial performance, Rana Kapoor, Managing Director & CEO of Yes Bank said that Yes Bank has delivered another satisfactory quarter and overall financial year across all key parameters of growth, profitability and asset quality. The bank posted robust growth in advances and deposits while gradually increasing diversification and granularity as reflected in higher contribution from Retail/SME advances and CASA deposits, Kapoor said. Going forward, Yes Bank has all levers in terms of network, franchise and human capital to embark on a journey for the bank's transformation into a large bank over the next 5 years, Kapoor said. With an improving macroeconomic environment, Yes Bank will continue to capture market share propelled by both Retail and Corporate growth engines, Kapoor said.
Meanwhile, Yes Bank's board of directors at its meeting held today, 22 April 2015, empowered the Capital Raising Committee, a sub Committee of the board of directors to raise funds by way of issuance of equity capital up to $1 billion in one or more tranches on such terms and conditions as it may deem fit. The issuance may be by way of Qualified Institutions Placement (QIP) or any other international offering like Global Depository Receipts (GDRs)/American Depository Receipts (ADRs), or by any other appropriate mode as decided by the Capital Raising Committee.
Kotak Mahindra Bank Kotak (KMBL) fell 2.21% at Rs 1,324.45. The Reserve Bank of India (RBI) yesterday, 21 April 2015, notified that post allotment of shares of KMBL to the shareholders of ING Vysya Bank pursuant to its merger with KMBL, the aggregate foreign shareholding in KMBL has reached the threshold limit. Therefore no further purchase of shares of KMBL would be allowed through stock exchanges in India on behalf of Non-Resident Indian (NRI)/Persons of Indian Origin (PIO)/Foreign Institutional Investors (FII)/ Registered Foreign Portfolio Investor (RFPIs) and through Global Depository Receipt (GDR)/ American Depository Receipt (ADR)/Foreign Direct Investment (FDI), the RBI said.
Meanwhile, the India Meteorological Department (IMD) will today, 22 April 2015, reportedly announce its first forecast of the June-September southwest monsoon for 2015. The forecast is crucial for the agriculture sector. India gets 70% of its annual rainfall in the southwest monsoon, which irrigates half the country's farmlands.
Finance minister Arun Jaitley was quoted as saying today, 22 April 2015, that there was a broad consensus that states are in support of a nationwide goods and services tax (GST). He was speaking to reporters after meeting finance ministers from 18 states to discuss the road-map for roll-out of GST. The government, he said, will go ahead with constitutional amendment bill on GST in the current budget session of Parliament. It may be recalled that the government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament.
GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Meanwhile, global markets are closely monitoring developments with regard to Greece. Greece needs to agree on a range of economic overhauls with the lenders in order to receive the next much-needed tranche of bailout and avoid running out of cash. Eurozone finance ministers are scheduled to hold a meeting on Friday, 24 April 2015, to discuss the state of negotiations between Greece and its international creditors.
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