Market continued to languish in negative zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex lost 89.26 points or 0.27% at 32,519.90. The Nifty 50 index fell 36.35 points or 0.36% at 10,198.10.
Key indices opened the session lower and languished in negative terrain so far. Profit booking emerged after the two key indices hit record highs yesterday, 17 October 2017. Also, trading sentiment was dull ahead of a long Diwali holiday weekend.
Stock markets remain closed tomorrow, 19 October 2017 on account of Diwali Laxmi Pujan and again on Friday, 20 October 2017 on account of Diwali Balipratipada. However, markets will remain open for Muhurat trading tomorrow, 19 October 2017. The Muhurat trading session on account of Diwali Laxmi Pujan will be between 18:30 IST to 19:30 IST tomorrow, 19 October 2017.
Among secondary indices, the S&P BSE Mid-Cap index rose 0.03%. The S&P BSE Small-Cap index advanced 0.11%. Both the indices outperformed the Sensex.
Overseas, Asian stocks traded mixed as investors in the region looked to China's Party Congress for signs on future policy direction in the world's second-largest economy. The 19th National Congress of the Communist Party of China commenced in Beijing today, 18 October 2017. In his opening remarks, Chinese President Xi Jinping was quoted as saying that his nation's prospects as bright but made a rare acknowledgement of severe economic challenges. Among the grave issues Xi said were insufficiently addressed are a widening income gap and problems in employment, education, medical care and other areas, reports suggested.
US stocks closed mostly higher yesterday, 17 October 2017. The Dow Jones industrial average rose and broke above 23,000 for the first time on an intraday basis.
Closer home, the breadth, indicating the overall health of the market, was positive. On the BSE, 1,143 shares rose and 1,131 shares declined. A total of 109 shares were unchanged.
Cement stocks declined. Shree Cement (down 0.5%), Ambuja Cement (down 0.44%) and Grasim Industries (down 0.07%) edged lower. ACC (up 0.56%) edged higher.
UltraTech Cement was down 0.42% at Rs 4,071.05. The company is scheduled to announce September 2017 quarterly results today, 18 October 2017.
Telecom stocks fell. Bharti Infratel (down 2.8%), Idea Cellular (down 1.5%), Reliance Communications (down 1.17%) and Bharti Airtel (down 1.12%) edged lower.
Axis Bank tumbled 7.62% at Rs 474.10 on sharp rise in bad loans after reporting Q2 results. The bank's net profit rose 35.5% to Rs 432.38 crore on 0.9% increase in total income to Rs 13820.62 crore in Q2 September 2017 over Q2 September 2016. The result was announced after trading hours yesterday, 17 October 2017.
The bank's gross non-performing assets (NPAs) stood at Rs 27402.32 crore as on 30 September 2017 as against Rs 22030.87 crore as on 30 June 2017 and Rs 16378.65 crore as on 30 September 2016. The ratio of gross NPAs to gross advances stood at 5.9% as on 30 September 2017 as against 5.03% as on 30 June 2017 and 4.17% as on 30 September 2016. The ratio of net NPAs to net advances stood at 3.12% as on 30 September 2017 as against 2.3% as on 30 June 2017 and 2.02% as on 30 September 2016.
The bank's provisions and contingencies fell 13.3% to Rs 3140.41 crore in Q2 September 2017 over Q2 September 2016.
Meanwhile, Axis Bank said that after review the bank has decided to keep the marginal cost of funds based lending rates (MCLRs) of the bank unchanged with effect from 18 October 2017. The announcement was made after trading hours yesterday, 17 October 2017. Axis Bank's MCLRs for overnight loans will be 7.8%, the rate for one month will be 7.8% and for three months it will be 8%. The rate on 6-month loans will be 8.15% and for one-year loans the rate will be 8.25%, the bank said. MCLR on two-year loans will be 8.3% and for three-year loans the rate will be 8.35%.
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