Key benchmark indices were trading lower in early trade due to weak Asian cues. At 9:27 IST, the barometer index, the S&P BSE Sensex, was down 233.27 points or 0.83% at 27,849.07. The Nifty 50 index was down 70.95 points or 0.81% at 8,637.85.
The broad market depicted weakness. There were almost two losers against every gainer on BSE. 1,108 shares fell and 558 shares rose. A total of 83 shares were unchanged. The BSE Mid-Cap index was currently down 0.73%. The BSE Small-Cap index was currently down 0.59%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
In overseas stock markets, Asian stocks declined after minutes of the last US Federal Reserve policy meeting indicated a December rate increase was still on the cards. US stocks finished mostly higher yesterday, 12 October 2016. Minutes from the Fed's September meeting, indicate that policy makers wanted more evidence of full employment and gains in inflation before feeling confident in raising rates, but the minutes also said a rate increase was in the cards relatively soon.
Back home, IndusInd Bank was up 0.95%. The bank net profit rose 25.75% to Rs 704.26 crore on 23.97% increase in total income to Rs 4439.72 crore in Q2 September 2016 over Q2 September 2015. The bank's gross non-performing assets (NPAs) stood at Rs 899.01 crore as on 30 September 2016 as against Rs 860.64 crore as on 30 June 2016 and Rs 602.10 crore as on 30 September 2015. The ratio of gross NPAs to gross advances stood at 0.90% as on 30 September 2016 as against 0.91% as on 30 June 2016 and 0.77% as on 30 September 2015. The ratio of net NPAs to net advances stood at 0.37% as on 30 September 2016 as against 0.38% as on 30 June 2016 and 0.31% as on 30 September 2015. The bank's provisions and contingencies (excluding tax provisions) rose 35.29% to Rs 213.88 crore in Q2 September 2016 over Q2 September 2015. The result was announced on Wednesday, 12 October 2016. It is to be noted that the stock market was shut on Tuesday, 11 October 2016 and Wednesday, 12 October 2016.
ICICI Bank was down 1.68%. The bank announced on Wednesday, 12 October 2016, that it has notified The Bank of New York Mellon (Trustee) that all outstanding 7.25% perpetual non-cumulative subordinated debt securities (Notes) of the bank will be redeemed in full on 31 October 2016 (redemption date) at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to the redemption date. The amount of accrued and unpaid interest with respect to the Notes to the redemption date will be $36.25 on each $1,000 of Notes. The redemption price including the amount of accrued and upaid interest with respect to the Notes for all outstanding Notes on the redemption date will be $1036.25 for each $1,000 of Notes. ICICI Bank acting through its Bahrain branch had issued a $340,000,000 7.25% perpetual non-cumulative subordinated debt securities on 24 August 2006 with an optional redemption by the bank on 31 October 2016, or on any subsequent interest payment date.
Shares of Mahindra & Mahindra (M&M) was down 1.33%. SsangYong Motor Company, part of the Mahindra group on Wednesday, 12 October 2016 announced that as a part of its effort to grow in China, the company signed a letter of intent with the Shaanxi Automobile Group for a joint venture that will establish a local production for CBU vehicles. The joint venture, which will become SsangYong's first overseas production base, in a 50/50 partnership with the Shaanxi Automobile Group, will construct production facilities for CBU vehicles and an engine plant. The first phase of construction will establish a plant with an annual capacity of 150,000 units per year by the end of 2019 and the second phase will involve an expansion of the facilities to 300,000 units annnually. Further, SsangYong will establish an automotive cluster with its major suppliers that will also enter the market, to ensure product competitiveness, and start the production of SsangYong's current models and models under development, in the second half of 2019.
Meanwhile, M&M will announce Q2 September 2016 results on 11 November 2016.
Dr Reddy's Laboratories was down 0.54%. The company announced yesterday, 10 October 2016 that it has launched Lamotrigine Orally Disintegrating Tablets in 25 mg, 50 mg, 100 mg and 200 mg, a therapeutic equivalent generic version of Lamictal ODT (lamotrigine) Orally Disintegrating Tablets in the United States market approved by the United States Food & Drug Administration (USFDA). The Lamictal ODT brand and generic had US sales of approximately $65.5 million MAT for the most recent twelve months ended in July 2016 according to IMS Health. Lamictal ODT is a registered trademark of GSK group of companies. The announcement was made after market hours yesterday, 10 October 2016.
GAIL (India) was down 1.09%. The company on Monday, 10 October 2016, announced that it has received intimation from the Ministry of Petroleum and Natural Gas that the Cabinet Committee on Economic Affairs (CCEA) approved 40% capital grant (limited to Rs 5176 crore) of the estimated capital cost of Rs 12940 crore to GAIL (India) for execution Jagdishpur-Haldia/Bokaro-Dhamra gas pipeline (JHBDPL) project by 2020. The announcement was made after market hours on Monday, 10 October 2016
Tata Motors was down 1.54%. The company announced that it is desirous of offering the fifth series of its rated, listed, unsecured, redeemable, non convertible debentures (NCDs) aggregating to Rs 500 crore and in this regard is holding a meeting of its duly constituted committee of the board of directors on 18 October 2016. The issuance is pursuant to the approval of the shareholders passed vide special resolution at the 71th Annual General Meeting of the company held on 9 August 2016 and the board of directors resolution passed at its meeting held on 26 August 2016. The announcement was made on Wednesday, 12 October 2016.
Cipla was up 2.83%. The company announced that it has received Establishment Inspection Report (EIR) from the United States Food & Drugs Administration (USFDA) for its Indore facility indicating formal closure of the US FDA inspection conducted in July/August, 2015. The announcement was made on Wednesday, 12 October 2016.
HDFC was down 1.76%. The company announced that pursuant to the approval of the board of directors of the company at its meetings held previously, the company is contemplating, subject to market conditions, undertaking the fourth issuance of Rupee denominated bonds to overseas investors. The issue size of the bonds will be up to Rs 500 crore. The issue will open on 14 October 2016 and closes on the same day. The pricing and the tenure of the bonds to be issued pursuant to the said issue will be intimated in due course. The announcement was made before market hours today, 13 October 2016.
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