Key benchmark indices continued displaying weakness in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, fell 202.46 points or 0.63% at 32,180.84. The Nifty 50 index declined 49.30 points or 0.49% at 9,971.25. The Nifty was trading below the 10,000 mark after opening below that level today.
Key indices declined in early trade on weak global cues. Later, indices hovered with modest losses so far.
The S&P BSE Mid-Cap index rose 0.33%. The S&P BSE Small-Cap index advanced 0.15%. Both these indices outperformed the Sensex.
Closer home, the breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,296 shares fell and 1,162 shares rose. A total of 156 shares were unchanged.
Most power generation stocks declined. GMR Infrastructure (down 2.07%), Adani Power (down 1.33%), NTPC (down 1.21%), NHPC (down 0.5%), Tata Power (down 0.31%) and Jaiprakash Power Ventures (down 0.13%), edged lower. Reliance Power (up 1%), Torrent Power (up 1.67%), Reliance Infrastructure (up 3.65%), CESC (up 3.84%) and JSW Energy (up 4.33%), edged higher.
State-run Coal India was down 1.09%. State-run Power Grid Corporation of India was down 1.27%.
FMCG shares declined. Bajaj Corp (down 2.43%), Godrej Consumer Products (down 1.88%), Hindustan Unilever (down 1.86%), Jyothy Laboratories (down 1.27%), Colgate Palmolive (India) (down 1.06%), Dabur India (down 1.06%), Britannia Industries (down 0.61%), Nestle India (down 0.34%), Procter & Gamble Hygiene & Health Care (down 0.13%) and GlaxoSmithKline Consumer Healthcare (down 0.11%), edged lower. Tata Global Beverages (up 0.57%) and Marico (up 0.77%), edged higher.
Escorts jumped 3.43% to Rs 664 after net profit rose 33.39% to Rs 62.64 crore on 11.85% increase in total income to Rs 1183.65 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 28 July 2017.
ICICI Bank lost 2.83% to Rs 298.35 after net profit fell 8.21% to Rs 2049 crore on 0.52% growth in total income to Rs 16847.04 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 27 July 2017.
ICICI Bank's gross non-performing assets (NPAs) stood at Rs 43147.64 crore as on 30 June 2017 as against Rs 42551.54 crore as on 31 March 2017 and Rs 27562.93 crore as on 30 June 2016.
The ratio of gross NPAs to gross advances stood at 7.99% as on 30 June 2017 as against 7.89% as on 31 March 2017 and 5.28% as on 30 June 2016. The ratio of net NPAs to net advances stood at 4.86% as on 30 June 2017 as against 4.89% as on 31 March 2017 and 3.01% as on 30 June 2016. The bank's Net Interest Income (NII) grew by 8% to Rs 5590 crore in Q1 June 2017 over Q1 June 2016.
Dr Reddy's Laboratories slumped 5.95% to Rs 2,465.50, with the stock extending previous sessions' losses triggered by company reporting weak Q1 results.
Dr Reddy's Laboratories' consolidated net profit declined 56.61% to Rs 66.60 crore on 2.5% rise in net sales to Rs 3315.90 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours yesterday, 27 July 2017. The stock had dropped 3.29% to Rs 2,621.45 yesterday, 27 July 2017 post announcement of results.
Meanwhile, Dr Reddy's Laboratories and CHD Bioscience Inc., a privately-held biopharmaceutical company, announced a global licensing agreement for the clinical development and commercialization of Dr Reddy's phase III clinical trial candidate, DFA-02. The announcement was made after market hours yesterday, 27 July 2017.
It is intended to be used for the prevention of surgical site infections, following non-emergency, elective colorectal surgery. Phase II studies for DFA-02 have been successfully completed, and the product will be transitioning to pivotal Phase III registration studies.
Under the terms of the agreement, Dr Reddy's would receive equity in CHD valued at $30 million upon an initial public offer (IPO) of CHD or a minimum of $30 million in cash within 18 months of execution of the agreement. Dr Reddy's will also receive additional milestone payments of $40 million upon US drug regulator's approval. In addition, CHD will pay Dr Reddy's double-digit royalties on sales and commercial milestones.
On the political front, the Lok Sabha yesterday, 27 July 2017, passed the Companies Act (Amendment) Bill, 2016 that seeks to make significant changes to the 2013 law to remove complexities and improve ease of doing business, strengthen corporate governance standards and prescribes strict action against defaulting companies. The bill will now go to the Rajya Sabha.
The India Meteorological Department (IMD) in its weather report yesterday, 27 July 2017 said that for the country as a whole, cumulative rainfall during this year's southwest monsoon season has so far upto 26 July is 5% above the long period average (LPA).
Overseas, European bourses fell in opening trade as corporate earnings continued to dominate market movements and as a fresh political tensions in Washington dampened market sentiment. Markets were jittery after the latest attempt to repeal the Obama-era healthcare act failed in Washington. At least three Republicans voted against the bill, which needed a simple majority to pass in the Senate. President Donald Trump reacted to the vote by saying the three had "let the American people down".
Asian stocks edged lower after US tech shares retreated from recent rallies, though optimism about US corporate earnings and the global economy underpinned overall sentiment. US equities closed mixed yesterday, 27 July 2017 after the technology sector rolled over.
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