Key benchmark indices provisionally closed the session with small losses. The barometer index, the S&P BSE Sensex, fell 73.42 points or 0.23% at 32,309.88, as per the provisional closing data. The Nifty 50 index declined 15.55 points or 0.16% at 10,005, as per the provisional closing data. The Nifty closed above the 10,000 mark. It had opened below that mark and traded below that level till late trade.
Key indices declined in early trade on weak global cues. Later, indices hovered with modest losses till mid-afternoon trade. Indices pared intraday losses towards the closing of the session.
The S&P BSE Mid-Cap index provisionally rose 0.48%. The S&P BSE Small-Cap index provisionally advanced 0.35%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,374 shares fell and 1,270 shares rose. A total of 167 shares were unchanged.
The total turnover on BSE amounted to Rs 3875.73 crore, lower than turnover of Rs 3976.81 crore registered during the previous trading session.
ICICI Bank lost 3.5% 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.
ITC rose 0.29% after net profit rose 7.4% to Rs 2561 crore on 4.3% growth in gross revenue to Rs 13722 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 27 July 2017.
ITC said that it has delivered a steady performance in Q1 June 2017 against the backdrop of a challenging business environment marked by continuing pressure on the legal cigarette industry, sluggishness in demand for FMCG products exacerbated by destocking in trade channels ahead of implementation of GST. Also, there was subdued demand conditions and unabsorbed capacity in the domestic paperboard industry and lower crop output and adverse quality of the Andhra leaf tobacco crop due to draught in 2016.
The ban imposed by the Supreme Court on sale of liquor at outlets in close proximity to highways adversely impacted some of the company's hotel properties besides reducing offtake of carton packaging by customers in the liquor industry.
The company said that increase in excise duty on cigarette industry in February 2017, the revised rates under the GST regime and revised rates of compensation cess announced by GST Council will increase the tax burden of the cigarette business by 20%.
ONGC was up 0.83%. The company's net profit fell 8.21% to Rs 3885 crore on 7.2% increase in gross revenue to Rs 19073 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 27 July 2017.
ONGC's net nominated crude oil realisation rose to $51.03 per barrel in Q1 June 2017 from $46.10 per barrel in Q1 June 2016.
Dr Reddy's Laboratories slumped 5.93% at Rs 2,466, 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.
Dr Reddy's Laboratories' consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) declined 15.56% to Rs 336 crore in Q1 June 2017 over Q1 June 2016. EBITDA margin contracted to 10.1% in Q1 June 2017, from 12.3% in Q1 June 2016.
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.
Idea Cellular advanced 2.91%. The company reported consolidated net loss of Rs 814.90 crore in Q1 June 2017 compared with net profit of Rs 220.40 crore in Q1 June 2016. The result was announced after market hours yesterday, 27 July 2017.
Idea Cellular's total income fell 14.34% to Rs 8181.70 crore in Q1 June 2017 over Q1 June 2016. EBITDA (earnings before interest, taxes, depreciation and amortization) margin fell to 25.6% in Q1 June 2017 from 29.1% in Q1 June 2016.
The financial stress in the mobile sector remains at its peak, post the introduction of aggressive unlimited bundled plans by new entrant forcing other operators to follow. Resultantly, all 'Telecom Service Providers' are reporting steep decline in revenues, profitability and cash flows and all but one Indian wireless operator quarterly results are likely to show significant financial losses, company added.
Among other news, 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 edged lower as corporate earnings continued to dominate market movements and as 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".
Most Asian stocks declined 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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