State-run banks and realty stocks led gains on the domestic bourses. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained their highest closing level in almost a week, with investor sentiment boosted by news reports that the Union Cabinet has approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee. The market breadth indicating the overall health of the market was strong. The Sensex rose 141.92 points or 0.51% to settle at 27,705.35. Key benchmark indices hovered in positive zone throughout the trading session today, 30 July 2015.
Shares of state-run banks edged higher after media reports suggested that the finance ministry has approved appointment of managing directors and chief executive officers (MD & CEO) of five public sector run banks (PSBs). Private sector banks edged lower. IndusInd Bank edged higher after the bank said it has further strengthened its Payment Solutions business through launch of an Internet Payment Gateway for enabling online acceptance of credit/debit and prepaid card. IDFC dropped after the company reported poor Q1 earnings. Crompton Greaves edged higher after winning a contract.
Key indices edged higher for the second straight trading session today, 30 July 2015.
Foreign portfolio investors sold shares worth a net Rs 121.06 crore into secondary equity market yesterday, 29 July 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 642.69 crore yesterday, 29 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher, with investors assessing a fresh crop of earnings reports. Chinese stocks led decline in Asian stocks. US stocks ended higher yesterday, 29 July 2015, after the Federal Reserve's latest policy statement flagged a nagging concern about low inflation, which could give officials a reason to delay raising rates.
The S&P BSE Sensex rose 141.92 points or 0.51% to settle at 27,705.35, its highest closing level since 24 July 2015. The index jumped 291.03 points at the day's high of 27,854.46 in early afternoon trade. The index gained 86.54 points at the day's low of 27,649.97 at the onset of the trading session.
The CNX Nifty rose 46.75 points or 0.56% to settle at 8,421.80, its highest closing level since 24 July 2015. The index hit a high of 8,458.90 in intraday trade. The index hit a low of 8,408.90 in intraday trade.
The BSE Mid-Cap index rose 86.98 points or 0.79% to settle at 11,158.40. The BSE Small-Cap index rose 104.86 points or 0.9% to settle at at 11,723.88. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,746 shares rose and 1,117 shares fell. A total of 107 shares were unchanged.
The total turnover on BSE amounted to Rs 3345 crore, lower than turnover of Rs 3348.48 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE FMCG index (up 2.74%), BSE Healthcare index (up 0.77%), BSE Bankex index (up 0.58%), BSE Power index (up 1.14%) and BSE Realty index (up 3.48%) outperformed the Sensex. The S&P BSE IT index (down 0.77%), BSE Auto index (up 0.27%), BSE Consumer Durables index (up 0.17%), BSE Capital Goods index (down 0.24%), BSE Metal index (down 0.19%), BSE Oil & Gas index (up 0.3%) and BSE Teck index (down 0.54%) underperformed the Sensex.
Index heavyweight and cigarette major ITC edged higher after the company reported Q1 June 2015 earnings. The stock rose 3.9% at Rs 315.80. The stock hit a high of Rs 318 and a low of Rs 300.60 in intraday trade. ITC's net profit rose 3.61% to Rs 2265.44 crore on 6.11% decline in total income to Rs 8902.71 crore Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 30 July 2015.
Shares of state-run banks edged higher after media reports suggested that the finance ministry has approved appointment of managing directors and chief executive officers (MD & CEO) of five public sector run banks (PSBs). Earlier this year, the government had approved new norms for selection of MD & CEO in five PSBs. The government wants to professionalise management of PSBs.
Shares of Bank of Baroda (BoB) jumped after media reports said that the government is set to appoint Managing Director of Value & Budget Housing Corporation PS Jayakumar as the next MD and CEO of BoB. The stock rose 10.03% to Rs 168.40. The stock hit a high of Rs 169.30 and a low of Rs 153.60 in intraday trade. The bank's net profit fell 22.74% to Rs 1052.15 crore on 4.80% increase in total income to Rs 12243.72 crore in Q1 June 2015 over Q1 June 2014. The result was announced during trading hours today, 30 July 2015.
On absolute basis, Bank of Baroda's gross non-performing assets (NPA) edged higher to Rs 17273.95 crore as on 30 June 2015 from Rs 16261.45 crore as on 31 March 2015 and Rs 12086.81 crore as on 30 June 2014. The ratio of gross NPAs to gross advances stood at 4.13% as on 30 June 2015, compared with 3.72% as on 31 March 2015 and 3.11% as on 30 June 2014. BoB's ratio of net non-performing assets (NPAs) to net advances stood at 2.07% as on 30 June 2015, compared with 1.89% as on 31 March 2015 and 1.58% as on 30 June 2014.
Provisions and contingencies rose 13.87% to Rs 599.74 crore in Q1 June 2015 over Q1 June 2014. The provisioning coverage ratio as on 30 June 2015 stood at 64.94%. The bank has made provision at 20% on Secured Sub-standard Advance as against the regulatory requirement of 15%.
The employee cost in Q1 June 2015 includes provision of Rs 262.73 crore on account of pay revision. Consequent upon wage revision effective from 1 November 2012 and pending final payment, the bank holds an estimated provision of Rs 1313.46 crore as on 30 June 2015 on account of wage revision and employee benefit for wage revision.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.98% as on 30 June 2015, compared with 12.60% as on 31 March 2015 and 11.91% as on 30 June 2014.
Shares of Punjab National Bank (PNB) jumped after media reports said that Usha Ananthasubramanian who currently heads Bhartiya Mahila Bank will be appointed as the next MD and CEO of PNB. The stock surged 8.98% at Rs 149.90.
Canara Bank rose after media reports said that MD & CEO of Laxmi Vilas Bank Rakesh Sharma will be appointed as the next MD and CEO of Canara Bank. The stock rose 2.54% at Rs 262.70.
Among other state run banks, Union Bank of India (up 6.88%), IDBI Bank (up 4.48%), Oriental Bank of Commerce (up 4.42%), Bank of India (up 4.22%), Andhra Bank (up 3.48%), United Bank of India (up 2.4%), Corporation Bank (up 1.74%), Indian Overseas Bank (up 1.39%), State Bank of India (up 1.26%) and Allahabad Bank (up 0.97%) edged higher.
Private sector banks edged lower. Yes Bank (down 0.4%), Axis Bank (down 0.22%) and HDFC Bank (down 0.01%) edged lower. ICICI Bank (up 0.61%) edged higher.
Shares of Kotak Mahindra Bank (KMBL) fell 1.36% at Rs 716.15. The stock hit a high of Rs 734 and a low of Rs 713.90 in intraday trade. KMBL's net profit fell 55.84% to Rs 189.78 crore on 70.65% growth in total income to Rs 4583.86 crore in Q1 June 2015 over Q1 June 2014. KMBL announced the first quarter results after market hours today, 30 July 2015. The results for Q1 June 2015 include operations of erstwhile ING Vysya Bank which was merged with KMBL with effect from 1 April 2015. Hence, the results for Q1 June 2015 are not comparable with that of the corresponding period of the previous year.
KMBL said that the Q1 June 2015 results were hit adversely by significant provisions on merger of ING Vysya Bank with KMBL. KMBL made provisions of Rs 339 crore for retiral benefits of employees of erstwhile ING Vysya Bank amounting to Rs 339 crore. The bottom line during the quarter was also impacted by provisions and contingencies of Rs 305 crore of which a significant portion is from erstwhile ING Vysya Bank. KMBL also incurred integration cost of Rs 63 crore in Q1 June 2015, including stamp duty, related to the merger. KMBL made payment of additional interest on savings accounts of erstwhile ING Vysya Bank amounting to Rs 30 crore in view of the higher rate of 6% (for balance above Rs 1 lakh) offered to the customers as against 4% offered by ING Vysya Bank.
KMBL said in a statement that the management believes the merger benefits will flow in due course from both, revenue synergies as well as cost efficiencies, resulting from significant geographical and product complementarities, fuller customer segment coverage, economies of scale and improved productivity and efficiency.
On absolute basis, KMBL's gross non-performing assets (NPAs) stood at Rs 2421.77 crore as on 30 June 2015, compared with Rs 1237.23 crore as on 31 March 2015 and Rs 1079.02 crore as on 30 June 2014. The ratio of gross NPAs to gross advances stood at 2.31% as on 30 June 2015 as against 1.85% as on 31 March 2015 and 1.88% as on 30 June 2014. The ratio of net NPAs to net advances stood at 1.04% as on 30 June 2015 as against 0.92% as on 31 March 2015 and 0.98% as on 30 June 2014.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 16.36% as on 30 June 2015 as against 17.17% as on 31 March 2015 and 18.5% as on 30 June 2014.
Meanwhile, the finance ministry after market hours yesterday, 29 July 2015, announced that the government has approved the proposal from KMBL for increasing the ceiling on foreign investment in the bank to 55% pursuant to merger of ING Vysya Bank with KMBL.
IndusInd Bank edged higher after the bank said it has further strengthened its Payment Solutions business through launch of an Internet Payment Gateway for enabling online acceptance of credit/debit and prepaid card. The stock rose 2.05% at Rs 973.25. The stock hit a high of Rs 978.85 and a low of Rs 956 in intraday trade. The announcement was made during market hours today, 30 July 2015. The Payment Gateway will support acquisition of VISA, MasterCard and RuPay cards, besides netbanking transactions, IndusInd Bank said in a statement.
Realty stocks were in demand. Unitech (up 18.24%), DLF (up 7.79%), Housing Development & Infrastructure (up 4.74%), Indiabulls Real Estate (up 3.74%), D B Realty (up 1.48%), Oberoi Realty (up 1.22%), Godrej Properties (up 0.48%) and Sobha (up 0.35%) edged higher.
NHPC fell 1.06% at Rs 18.70. The company's net profit rose 24.53% to Rs 767.17 crore on 0.05% growth in total income to Rs 2218.80 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 29 July 2015.
NTPC rose 0.44% at Rs 135.85. The stock hit a high of Rs 138.75 and low of Rs 135.35 in intraday trade. NTPC's net profit fell 2.99% to Rs 2135.35 crore on 8.19% decline in total income to Rs 17323.30 crore in Q1 June 2015 over Q1 June 2014. The result was declared during market hours today, 30 July 2015.
Dr Reddys Laboratories jumped 5.23% at Rs 3,907.55. The stock hit a high of Rs 3,933 and a low of Rs 3,721.05 in intraday trade. On a consolidated basis, the company's net profit rose 14% to Rs 630 crore on 7% increase in revenue to Rs 3760 crore in Q1 June 2015 over Q1 June 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 12% to Rs 990 crore in Q1 June 2015 over Q1 June 2014. EBITDA margin increased to 26.5% in Q1 June 2015 compared with 25.2% in Q1 June 2014. The result was announced during trading hours today, 30 July 2015.
Nestle India rose 2.5% at Rs 6,301.05. The stock hit a high of Rs 6,345 and a low of Rs 5,991 in intraday trade. The company reported net loss of Rs 64.40 crore in Q2 June 2015 as against net profit of Rs 287.86 crore in Q2 June 2014. Total income declined 19.06% to Rs 1987.14 crore in Q2 June 2015 over Q2 June 2014. The result was announced after market hours yesterday, 29 July 2015. Nestle India's Q2 results were hit adversely by the Maggi noodles issues. The company reversed net sales worth Rs 288.38 crore in Q2 June 2015 in relation to Maggi noodles stock withdrawn from trade partners and market. The company incurred exceptional expenditure of Rs 451.66 crore in Q2 June 2015 on account of stock of Maggi noodles withdrawn from the market and other related costs.
Maruti Suzuki India (MSIL) rose 0.21% at Rs 4,283. The stock hit a record high of Rs 4,360 in intraday trade. The stock hit a low of Rs 4,281.60. The company after market hours yesterday, 29 July 2015, announced that Maruti Suzuki Dzire attained the 10 lakh cumulative sales mark this month. Launched in 2008, Maruti Suzuki Dzire has been a category leader and has helped Maruti Suzuki strengthen its presence in the the entry sedan segment, MSIL said in a statement.
IDFC dropped after the company reported poor Q1 earnings. The stock fell 0.88% at Rs 152.80. The stock hit a high of Rs 156.80 and a low of Rs 150.75 in intraday trade. IDFC's consolidated net profit declined 47.23% to Rs 254.21 crore on 1.71% growth in total income to Rs 2226.77 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 30 July 2015.
Crompton Greaves (CG) rose 2.52% at Rs 182.75. The company announced during trading hours that it has won an important contract to supply ZIV single phase smart meters to Energias de Portugal (EDP), one of the major European operators in the energy sector. This follows another major order awarded by EDP, selecting CG as the main supplier for data concentrators. Financial details of the deal were not disclosed.
Key indices edged higher for the second straight trading session today, 30 July 2015. The Sensex has risen 246.12 points or 0.89% in preceding two trading sessions from a recent low of 27,459.23 on 28 July 2015. The Sensex has fallen 75.48 points or 0.27% in this month so far (till 30 July 2015). The Sensex has risen 205.93 points or 0.74% in this calendar year so far (till 30 July 2015). From a 52-week low of 25,232.82 on 8 August 2014, the Sensex has risen 2,472.53 points or 9.79%. The Sensex is off 2,319.39 points or 7.72% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, the Union Cabinet yesterday, 29 July 2015, reportedly approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee. The Cabinet agreed to the recommendation made by the Select Committee on compensation to states to win over support of regional parties like TMC of West Bengal and Odisha's BJD, in getting the landmark Constitution Amendment approved by the Upper House where the ruling NDA does not have a majority. The Cabinet decided that the modalities for levy of 1% tax over and above the GST rate by states as well as the ''band'' rate would be finalised while framing the rules, reports added.
If the GST bill gets passed in the Rajya Sabha during the ongoing monsoon session, the government will have to again go to the Lok Sabha for getting the Lower House's approval for the proposed amendments. The Constitutional Amendment Bill for GST needs the support of two-thirds of the members in both houses. The government hopes to implement GST from 1 April 2016. But it is running short of time. Once both houses of Parliament pass the Constitution Amendment Bill, the bill has to be sent to the states for ratification. At least 50% of the states have to ratify the bill.
The Union Cabinet yesterday, 29 July 2015, reportedly also approved a proposal to set up a fund to kick-start stranded infrastructure projects and a bill to replace the Consumer Protection Act, 1986, which would bring e-commerce companies under the consumer protection and competition laws, aimed at safeguarding the interests of online shoppers. The National Investment and Infrastructure Fund (NIIF), announced in the Union Budget and approved by the Cabinet, will have an initial authorized capital of Rs 20000 crore and a government contribution of up to 49%, according to news reports. NIIF will function as a sovereign fund and will seek equity participation from overseas investors as well.
The Union Cabinet also reportedly approved a proposal to allow foreign investment in alternative investment funds announced in this year's Union Budget.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 29 July 2015, that the Southwest monsoon was vigorous over Rajasthan and Gujarat state and was active over Gangetic West Bengal during past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 3% below the Long Period Average (LPA) until 29 July 2015. Region wise, the rainfall was 18% below the LPA in South Peninsula, 8% below the LPA in East & Northeast India, near normal in Central India and 12% above the LPA in Northwest India until 29 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas markets, European stocks edged higher today, 30 July 2015. Key indices in Germany, UK and France were up 0.51% to 0.84%.
Asian shares edged lower today, 30 July 2015. In China, the Shanghai Composite lost 2.2%. In Hong Kong, the Hang Seng index shed 0.49%. In other Asian markets, key benchmark indices in Indonesia, Singapore and South Korea were off 0.18% to 0.98%. Key benchmark indices in Japan and Taiwan were up 1.03% to 1.08%.
US stocks ended higher yesterday, 29 July 2015, after the Federal Reserve's latest policy statement flagged a nagging concern about low inflation, which could give officials a reason to delay raising rates. After a two-day policy meeting, the Fed said in a statement yesterday, 29 July 2015, that the world's top economy had expanded "moderately" in recent months and the jobs market had strengthened, but it noted continued "soft" business investment and exports. The Fed left room for a September rate hike.
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