Gains in Asian stocks aided further upmove for key equity benchmark indices in India, with barometer index, S&P BSE Sensex, and the 50-unit Nifty 50 index, both, hitting two-week high. At 11:22 IST, the Sensex was up 187.26 points or 0.77% at 24,656.83. The Nifty was currently up 61.25 points or 0.82% at 7,485.90. The Sensex rose 193.46 points or 0.79% at the day's high of 24,663.03 in mid-morning trade, its highest level since 15 January 2016. The barometer index fell 129.51 points or 0.52% at the day's low of 24,340.06 at the onset of the trading session, its lowest level since 22 January 2016. The Nifty rose 67.30 points or 0.9% at the day's high of 7,491.95 in mid-morning trade, its highest level since 15 January 2016. The index shed 21.85 points or 0.29% at the day's low of 7,402.80 at the onset of the trading session, its lowest level since 22 January 2016.
The market breadth indicating the overall health of the market was positive. On BSE, 1,159 shares gained and 933 shares fell. A total of 161 shares were unchanged. The BSE Mid-Cap index was currently up 0.44%. The BSE Small-Cap index was currently up 0.17%. Both these indices underperformed the Sensex.
In overseas stock markets, Japanese and Chinese stocks led gains in Asian markets after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. In mainland China, the Shanghai Composite index was currently up 2.85%. In Hong Kong, the Hang Seng index was currently up 1.94%.
In Japan, the Nikkei 225 Average was currently up 2.21%. The BOJ said after the conclusion of a two-day monetary policy review that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.
Trading in US stock index futures indicated further gains for US stocks. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 117 points at the opening bell. US stocks finished higher yesterday, 28 January 2016, boosted by a jump in oil prices along with an earnings-driven surge in the shares of Facebook Inc. and Under Armour Inc.
Airline stocks fell after crude oil prices edged higher. Jet Airways (India) (down 5.11%), SpiceJet (down 3.71%) and InterGlobe Aviation (down 1.71%), edged lower. Higher crude oil prices hurt aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
In the global commodities markets, Brent for March settlement was up 41 cents at $34.30 a barrel. The contract had risen 79 cents or 2.39% to settle at $33.89 a barrel during the previous trading session.
Shares of public sector banks declined. Bank of Baroda (down 4.57%), Punjab National Bank (down 2.41%), Corporation Bank (down 2.02%), Allahabad Bank (down 4.01%), Bank of India (down 2.63%), State Bank of India (SBI) (down 3.43%), Union Bank of India (down 1.95%), and Canara Bank (down 3.89%) edged lower.
Shares of private sector banks were mixed. Axis Bank (down 1.68%) and Federal Bank (down 0.97%) declined. HDFC Bank (up 0.53%), Kotak Mahindra Bank (up 0.82%) and IndusInd Bank (up 0.83%) gained.
Yes Bank shed 1.72% ahead of its Q3 results today, 29 January 2016.
ICICI Bank dropped 4.04% after the bank reported a rise in bad loans in Q3 December 2015. The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.
ICICI Bank said that the increase in non-performing assets was primarily due to the decline and continuing weakness in the global steel cycle. Another reason for the increase in non-performing assets was the Reserve Bank of India (RBI) directing Indian banks to review certain loan accounts and their classification over a period of two quarters viz. Q3 December 2015 and Q4 March 2016 with the objective of early recognition of stress assets and to make provisions to cover them.
The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. Provisions and contingencies rose 190.3% to Rs 2844.05 crore in Q3 December 2015 over Q3 December 2014. The provisioning coverage ratio as on 31 December 2015 stood at 53.2%.
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