A bout of volatility was witnessed as key benchmark indices recovered after trimming gains in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was up 217.31 points or 0.82% at 26,583.99. The Nifty 50 index was up 72.80 points or 0.9% at 8,142.45. Gains in Asian stocks aided the upmove on the domestic bourses. Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy.
The Sensex jumped 295.96 points, or 1.12% at the day's high of 26,662.64 in afternoon trade, its highest level since 4 November 2015. The index rose 38.60 points, or 0.15% at the day's low of 26,405.28 in early trade. The Nifty rose 92.55 points, or 1.14% at the day's high of 8,162.20 in afternoon trade, its highest level since 29 October 2015. The index rose 7.40 points, or 0.09% at the day's low of 8,077.05 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,389 shares rose and 1,064 shares fell. A total of 196 shares were unchanged. The BSE Mid-Cap index was currently up 1.36%, outperforming the Sensex. The BSE Small-Cap index was currently up 0.62%, underperforming the Sensex.
In overseas stock markets, European markets declined as investors turned cautious ahead of comments from US Federal Reserve Chairwoman Janet Yellen at a scheduled speech at Harvard University later in the global day. Her comments could provide more indications about whether the US central bank would raise rates in near term. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016.
Asian stocks edged higher after better-than-expected US economic reports overnight. The US economy is the world's biggest economy. US equities took a breather yesterday, 26 May 2016, following their steepest two-day advance since March as investors parsed a slew of economic reports. The latest data showed US durable goods orders, housing and initial jobless claims data coming in strong, while capital goods orders and the Kansas City Fed manufacturing survey were weak.
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Metal shares were mixed. Hindustan Copper (up 2.58%), Hindalco Industries (up 1.44%), NMDC (up 1.04%) and National Aluminium Company (up 0.24%) edged higher. Hindustan Zinc (down 0.15%) and Vedanta (down 0.91%) edged lower.
Copper prices edged higher in the global commodities markets. High Grade Copper for July 2016 delivery was currently up 0.62% at $2.1155 per pound on the COMEX.
Steel stocks edged higher on renewed buying. Steel Authority of India (up 5.78%), JSW Steel (up 3.25%), Jindal Steel & Power (up 1.23%), Bhushan Steel (up 1.12%) and Tata Steel (up 0.78%) edged higher.
Stocks of public sector banks witnessed a mixed trend. Allahabad Bank (up 2.08%), Indian Bank (up 2.06%), Union Bank of India (up 1.76%), Syndicate Bank (up 1.38%), Bank of India (up 1.35%), IDBI Bank (up 1.22%), Dena Bank (up 1.05%), Punjab National Bank (up 1%), UCO Bank (up 0.89%), Corporation Bank (up 0.57%), United Bank of India (up 0.57%) and Bank of Baroda (up 0.56%) edged higher. Central Bank of India (down 0.06%), Vijaya Bank (down 0.16%), Andhra Bank (down 0.21%), Punjab and Sind Bank (down 0.25%) and Canara Bank (down 1.28%), edged lower.
State Bank of India (SBI) was up 0.82% at Rs 185.25. The bank's net profit fell 66.23% to Rs 1263.81 crore on 10.10% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015. The result was announced during trading hours today, 27 May 2016.
The bank's gross non-performing assets (NPAs) stood at Rs 98172.80 crore as on 31 March 2016 as against Rs 72791.73 crore as on 31 December 2015 and Rs 56725.34 crore as on 31 March 2015. The ratio of gross NPA to gross advances stood at 6.5% as on 31 March 2016 as against 5.1% as on 31 December 2015 and 4.25% as on 31 March 2015. The ratio of net NPA to net advances stood at 3.81% as on 31 March 2016 as against 2.89% as on 31 December 2015 and 2.12% as on 31 March 2015.
The bank's provisions and contingencies rose 89.74% to Rs 13174.05 crore in Q4 March 2016 over Q4 March 2015. The provisions and contingencies include provisions for NPA. SBI's provisions for NPA jumped 143.47% to Rs 12139.17 crore in Q4 March 2016 over Q4 March 2015. The provision coverage ratio of the bank stood at 60.69% as on 31 March 2016.
Stocks of private sector banks edged higher. City Union Bank (up 2.60%), ICICI Bank (up 1.89%), Kotak Mahindra Bank (up 1.67%), Yes Bank (up 0.71%), HDFC Bank (up 0.30%) and IndusInd Bank (up 0.14%), edged higher. Axis Bank was down 0.98%.
Most FMCG shares edged higher. GlaxoSmithKline Consumer Healthcare (up 1.99%), Godrej Consumer Products (up 1.96%), Dabur India (up 1.72%), Hindustan Unilever (up 1.23%), Colgate Palmolive (India) (up 1.14%), Bajaj Corp (up 0.69%), Nestle India (up 0.58%), Marico (up 0.43%), Procter & Gamble Hygiene & Health Care (up 0.03%), Jyothy Laboratories (up 0.02%), edged higher. Tata Global Beverages (down 0.89%) and Britannia Industries (down 1.44%), edged lower.
Natco Pharma rose 2.75% after consolidated net profit rose 10.65% to Rs 60.24 crore on 100.23% rise in total income to Rs 408.47 crore in Q4 March 2016 over Q4 March 2015. Natco Pharma said that the key driver for the accelerated revenue growth in Q4 March 2016 was the company's Hepatitis C portfolio of products in the domestic market.
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