Nifty attains 25-week closing high
A divergent trend for various index constituents resulted in small gains for the two key benchmark indices. The barometer index, the S&P BSE Sensex, rose 56.82 points or 0.22% to settle at 26,064.12. The Nifty 50 index rose 17.25 points or 0.22% to settle at 7,979.90. The two key benchmark indices edged higher for the second day in a row. The small gains took the Nifty to 25-week closing high and the Sensex to its highest closing level in nearly 17 weeks.
Telecom major Bharti Airtel gained ahead of its Q4 results. IT stocks rose after global credit rating agency Moody's Investors Service said in a sector report that it expects the Indian IT services sector to maintain global market share gains despite headwinds. HCL Technologies dropped 1.58% ahead of its quarterly results. Shares of oil exploration and production companies rose as global crude oil prices surged.
Axis Bank edged lower after the bank's management said in a conference call that it expects bad loans to rise and credit costs to be sharply higher in the current financial year. Yes Bank edge higher in volatile trade after the private sector bank reported strong Q4 results.
In overseas stock markets, the main European markets rose. Earlier during the global day, Asian stocks declined as traders awaited policy decisions from the Federal Reserve and the Bank of Japan. The Bank of Japan's (BOJ) two-day monetary policy meeting began today, 27 April 2016. Speculation is rife that the Japanese central bank will announce further easing of monetary policy. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.
US stocks closed with mixed results yesterday 26 April 2016, ahead of a barrage of tech earnings and monetary policy statement from the Federal Reserve. The Federal Reserve's two-day policy meeting concludes today, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week. The Fed statement could provide clues on the future interest rate increases.
The barometer index, the S&P BSE Sensex, rose 56.82 points or 0.22% to settle at 26,064.12, its highest closing level since 1 January 2016. The Sensex rose 85.63 points, or 0.33% at the day's high of 26,092.93. The index fell 122.06 points, or 0.47% at the day's low of 25,885.24.
The Nifty 50 index rose 17.25 points or 0.22% to settle at 7,979.90, its highest closing level since 4 November 2015. The Nifty rose 28.35 points, or 0.36% at the day's high of 7,991. The index fell 22.10 points, or 0.28% at the day's low of 7,940.55.
The market breadth indicating the overall health of the market was negative. On BSE, 1,294 shares fell and 1,277 shares rose. A total of 188 shares were unchanged. The BSE Mid-Cap index rose 0.13%, underperforming the Sensex. The BSE Small-Cap index rose 0.28%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2489 crore, lower than turnover of Rs 2685.52 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (up 2.93%), the S&P BSE Oil & Gas index (up 1.23%), the S&P BSE FMCG index (up 1.02%), the S&P BSE Energy index (up 0.8%), the S&P BSE Teck index (up 0.72%), the S&P BSE IT index (up 0.44%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.37%), the S&P BSE Auto index (up 0.3%), the S&P BSE Consumer Durables index (up 0.28%), the S&P BSE Industrials index (up 0.26%) outperformed the Sensex. The S&P BSE Metal index (up 0.01%), the S&P BSE Healthcare index (down 0.13%), the S&P BSE Utilities index (down 0.14%), the S&P BSE Basic Materials index (down 0.16%), the S&P BSE Capital Goods index (down 0.24%), the S&P BSE Realty index (down 0.36%), the S&P BSE Finance index (down 0.48%), the S&P BSE Power index (down 0.5%) and the S&P BSE Bankex (down 0.87%) underperformed the Sensex.
Index heavyweight and cigarette major ITC rose 1.40% to Rs 332.30. The stock hit a high of Rs 334.20 and a low of Rs 326.45 in intraday trade.
Telecom major Bharti Airtel gained 3.63% to Rs 373.50 ahead of its Q4 results today, 27 April 2016. Along with the Q4 results, the company's board of directors will also consider a proposal for buyback of equity shares of the company.
Telecom towers firm Bharti Infratel rose 3.24% to Rs 375.60 after consolidated net profit rose 19% to Rs 661.70 crore on 7% growth in revenue to Rs 3161.90 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 26 April 2016. Bharti Infratel's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 1443.90 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin edged higher to 45.7% in Q4 March 2016, from 45.1% in Q4 March 2015.
Bharti Infratel's board of directors at its meeting held yesterday, 26 April 2016, approved the proposal to buyback equity shares of the company on a proportionate basis through a tender offer. The buyback shall be up to an aggregate amount not exceeding Rs 2000 crore at a maximum price of Rs 450 per share. At maximum buyback price, the buyback translates into approximately 4.44 crore equity shares of the company, representing 2.34% of the total paid up equity share capital of the company.
IT stocks rose after global credit rating agency Moody's Investors Service said in a sector report that it expects the Indian IT services sector to maintain global market share gains despite headwinds. TCS (up 0.67%), Infosys (up 0.65%), Wipro (up 1.13%), Oracle Financial Services Software (up 0.39%), Tech Mahindra (up 0.75%) and MphasiS (up 1.09%) rose.
According to Moody's, economic stability in developed countries will fuel growth for the global IT services outsourcing industry, benefiting Indian IT services companies in particular. However, currency volatility will pressure growth estimates for the Indian IT services sector, according to Moody's. While revenue is predominantly denominated in US dollar and euro for the Indian IT services sector, the cost base remains primarily denominated in Indian currency, resulting in a potential mismatch.
HCL Technologies dropped 1.58% ahead of its quarterly results. The company is schedule to announce its results for the quarter ended 31 March 2016 tomorrow 28 April 2016. HCL Tech has changed its accounting year to the period from 1 April to 31 March from earlier 1 July to 30 June.
Shares of oil exploration and production companies rose as global crude oil prices surged. Cairn India (up 1.10%), Oil India (up 2.79%), ONGC (up 3.34%) and Reliance Industries (up 0.17%) edged higher. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Crude oil prices rose in the global commodities markets after weekly data from the American Petroleum Institute showed decline in US crude inventories last week. Brent for June settlement was currently up $1.02 a barrel at $46.76 a barrel. The contract had risen $1.26 a barrel or 2.83% to settle at $45.74 a barrel during the previous trading session.
Shares of public sector oil marketing companies also edged higher. HPCL (up 0.18%), BPCL (up 0.38%) and Indian Oil Corporation (up 0.66%), edged higher.
PSU bank stocks declined. State Bank of India (SBI) (down 2.34%), Bank of Baroda (down 0.49%), Bank of India (down 0.77%), Punjab National Bank (down 0.28%) and Canara Bank (down 0.82%) declined. IDBI Bank was unchanged at Rs 70.95. Vijaya Bank (up 0.31%) and Union Bank of India (up 0.23%) rose.
Private sector bank stocks saw mixed trend. HDFC Bank (up 0.95%), Kotak Mahindra Bank (up 1.42%), IndusInd Bank (up 1.82%) rose. ICICI Bank dropped 3.44%.
Axis Bank lost 3.19% after the bank's management said in a conference call that it expects bad loans to rise and credit costs to be sharply higher in the current financial year. The bank flagged a watch list of loans totaling Rs 22628 crore, indicating that there could be increased stress from this pile. This forms about 4% of Axis Bank's total loan book and 13% of its corporate loan book. The bank expects 60% of loans from this pile, or about Rs 13000 crore, to turn bad over eight quarters. While timing of slippage is difficult to predict precisely, it expects that there would be a slight bias towards the first half of the current financial year. Credit costs for the bank are likely to increase to 125 basis points (bps) in FY 2017 from 111 bps for FY 2016. In the worst-case scenario, credit cost for the current financial year could be as high as 150 basis points. The conference call was held after the announcement of Q4 March 2016 results after trading hours yesterday, 26 April 2016. The bank's net profit fell 1.2% to Rs 2154.28 crore on 9.75% rise in total income to Rs 13592.97 crore in Q4 March 2016 over Q4 March 2015.
The bank's gross non-performing assets (NPAs) stood at Rs 6087.51 crore as on 31 March 2016 as against Rs 5724.05 crore as on 31 December 2015 and Rs 4110.19 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 1.67% as on 31 March 2016 as against 1.68% as on 31 December 2015 and 1.34% as on 31 March 2015. The ratio of net NPAs to net advances stood at 0.7% as on 31 March 2016 as against 0.75% as on 31 December 2015 and 0.44% as on 31 March 2015.
The bank's provisions and contingencies jumped 64.59% to Rs 1168.33 crore in Q4 March 2016 over Q4 March 2015. Axis Bank created a contingency asset provision of Rs 300 crore in Q4 March 2016 taking the cumulative balance of contingency asset provisions to Rs 480 crore as on 31 March 2016. The cumulative value of net restructured advances as on 31 March 2016 stood at Rs 8072 crore, constituting 2.25% of net customer assets, compared to Rs 7745 crore, constituting 2.31% of net customer assets as on 31 December 2015.
Yes Bank edge higher in volatile trade after the private sector bank reported strong Q4 results. The stock rose 0.55% to Rs 915.60. The stock hit a high of Rs 923.90 in intraday day, which is a record high for the stock. The stock hit a low of Rs 897.60 in intraday trade. Yes Bank's net profit rose 27.42% to Rs 702.11 crore on 17.73% rise in total income to Rs 4331.11 crore in Q4 March 2016 over Q4 March 2015. The bank's provisions and contingencies jumped 47.56% to Rs 186.46 crore in Q4 March 2016 over Q4 March 2015. The provision coverage ratio dropped to 62% as on 31 March 2016 from 66.5% as on 31 December 2015. The provision coverage ratio stood at 72% as on 31 March 2015.
Yes Bank's gross non-performing assets (NPAs) stood at Rs 748.98 crore as on 31 March 2016 as against Rs 558.57 crore as on 31 December 2015 and Rs 313.40 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 0.76% as on 31 March 2016 as against 0.66% as on 31 December 2015 and 0.41% as on 31 March 2015. The ratio of net NPAs to net advances stood at 0.29% as on 31 March 2016 as against 0.22% as on 31 December 2015 and 0.12% as on 31 March 2015.
The Sensex rose for the second day in a row. The barometer index has gained 385.19 points or 1.5% in two trading days from its close of 25,678.93 on 25 April 2016. The Sensex has risen 722.26 points or 2.85% in this month so far (till 27 April 2016). The Sensex has fallen 53.42 points or 0.2% in calendar year 2016 so far (till 27 April 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,569.51 points or 15.86%. The Sensex is off 2,514.21 points or 8.79% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,960.62 points or 13.19% from a record high of 30,024.74 hit on 4 March 2015.
Telecom major Bharti Airtel gained ahead of its Q4 results. IT stocks rose after global credit rating agency Moody's Investors Service said in a sector report that it expects the Indian IT services sector to maintain global market share gains despite headwinds. HCL Technologies dropped 1.58% ahead of its quarterly results. Shares of oil exploration and production companies rose as global crude oil prices surged.
Axis Bank edged lower after the bank's management said in a conference call that it expects bad loans to rise and credit costs to be sharply higher in the current financial year. Yes Bank edge higher in volatile trade after the private sector bank reported strong Q4 results.
In overseas stock markets, the main European markets rose. Earlier during the global day, Asian stocks declined as traders awaited policy decisions from the Federal Reserve and the Bank of Japan. The Bank of Japan's (BOJ) two-day monetary policy meeting began today, 27 April 2016. Speculation is rife that the Japanese central bank will announce further easing of monetary policy. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.
US stocks closed with mixed results yesterday 26 April 2016, ahead of a barrage of tech earnings and monetary policy statement from the Federal Reserve. The Federal Reserve's two-day policy meeting concludes today, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week. The Fed statement could provide clues on the future interest rate increases.
The barometer index, the S&P BSE Sensex, rose 56.82 points or 0.22% to settle at 26,064.12, its highest closing level since 1 January 2016. The Sensex rose 85.63 points, or 0.33% at the day's high of 26,092.93. The index fell 122.06 points, or 0.47% at the day's low of 25,885.24.
The Nifty 50 index rose 17.25 points or 0.22% to settle at 7,979.90, its highest closing level since 4 November 2015. The Nifty rose 28.35 points, or 0.36% at the day's high of 7,991. The index fell 22.10 points, or 0.28% at the day's low of 7,940.55.
The market breadth indicating the overall health of the market was negative. On BSE, 1,294 shares fell and 1,277 shares rose. A total of 188 shares were unchanged. The BSE Mid-Cap index rose 0.13%, underperforming the Sensex. The BSE Small-Cap index rose 0.28%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2489 crore, lower than turnover of Rs 2685.52 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (up 2.93%), the S&P BSE Oil & Gas index (up 1.23%), the S&P BSE FMCG index (up 1.02%), the S&P BSE Energy index (up 0.8%), the S&P BSE Teck index (up 0.72%), the S&P BSE IT index (up 0.44%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.37%), the S&P BSE Auto index (up 0.3%), the S&P BSE Consumer Durables index (up 0.28%), the S&P BSE Industrials index (up 0.26%) outperformed the Sensex. The S&P BSE Metal index (up 0.01%), the S&P BSE Healthcare index (down 0.13%), the S&P BSE Utilities index (down 0.14%), the S&P BSE Basic Materials index (down 0.16%), the S&P BSE Capital Goods index (down 0.24%), the S&P BSE Realty index (down 0.36%), the S&P BSE Finance index (down 0.48%), the S&P BSE Power index (down 0.5%) and the S&P BSE Bankex (down 0.87%) underperformed the Sensex.
Index heavyweight and cigarette major ITC rose 1.40% to Rs 332.30. The stock hit a high of Rs 334.20 and a low of Rs 326.45 in intraday trade.
Telecom major Bharti Airtel gained 3.63% to Rs 373.50 ahead of its Q4 results today, 27 April 2016. Along with the Q4 results, the company's board of directors will also consider a proposal for buyback of equity shares of the company.
Telecom towers firm Bharti Infratel rose 3.24% to Rs 375.60 after consolidated net profit rose 19% to Rs 661.70 crore on 7% growth in revenue to Rs 3161.90 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 26 April 2016. Bharti Infratel's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 1443.90 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin edged higher to 45.7% in Q4 March 2016, from 45.1% in Q4 March 2015.
Bharti Infratel's board of directors at its meeting held yesterday, 26 April 2016, approved the proposal to buyback equity shares of the company on a proportionate basis through a tender offer. The buyback shall be up to an aggregate amount not exceeding Rs 2000 crore at a maximum price of Rs 450 per share. At maximum buyback price, the buyback translates into approximately 4.44 crore equity shares of the company, representing 2.34% of the total paid up equity share capital of the company.
IT stocks rose after global credit rating agency Moody's Investors Service said in a sector report that it expects the Indian IT services sector to maintain global market share gains despite headwinds. TCS (up 0.67%), Infosys (up 0.65%), Wipro (up 1.13%), Oracle Financial Services Software (up 0.39%), Tech Mahindra (up 0.75%) and MphasiS (up 1.09%) rose.
According to Moody's, economic stability in developed countries will fuel growth for the global IT services outsourcing industry, benefiting Indian IT services companies in particular. However, currency volatility will pressure growth estimates for the Indian IT services sector, according to Moody's. While revenue is predominantly denominated in US dollar and euro for the Indian IT services sector, the cost base remains primarily denominated in Indian currency, resulting in a potential mismatch.
HCL Technologies dropped 1.58% ahead of its quarterly results. The company is schedule to announce its results for the quarter ended 31 March 2016 tomorrow 28 April 2016. HCL Tech has changed its accounting year to the period from 1 April to 31 March from earlier 1 July to 30 June.
Shares of oil exploration and production companies rose as global crude oil prices surged. Cairn India (up 1.10%), Oil India (up 2.79%), ONGC (up 3.34%) and Reliance Industries (up 0.17%) edged higher. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Crude oil prices rose in the global commodities markets after weekly data from the American Petroleum Institute showed decline in US crude inventories last week. Brent for June settlement was currently up $1.02 a barrel at $46.76 a barrel. The contract had risen $1.26 a barrel or 2.83% to settle at $45.74 a barrel during the previous trading session.
Shares of public sector oil marketing companies also edged higher. HPCL (up 0.18%), BPCL (up 0.38%) and Indian Oil Corporation (up 0.66%), edged higher.
PSU bank stocks declined. State Bank of India (SBI) (down 2.34%), Bank of Baroda (down 0.49%), Bank of India (down 0.77%), Punjab National Bank (down 0.28%) and Canara Bank (down 0.82%) declined. IDBI Bank was unchanged at Rs 70.95. Vijaya Bank (up 0.31%) and Union Bank of India (up 0.23%) rose.
Private sector bank stocks saw mixed trend. HDFC Bank (up 0.95%), Kotak Mahindra Bank (up 1.42%), IndusInd Bank (up 1.82%) rose. ICICI Bank dropped 3.44%.
Axis Bank lost 3.19% after the bank's management said in a conference call that it expects bad loans to rise and credit costs to be sharply higher in the current financial year. The bank flagged a watch list of loans totaling Rs 22628 crore, indicating that there could be increased stress from this pile. This forms about 4% of Axis Bank's total loan book and 13% of its corporate loan book. The bank expects 60% of loans from this pile, or about Rs 13000 crore, to turn bad over eight quarters. While timing of slippage is difficult to predict precisely, it expects that there would be a slight bias towards the first half of the current financial year. Credit costs for the bank are likely to increase to 125 basis points (bps) in FY 2017 from 111 bps for FY 2016. In the worst-case scenario, credit cost for the current financial year could be as high as 150 basis points. The conference call was held after the announcement of Q4 March 2016 results after trading hours yesterday, 26 April 2016. The bank's net profit fell 1.2% to Rs 2154.28 crore on 9.75% rise in total income to Rs 13592.97 crore in Q4 March 2016 over Q4 March 2015.
The bank's gross non-performing assets (NPAs) stood at Rs 6087.51 crore as on 31 March 2016 as against Rs 5724.05 crore as on 31 December 2015 and Rs 4110.19 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 1.67% as on 31 March 2016 as against 1.68% as on 31 December 2015 and 1.34% as on 31 March 2015. The ratio of net NPAs to net advances stood at 0.7% as on 31 March 2016 as against 0.75% as on 31 December 2015 and 0.44% as on 31 March 2015.
The bank's provisions and contingencies jumped 64.59% to Rs 1168.33 crore in Q4 March 2016 over Q4 March 2015. Axis Bank created a contingency asset provision of Rs 300 crore in Q4 March 2016 taking the cumulative balance of contingency asset provisions to Rs 480 crore as on 31 March 2016. The cumulative value of net restructured advances as on 31 March 2016 stood at Rs 8072 crore, constituting 2.25% of net customer assets, compared to Rs 7745 crore, constituting 2.31% of net customer assets as on 31 December 2015.
Yes Bank edge higher in volatile trade after the private sector bank reported strong Q4 results. The stock rose 0.55% to Rs 915.60. The stock hit a high of Rs 923.90 in intraday day, which is a record high for the stock. The stock hit a low of Rs 897.60 in intraday trade. Yes Bank's net profit rose 27.42% to Rs 702.11 crore on 17.73% rise in total income to Rs 4331.11 crore in Q4 March 2016 over Q4 March 2015. The bank's provisions and contingencies jumped 47.56% to Rs 186.46 crore in Q4 March 2016 over Q4 March 2015. The provision coverage ratio dropped to 62% as on 31 March 2016 from 66.5% as on 31 December 2015. The provision coverage ratio stood at 72% as on 31 March 2015.
Yes Bank's gross non-performing assets (NPAs) stood at Rs 748.98 crore as on 31 March 2016 as against Rs 558.57 crore as on 31 December 2015 and Rs 313.40 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 0.76% as on 31 March 2016 as against 0.66% as on 31 December 2015 and 0.41% as on 31 March 2015. The ratio of net NPAs to net advances stood at 0.29% as on 31 March 2016 as against 0.22% as on 31 December 2015 and 0.12% as on 31 March 2015.
The Sensex rose for the second day in a row. The barometer index has gained 385.19 points or 1.5% in two trading days from its close of 25,678.93 on 25 April 2016. The Sensex has risen 722.26 points or 2.85% in this month so far (till 27 April 2016). The Sensex has fallen 53.42 points or 0.2% in calendar year 2016 so far (till 27 April 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,569.51 points or 15.86%. The Sensex is off 2,514.21 points or 8.79% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,960.62 points or 13.19% from a record high of 30,024.74 hit on 4 March 2015.
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