Market snaps two-day winning streak
Concerns about further interest rate increases in the United States triggered small losses on the domestic bourses. The barometer index, the S&P BSE Sensex, fell 69 points or 0.27% to settle at 25,704.61. The Nifty 50 index shed 20.60 points or 0.26% to settle at 7,870.15. After registering losses of more than 1% in early afternoon trade, the two key benchmark indices staged a strong rebound later with the recovery gathering steam at the fag end of the trading session. The two key benchmark indices snapped a two-day winning streak.
The latest data showed that US consumer prices rose in April at their fastest pace in three years. The inflation data along with hawkish comments from US Federal Reserve officials raised expectations that the US central bank will pick up the pace of interest rate increases during the current calendar year. The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 14-15 June 2016.
Investors in emerging markets, including India are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies.
State Bank of India (SBI) edged higher in volatile trade after the state-run bank said it is considering merger of five associate banks with itself. Punjab National Bank edged higher as the stock shrugged off a massive net loss of Rs 5367.14 crore that the bank reported for Q4 March 2016. Mahindra & Mahindra (M&M) edged lower after UK-based vehicle testing agency Global New Car Assessment Programme (Global NCAP) said that M&M's Scorpio sports utility vehicle failed its crash test. Maruti Suzuki India edged lower in volatile trade after Global NCAP said that Maruti's Celerio and Eeco car models failed its crash test.
The Sensex fell 69 points or 0.27% to settle at 25,704.61, its lowest closing level since 16 May 2016. The index dropped 270.21 points or 1.04% at the day's low of 25,503.40. The index fell 26.61 points or 0.1% at the day's high of 25,747.
The Nifty 50 index shed 20.60 points or 0.26% to settle at 7,870.15, its lowest closing level since 16 May 2016. The index lost 80 points or 1.01% at the day's low of 7,810.75. The index fell 8.70 points or 0.11% at the day's high of 7,882.05.
Among sectoral indices on BSE, the S&P BSE Oil & Gas index (down 0.13%), the S&P BSE Capital Goods index (up 0.64%), the S&P BSE Finance index (down 0.12%), the S&P BSE Realty index (up 2.11%), the S&P BSE Bankex (down 0.1%), the S&P BSE Industrials index (down 0.07%), the S&P BSE Telecom index (down 0.15%), the S&P BSE Basic Materials index (up 0.11%), the S&P BSE Healthcare index (up 0.15%), the S&P BSE Metal index (up 0.61%), the S&P BSE Energy index (up 0.01%), the S&P BSE FMCG index (down 0.06%), and the S&P BSE IT index (down 0.14%) outperformed the Sensex.
The S&P BSE Consumer Durables index (down 0.28%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.66%), the S&P BSE Auto index (down 1.28%), the S&P BSE Power index (down 0.33%), the S&P BSE Utilities index (down 0.35%), and the S&P BSE Teck index (down 0.31%) underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,319 shares fell and 1,228 shares rose. A total of 190 shares were unchanged. The BSE Mid-Cap index fell 0.01%. The fall in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index rose 0.22%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2603 crore, lower than turnover of Rs 2673.07 crore registered during the previous trading session.
Stocks of most private sector banks witnessed a mixed trend. Federal Bank (down 0.4%), and Kotak Mahindra Bank (down 0.02%) declined. ICICI Bank was flat. Yes Bank rose 0.08%.
Index heavyweight and banking major HDFC Bank fell 1.18% to Rs 1,140. The stock hit high of Rs 1,153.95 and low of Rs 1,132.25 in intraday trade.
Axis Bank fell 0.33%. The bank has kept its lending rates based on marginal cost of funds unchanged effective from 18 May 2016. The bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, the rate for one month will be 9.05% and for three months it will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate will be 9.35%, the bank said. MCLR on two-year loans will be 9.45% and for three-year loans the rate will be 9.5%. The announcement was made after market hours yesterday, 17 May 2016.
All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.
IndusInd Bank rose 0.41% after signing a Memorandum of Understanding (MoU) with Honda Motorcycle & Scooter India to offer retail finance at an attractive rate of interest for Honda's two wheeler models. The announcement was made during market hours today, 18 May 2016.
PSU bank stocks gained. Union Bank of India (up 1.98%), IDBI Bank (up 1.63%), Canara Bank (up 2.01%), Bank of Baroda (up 0.63%) and Bank of India (up 1.37%) gained.
Reserve Bank of India (RBI) Deputy Governor R. Gandhi was quoted as saying yesterday, 17 May 2016, that the RBI will continue reviewing the asset quality at commercial lenders this financial year as part of a continuous process aimed at avoiding an increase in levels of distressed debt. Reviewing asset quality is a permanent process of supervisory action, he said. As part of an asset quality review (AQR) of the banking sector, the RBI has directed lenders to make additional provisions on certain loans in Q3 December 2015 and Q4 March 2016. The purpose of this exercise is to have cleaner balance sheet of the lenders.
State Bank of India (SBI) edged higher in volatile trade after the state-run bank said it is considering merger of five associate banks with itself. The stock rose 1.89% to Rs 180.40. The stock hit a high of Rs 180.55 and a low of Rs 173.65 in intraday trade.
State Bank of Bikaner and Jaipur lost 3.26%. State Bank of Mysore jumped 10.15%. State Bank of Travancore advanced 1.73%. SBI after trading hours yesterday, 17 May 2016, announced that it is seeking in principle sanction of the Government of India (GoI) to enter into negotiation with its 5 subsidiary banks viz. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore to acquire their businesses including assets and liabilities. The decision is purely exploratory at this stage and there is no certainty in relation to SBI completing the acquisitions, SBI said. SBI's board of directors will take a final call after evaluating all the relevant considerations. SBI also said that it is considering acquisition of Bharatiya Mahila Bank.
Punjab National Bank gained after the bank announced Q4 results. The stock rose 3.39% to Rs 76.30. The stock was volatile. The stock hit a high of Rs 77.20 and a low of Rs 72.10 in intraday trade. The bank reported net loss of Rs 5367.14 crore in Q4 March 2016 compared with net profit of Rs 306.56 crore in Q4 March 2015. Total income declined 1.33% to Rs 13276.19 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 18 May 2016. The bank's gross non-performing assets (NPAs) stood at Rs 55818.33 crore as on 31 March 2016 as against Rs 34338.22 crore as on 31 December 2015 and Rs 25694.86 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 12.9% as on 31 March 2016 as against 8.47% as on 31 December 2015 and 6.55% as on 31 March 2015. The ratio of net NPAs to net advances stood at 8.61% as on 31 March 2016 as against 5.86% as on 31 December 2015 and 4.06% as on 31 March 2015. The bank's provisions and contingencies (excluding tax provisions) rose 173.46% to Rs 10485.23 crore in Q4 March 2016 over Q4 March 2015.
Auto stocks fell. Tata Motors (down 1.26%), Ashok Leyland (down 0.54%), Bajaj Auto (down 1.85%) and Hero MotoCorp (down 1.47%) edged lower. TVS Motor Company (up 0.83%) and Eicher Motors (up 0.26%) gained.
Mahindra & Mahindra (M&M) edged lower after UK-based vehicle testing agency Global New Car Assessment Programme (Global NCAP) said that M&M's Scorpio sports utility vehicle failed its crash test. The stock shed 1.59%.
Shares of small car major Maruti Suzuki India edged lower in volatile trade after Global NCAP said that Maruti's Celerio and Eeco car models failed its crash test. The stock slipped 0.79% to Rs 3,917.85. The stock hit high of Rs 3,935.10 and low of Rs 3,808 in intraday trade.
Meanwhile, Maruti during market hours said that the company has revamped its Alto 800 car model. Among other changes, the new versions of the model offer 9% higher fuel efficiency compared to the earlier versions. The two CNG versions offer 10% higher fuel efficiency compared to the earlier versions. The prices for the 10 different versions of the revamped Alto 800 range from Rs 2.49 lakh to Rs 3.76 lakh ex-showroom, Delhi.
TCS shed 0.67%. The company has announced five-year partnership with Lidingoloppet, the legendary Swedish sports event, widely regarded as the world's largest cross-country race. Under the terms of the agreement, TCS will become the title sponsor and official technology partner for the event. The announcement was made after market hours today, 18 May 2016.
Separately, TCS announced after market hours yesterday, 17 May 2016, that IDBI Bank's financial services arm IDBI Capital Market Services has gone operational with the securities trading and processing solution from TCS BaNCS for its online brokerage business.
Key indices snapped a two-day winning streak. The Sensex had risen 284.04 points or 1.11% in the preceding two trading sessions to settle at 25,773.61 yesterday, 17 May 2016, from its close of 25,489.57 on 13 May 2016. The Sensex has risen 97.99 points or 0.38% in this month so far (till 18 May 2016). The Sensex has fallen 412.93 points or 1.58% in calendar year 2016 so far (till 18 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,210 points or 14.27%. The Sensex is off 2,873.72 points or 10.05% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,320.13 points or 14.38% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks declined as comments from US Federal Reserve officials suggested a rate hike in the US could come sooner than expected. In Asia, Chinese stocks edged lower after Zhang Dejiang, the No. 3 official in the Chinese central government, made no mention today, 18 May 2016, of a stock trading link between Hong Kong and Shenzhen. In mainland China, the Shanghai Composite index settled 1.28% lower. In Hong Kong, the Hang Seng index settled 1.45% lower. Before his arrival for a conference in Hong Kong, speculation was rife that Dejiang could announce the launch of a long-anticipated stock trading link between Hong Kong and Shenzhen.
US stocks dropped yesterday, 17 May 2016, after Federal Reserve officials implied that interest rates could be raised as early as next month. Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams, both, yesterday, 17 May 2016, said the Fed's decision on whether to raise rates at the June 14-15 meeting hinges on the data. Lockhart said that June certainly could be a meeting at which action could be taken. Dallas Fed President Robert Kaplan, seen as a hawk, said he will push for an interest rate hike in June or July.
The consumer-price index increased a seasonally adjusted 0.4% in April from the prior month after rising 0.1% in March. That was the largest one-month increase since February 2013. A measure of underlying price pressures, which excludes the often-volatile categories of food and energy, rose 0.2% last month after ticking up 0.1% in March. Core prices were up 2.1% from a year earlier, a fifth consecutive month of annual growth above 2%—the longest such streak in four years.
The latest data showed that US consumer prices rose in April at their fastest pace in three years. The inflation data along with hawkish comments from US Federal Reserve officials raised expectations that the US central bank will pick up the pace of interest rate increases during the current calendar year. The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 14-15 June 2016.
Investors in emerging markets, including India are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies.
State Bank of India (SBI) edged higher in volatile trade after the state-run bank said it is considering merger of five associate banks with itself. Punjab National Bank edged higher as the stock shrugged off a massive net loss of Rs 5367.14 crore that the bank reported for Q4 March 2016. Mahindra & Mahindra (M&M) edged lower after UK-based vehicle testing agency Global New Car Assessment Programme (Global NCAP) said that M&M's Scorpio sports utility vehicle failed its crash test. Maruti Suzuki India edged lower in volatile trade after Global NCAP said that Maruti's Celerio and Eeco car models failed its crash test.
The Sensex fell 69 points or 0.27% to settle at 25,704.61, its lowest closing level since 16 May 2016. The index dropped 270.21 points or 1.04% at the day's low of 25,503.40. The index fell 26.61 points or 0.1% at the day's high of 25,747.
The Nifty 50 index shed 20.60 points or 0.26% to settle at 7,870.15, its lowest closing level since 16 May 2016. The index lost 80 points or 1.01% at the day's low of 7,810.75. The index fell 8.70 points or 0.11% at the day's high of 7,882.05.
Among sectoral indices on BSE, the S&P BSE Oil & Gas index (down 0.13%), the S&P BSE Capital Goods index (up 0.64%), the S&P BSE Finance index (down 0.12%), the S&P BSE Realty index (up 2.11%), the S&P BSE Bankex (down 0.1%), the S&P BSE Industrials index (down 0.07%), the S&P BSE Telecom index (down 0.15%), the S&P BSE Basic Materials index (up 0.11%), the S&P BSE Healthcare index (up 0.15%), the S&P BSE Metal index (up 0.61%), the S&P BSE Energy index (up 0.01%), the S&P BSE FMCG index (down 0.06%), and the S&P BSE IT index (down 0.14%) outperformed the Sensex.
The S&P BSE Consumer Durables index (down 0.28%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.66%), the S&P BSE Auto index (down 1.28%), the S&P BSE Power index (down 0.33%), the S&P BSE Utilities index (down 0.35%), and the S&P BSE Teck index (down 0.31%) underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,319 shares fell and 1,228 shares rose. A total of 190 shares were unchanged. The BSE Mid-Cap index fell 0.01%. The fall in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index rose 0.22%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2603 crore, lower than turnover of Rs 2673.07 crore registered during the previous trading session.
Stocks of most private sector banks witnessed a mixed trend. Federal Bank (down 0.4%), and Kotak Mahindra Bank (down 0.02%) declined. ICICI Bank was flat. Yes Bank rose 0.08%.
Index heavyweight and banking major HDFC Bank fell 1.18% to Rs 1,140. The stock hit high of Rs 1,153.95 and low of Rs 1,132.25 in intraday trade.
Axis Bank fell 0.33%. The bank has kept its lending rates based on marginal cost of funds unchanged effective from 18 May 2016. The bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, the rate for one month will be 9.05% and for three months it will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate will be 9.35%, the bank said. MCLR on two-year loans will be 9.45% and for three-year loans the rate will be 9.5%. The announcement was made after market hours yesterday, 17 May 2016.
All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 are priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which is the internal benchmark of the concerned bank. Actual lending rates are determined by adding the components of spread to the MCLR.
IndusInd Bank rose 0.41% after signing a Memorandum of Understanding (MoU) with Honda Motorcycle & Scooter India to offer retail finance at an attractive rate of interest for Honda's two wheeler models. The announcement was made during market hours today, 18 May 2016.
PSU bank stocks gained. Union Bank of India (up 1.98%), IDBI Bank (up 1.63%), Canara Bank (up 2.01%), Bank of Baroda (up 0.63%) and Bank of India (up 1.37%) gained.
Reserve Bank of India (RBI) Deputy Governor R. Gandhi was quoted as saying yesterday, 17 May 2016, that the RBI will continue reviewing the asset quality at commercial lenders this financial year as part of a continuous process aimed at avoiding an increase in levels of distressed debt. Reviewing asset quality is a permanent process of supervisory action, he said. As part of an asset quality review (AQR) of the banking sector, the RBI has directed lenders to make additional provisions on certain loans in Q3 December 2015 and Q4 March 2016. The purpose of this exercise is to have cleaner balance sheet of the lenders.
State Bank of India (SBI) edged higher in volatile trade after the state-run bank said it is considering merger of five associate banks with itself. The stock rose 1.89% to Rs 180.40. The stock hit a high of Rs 180.55 and a low of Rs 173.65 in intraday trade.
State Bank of Bikaner and Jaipur lost 3.26%. State Bank of Mysore jumped 10.15%. State Bank of Travancore advanced 1.73%. SBI after trading hours yesterday, 17 May 2016, announced that it is seeking in principle sanction of the Government of India (GoI) to enter into negotiation with its 5 subsidiary banks viz. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore to acquire their businesses including assets and liabilities. The decision is purely exploratory at this stage and there is no certainty in relation to SBI completing the acquisitions, SBI said. SBI's board of directors will take a final call after evaluating all the relevant considerations. SBI also said that it is considering acquisition of Bharatiya Mahila Bank.
Punjab National Bank gained after the bank announced Q4 results. The stock rose 3.39% to Rs 76.30. The stock was volatile. The stock hit a high of Rs 77.20 and a low of Rs 72.10 in intraday trade. The bank reported net loss of Rs 5367.14 crore in Q4 March 2016 compared with net profit of Rs 306.56 crore in Q4 March 2015. Total income declined 1.33% to Rs 13276.19 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 18 May 2016. The bank's gross non-performing assets (NPAs) stood at Rs 55818.33 crore as on 31 March 2016 as against Rs 34338.22 crore as on 31 December 2015 and Rs 25694.86 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 12.9% as on 31 March 2016 as against 8.47% as on 31 December 2015 and 6.55% as on 31 March 2015. The ratio of net NPAs to net advances stood at 8.61% as on 31 March 2016 as against 5.86% as on 31 December 2015 and 4.06% as on 31 March 2015. The bank's provisions and contingencies (excluding tax provisions) rose 173.46% to Rs 10485.23 crore in Q4 March 2016 over Q4 March 2015.
Auto stocks fell. Tata Motors (down 1.26%), Ashok Leyland (down 0.54%), Bajaj Auto (down 1.85%) and Hero MotoCorp (down 1.47%) edged lower. TVS Motor Company (up 0.83%) and Eicher Motors (up 0.26%) gained.
Mahindra & Mahindra (M&M) edged lower after UK-based vehicle testing agency Global New Car Assessment Programme (Global NCAP) said that M&M's Scorpio sports utility vehicle failed its crash test. The stock shed 1.59%.
Shares of small car major Maruti Suzuki India edged lower in volatile trade after Global NCAP said that Maruti's Celerio and Eeco car models failed its crash test. The stock slipped 0.79% to Rs 3,917.85. The stock hit high of Rs 3,935.10 and low of Rs 3,808 in intraday trade.
Meanwhile, Maruti during market hours said that the company has revamped its Alto 800 car model. Among other changes, the new versions of the model offer 9% higher fuel efficiency compared to the earlier versions. The two CNG versions offer 10% higher fuel efficiency compared to the earlier versions. The prices for the 10 different versions of the revamped Alto 800 range from Rs 2.49 lakh to Rs 3.76 lakh ex-showroom, Delhi.
TCS shed 0.67%. The company has announced five-year partnership with Lidingoloppet, the legendary Swedish sports event, widely regarded as the world's largest cross-country race. Under the terms of the agreement, TCS will become the title sponsor and official technology partner for the event. The announcement was made after market hours today, 18 May 2016.
Separately, TCS announced after market hours yesterday, 17 May 2016, that IDBI Bank's financial services arm IDBI Capital Market Services has gone operational with the securities trading and processing solution from TCS BaNCS for its online brokerage business.
Key indices snapped a two-day winning streak. The Sensex had risen 284.04 points or 1.11% in the preceding two trading sessions to settle at 25,773.61 yesterday, 17 May 2016, from its close of 25,489.57 on 13 May 2016. The Sensex has risen 97.99 points or 0.38% in this month so far (till 18 May 2016). The Sensex has fallen 412.93 points or 1.58% in calendar year 2016 so far (till 18 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,210 points or 14.27%. The Sensex is off 2,873.72 points or 10.05% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,320.13 points or 14.38% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks declined as comments from US Federal Reserve officials suggested a rate hike in the US could come sooner than expected. In Asia, Chinese stocks edged lower after Zhang Dejiang, the No. 3 official in the Chinese central government, made no mention today, 18 May 2016, of a stock trading link between Hong Kong and Shenzhen. In mainland China, the Shanghai Composite index settled 1.28% lower. In Hong Kong, the Hang Seng index settled 1.45% lower. Before his arrival for a conference in Hong Kong, speculation was rife that Dejiang could announce the launch of a long-anticipated stock trading link between Hong Kong and Shenzhen.
US stocks dropped yesterday, 17 May 2016, after Federal Reserve officials implied that interest rates could be raised as early as next month. Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams, both, yesterday, 17 May 2016, said the Fed's decision on whether to raise rates at the June 14-15 meeting hinges on the data. Lockhart said that June certainly could be a meeting at which action could be taken. Dallas Fed President Robert Kaplan, seen as a hawk, said he will push for an interest rate hike in June or July.
The consumer-price index increased a seasonally adjusted 0.4% in April from the prior month after rising 0.1% in March. That was the largest one-month increase since February 2013. A measure of underlying price pressures, which excludes the often-volatile categories of food and energy, rose 0.2% last month after ticking up 0.1% in March. Core prices were up 2.1% from a year earlier, a fifth consecutive month of annual growth above 2%—the longest such streak in four years.
No comments:
Post a Comment