Sensex drops below 28,000
Auto, pharma stocks and index heavyweights Reliance Industries and HDFC Bank led losses for the two key benchmark indices. The barometer index, the S&P BSE Sensex, lost 310.28 points or 1.1% to settle at 27,774.88. The Nifty 50 index dropped 102.95 points or 1.19% to settle at 8,575.30. The Sensex settled below the psychological 28,000 level after falling below that level in morning trade. The Sensex and the Nifty 50 index, both, hit their lowest closing level in almost a week. Key indices fell for the second day in a row today, 10 August 2016. All the nineteen sectoral indices on BSE were in the red. Weakness in global stocks weighed on sentiment.
The Sensex lost 310.28 points or 1.1% to settle at 27,774.88, its lowest closing level since 4 August 2016. The index lost 348.54 points or 1.24% at the day's low of 27,736.62. The index rose 58.12 points or 0.21% at the day's high of 28,143.28.
The Nifty dropped 102.95 points or 1.19% to settle at 8,575.30, its lowest closing level since 4 August 2016. The index shed 113.65 points or 1.31% at the day's low of 8,564.60. The index rose 11.85 points or 0.14% at the day's high of 8,690.10.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,895 shares fell and 835 shares rose. A total of 135 shares were unchanged. The BSE Mid-Cap index declined 1.06%. The fall in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 1.18%. The fall in this index was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3305 crore, lower than turnover of Rs 3531.69 crore registered during the previous trading session.
All the nineteen sectoral indices on BSE were in the red. The S&P BSE Telecom index (down 1.31%), the S&P BSE Basic Materials index (down 1.17%), the S&P BSE Capital Goods index (down 1.14%), the S&P BSE Finance index (down 1.19%), the S&P BSE Oil & Gas index (down 2.19%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.84%), the S&P BSE Auto index (down 1.93%), the S&P BSE Bankex (down 1.36%), the S&P BSE Power index (down 1.56%), the S&P BSE Utilities index (down 1.42%), the S&P BSE Realty index (down 1.31%), the S&P BSE Consumer Durables index (down 1.55%), the S&P BSE Energy index (down 2.04%), and the S&P BSE Healthcare index (down 1.7%) underperformed the Sensex.
The S&P BSE FMCG index (down 1.03%), the S&P BSE Metal index (down 0.5%), The S&P BSE Industrials (down 0.88%), the S&P BSE Teck index (down 0.28%), and the S&P BSE IT index (down 0.19%) outperformed the Sensex.
In overseas stock markets, European stocks dropped and Asian stocks witnessed a mixed trend as investors assess the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices. US stocks eked out small gains yesterday, 9 August 2016, with the Nasdaq Composite index posting a fresh record close, as investors kept an eye on falling oil prices.
Index heavyweight Reliance Industries (RIL) lost 2.7% to Rs 1,002. The stock hit a high of Rs 1,034.50 and low of Rs 1,001.05 in intraday trade.
Auto stocks declined. Ashok Leyland (down 1.79%), Maruti Suzuki India (down 2.08%), Eicher Motors (down 2.12%), Bajaj Auto (down 0.7%), Hero MotoCorp (down 2.56%), and TVS Motor Company (down 1.64%) declined.
Mahindra & Mahindra (M&M) declined 2.59%. The company's net profit rose 12.37% to Rs 955.21 crore on 14.33% rise in total income to Rs 12159.73 crore in Q1 June 2016 over Q1 June 2015. The result was announced during trading hours today, 10 August 2016.
The company's bottom line in Q1 June 2016 was boosted by an exceptional gain of Rs 91 crore from transfer of agri business to a wholly owned subsidiary company. Surge in non-operational income also aided the bottom line growth in Q1 June 2016. Other income jumped 31.89% to Rs 216.83 crore in Q1 June 2016 over Q1 June 2015.
The combined net profit of Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) rose 16% to Rs 962 crore on 14% growth in gross revenue plus other income to Rs 11961 crore in Q1 June 2016 over Q1 June 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
In its outlook, M&M said that with a robust rainfall received so far and India Meteorological Department (IMD)'s prediction of normal rains for rest of the monsoon season, rural demand can be expected to gather further strength in the coming months. M&M added that the double digit growth in domestic sales of tractors witnessed in Q1 June 2016 suggests that a recovery in rural demand is now underway.
Bank stocks declined. Among private bank stocks, ICICI Bank (down 2.47%), Axis Bank (down 0.88%), IndusInd Bank (down 2.13%), Federal Bank (down 2.04%), and Kotak Mahindra Bank (down 0.37%) declined. Yes Bank rose 0.43%.
Index heavyweight and banking major HDFC Bank lost 1.94% to Rs 1,223.05. The stock hit a high of Rs 1,251 and low of Rs 1,223 in intraday trade.
Among PSU bank stocks, Syndicate Bank (down 3.55%), Andhra Bank (down 4.03%), Allahabad Bank (down 3.72%), Punjab National Bank (down 3.51%), Canara Bank (down 4.21%), IDBI Bank (down 2.2%), Bank of India (down 0.63%) and Union Bank of India (down 2.66%) dropped. Bank of Baroda rose 1.23%.
UCO Bank lost 3.86% after the bank reported net loss of Rs 440.56 crore in Q1 June 2016 compared with net profit of Rs 256.70 crore in Q1 June 2015. UCO Bank's total income declined 8.53% to Rs 4727.93 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
The bank's gross non-performing assets (NPA) stood at Rs 22597.70 crore as on 30 June 2016 compared with Rs 20907.73 crore as on 31 March 2016 and Rs 10894.41 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 17.19% as on 30 June 2016 compared with 15.43% as on 31 March 2016 and 7.3% as on 30 June 2015. The ratio of net NPA to net advances stood at 10.04% as on 30 June 2016 as against 9.09% as on 31 March 2016 and 4.53 as on 30 June 2015.
UCO Bank's provisions and contingencies surged 63.8% to Rs 1250.50 crore in Q1 June 2016 over Q1 June 2015.
Indian Overseas Bank (IOB) fell 3.48% after the bank reported net loss of Rs 1450.50 crore in Q1 June 2016 compared with net profit of Rs 14.76 crore in Q1 June 2015. The bank's total income declined 12.05% to Rs 5868.44 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
IOB's gross non-performing assets (NPA) stood at Rs 33913.15 crore as on 30 June 2016 as against Rs 16451.20 crore as on 31 March 2015 and Rs 30048.63 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 20.48% as on 30 June 2016 as against 9.40% as on 31 March 2015 and 17.40% as on 30 June 2015. The ratio of net NPA to net advances stood at 13.97% as on 30 June 2016 as against 6.31% as on 31 March 2015 and 11.89% as on 30 June 2015.
The bank's provisions and contingencies (excluding tax provisions) rose 222.17% to Rs 2137.81 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank was at 47.61% as on 30 June 2016.
State Bank of India (SBI) dropped 1.53%. The bank said that the Central Government after consultation with the Reserve Bank of India vide notification dated 9 August 2016, appointed Dinesh Kumar Khara as Managing Director of the bank for a period of 3 years from the date of his taking over charge of the post or until further orders whichever is earlier. The announcement was made during market hours today, 10 August 2016.
Grasim Industries and Aditya Birla Nuvo edged lower on reports that Aditya Birla Group is contemplating a merger of Grasim Industries and parts of Aditya Birla Nuvo. Grasim Industries dropped 6.1%.The company is set to announce Q1 June 2016 results tomorrow, 11 August 2016. Aditya Birla Nuvo lost 4.07%. The company is set to announce Q1 June 2016 results tomorrow, 11 August 2016. In their clarification to the stock exchanges, both the companies separately said that no such proposal has been considered or approved by the board of directors which would trigger disclosure requirement. Both the companies also said that shareholders are advised to exercise caution while trading based on speculative reports.
The reports suggested that as part of another round of corporate reorganisation, Aditya Birla Group is contemplating a two-step restructuring which involves the merger of Grasim Industries and parts of Aditya Birla Nuvo (ABNL), which is likely to be followed by the hiving-off of the financial services business of ABNL viz. Aditya Birla Financial Services (ABFS) into a separate company. ABFS is currently a 100% subsidiary of ABNL. The merger and the complete reorganisation could involve a number of steps. A direct merger of ABNL and Grasim Industries and the simultaneous spinning-off of financial services business into a separate company is among the options, reports suggested. A final announcement could be expected as early as this week, reports added.
Grasim Industries' two main businesses are viscose staple fibre (VSF) and cement. ABNL is a business conglomerate. It commands leadership position across its financial services, telecom, linen and manufacturing businesses.
Adani Ports and Special Economic Zone (APSEZ) surged 7.93% to Rs 258.55, with the stock surging on renewed buying after the company reported strong Q1 June 2016 results. Shares of APSEZ fell 0.35% to settle at Rs 239.55 yesterday, 9 August 2016 after the company announced Q1 June 2016 results during trading hours. APSEZ's consolidated net profit rose 30.8% to Rs 835.71 crore on 6.3% growth in net sales to Rs 1817.23 crore in Q1 June 2016 over Q1 June 2015. The company's consolidated cargo volumes increased by 7% to 42.33 million metric tonne (MMT) in Q1 June 2016 over Q1 June 2015.
Meanwhile, a domestic brokerage has reportedly maintained its "add" rating on APSEZ stock in the wake of the company's strong Q1 earnings. The brokerage said that positives from APSEZ's results include diversification of cargo mix away from coal volumes and strong uptick in contribution from new ports among others.
Pharma stocks declined. Cadila Healthcare (down 2.03%), Cipla (down 1.98%), Dr Reddy's Laboratories (down 1.31%), Glenmark Pharmaceuticals (down 3.03%), Sun Pharmaceutical Industries (down 1.38%), Alkem Laboratories (down 1.9%), GlaxoSmithKline Pharmaceuticals (down 0.91%), Aurobindo Pharma (down 2.18%) and Wockhardt (down 3.77%) declined.
Lupin lost 3.89% to Rs 1,545.05 on reports that a foreign brokerage downgraded shares of the Indian drug maker to sell after the announcement of the first quarter results. Shares of Lupin had declined 5.03% to settle at Rs 1,607.60 yesterday, 9 August 2016, after the company's announcement of the results during trading hours. The brokerage reportedly said that the competition in top US products will weigh on the company's growth. Lupin's key complex products lack visibility of launch. Lupin is likely to post single digit earnings per share growth in the year ending March 2018, it added. Meanwhile, another foreign brokerage reportedly maintained underperform rating on Lupin. It reportedly said that risk-reward ratio is unfavourable for the stock. Q1 has been a peak profit quarter for Lupin. The brokerage cut its estimates on Lupin's earnings per share for the year ending March 2017 (FY 2017).
Lupin's consolidated net profit rose 55.1% to Rs 882 crore on 40% growth in net sales to Rs 4313.60 crore in Q1 June 2016 over Q1 June 2015.
Telecom stocks dropped. Bharti Airtel (down 0.87%), Idea Cellular (down 4.32%), and Reliance Communications (down 2.89%) fell. Tata Teleservices (Maharashtra) rose 0.94%. MTNL gained 3.71%.
The Sensex and the Nifty fell for the second day in a row today, 10 August 2016. The Sensex has fallen 407.69 points or 1.44% in two sessions, from its close of 28,182.57 on 8 August 2016. The Sensex has fallen 276.98 points or 0.98% in August 2016 so far (till 10 August 2016). The Sensex has risen 1,657.34 points or 6.34% in calendar year 2016 so far (till 10 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,280.27 points or 23.47%. The Sensex is off 642.71 points or 2.26% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,249.86 points or 7.49% from a record high of 30,024.74 hit on 4 March 2015.
The Sensex lost 310.28 points or 1.1% to settle at 27,774.88, its lowest closing level since 4 August 2016. The index lost 348.54 points or 1.24% at the day's low of 27,736.62. The index rose 58.12 points or 0.21% at the day's high of 28,143.28.
The Nifty dropped 102.95 points or 1.19% to settle at 8,575.30, its lowest closing level since 4 August 2016. The index shed 113.65 points or 1.31% at the day's low of 8,564.60. The index rose 11.85 points or 0.14% at the day's high of 8,690.10.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,895 shares fell and 835 shares rose. A total of 135 shares were unchanged. The BSE Mid-Cap index declined 1.06%. The fall in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 1.18%. The fall in this index was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3305 crore, lower than turnover of Rs 3531.69 crore registered during the previous trading session.
All the nineteen sectoral indices on BSE were in the red. The S&P BSE Telecom index (down 1.31%), the S&P BSE Basic Materials index (down 1.17%), the S&P BSE Capital Goods index (down 1.14%), the S&P BSE Finance index (down 1.19%), the S&P BSE Oil & Gas index (down 2.19%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.84%), the S&P BSE Auto index (down 1.93%), the S&P BSE Bankex (down 1.36%), the S&P BSE Power index (down 1.56%), the S&P BSE Utilities index (down 1.42%), the S&P BSE Realty index (down 1.31%), the S&P BSE Consumer Durables index (down 1.55%), the S&P BSE Energy index (down 2.04%), and the S&P BSE Healthcare index (down 1.7%) underperformed the Sensex.
The S&P BSE FMCG index (down 1.03%), the S&P BSE Metal index (down 0.5%), The S&P BSE Industrials (down 0.88%), the S&P BSE Teck index (down 0.28%), and the S&P BSE IT index (down 0.19%) outperformed the Sensex.
In overseas stock markets, European stocks dropped and Asian stocks witnessed a mixed trend as investors assess the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices. US stocks eked out small gains yesterday, 9 August 2016, with the Nasdaq Composite index posting a fresh record close, as investors kept an eye on falling oil prices.
Index heavyweight Reliance Industries (RIL) lost 2.7% to Rs 1,002. The stock hit a high of Rs 1,034.50 and low of Rs 1,001.05 in intraday trade.
Auto stocks declined. Ashok Leyland (down 1.79%), Maruti Suzuki India (down 2.08%), Eicher Motors (down 2.12%), Bajaj Auto (down 0.7%), Hero MotoCorp (down 2.56%), and TVS Motor Company (down 1.64%) declined.
Mahindra & Mahindra (M&M) declined 2.59%. The company's net profit rose 12.37% to Rs 955.21 crore on 14.33% rise in total income to Rs 12159.73 crore in Q1 June 2016 over Q1 June 2015. The result was announced during trading hours today, 10 August 2016.
The company's bottom line in Q1 June 2016 was boosted by an exceptional gain of Rs 91 crore from transfer of agri business to a wholly owned subsidiary company. Surge in non-operational income also aided the bottom line growth in Q1 June 2016. Other income jumped 31.89% to Rs 216.83 crore in Q1 June 2016 over Q1 June 2015.
The combined net profit of Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) rose 16% to Rs 962 crore on 14% growth in gross revenue plus other income to Rs 11961 crore in Q1 June 2016 over Q1 June 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
In its outlook, M&M said that with a robust rainfall received so far and India Meteorological Department (IMD)'s prediction of normal rains for rest of the monsoon season, rural demand can be expected to gather further strength in the coming months. M&M added that the double digit growth in domestic sales of tractors witnessed in Q1 June 2016 suggests that a recovery in rural demand is now underway.
Bank stocks declined. Among private bank stocks, ICICI Bank (down 2.47%), Axis Bank (down 0.88%), IndusInd Bank (down 2.13%), Federal Bank (down 2.04%), and Kotak Mahindra Bank (down 0.37%) declined. Yes Bank rose 0.43%.
Index heavyweight and banking major HDFC Bank lost 1.94% to Rs 1,223.05. The stock hit a high of Rs 1,251 and low of Rs 1,223 in intraday trade.
Among PSU bank stocks, Syndicate Bank (down 3.55%), Andhra Bank (down 4.03%), Allahabad Bank (down 3.72%), Punjab National Bank (down 3.51%), Canara Bank (down 4.21%), IDBI Bank (down 2.2%), Bank of India (down 0.63%) and Union Bank of India (down 2.66%) dropped. Bank of Baroda rose 1.23%.
UCO Bank lost 3.86% after the bank reported net loss of Rs 440.56 crore in Q1 June 2016 compared with net profit of Rs 256.70 crore in Q1 June 2015. UCO Bank's total income declined 8.53% to Rs 4727.93 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
The bank's gross non-performing assets (NPA) stood at Rs 22597.70 crore as on 30 June 2016 compared with Rs 20907.73 crore as on 31 March 2016 and Rs 10894.41 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 17.19% as on 30 June 2016 compared with 15.43% as on 31 March 2016 and 7.3% as on 30 June 2015. The ratio of net NPA to net advances stood at 10.04% as on 30 June 2016 as against 9.09% as on 31 March 2016 and 4.53 as on 30 June 2015.
UCO Bank's provisions and contingencies surged 63.8% to Rs 1250.50 crore in Q1 June 2016 over Q1 June 2015.
Indian Overseas Bank (IOB) fell 3.48% after the bank reported net loss of Rs 1450.50 crore in Q1 June 2016 compared with net profit of Rs 14.76 crore in Q1 June 2015. The bank's total income declined 12.05% to Rs 5868.44 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 9 August 2016.
IOB's gross non-performing assets (NPA) stood at Rs 33913.15 crore as on 30 June 2016 as against Rs 16451.20 crore as on 31 March 2015 and Rs 30048.63 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 20.48% as on 30 June 2016 as against 9.40% as on 31 March 2015 and 17.40% as on 30 June 2015. The ratio of net NPA to net advances stood at 13.97% as on 30 June 2016 as against 6.31% as on 31 March 2015 and 11.89% as on 30 June 2015.
The bank's provisions and contingencies (excluding tax provisions) rose 222.17% to Rs 2137.81 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio of the bank was at 47.61% as on 30 June 2016.
State Bank of India (SBI) dropped 1.53%. The bank said that the Central Government after consultation with the Reserve Bank of India vide notification dated 9 August 2016, appointed Dinesh Kumar Khara as Managing Director of the bank for a period of 3 years from the date of his taking over charge of the post or until further orders whichever is earlier. The announcement was made during market hours today, 10 August 2016.
Grasim Industries and Aditya Birla Nuvo edged lower on reports that Aditya Birla Group is contemplating a merger of Grasim Industries and parts of Aditya Birla Nuvo. Grasim Industries dropped 6.1%.The company is set to announce Q1 June 2016 results tomorrow, 11 August 2016. Aditya Birla Nuvo lost 4.07%. The company is set to announce Q1 June 2016 results tomorrow, 11 August 2016. In their clarification to the stock exchanges, both the companies separately said that no such proposal has been considered or approved by the board of directors which would trigger disclosure requirement. Both the companies also said that shareholders are advised to exercise caution while trading based on speculative reports.
The reports suggested that as part of another round of corporate reorganisation, Aditya Birla Group is contemplating a two-step restructuring which involves the merger of Grasim Industries and parts of Aditya Birla Nuvo (ABNL), which is likely to be followed by the hiving-off of the financial services business of ABNL viz. Aditya Birla Financial Services (ABFS) into a separate company. ABFS is currently a 100% subsidiary of ABNL. The merger and the complete reorganisation could involve a number of steps. A direct merger of ABNL and Grasim Industries and the simultaneous spinning-off of financial services business into a separate company is among the options, reports suggested. A final announcement could be expected as early as this week, reports added.
Grasim Industries' two main businesses are viscose staple fibre (VSF) and cement. ABNL is a business conglomerate. It commands leadership position across its financial services, telecom, linen and manufacturing businesses.
Adani Ports and Special Economic Zone (APSEZ) surged 7.93% to Rs 258.55, with the stock surging on renewed buying after the company reported strong Q1 June 2016 results. Shares of APSEZ fell 0.35% to settle at Rs 239.55 yesterday, 9 August 2016 after the company announced Q1 June 2016 results during trading hours. APSEZ's consolidated net profit rose 30.8% to Rs 835.71 crore on 6.3% growth in net sales to Rs 1817.23 crore in Q1 June 2016 over Q1 June 2015. The company's consolidated cargo volumes increased by 7% to 42.33 million metric tonne (MMT) in Q1 June 2016 over Q1 June 2015.
Meanwhile, a domestic brokerage has reportedly maintained its "add" rating on APSEZ stock in the wake of the company's strong Q1 earnings. The brokerage said that positives from APSEZ's results include diversification of cargo mix away from coal volumes and strong uptick in contribution from new ports among others.
Pharma stocks declined. Cadila Healthcare (down 2.03%), Cipla (down 1.98%), Dr Reddy's Laboratories (down 1.31%), Glenmark Pharmaceuticals (down 3.03%), Sun Pharmaceutical Industries (down 1.38%), Alkem Laboratories (down 1.9%), GlaxoSmithKline Pharmaceuticals (down 0.91%), Aurobindo Pharma (down 2.18%) and Wockhardt (down 3.77%) declined.
Lupin lost 3.89% to Rs 1,545.05 on reports that a foreign brokerage downgraded shares of the Indian drug maker to sell after the announcement of the first quarter results. Shares of Lupin had declined 5.03% to settle at Rs 1,607.60 yesterday, 9 August 2016, after the company's announcement of the results during trading hours. The brokerage reportedly said that the competition in top US products will weigh on the company's growth. Lupin's key complex products lack visibility of launch. Lupin is likely to post single digit earnings per share growth in the year ending March 2018, it added. Meanwhile, another foreign brokerage reportedly maintained underperform rating on Lupin. It reportedly said that risk-reward ratio is unfavourable for the stock. Q1 has been a peak profit quarter for Lupin. The brokerage cut its estimates on Lupin's earnings per share for the year ending March 2017 (FY 2017).
Lupin's consolidated net profit rose 55.1% to Rs 882 crore on 40% growth in net sales to Rs 4313.60 crore in Q1 June 2016 over Q1 June 2015.
Telecom stocks dropped. Bharti Airtel (down 0.87%), Idea Cellular (down 4.32%), and Reliance Communications (down 2.89%) fell. Tata Teleservices (Maharashtra) rose 0.94%. MTNL gained 3.71%.
The Sensex and the Nifty fell for the second day in a row today, 10 August 2016. The Sensex has fallen 407.69 points or 1.44% in two sessions, from its close of 28,182.57 on 8 August 2016. The Sensex has fallen 276.98 points or 0.98% in August 2016 so far (till 10 August 2016). The Sensex has risen 1,657.34 points or 6.34% in calendar year 2016 so far (till 10 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,280.27 points or 23.47%. The Sensex is off 642.71 points or 2.26% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,249.86 points or 7.49% from a record high of 30,024.74 hit on 4 March 2015.
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