Sensex hits 1-1/2-week closing low
Key benchmark indices registered modest losses after the government named Reserve Bank of India (RBI) deputy governor Urjit Patel who is known as an inflation hawk as the new RBI governor to succeed Raghuram Rajan. The barometer index, the S&P BSE Sensex, fell 91.46 points or 0.33% to settle at 27,985.54. The decline for the Nifty 50 index was higher than the Sensex's fall in percentage terms. The Nifty fell 37.75 points or 0.44% to settle at 8,629.15. The Sensex fell below the psychologically important 28,000 level. The barometer index hit 1-1/2-week closing low.
Patel who handles the monetary policy department as the RBI deputy governor will take charge as the new RBI governor on 4 September 2016, the day when Rajan's 3-year term as the RBI governor ends. Patel's term is also for a 3 year period. By naming Patel who is a deputy governor at the central bank as the new RBI governor, the government is sending signal to markets that there will be continuity of central bank's policies.
The government early this month notified consumer price inflation target of 4% with upper tolerance level of 6% and lower tolerance level of 2% to be achieved by RBI. This target is valid until 31 March 2021.
Stocks of most public sector banks edged lower and those of private sector banks witnessed a mixed trend after Patel was named new RBI governor. NTPC edged lower after the company announced uninspiring Q1 results. Sun TV Network dropped after the company's EBITDA margin declined 166 basis points in Q1 June 2016 over Q1 June 2015.
The Sensex fell 91.46 points or 0.33% to settle at 27,985.54, its lowest closing level since 11 August 2016. The index rose 66.28 points or 0.23% at the day's high of 28,143.28. The index lost 158.95 points or 0.56% at the day's low of 27,918.05.
The Nifty 50 index fell 37.75 points or 0.44% to settle at 8,629.15, its lowest closing level since 17 August 2016. The index rose 17.95 points or 0.2% at the day's high of 8,684.85. The index lost 52.90 points or 0.61% at the day's low of 8,614.
The market breadth indicating the overall health of the market was negative. On BSE, 1,456 shares declined and 1,257 shares rose. A total of 206 shares were unchanged. The BSE Mid-Cap index fell 0.42%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.14%. The decline in this index was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3040 crore, lower than turnover of Rs 3505.76 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE IT index (down 1.07%), the S&P BSE Teck index (down 0.9%), the S&P BSE Auto index (down 0.89%), the S&P BSE Healthcare index (down 0.73%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.67%), the S&P BSE Metal index (down 0.63%), the S&P BSE Bankex (down 0.54%), the S&P BSE Power index (down 0.54%), the S&P BSE Basic Materials index (down 0.45%), the S&P BSE Utilities index (down 0.45%), the S&P BSE Oil & Gas index (down 0.44%), the S&P BSE Energy index (down 0.37%) and the S&P BSE Industrials index (down 0.37%), underperformed the Sensex. The S&P BSE Finance index (down 0.26%), the S&P BSE Capital Goods index (down 0.13%), the S&P BSE Realty index (down 0.1%), the S&P BSE Telecom index (down 0.1%), the S&P BSE Consumer Durables index (up 0.23%) and the S&P BSE FMCG index (up 0.62%) outperformed the Sensex.
Index heavyweight and cigarette major ITC rose 1.19% at Rs 254.05. The stock hit a high of Rs 254.95 and a low of Rs 251.25 in intraday trade.
IT stocks edged lower. MindTree (down 2.75%), TCS (down 2.02%), Tech Mahindra (down 1.4%), Oracle Financial Services Software (down 1.07%), Wipro (down 1.02%), HCL Technologies (down 0.98%), MphasiS (down 0.93%), Persistent Systems (down 0.4%) and Hexaware Technologies (down 0.23%), edged lower.
Index heavyweight and software major Infosys fell 0.56% at Rs 1,015.40. The stock hit a high of Rs 1,030 and a low of Rs 1,009.20 in intraday trade.
Auto stocks declined. TVS Motor Company (down 1.7%), Maruti Suzuki (India) (down 1.25%), Tata Motors (down 1.23%), Mahindra & Mahindra (down 0.89%), Hero MotoCorp (down 0.64%) and Bajaj Auto (down 0.38%), edged lower. Ashok Leyland (up 0.11%), Eicher Motors (up 0.60%) and Escorts (up 3.68%), edged higher.
NTPC edged lower after the company announced uninspiring Q1 results. The stock fell 1.92% at Rs 163.55. The company's net profit rose 4.08% to Rs 2369.53 crore on 10.88% growth in total income to Rs 19220.80 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 22 August 2016.
NTPC Group's commercial capacity increased by 2,735 megawatts (MW) to 45,878 MW as on 30 June 2016 from 43,143 MW as on 30 June 2015. Installed capacity rose by 2,130 MW to 47,178 MW as on 30 June 2016 from 45,048 MW as on 30 June 2015.
Jindal Steel & Power (JSPL) fell 2.16% to Rs 85.90. The company during market hours today, 22 August 2016, announced that it has secured a long-term coal linkage of 1.18 million tonne per annum (MTPA) for its captive power generation plants in Dongamahua and Raigarh in Chhattisgarh. The long-term coal linkage for a period of 5 years has been secured during the recent coal linkage auctions, JSPL said. The long-term linkage will ensure steady and assured supply of coal for the captive power plants, thereby enhancing the fuel security for the power plants, the company said.
JSPL's MD & Group CEO Ravi Uppal said that the 1.18 MTPA coal linkage to captive power generation facility significantly enhances the operational efficiencies of the company's power plant. He further said that the company is looking forward to the next round of coal linkage auctions to fill the gap, and would selectively participate to further enhance long-term fuel security requirements of steel and power businesses.
Stocks of most public sector banks edged lower and those of private sector banks witnessed a mixed trend after Patel was named new RBI governor. Among state-run banks, Indian Bank (down 2.45%), Union Bank of India (down 1.55%), Corporation Bank (down 1.2%), Bank of Baroda (down 1.02%), Syndicate Bank (down 0.86%), Dena Bank (down 0.8%), Punjab & Sind Bank (down 0.65%), Andhra Bank (down 0.5%), Punjab National Bank (down 0.43%), Vijaya Bank (down 0.38%) and Bank of Maharashtra (down 0.32%), edged lower. IDBI Bank (up 0.14%), UCO Bank (up 0.24%), Allahabad Bank (up 0.32%), Bank of India (up 0.40%), Canara Bank (up 0.47%), United Bank of India (up 0.68%) and Central Bank of India (up 2.82%), edged higher.
Patel is seen carrying forward the exercise of clean up of bank balance sheets known as asset quality review (AQR) started by Rajan. RBI has pushed for increased recognition of bad debt by banks under the AQR which began in Q3 December 2015.
State Bank of India (SBI) fell 1.37% at Rs 254.95. The bank announced that the Committee of directors of the bank is scheduled to meet on 24 August 2016, to examine the status and decide on long term AT1 fund raising in single/multiple tranches in domestic/foreign currency through a public offer and/or private placement during the current financial year (FY 2017). The announcement was made on Saturday, 20 August 2016.
Stocks of private sector banks were mixed. City Union Bank (down 1.89%), Axis Bank (down 1.4%), ICICI Bank (down 0.73%), Kotak Mahindra Bank (down 0.57%) and IndusInd Bank (down 0.39%), edged lower. Federal Bank (up 0.15%), HDFC Bank (up 0.33%) and Yes Bank (up 0.50%) edged higher.
Index heavyweight HDFC Bank rose 0.33% at Rs 1,249.05. The stock hit a high of Rs 1,254.05 and a low of Rs 1,241.35 in intraday trade.
Yes Bank rose 0.50% at Rs 1,343.30. The bank announced that it has received the approval from Reserve Bank of India (RBI) for appointment of Ashok Chawla as non-executive part-time Chairman of the bank for a period of three years with effect from 30 October 2016. Chawla, an independent director, was appointed on Yes Bank's board on 5 March 2016. The announcement was made during market hours today, 22 August 2016.
Pharma major Lupin fell 2.03% at Rs 1,545.20. The company during market hours today, 22 August 2016, announced that it has received approval for Acotiamide 100 mg Tablets from the Central Drugs Standard Control Organisation (CDSCO). Lupin said it shall commence promoting the product in India shortly. Acotiamide is a first-in-class novel drug to be introduced into the Indian Pharmaceutical Market (IPM) which could benefit millions of patients suffering from Dyspepsia or Indigestion, amongst the most common stomach complaints encountered in clinical practice. The current market for plain Gastrointestinal (GI) prokinetics and combinations is estimated to be around Rs 2640 crore, growing at 14%. The overall GI market is estimated at Rs 11438 crore which is growing at 13% as per IMS MAT June 2016 data.
Sun TV Network lost 4.86% to Rs 458.85 after the company's EBITDA margin declined 166 basis points in Q1 June 2016 over Q1 June 2015. Sun TV Network's net profit rose 19.02% to Rs 233.06 crore on 9.89% growth in total income to Rs 782.38 crore in Q1 June 2016 over Q1 June 2015. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 7.25% to Rs 436.43 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin declined 166 basis points to 57.36% in Q1 June 2016 from 59.02% in Q1 June 2015.
Sun TV Network's subscription revenue grew about 22% to Rs 232.13 crore in Q1 June 2016 over Q1 June 2015. Cable TV Subscription revenue rose about 37% and DTH subscription revenue rose about 16% in Q1 June 2016 over Q1 June 2015, Sun TV Network said.
Meanwhile, global credit rating agency Moody's Investors Service said in a report that India's credit profile is supported by the strong growth potential of its large economy and the high private savings rate which underpins the government's access to domestic financing at relatively favorable terms. These credit strengths are balanced against a high government debt burden (67.4% of GDP in 2015), regulatory and infrastructure constraints on its competitiveness, slow pace of policy reform, and the contingent liability risk to the sovereign from public sector banks' high and rising non-performing loans, the rating agency said. Moody's expect Indian corporate sector's profitability to remain muted which will continue to dampen its ability and willingness to invest in the next few quarters. Moody's expects India's real GDP growth at around 7.5% in the next two years.
Key benchmark indices fell for second day in a row. The Sensex has lost 137.90 points or 0.49% in two trading sessions from its close of 28,123.44 on 18 August 2016. The Sensex has gained 66.32 points or 0.24% in this month so far (till 22 August 2016). The Sensex has risen 1,868 points or 7.15% in calendar year 2016 so far (till 22 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,490.93 points or 24.41%. The Sensex is off 304.42 points or 1.08% from a 52-week high of 28,289.96 hit on 9 August 2016. The Sensex is off 2,039.20 points or 6.79% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks edged higher albeit with caution ahead of the US Federal Reserve's Jackson Hole meeting later this week which could produce some hints about the timing of a further interest rate hike. Asian stocks witnessed a mixed trend amid uncertainty about US monetary policy outlook. US stocks registered small losses on Friday, 19 August 2016, with traders holding their horses ahead of a speech from Federal Reserve chair Janet Yellen at Jackson Hole later this week. Yellen's speech at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming is scheduled on Friday, 26 August 2016. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.
Patel who handles the monetary policy department as the RBI deputy governor will take charge as the new RBI governor on 4 September 2016, the day when Rajan's 3-year term as the RBI governor ends. Patel's term is also for a 3 year period. By naming Patel who is a deputy governor at the central bank as the new RBI governor, the government is sending signal to markets that there will be continuity of central bank's policies.
The government early this month notified consumer price inflation target of 4% with upper tolerance level of 6% and lower tolerance level of 2% to be achieved by RBI. This target is valid until 31 March 2021.
Stocks of most public sector banks edged lower and those of private sector banks witnessed a mixed trend after Patel was named new RBI governor. NTPC edged lower after the company announced uninspiring Q1 results. Sun TV Network dropped after the company's EBITDA margin declined 166 basis points in Q1 June 2016 over Q1 June 2015.
The Sensex fell 91.46 points or 0.33% to settle at 27,985.54, its lowest closing level since 11 August 2016. The index rose 66.28 points or 0.23% at the day's high of 28,143.28. The index lost 158.95 points or 0.56% at the day's low of 27,918.05.
The Nifty 50 index fell 37.75 points or 0.44% to settle at 8,629.15, its lowest closing level since 17 August 2016. The index rose 17.95 points or 0.2% at the day's high of 8,684.85. The index lost 52.90 points or 0.61% at the day's low of 8,614.
The market breadth indicating the overall health of the market was negative. On BSE, 1,456 shares declined and 1,257 shares rose. A total of 206 shares were unchanged. The BSE Mid-Cap index fell 0.42%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.14%. The decline in this index was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3040 crore, lower than turnover of Rs 3505.76 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE IT index (down 1.07%), the S&P BSE Teck index (down 0.9%), the S&P BSE Auto index (down 0.89%), the S&P BSE Healthcare index (down 0.73%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.67%), the S&P BSE Metal index (down 0.63%), the S&P BSE Bankex (down 0.54%), the S&P BSE Power index (down 0.54%), the S&P BSE Basic Materials index (down 0.45%), the S&P BSE Utilities index (down 0.45%), the S&P BSE Oil & Gas index (down 0.44%), the S&P BSE Energy index (down 0.37%) and the S&P BSE Industrials index (down 0.37%), underperformed the Sensex. The S&P BSE Finance index (down 0.26%), the S&P BSE Capital Goods index (down 0.13%), the S&P BSE Realty index (down 0.1%), the S&P BSE Telecom index (down 0.1%), the S&P BSE Consumer Durables index (up 0.23%) and the S&P BSE FMCG index (up 0.62%) outperformed the Sensex.
Index heavyweight and cigarette major ITC rose 1.19% at Rs 254.05. The stock hit a high of Rs 254.95 and a low of Rs 251.25 in intraday trade.
IT stocks edged lower. MindTree (down 2.75%), TCS (down 2.02%), Tech Mahindra (down 1.4%), Oracle Financial Services Software (down 1.07%), Wipro (down 1.02%), HCL Technologies (down 0.98%), MphasiS (down 0.93%), Persistent Systems (down 0.4%) and Hexaware Technologies (down 0.23%), edged lower.
Index heavyweight and software major Infosys fell 0.56% at Rs 1,015.40. The stock hit a high of Rs 1,030 and a low of Rs 1,009.20 in intraday trade.
Auto stocks declined. TVS Motor Company (down 1.7%), Maruti Suzuki (India) (down 1.25%), Tata Motors (down 1.23%), Mahindra & Mahindra (down 0.89%), Hero MotoCorp (down 0.64%) and Bajaj Auto (down 0.38%), edged lower. Ashok Leyland (up 0.11%), Eicher Motors (up 0.60%) and Escorts (up 3.68%), edged higher.
NTPC edged lower after the company announced uninspiring Q1 results. The stock fell 1.92% at Rs 163.55. The company's net profit rose 4.08% to Rs 2369.53 crore on 10.88% growth in total income to Rs 19220.80 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 22 August 2016.
NTPC Group's commercial capacity increased by 2,735 megawatts (MW) to 45,878 MW as on 30 June 2016 from 43,143 MW as on 30 June 2015. Installed capacity rose by 2,130 MW to 47,178 MW as on 30 June 2016 from 45,048 MW as on 30 June 2015.
Jindal Steel & Power (JSPL) fell 2.16% to Rs 85.90. The company during market hours today, 22 August 2016, announced that it has secured a long-term coal linkage of 1.18 million tonne per annum (MTPA) for its captive power generation plants in Dongamahua and Raigarh in Chhattisgarh. The long-term coal linkage for a period of 5 years has been secured during the recent coal linkage auctions, JSPL said. The long-term linkage will ensure steady and assured supply of coal for the captive power plants, thereby enhancing the fuel security for the power plants, the company said.
JSPL's MD & Group CEO Ravi Uppal said that the 1.18 MTPA coal linkage to captive power generation facility significantly enhances the operational efficiencies of the company's power plant. He further said that the company is looking forward to the next round of coal linkage auctions to fill the gap, and would selectively participate to further enhance long-term fuel security requirements of steel and power businesses.
Stocks of most public sector banks edged lower and those of private sector banks witnessed a mixed trend after Patel was named new RBI governor. Among state-run banks, Indian Bank (down 2.45%), Union Bank of India (down 1.55%), Corporation Bank (down 1.2%), Bank of Baroda (down 1.02%), Syndicate Bank (down 0.86%), Dena Bank (down 0.8%), Punjab & Sind Bank (down 0.65%), Andhra Bank (down 0.5%), Punjab National Bank (down 0.43%), Vijaya Bank (down 0.38%) and Bank of Maharashtra (down 0.32%), edged lower. IDBI Bank (up 0.14%), UCO Bank (up 0.24%), Allahabad Bank (up 0.32%), Bank of India (up 0.40%), Canara Bank (up 0.47%), United Bank of India (up 0.68%) and Central Bank of India (up 2.82%), edged higher.
Patel is seen carrying forward the exercise of clean up of bank balance sheets known as asset quality review (AQR) started by Rajan. RBI has pushed for increased recognition of bad debt by banks under the AQR which began in Q3 December 2015.
State Bank of India (SBI) fell 1.37% at Rs 254.95. The bank announced that the Committee of directors of the bank is scheduled to meet on 24 August 2016, to examine the status and decide on long term AT1 fund raising in single/multiple tranches in domestic/foreign currency through a public offer and/or private placement during the current financial year (FY 2017). The announcement was made on Saturday, 20 August 2016.
Stocks of private sector banks were mixed. City Union Bank (down 1.89%), Axis Bank (down 1.4%), ICICI Bank (down 0.73%), Kotak Mahindra Bank (down 0.57%) and IndusInd Bank (down 0.39%), edged lower. Federal Bank (up 0.15%), HDFC Bank (up 0.33%) and Yes Bank (up 0.50%) edged higher.
Index heavyweight HDFC Bank rose 0.33% at Rs 1,249.05. The stock hit a high of Rs 1,254.05 and a low of Rs 1,241.35 in intraday trade.
Yes Bank rose 0.50% at Rs 1,343.30. The bank announced that it has received the approval from Reserve Bank of India (RBI) for appointment of Ashok Chawla as non-executive part-time Chairman of the bank for a period of three years with effect from 30 October 2016. Chawla, an independent director, was appointed on Yes Bank's board on 5 March 2016. The announcement was made during market hours today, 22 August 2016.
Pharma major Lupin fell 2.03% at Rs 1,545.20. The company during market hours today, 22 August 2016, announced that it has received approval for Acotiamide 100 mg Tablets from the Central Drugs Standard Control Organisation (CDSCO). Lupin said it shall commence promoting the product in India shortly. Acotiamide is a first-in-class novel drug to be introduced into the Indian Pharmaceutical Market (IPM) which could benefit millions of patients suffering from Dyspepsia or Indigestion, amongst the most common stomach complaints encountered in clinical practice. The current market for plain Gastrointestinal (GI) prokinetics and combinations is estimated to be around Rs 2640 crore, growing at 14%. The overall GI market is estimated at Rs 11438 crore which is growing at 13% as per IMS MAT June 2016 data.
Sun TV Network lost 4.86% to Rs 458.85 after the company's EBITDA margin declined 166 basis points in Q1 June 2016 over Q1 June 2015. Sun TV Network's net profit rose 19.02% to Rs 233.06 crore on 9.89% growth in total income to Rs 782.38 crore in Q1 June 2016 over Q1 June 2015. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 7.25% to Rs 436.43 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin declined 166 basis points to 57.36% in Q1 June 2016 from 59.02% in Q1 June 2015.
Sun TV Network's subscription revenue grew about 22% to Rs 232.13 crore in Q1 June 2016 over Q1 June 2015. Cable TV Subscription revenue rose about 37% and DTH subscription revenue rose about 16% in Q1 June 2016 over Q1 June 2015, Sun TV Network said.
Meanwhile, global credit rating agency Moody's Investors Service said in a report that India's credit profile is supported by the strong growth potential of its large economy and the high private savings rate which underpins the government's access to domestic financing at relatively favorable terms. These credit strengths are balanced against a high government debt burden (67.4% of GDP in 2015), regulatory and infrastructure constraints on its competitiveness, slow pace of policy reform, and the contingent liability risk to the sovereign from public sector banks' high and rising non-performing loans, the rating agency said. Moody's expect Indian corporate sector's profitability to remain muted which will continue to dampen its ability and willingness to invest in the next few quarters. Moody's expects India's real GDP growth at around 7.5% in the next two years.
Key benchmark indices fell for second day in a row. The Sensex has lost 137.90 points or 0.49% in two trading sessions from its close of 28,123.44 on 18 August 2016. The Sensex has gained 66.32 points or 0.24% in this month so far (till 22 August 2016). The Sensex has risen 1,868 points or 7.15% in calendar year 2016 so far (till 22 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,490.93 points or 24.41%. The Sensex is off 304.42 points or 1.08% from a 52-week high of 28,289.96 hit on 9 August 2016. The Sensex is off 2,039.20 points or 6.79% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks edged higher albeit with caution ahead of the US Federal Reserve's Jackson Hole meeting later this week which could produce some hints about the timing of a further interest rate hike. Asian stocks witnessed a mixed trend amid uncertainty about US monetary policy outlook. US stocks registered small losses on Friday, 19 August 2016, with traders holding their horses ahead of a speech from Federal Reserve chair Janet Yellen at Jackson Hole later this week. Yellen's speech at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming is scheduled on Friday, 26 August 2016. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.
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