THE WEEK AHEAD

Outcome of RBI's policy review, macro-economic data to dictate trend

Outcome of RBI's policy review, macroeconomic data, next batch of Q3 December 2015 corporate earnings, trend in global markets, investment pattern of foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the bourses during the forthcoming week.

The Reserve Bank of India (RBI) will announce its sixth bi-monthly monetary policy for the year 2015-16 at 11:00 IST on Tuesday, 2 February 2016. In the fifth bi-monthly monetary policy on 1 December 2015, the RBI kept its benchmark interest rate viz. the repo rate unchanged at 6.75% and the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL).

Shares of automobile companies will be in focus as companies start announcing monthly sales volume data for January 2016 from Monday, 1 February 2016.

Shares of public sector oil marketing companies (PSU OMCs) will be in focus as a regular fuel price review is due at the month end. PSU OMCs review fuel prices twice a month based on the trend in international oil market and currency movement. The first review takes place during the middle of the month and the last review at the month-end. PSU OMCs also review jet fuel prices on the last day of the month.

Shares of aviation firms will be in focus as a regular jet fuel price review is due at the month end. PSU OMCs revise jet fuel prices on the last day of the month based on the average imported oil price during the month. Prices of ATF constitutes approximately 50% of operating expenses of Indian airlines.

Among quarterly results of scheduled for release next week, Tech Mahindra announces its third quarter result on Monday, 1 February 2016. Bajaj Auto and Tata Steel are scheduled to announce their third quarter results on Thursday, 4 February 2016. Bosch and Lupin will unveil their third quarter results on Friday, 5 February 2016.

On macro front, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) data for the month of January 2016 is due on Monday, 1 February 2016. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) had slipped to 49.1 in December 2015 from 50.3 in November 2015.

The Nikkei India Service PMI data for the month of January 2016 is due on Wednesday, 3 February 2016. India's Nikkei India Service PMI rose to 51.60 in December 2015 from 50.20 in November 2015.

In the primary market, the initial public offer (IPO) of staffing firm TeamLease Services will open for bidding on Tuesday, 2 February 2016. The IPO is a combination of fresh issue of shares aggregating up to Rs 150 crore and offer for sale by a promoter group entity and a total of four investor shareholders. The price band for the IPO has been fixed at Rs 785 to Rs 850 per share. The IPO closes on Thursday, 4 February 2016.

On the global front, the Caixin China manufacturing PMI data for January 2016 is due on Monday, 1 February 2016. The Caixin China services PMI data is due for December 2015 on Wednesday, 3 February 2016. The Bank of England sets interest rates and policy makers unveil their quarterly inflation report containing new projections for growth and prices on Thursday, 4 February 2016.

THE WEEK THAT WAS

Market advances on positive global cues

Positive global cues helped key benchmark indices log strong gains in the week ended Friday, 29 January 2016. After seeing a narrow movement during the week, key benchmark indices rallied on final trading session of the week as global stocks surged after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. Key indices edged higher in three out of four trading sessions during the truncated trading week. Key indices snapped their three-week losing trend. The BSE Mid-Cap and Small-Cap indices outperformed the Sensex during the week.

In the week ended Friday, 29 January 2016, the 30-share S&P BSE Sensex gained 435.03 points or 1.78% to settle at 24,870.69, its highest closing level since 8 January 2016. The 50-unit CNX Nifty gained 141.10 points or 1.9% to settle at 7,563.55, its highest closing level since 11 January 2016.

The BSE Mid-Cap index advanced 224.21 points or 2.2% to settle at 10,417.26. The BSE Small-Cap index advanced 271.46 points or 2.56% to settle at 10,869.84. Both these indices outperformed the Sensex.

A divergent trend among various index constituents resulted in small gains for key benchmark indices on Monday, 25 January 2016. The Sensex rose 50.29 points or 0.21% to settle at 24,485.95, its highest level since 14 January 2016.

The stock market had remained closed for the Republic Day holiday on Tuesday, 26 January 2016.

Gains for index heavyweight ITC and power sector stocks offset losses for index heavyweights HDFC and Reliance Industries (RIL) and cement stocks, resulting in a flat closing for key benchmark indices on Wednesday, 27 January 2016. The Sensex rose 6.44 points or 0.03% to settle at 24,492.39, its highest closing level since 14 January 2016.

Losses for stocks of telecom firms, banks and index heavyweight HDFC outweighed gains for stocks of oil production and exploration companies, pharma firms and index heavyweight ITC, with key benchmark indices registering small losses on Thursday, 28 January 2016. The Sensex fell 22.82 points or 0.09% to settle at 24,469.57, its lowest closing level since 22 January 2016.

Trading for the week ended on an upbeat note as key equity benchmark indices in India surged on Friday, 29 January 2016 joining in a global rally after the Bank of Japan said it would adopt a negative interest rate policy for the first time. The Sensex jumped 401.12 points or 1.64% to settle at 24,870.69, its highest closing level since 8 January 2016.

Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell in the week ended Friday, 29 January 2016.

Index heavyweight and cigarette major ITC advanced 3.52%. The company's net profit rose 0.67% to Rs 2652.82 crore on 3.46% rise in total income to Rs 9854.66 crore in Q3 December 2015 over Q3 December 2014. The result hit the market at the closing bell on Friday, 22 January 2016. ITC said that its performance in Q3 December 2015 remained subdued, reflecting the severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry.

Pharma stocks gained. Cipla rose 0.97%. The company announced after market hour on Friday, 22 January 2016, that it ceases to hold any stake in Biomab Holding, Hong Kong (Biomab) as the company has completed the transfer formalities in relation to the divestment of its entire 25% stake held in Biomab. Cipla had announced on 28 October 2015 that it has entered into a definitive agreement to sell its entire 25% stake in Biomab to Biomab Brilliant, British Virgin Islands which holds the remaining 75% stake in BHL for a total consideration of $25.77 million.

Dr Reddy's Laboratories gained 7.65%. The company received approval from United States Food & Drug Administration (USFDA) for ZEMBRACESymTouch (sumatriptan succinate) injection for the treatment of acute migraines in adults. 

ZEMBRACESymTouch will be marketed in the United States by Promius Pharma, a wholly owned subsidiary of Dr Reddy's.

Sun Pharmaceutical Industries jumped 10.5% to Rs 873 and was the top Sensex gainer during the week.

IT stocks gained. Wipro (up 1.98%), Infosys (up 2.55%) and TCS (up 4.18%) edged higher.

Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 3.46%) and Bajaj Auto (up 1.05%) rose. Tata Motors (down 0.78%) and Hero MotoCorp (down 0.9%) fell.

Maruti Suzuki India slipped 0.24%. Maruti Suzuki India's net profit rose 27.06% to Rs 1019.30 crore on 18.95% growth in total income to Rs 15113.40 crore in Q3 December 2015 over Q3 December 2014. Higher volumes, material cost reduction initiatives and favorable foreign exchange contributed to growth in bottom line on year-on-year basis in Q3 December 2015, Maruti Suzuki India said. The result was announced market hours on Thursday, 28 January2016.

NTPC rose 3.08%. The company's net profit fell 18.9% to Rs 2492.87 crore on 8.84% decline in total income to Rs 17657.99 crore in Q3 December 2015 over Q3 December 2014. The company announced result during market hours on Friday, 29 January 2016. NTPC's non-operational income or the so called other income declined 52.39% to Rs 244.68 crore in Q3 December 2015 over Q3 December 2014.

Bank stocks declined. ICICI Bank dropped 1.14%. The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.

The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. The result was announced market hours on Thursday, 28 January 2016.

Axis Bank fell 3.76%. As per reports, the government is looking to sell some of its stake in the private sector bank. The Government of India (GoI) through the Specified Undertaking of the Unit Trust of India (SUUTI) holds 11.56% stake in Axis Bank.
State-run banking giant State Bank of India (SBI) fell 2.36%.

HDFC Bank rose 1.81%. HDFC Bank's net profit rose 20.12% to Rs 3356.84 crore on 22.45% rise in total income to Rs 18283.31 crore in Q3 December 2015 over Q3 December 2014. Provisions and contingencies rose 16.67% to Rs 653.88 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours on Monday, 25 January 2016.

Bharti Airtel fell 3.06%. The company's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours on Thursday, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.

Meanwhile, Bharti Airtel and Axiata Group Berhad (Axiata) on 28 January 2016, signed a definitive agreement to merge their respective telecommunication subsidiaries in Bangladesh; namely, Airtel Bangladesh (Airtel) and Robi Axiata (Robi). The agreement follows the 9 September 2015 announcement of both parties entering into an exclusive discussion to explore possibility of combining the business operations in Bangladesh.

Adani Ports and Special Economic Zone lost 4.06%. The company said during market hours on Thursday, 28 January 2016, that the Supreme Court has passed an order allowing Adani Hazira Port (AHPPL), a wholly owned subsidiary of the company, to continue its port operations and construction activity. The apex court passed the order after AHPPL challenged an order issued by National Green Tribunal, Pune cancelling the environment clearance for expansion of facilities. The court has also stayed the direction of demolition of 25 ha area on the condition that AHPPL will deposit Rs 25 crore before the collector which is to be kept in escrow account till matter is finally heard.

HDFC rose 1.71%. Net profit rose 6.66% to Rs 1520.51 crore on 6.46% rise in total income to Rs 7327.69 crore in Q3 December 2015 over Q3 December 2014. As at 31 December 2015, the loan book stood at Rs 248097 crore as against Rs 219939 crore as at 31 December 2014. The result was announced after market hours on Wednesday, 27 January 2016.

HDFC's consolidated net profit rose 11.01% to Rs 2419 crore on 2.96% rise in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.

On the global front, the Federal Reserve left the door open to a March rate increase despite acknowledging that US economic growth slowed since its last meeting in December 2015. The Fed held US interest rates unchanged as expected and said it is closely monitoring global economic and financial developments. The stance of the monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2% inflation, the Fed said in a statement on 27 January 2016.

The Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. The BOJ said after the conclusion of a two-day monetary policy review on Friday, 29 January 2016 that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.

THE END SESSION 29 / 01 )

Sensex attains 3-week closing high

Trading for the week ended on an upbeat note as key equity benchmark indices in India surged, joining in a global rally after the Bank of Japan said it would adopt a negative interest rate policy for the first time. The barometer index, the S&P BSE Sensex, jumped 401.12 points or 1.64% to settle at 24,870.69. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty gained 138.90 points or 1.87% to settle at 7,563.55. The Sensex attained a three-week closing high and the Nifty hit 2-1/2-week closing high.

Shares of Vedanta jumped and Cairn India fell on media reports that Vedanta's board of directors is likely to meet today, 29 January 2016, to discuss merger of Cairn India with the company with modified terms. Shares of oil exploration and production firms rose on a recovery in global crude oil prices. Yes Bank jumped after the bank said it continues to show resilience on all asset quality parameters with an improving outlook going forward. ICICI Bank dropped after the bank reported a rise in bad loans in Q3 December 2015.

Dr Reddy's Laboratories rose after the company received approval from United States Food & Drug Administration (USFDA) for ZEMBRACESymTouch (sumatriptan succinate) injection for the treatment of acute migraines in adults. NTPC edged lower after reporting weak third quarter results. Bharti Airtel edged lower in volatile trade after reporting weak third quarter results. Titan Company jumped after reporting decent growth in bottom line in Q3 December 2015.

The Sensex jumped 401.12 points or 1.64% to settle at 24,870.69, its highest closing level since 8 January 2016. The index jumped 442.33 points or 1.8% at the day's high of 24,911.90. The index fell 129.51 points or 0.52% at the day's low of 24,340.06.

The Nifty gained 138.90 points or 1.87% o settle at 7,563.55, its highest closing level since 11 January 2016. The index rose 151 points or 2.03% at the day's high of 7,575.65. The index shed 21.85 points or 0.29% at the day's low of 7,402.80.

The market breadth indicating the overall health of the market was strong. On BSE, 1,565 shares gained and 1,023 shares fell. A total of 195 shares were unchanged. The BSE Mid-Cap index rose 2.02%, outperforming the Sensex. The BSE Small-Cap index gained 1.07%, underperforming the Sensex.

The total turnover on BSE amounted to Rs 2618 crore, higher than turnover of Rs 2451.22 crore registered during the previous trading session.

NTPC declined 1.49% after the company's net profit fell 18.9% to Rs 2492.87 crore on 8.84% decline in total income to Rs 17657.99 crore in Q3 December 2015 over Q3 December 2014. The company announced result during market hours today, 29 January 2016. NTPC's non-operational income or the so called other income declined 52.39% to Rs 244.68 crore in Q3 December 2015 over Q3 December 2014.

Separately, NTPC announced during market hours today, 29 January 2016, that board of directors accorded investment approval for Telangana Super Thermal Power Project, Phase-1 at current estimated cost of Rs 10598.98 crore. Power purchasing agreements (PPAs) have been signed with Southern Power Distribution Company of Telangana and Northern Power Distribution Company of Telangana. The commercial operation date (CoD) of first unit is envisaged in 52 months and second unit at an interval of 6 months thereafter.

Bharti Airtel fell 0.55% to Rs 289.70 after the company reported weak Q3 results. The stock was volatile. The stock hit high of Rs 296.65 and low of Rs 282.30 in intraday trade. The company's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours yesterday, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.

Meanwhile, Bharti Airtel and Axiata Group Berhad (Axiata) yesterday, 28 January 2016, signed a definitive agreement to merge their respective telecommunication subsidiaries in Bangladesh; namely, Airtel Bangladesh (Airtel) and Robi Axiata (Robi). The agreement follows the 9 September 2015 announcement of both parties entering into an exclusive discussion to explore possibility of combining the business operations in Bangladesh.

Post-merger, the combined entity operating as Robi will serve approximately 4 crore customers. The joint strengths of Robi and Airtel will deliver the widest mobile network coverage across Bangladesh, strengthening its position in the mobile internet segment as well as consolidating its position as the second largest operator in the country, Bharti Airtel and Axiata said in a joint press release. The proposed transaction is subject to conditions precedent including receiving applicable approvals from relevant authorities and is expected to complete in the first half of 2016, the two companies said. Upon completion, Axiata will hold 68.3% controlling stake in the combined entity, while Bharti will hold 25%. The remaining 6.7% will be held by the existing shareholder, NTT DOCOMO of Japan.

Auto stocks gained. Mahindra & Mahindra (M&M) (up 2.62%), Ashok Leyland (up 1.3%), Eicher Motors (up 4.32%), Bajaj Auto (up 3.18%), Hero MotoCorp (up 4.67%) and Tata Motors (up 0.81%) gained.

Maruti Suzuki India rose 0.16% to Rs 4,100 after announcing good Q3 results. The stock was volatile. The stock hit high of Rs 4,114.20 and low of Rs 1,927.20 in intraday trade. Maruti Suzuki India's net profit rose 27.06% to Rs 1019.30 crore on 18.95% growth in total income to Rs 15113.40 crore in Q3 December 2015 over Q3 December 2014. Higher volumes, material cost reduction initiatives and favorable foreign exchange contributed to growth in bottom line on year-on-year basis in Q3 December 2015, Maruti Suzuki India said. The result was announced market hours yesterday, 28 January2016.

Maruti Suzuki India said that going forward it could experience uncertainty on foreign exchange front and in commodity prices. On the flip side, interest rates and fuel prices remain benign. Maruti will continue launching new models, it said. The company had witnessed higher sales volume in Q4 March 2015 which would result in muted year-on-year growth in Q4 March 2016.

TVS Motor Company lost 0.05%. The company's net profit rose 19.4% to Rs 107.70 crore on 11% growth in revenue to Rs 2940 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 29 January 2016. During the quarter, the company has provided for a provision for one off expense of Rs 7.5 crore consequent to floods in Chennai and a further sum of Rs 10.6 crore was provided on account of retrospective amendment to Bonus Act. Out of this amount, a sum of Rs 5.7 crore relating to the previous financial year (FY 2015) has been shown as exceptional item, TVS Motor said.

TVS Motor Company's board of directors at a meeting held today, 29 January 2016, approved in-principle, an investment of a sum not exceeding 10 million Hongkong dollars for establishment of a wholly owned subsidiary of the company in Hongkong, mainly to widen the potential in the export market and strengthen the supply chain management in the overseas countries. Details of the proposed subsidiary will be finalized and submitted for ratification by the board of directors in course of time, TVS Motor said.

Pharma stocks gained. Sun Pharmaceutical Industries (up 4.6%), Aurobindo Pharma (up 2.88%), Cipla (up 1.9%), Lupin (up 0.19%), Wockhardt (up 1.39%), Divi's Laboratories (up 1.27%), Glenmark Pharmaceuticals (up 2.69%) and Cadila Healthcare (up 1.79%) gained.

Dr Reddy's Laboratories gained 3.21% after the company received approval from United States Food & Drug Administration (USFDA) for ZEMBRACESymTouch (sumatriptan succinate) injection for the treatment of acute migraines in adults. ZEMBRACESymTouch will be marketed in the United States by Promius Pharma, a wholly owned subsidiary of Dr Reddy's.

Coal India rose 4.73% to Rs 320.05. The stock hit a high of Rs 324 and a low of Rs 306 in intraday trade.

FMCG major Hindustan Unilever (HUL) rose 3.29%, with the stock extending previous session's 3.02% gains.

Index heavyweight and housing finance major HDFC rose 2.56% to Rs 1,177.60. The stock hit a high of Rs 1,187.60 and a low of Rs 1,145.60 in intraday trade.

Index heavyweight and IT major Infosys rose 2.96% to Rs 1,164.85. The stock hit a high of Rs 1,169.70 and a low of Rs 1,132 in intraday trade.

Shares of oil exploration and production firms rose on a recovery in global crude oil prices. Reliance Industries (RIL) (up 1.78%), Oil India (up 1.95%) and ONGC (up 2.87%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.

Shares of Vedanta jumped and Cairn India fell on media reports that Vedanta's board of directors is likely to meet today, 29 January 2016, to discuss merger of Cairn India with the company with modified terms. Vedanta was up 6.62% at Rs 71.70. Cairn India was off 1.29%. Life Insurance Corporation of India (LIC) and other major shareholders are likely to give their approval to the modified merger scheme, according to reports. Vedanta in its Q3 results press release yesterday, 28 January 2016, said that it expects the merger of Cairn India with the company to be completed by Q1 June 2016.

Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 2.86%) and Indian Oil Corporation (IOCL) (up 0.34%) gained. HPCL fell 0.1%.
In the global commodities markets, Brent for March settlement was down 28 cents at $33.61 a barrel. The contract had risen 79 cents or 2.39% to settle at $33.89 a barrel during the previous trading session.

Most shares of public sector banks declined. Punjab National Bank (down 0.27%), Corporation Bank (down 1.77%), and State Bank of India (SBI) (down 2.91%) declined. Bank of India (up 1.06%), Union Bank of India (up 3.99%), and Canara Bank (up 1.23%) edged higher. Allahabad Bank was flat.

Bank of Baroda declined 3.31%. The bank clarified at the fag end of the trading session that with regard to the Central Bureau of Investigation (CBI) filing FIR against a Gujarat firm for Rs 374 crore fraud, the bank has already classified the amount as non-performing asset as on 30 September 2015 and necessary provision was made as per RBI guidelines in Q2 September 2015 results. The bank issued the clarification after CBI yesterday, 28 January 2016, registered a case against two directors of an unnamed private firm and others for causing an alleged loss of about Rs 374.49 crore to Bank of Baroda.

Most shares of private sector banks gained. Federal Bank declined 0.65%. Axis Bank (up 0.38%), HDFC Bank (up 1.59%), Kotak Mahindra Bank (up 2.93%) and IndusInd Bank (up 2.1%) gained.

Yes Bank jumped 10.89% after the bank said it continues to show resilience on all asset quality parameters with an improving outlook going forward. Yes Bank's gross non-performing assets (NPAs) stood at Rs 558.57 crore as on 31 December 2015, compared with Rs 491.35 crore as on 30 September 2015 and Rs 278.66 crore as on 31 December 2014. The ratio of gross non-performing assets (NPAs) to gross advances stood at 0.66% as on 31 December 2015 as against 0.61% as on 30 September 2015 and 0.42% as on 31 December 2014. The ratio of net NPAs to net advances stood at 0.22% as on 31 December 2015 as against 0.2% as on 30 September 2015 and 0.1% as on 31 December 2014.

Yes Bank said it continues to show resilience on all asset quality parameters with an improving outlook going forward with credit costs for the current financial year being contained within 50 basis points as against the earlier guidance of 50-70 basis points. During the quarter, the bank has not done any restructuring. Further, there were no slippages from the restructured book into NPAs during the quarter as well as for the nine months ended 31 December 2015, Yes Bank said in a statement.

The bank's specific loan loss provision coverage was at 66.5% as at 31 December 2015. The provision coverage takes into account the bank's in-depth assessment of recoverability on the underlying accounts based on collateral and does not factor the potential benefits of an improving business environment, Yes Bank said.

Yes Bank's net profit rose 25.06% to Rs 675.74 crore on 17.49% growth in total income to Rs 4122.12 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 29 January 2016.

ICICI Bank dropped 1.22% after the bank reported a rise in bad loans in Q3 December 2015. The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.
ICICI Bank said that the increase in non-performing assets was primarily due to the decline and continuing weakness in the global steel cycle. Another reason for the increase in non-performing assets was the Reserve Bank of India (RBI) directing Indian banks to review certain loan accounts and their classification over a period of two quarters viz. Q3 December 2015 and Q4 March 2016 with the objective of early recognition of stress assets and to make provisions to cover them.

The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. Provisions and contingencies rose 190.3% to Rs 2844.05 crore in Q3 December 2015 over Q3 December 2014. The provisioning coverage ratio as on 31 December 2015 stood at 53.2%.

L&T rose 2.33%. The company's net profit fell 16.68% to Rs 882.93 crore on 1.44% decline in total income to Rs 15390.96 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours today, 29 January 2016.

Titan Company surged 7.47% after net profit rose 18.12% to Rs 225.29 crore on 17.24% increase in total income to Rs 3439.88 crore in Q3 December 2015 over Q3 December 2014. The result was announced during trading hours today, 29 January 2016. Titan Company said total income rose due to pick up in retail sales in the festive season.

IRB Infrastructure Developers rose 3.89% after consolidated net profit rose 27.95% to Rs 169.60 crore on 37.44% increase in total income to Rs 1364.81 crore in Q3 December 2015 over Q3 December 2014. The result was announced during trading hours today, 29 January 2016. IRB Infrastructure Developers' earnings before interest, taxes, depreciation and amortization (EBITDA) rose 23% to Rs 718 crore in Q3 December 2015 over Q3 December 2014.

In overseas stock markets, Japanese and Chinese stocks led gains in Asian markets after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. In mainland China, the Shanghai Composite index settled 3.09% higher. In Hong Kong, the Hang Seng index settled 2.51% higher.

In Japan, the Nikkei 225 Average ended 2.8% higher. The BOJ said after the conclusion of a two-day monetary policy review that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.
European stocks edged higher, joining in a global rally after the BOJ said it would adopt a negative interest rate policy for the first time. US stock futures indicated gains for US stocks at the opening bell. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 114 points at the opening bell today, 29 January 2016.

THE END SESSION ( 28 / 01 )

Market snaps 3-day winning streak

Losses for stocks of telecom firms, banks and index heavyweight HDFC outweighed gains for stocks of oil production and exploration companies, pharma firms and index heavyweight ITC, with key benchmark indices registering small losses. The barometer index, the S&P BSE Sensex, fell 22.82 points or 0.09% to settle at 24,469.57. The 50-unit Nifty 50 index shed 13.10 points or 0.18% to settle at 7,424.65. After seeing a lacklustre movement during the first half of the trading session, key indices turned volatile later. After reversing intraday losses in afternoon trade, the Sensex and the Nifty extended gains in mid-afternoon trade. The two key benchmark indices once again slipped into the red from green after a sudden slide in late trade.
The Sensex and the Nifty snapped a three-day winning streak. Both these key benchmark indices hit their lowest closing level in almost a week.

Pharma stocks advanced as the rupee edged lower against the dollar. Shares of oil exploration and production companies rose after a rebound in crude oil prices. Vedanta shrugged off weak third quarter results. Power Grid Corporation of India edged higher after reporting strong Q3 results. HDFC dropped after the company reported a muted growth in bottom line in Q3 December 2015

The market breadth indicating the overall health of the market was negative. On BSE, 1,313 shares fell and 1,243 shares rose. A total of 178 shares were unchanged. The BSE Mid-Cap index fell 0.36%. The losses for this index were higher in percentage terms than those for the Sensex. The BSE Small-Cap index slipped 0.04%. The losses for this index were lower in percentage terms than those for the Sensex.

The total turnover on BSE amounted to Rs 2440 crore, lower than turnover of Rs 2657.17 crore registered during the previous trading session.

The Sensex fell 22.82 points or 0.09% to settle at 24,469.57, its lowest closing level since 22 January 2016. The Sensex rose 94.81 points or 0.38% at the day's high of 24,587.20. The barometer index fell 91.87 points or 0.37% at the day's low of 24,400.52.

The Nifty shed 13.10 points or 0.18% to settle at 7,424.65, its lowest closing level since 22 January 2016. The Nifty rose 31.10 points or 0.41% at the day's high of 7,468.85. The index shed 28.15 points or 0.37% at the day's low of 7,409.60.

Among sectoral indices on BSE, The S&P BSE Telecom index (down 2.41%), the S&P BSE Capital Goods index (down 1.72%), the S&P BSE Bankex (down 0.91%), the S&P BSE Finance index (down 0.9%), the S&P BSE Industrials index (down 0.86%), the S&P BSE Consumer Durables index (down 0.82%), the S&P BSE Teck index (down 0.47%), the S&P BSE Basic Materials index (down 0.43%), the S&P BSE Auto index (down 0.42%), the S&P BSE Realty index (down 0.29%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.26%), the S&P BSE Metal index (down 0.24%) and the S&P BSE IT index (down 0.22%), underperformed the Sensex. The S&P BSE Power index (up 0.43%), the S&P BSE Healthcare index (up 0.65%), the S&P BSE Oil & Gas index (up 0.88%), the S&P BSE Utilities index (up 0.88%), the S&P BSE Energy index (up 1.17%) and the S&P BSE FMCG index (up 1.50%) outperformed the Sensex.

Index heavyweight and cigarette major ITC rose 1.78% to Rs 318.05. The stock hit a high of Rs 321.55 and low of Rs 312 in intraday trade.

Pharma stocks advanced as the rupee edged lower against the dollar. Wockhardt (up 3.19%), Dr Reddy's Laboratories (up 0.68%), Glenmark Pharmaceuticals (up 2.23%), Lupin (up 0.76%), Sun Pharmaceutical Industries (up 1.42%), Alkem Laboratories (up 0.99%) and Aurobindo Pharma (up 1.23%) gained. Cadila Healthcare (down 2%), Cipla (down 0.68%) and GlaxoSmithKline Pharmaceuticals (down 0.32%) fell.

A lower rupee boosts the value of overseas earnings in rupee terms. Pharma companies derive substantial revenue from exports.

In the foreign exchange market, the partially convertible rupee was currently hovering at 68.22, compared with its close of 68.05 during the previous trading session.
FMCG major Hindustan Unilever gained 3.28% to Rs 792.95. The stock hit a high of Rs 795.90 and low of Rs 765.50 in intraday trade.

Bank stocks dropped. Among public sector banks, Bank of Baroda (down 0.27%), Punjab National Bank (down 2.61%), Allahabad Bank (down 3.01%), Bank of India (down 0.85%), Union Bank of India (down 3.49%) edged lower. State Bank of India (SBI) (up 0.81%) and Canara Bank (up 0.87%) rose.

Shares of private sector banks declined. Axis Bank (down 1.66%), Federal Bank (down 2.11%), IndusInd Bank (down 0.4%), Yes Bank (down 1.07%), HDFC Bank (down 0.15%) and Kotak Mahindra Bank (down 1.28%) edged lower.

ICICI Bank dropped 1.81%. The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours today, 28 January 2016.

The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.
Provisions and contingencies rose 190.3% to Rs 2844.05 crore in Q3 December 2015 over Q3 December 2014. The provisioning coverage ratio as on 31 December 2015 stood at 53.2%.

Most telecom stocks declined. Reliance Communications (down 1.19%) and Idea Cellular (down 4.67%) declined. Tata Teleservices (Maharashtra) rose 0.6%.

Bharti Airtel fell 2.32%. Bharti Airtel's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours today, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.

Shares of oil exploration and production stocks rose after a rebound in crude oil prices. Cairn India (up 4.76%), Reliance Industries (RIL) (up 1.86%), Oil India (up 0.22%) and ONGC (up 0.82%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.

Shares of public sector oil marketing companies (PSU OMCs) also gained. HPCL (up 2.07%) and Indian Oil Corporation (IOCL) (up 0.79%) gained. BPCL fell 0.32%.

Brent for March settlement was currently up 54 cents at $33.64 a barrel. The contract had surged $1.30 a barrel or 4.08% to settle at $33.10 a barrel during the previous trading session.

Vedanta shrugged off weak third quarter results. The stock jumped 5.64%. The company's consolidated net profit slumped 99% to Rs 18 crore on 23% drop in revenue to Rs 14801 crore in Q3 December 2015 over Q3 December 2014. The sharp decline in bottom line was due to lower oil and metal prices. The result was announced during market hours today, 28 January 2016.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 48% to Rs 3212 crore in Q3 December 2015 over Q3 December 2014. EBITDA fell primarily due to weak commodity prices.

Meanwhile, the company said that it expects the merger of Cairn India with the company to be competed by Q1 June 2016.

Power Grid Corporation of India gained 4.01% after the company reported 31.26% rise in net profit to Rs 1613.12 crore on 22.7% rise in total income to Rs 5504.83 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 27 January 2016. Meanwhile, Power Grid Corporation during market hours today, 28 January 2016, announced that the board of directors of the company at its meeting held yesterday, 27 January 2016, accorded investment approval for two projects totaling Rs 328.55 crore.

HDFC dropped 1.52% after the company reported a muted growth in bottom line in Q3 December 2015. Net profit rose 6.66% to Rs 1520.51 crore on 6.46% rise in total income to Rs 7327.69 crore in Q3 December 2015 over Q3 December 2014. As at 31 December 2015, the loan book stood at Rs 248097 crore as against Rs 219939 crore as at 31 December 2014. The result was announced after market hours yesterday, 27 January 2016.

HDFC's consolidated net profit rose 11.01% to Rs 2419 crore on 2.96% rise in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.

Meanwhile, HDFC's board of directors at its meeting held on 27 January 2016 granted its approval for issuance of Secured Redeemable Non-convertible Debentures (NCD) aggregating to Rs 35000 crore on a private placement basis under a Shelf Disclosure Document in terms of the Sebi (Issue and Listing of Debt Securities) Regulations, 2008.

Adani Ports and Special Economic Zone declined 2.09%. The company said during market hours today, 28 January 2016, that the Supreme Court has passed an order allowing Adani Hazira Port Private Limited (AHPPL), a wholly owned subsidiary of the company, to continue its port operations and construction activity. The apex court passed the order after AHPPL challenged an order issued by National Green Tribunal, Pune cancelling the environment clearance for expansion of facilities. The court has also stayed the direction of demolition of 25 ha area on the condition that AHPPL will deposit Rs 25 crore before the collector which is to be kept in escrow account till matter is finally heard.

Key benchmark indices snapped a three-day winning streak. The Sensex had gained 530.18 points or 2.21% in the preceding three trading sessions to settle at 24,492.39 yesterday, 27 January 2016, from its close of 23,962.21 on 21 January 2016. The Sensex has fallen 1,647.97 points or 6.3% in this month so far (till 28 January 2016). The Sensex is up 629.81 points or 2.64% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5,555.17 points or 18.5% from a record high of 30,024.74 hit on 4 March 2015.

In overseas stock markets, European stocks witnessed a mixed trend. Asian stocks edged higher after China's central bank People's Bank of China announced a large injection of cash into the financial system to pre-empt a holiday-induced funding squeeze and offset rapid capital outflows. But, Chinese stocks fell on continued concerns about China's slowing economy. In mainland China, the Shanghai Composite ended 2.92% lower with losses accelerating late in the session.
US stocks fell yesterday, 27 January 2016, after the Federal Reserve left the door open to a March rate increase despite acknowledging that US economic growth slowed since its last meeting in December 2015. The Fed held US interest rates unchanged as expected and said it is closely monitoring global economic and financial developments. The stance of the monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation, the Fed said in a statement.

THE END SESSION ( 27 / 01 )

Key indices end flat after seeing intraday volatility

Gains for index heavyweight ITC and power sector stocks offset losses for index heavyweights HDFC and Reliance Industries (RIL) and cement stocks, resulting in a flat closing for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 6.44 points or 0.03% to settle at 24,492.39. The 50-unit Nifty 50 index rose 1.60 points or 0.02% to settle at 7,437.75. With minuscule gains, the Sensex and the Nifty, both, attained their highest closing level in almost two weeks.

The two key benchmark indices witnessed intraday volatility as traders rolled over positions in the futures & options (F&O) segment from the near month January 2016 series to February 2016 series. The January 2016 derivatives contracts are set to expire tomorrow, 28 January 2016. Soon after opening with upward gap, key benchmark indices slipped into the red. After hovering near the flat line in mid-morning trade, key benchmark indices moved higher in early afternoon trade as Asian stocks extended gains and as Chinese stocks staged an intraday rebound. Volatility ruled the roost as key benchmark indices regained positive terrain after slipping into the red from green in mid-afternoon trade.

Power Grid Corporation of India surged ahead of its Q3 results. Axis Bank edged lower on reports that the government is looking to sell some of its stake in the private sector bank.

The market breadth indicating the overall health of the market was positive. On BSE, 1,361 shares gained and 1,197 shares fell. A total of 188 shares were unchanged. The BSE Mid-Cap rose 0.3%. The BSE Small-Cap index rose 0.57%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 2632 crore, higher than turnover of Rs 2615.35 crore registered during the previous trading session.

The Sensex rose 6.44 points or 0.03% to settle at 24,492.39, its highest closing level since 14 January 2016. The Sensex fell 27.82 points or 0.11% at the day's low of 24,458.13. The barometer index rose 159.75 points or 0.65% at the day's high of 24,645.70.

The Nifty rose 1.60 points or 0.02% to settle at 7,437.75, its highest closing level since 15 January 2016. The Nifty shed 16.45 points or 0.22% at the day's low of 7,419.70. The index rose 41.75 points or 0.56% at the day's high of 7,477.90.

Among sectoral indices on BSE, the S&P BSE Utilities index (up 2.15%), the S&P BSE Power index (up 1.61%), the S&P BSE Telecom index (up 1.12%), the S&P BSE Realty index (up 1.08%), the S&P BSE Healthcare index (up 0.69%), the S&P BSE Basic Materials index (up 0.37%), the S&P BSE Metal index (up 0.34%), the S&P BSE Teck index (up 0.29%), the S&P BSE IT index (up 0.20%), the S&P BSE Auto index (up 0.13%), the S&P BSE Industrials index (up 0.09%) and the S&P BSE FMCG index (up 0.05%), outperformed the Sensex. The S&P BSE Finance index (down 0.08%), the S&P BSE Bankex (down 0.12%), the S&P BSE Consumer Durables index (down 0.19%), the S&P BSE Oil & Gas index (down 0.19%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.21%), the S&P BSE Energy index (down 0.37%) and the S&P BSE Capital Goods index (down 0.69%) underperformed the Sensex.

Index heavyweight and cigarette major ITC rose 1.02% to Rs 312.70. The stock hit a high of Rs 314.20 and low of Rs 307.15 in intraday trade.

Index heavyweight and housing finance major HDFC fell 0.83% to Rs 1,164.35 ahead of its Q3 December 2015 result today, 27 January 2016. The stock hit high of Rs 1,186 and low of Rs 1,160 in intraday trade.

Index heavyweight Reliance Industries (RIL) slipped 0.76% to Rs 997.15. The stock hit high of Rs 1,009.70 and low of Rs 996.15 in intraday trade.

Public sector bank stocks rose. Punjab National Bank (up 2.23%), Bank of Baroda (up 0.54%), State Bank of India (SBI) (up 0.63%), Union Bank of India (up 9.56%) and Canara Bank (up 2.99%) gained. Bank of India slipped 0.3%.

Private sector bank stocks were mixed. Federal Bank (up 0.64%), Yes Bank (up 0.15%), ICICI Bank (up 0.25%) rose. HDFC Bank (down 0.48%), Kotak Mahindra Bank (down 0.78%), and IndusInd Bank (down 0.19%) edged lower.

Axis Bank fell 1.06% on reports that the government is looking to sell some of its stake in the private sector bank. The Government of India (GoI) through the Specified Undertaking of the Unit Trust of India (SUUTI) holds 11.56% stake in Axis Bank.
Shares of power generation and power distribution companies gained. Torrent Power (up 2.43%), NHPC (up 2.84%), Adani Power (up 0.89%), NTPC (up 4.32%), Reliance Infrastructure (up 3.3%) and Reliance Power (up 1.11%) gained. Tata Power Company declined 0.41%.

Power Grid Corporation of India rose 4.32% ahead of its Q3 results today, 27 January 2016.

Coal India lost 0.49% to Rs 303, with the stock sliding on profit booking after a recent rally. Shares of Coal India had surged 5.61% in two trading sessions to settle at Rs 304.50 on Monday, 25 January 2016, from a recent low of Rs 288.30 on 21 January 2016. Meanwhile, the government has reportedly asked Coal India to ensure that it meets the target of 550 million tonnes of coal production for the current financial year.

Bharat Heavy Electricals (Bhel) dropped 4.16% to Rs 139.55. The stock hit high of Rs 146.50 and low of Rs 139.05 in intraday trade.

Cement stocks fell. Ambuja Cements (down 2.08%), ACC (down 1.27%) and Shree Cement (down 1.66%) fell. UltraTech Cement rose 0.12%.

Grasim Industries shed 0.3% at Rs 3,429. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

IT stocks were mixed. Wipro (up 0.68%) and TCS (up 0.83%) edged higher. Tech Mahindra (down 1.76%) and Infosys (down 0.14%) declined.

HCL Technologies slipped 0.44%. The company after market hours on Monday, 25 January 2016, announced the acquisition of Point to Point and Point to Point Products (jointly referred as Point to Point or P2P), UK's leading end-user cloud solutions design, implementation and delivery specialists. As part of the acquisition, HCL will be acquiring 100% outstanding shares of the company. The existing leadership team of P2P will remain in place and no workforce changes are planned. The total cash consideration for this transaction is approximately GBP 8 million, including contingent payments subject to certain financial milestones. P2P had trailing twelve month revenue of approximately GBP 8.5 million as of 31 December 2015. The acquisition will have a simultaneous signing and closing and business folds into HCL immediately on signing of the deal. With over a decade of experience in the desktop and application virtualization space, Point to Point provides a range of enterprise workplace transformation services and end-user cloud engineering solutions. The acquisition enables HCL to take advantage of the rapidly growing virtualization space as there is a Global Shift to Desktop Virtualization. Adding P2P augments HCL's capability in virtualized desktop technologies such as Citrix, Microsoft and Lakeside.

Separately, HCL before market hours today, 27 January 2016, announced the acquisition of 100% stake for Rs 2.35 crore in HCL Training and Staffing Services Private Limited (HCLTSS) which is engaged in the business of rendering of training in the field of IT and ITES. The promoter group holds 100% interest in HCLTSS. For six months ended 31 December 2015, HCLTSS clocked revenue of Rs 17.60 crore.
Pharma stocks were mixed. Alkem Laboratories (down 1.38%), Lupin (down 0.66%), Aurobindo Pharma (down 1.94%), Cipla (down 0.19%), Wockhardt (down 0.23%) and Glenmark Pharmaceuticals (down 2.39%) declined. Sun Pharmaceutical Industries (up 1.51%), Dr Reddy's Laboratories (up 2.24%), Divi's Laboratories (up 5.46%), and Cadila Healthcare (up 0.79%) gained.

NBCC rose 3.56% after the company said it bagged an order worth Rs 2149 crore from India Trade Promotion Organization (ITPO), Department of Commerce, Government of India, for re-development of Pragati Maidan at New Delhi involving construction of Integrated Exhibition cum Convention Centre (IECC). The announcement was made during trading hours today, 27 January 2016.

Hindustan Media Ventures rose 3.95% after net profit rose 28.2% to Rs 46.90 crore on 12.8% growth in revenue to Rs 251.60 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours on Monday, 25 January 2016.
Key indices edged higher for the third day in a row. The Sensex has gained 530.18 points or 2.21% in the preceding three trading sessions from its close of 23,962.21 on 21 January 2016. The Sensex has fallen 1,625.15 points or 6.22% in this month so far (till 27 January 2016). The Sensex is up 652.63 points or 2.73% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5,532.35 points or 18.42% from a record high of 30,024.74 hit on 4 March 2015.

In overseas stock markets, European stocks edged lower as investors remained cautious ahead of the US Federal Reserve's policy statement due later in the global day. Asian stocks edged higher after better-than-expected corporate earnings triggered rally in US stocks overnight. In mainland China, the Shanghai Composite index staged a strong intraday rebound. The index ended with losses of 0.52%. The index dropped as much as 4% earlier in the session. US stocks ended sharply higher yesterday, 26 January 2016, as energy stocks soared amid a rebound in oil prices.
Meanwhile, the Federal Open Market Committee (FOMC) is widely expected to keep US interest rates unchanged after the conclusion of a two-day monetary policy meeting today, 27 January 2016. Investors are awaiting the Fed's policy statement for the US central bank's comments on the oil price collapse and recent global market turmoil and what impact these may have on the Fed's approach to interest rates, which it raised for the first time since 2006 in December 2015.

THE END SESSION ( 25 / 01 )

Market gains for the second day in a row

A divergent trend among various index constituents resulted in small gains for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 50.29 points or 0.21% to settle at 24,485.95. The 50-unit Nifty 50 index rose 13.70 points or 0.18% to settle at 7,436.15. The Sensex hit 1-1/2-week closing high and the Nifty settled at over one week high. The two key benchmark indices edged higher for the second trading session in a row.

Index heavyweight and cigarette major ITC edged higher in volatile trade after announcing its third quarter results. HDFC Bank eked out small gains after announcing decent Q3 results. Shares of oil exploration and production companies rose after a rebound in crude oil prices, which also helped the Cairn India stock shrug off weak third quarter results. Shares of public sector oil marketing companies (PSU OMCs) fell after a rebound in crude oil prices.

The market breadth indicating the overall health of the market was strong. On BSE, 1,730 shares gained and 924 shares fell. 166 shares were unchanged. The BSE Mid-Cap index rose 0.24%. The BSE Small-Cap index rose 0.94%. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 2599 crore, lower than turnover of Rs 3498.12 crore registered during the previous trading session.

In overseas stock markets, European stocks fell as oil prices reversed earlier gains and as weak business sentiment numbers from Germany highlighted growing concerns about the outlook for the global economy. Earlier during the global day, Asian shares edged higher on speculation that the Japan's central bank will increase its asset-purchase program at its meeting later this week, on 28-29 January 2016. US stocks ended sharply higher during the previous trading session on Friday, 22 January 2016, as oil futures surged and investors were encouraged by hints of potential central-bank stimulus in Europe and Japan. At a news conference after the conclusion of European Central Bank's (ECB) regular policy review, ECB President Mario Draghi signalled last week that the ECB governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly.

The Sensex rose 50.29 points or 0.21% to settle at 24,485.95, its highest level since 14 January 2016. The Sensex jumped 214.91 points or 0.87% at the day's high of 24,650.57. The barometer index fell 1.99 points or 0.01% at the day's low of 24,433.67.
The Nifty rose 13.70 points or 0.18% to settle at 7,436.15, its highest closing level since 15 January 2016. The Nifty rose 64.70 points or 0.87% at the day's high of 7,487.15. The index shed 1.25 points or 0.01% at the day's low of 7,421.20.

Among the sectoral indices on BSE, the S&P BSE Energy index (up 0.29%), the S&P BSE IT index (up 0.31%), the S&P BSE Realty index (up 0.50%), the S&P BSE Finance index (up 0.55%), the S&P BSE Basic Materials index (up 0.97%), the S&P BSE Healthcare index (up 0.97%), the S&P BSE Consumer Durables index (up 1.34%) and the S&P BSE Metal index (up 1.58%) outperformed the Sensex. The S&P BSE Capital Goods index (down 0.90%), the S&P BSE Auto index (down 0.69%), the S&P BSE Utilities index (down 0.61%), the S&P BSE Power index (down 0.40%), the S&P BSE Industrials index (down 0.32%), the S&P BSE Oil & Gas index (down 0.23%), the S&P BSE Telecom index (up 0.02%), the S&P BSE FMCG index (up 0.11%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.16%) and the S&P BSE Teck index (up 0.18%) underperformed the Sensex. The S&P BSE Bankex rose 0.21%, matching Sensex's gain in percentage terms.

Index heavyweight and cigarette major ITC edged higher in volatile trade after announcing its third quarter results. The stock gained 0.44% at Rs 310. The stock hit high of Rs 311.80 and low of Rs 304.25 in intraday trade. The company's net profit rose 0.67% to Rs 2652.82 crore on 3.46% rise in total income to Rs 9854.66 crore in Q3 December 2015 over Q3 December 2014. The result hit the market at the closing bell on Friday, 22 January 2016.

ITC said that its performance in Q3 December 2015 remained subdued, reflecting the severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry. The performance of the company's cigarettes business remained muted in Q3 December 2015 due to taxation and regulatory headwinds facing the legal cigarette industry in India. The company added that it continues to engage with the concerned authorities, both at the central government and state level, highlighting the need for moderation in tax rates on cigarettes to maximise the revenue potential from the tobacco sector, arrest the growth of the illegal cigarette segment and protect the interest of the Indian tobacco farmer.

Index heavyweight and engineering and construction major L&T dropped 2.78% to Rs 1,110.25. The stock hit high of Rs 1,158.15 and low of Rs 1,110 in intraday trade.
Shares of state-run gas transmission and distribution firm GAIL (India) lost 2.94% to Rs 356.65. The stock hit high of Rs 371 and low of Rs 354.25 in intraday trade.
Shares of public sector banks declined. Punjab National Bank (down 0.81%), Allahabad Bank (down 0.65%), Bank of Baroda (down 0.31%), State Bank of India (SBI) (down 0.9%), Union Bank of India (down 1.25%), Canara Bank (down 1.26%) and Bank of India (down 0.3%) edged lower.

Shares of private sector banks were mixed. Axis Bank (down 1.3%), Kotak Mahindra Bank (down 0.72%), Federal Bank (down 2.78%) and Yes Bank (down 0.52%) edged lower. ICICI Bank (up 1.83%) and IndusInd Bank (up 0.7%) gained.

HDFC Bank rose 0.94% after net profit rose 20.12% to Rs 3356.84 crore on 22.45% rise in total income to Rs 18283.31 crore in Q3 December 2015 over Q3 December 2014. Provisions and contingencies rose 16.67% to Rs 653.88 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 25 January 2016.

The bank's gross non-performing assets (NPA) edged higher to Rs 4255.20 crore as on 31 December 2015 from Rs 3827.77 crore as on 30 September 2015 and Rs 3467.91 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 0.97% as on 31 December 2015, compared with 0.91% as on 30 September 2015 and 0.99% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.29% as on 31 December 2015, compared with 0.25% as on 30 September 2015 and 0.26% as on 31 December 2014.

Index heavyweight and housing finance major HDFC advanced 1.39% to Rs 1,174. The stock hit high of Rs 1,183.50 and low of Rs 1,156 in intraday trade. HDFC after market hours on Friday, 22 January 2016, announced that the company has filed term sheet for issuing secured redeemable non-convertible debentures aggregating Rs 725 crore on private placement basis. The coupon rate on debentures is 8.6% per annum. The tenor of the debentures is three years and one month. The issue opens and closes on the same day on 27 January 2016. The proceeds would be utilized for financing/refinancing the housing finance business requirements of the company, HDFC said.

Shares of oil exploration and production companies rose after a rebound in crude oil prices. Oil India (up 0.42%) and ONGC (up 1.48%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries (RIL) shed 0.38% to Rs 1,000.15. The stock hit high of Rs 1,018.40 and low of Rs 1,000.15 in intraday trade.

Cairn India shrugged off weak third quarter results. The stock jumped 5.23%. The company's consolidated net profit fell 99.35% to Rs 8.69 crore on 44.53% decline in total income to Rs 2230.19 crore in Q3 December 2015 over Q3 December 2014. The weak performance was primarily due to decline in crude prices. The EBITDA (earnings before interest, taxes, depreciation and amortization) margin dropped to 33% in Q3 December 2015 from 60% in Q3 December 2014. The result was announced after market hours on Friday, 22 January 2016.

Cairn India said it maintains its view to ramp-up the investment as oil prices improve and costs bottom out. The company aims to have healthy cash flows post capex so as to retain the ability to pay dividends, Cairn India said in a statement.

Shares of public sector oil marketing companies (PSU OMCs) fell after a rebound in crude oil prices. BPCL (down 0.83%), HPCL (down 0.16%) and Indian Oil Corporation (IOCL) (down 2.5%) declined. Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

Brent for March settlement was currently off 94 cents at $31.24 a barrel. The contract had surged $2.93 a barrel or 10.01% to settle at $32.18 a barrel during the previous trading session.

Most auto stocks declined. Mahindra & Mahindra (M&M) (down 1.15%), Maruti Suzuki India (down 0.69%), Eicher Motors (down 0.54%), and Hero MotoCorp (down 2.48%) declined. Bajaj Auto (up 0.06%), TVS Motor Company (up 1.3%) and Ashok Leyland (up 1.05%) gained.

Metal and mining stocks gained on renewed buying. JSW Steel (up 4.1%), Tata Steel (up 2.61%), Steel Authority of India (Sail) (up 0.58%), Hindustan Zinc (up 3.4%) and Hindustan Copper (up 0.61%) edged higher. Jindal Steel & Power (down 0.83%) and Hindalco Industries (down 0.48%) fell.

Vedanta shed 0.39%. NMDC rose 0.31%. Iron-ore prices surged in global markets on Friday, 22 January 2016, on hopes of increased demand after media reports suggested that Brazilian miner Vale, the world's largest producer of iron-ore, was ordered by a local court to temporarily shut down its Port of Tubarao over alleged environmental breaches.

Coal India (up 1.6%) and National Aluminium Company (Nalco) (up 1.16%) edged higher. Bharat Heavy Electricals (Bhel) fell 0.91%. As per reports, the government has asked Bhel, Coal India, Nalco and NMDC to consider buyback of shares. The government is falling short in meeting its divestment target for the current fiscal year which is the reason why it has asked four leading public sector companies to consider buyback of shares, according to reports.

The government currently holds 63.06% stake in Bhel (as per shareholding pattern as on 31 December 2015). The government currently holds 79.65% stake in Coal India (as per shareholding pattern as on 30 September 2015). The government currently holds 80% stake in NMDC (as per shareholding pattern as on 30 September 2015). The government currently holds 80.93% stake in Nalco (as per shareholding pattern as on 31 December 2015).

Pharma stocks were mixed. Sun Pharmaceutical Industries (up 2.19%), Aurobindo Pharma (up 0.87%), Wockhardt (up 1.68%), Dr Reddy's Laboratories (up 0.24%), Glenmark Pharmaceuticals (up 0.58%) and Cadila Healthcare (up 0.4%) gained. Lupin (down 1.15%), Divi's Laboratories (down 0.05%) and Alkem Laboratories (down 0.86%) fell.

Cipla shed 0.49%. The company announced after market hour on Friday, 22 January 2016, that it ceases to hold any stake in Biomab Holding, Hong Kong (Biomab) as the company has completed the transfer formalities in relation to the divestment of its entire 25% stake held in Biomab. Cipla had announced on 28 October 2015 that it has entered into a definitive agreement to sell its entire 25% stake in Biomab to Biomab Brilliant Limited, British Virgin Islands which holds the remaining 75% stake in BHL for a total consideration of $25.77 million.

Unichem Laboratories surged 6.38% after net profit spurted 897.1% to Rs 20.54 crore on 15.6% growth in net sales to Rs 303.93 crore in Q3 December 2015 over Q3 December 2014. The result was announced on Saturday, 23 January 2016.

SpiceJet surged 11.5% after the company reported net profit of Rs 238.40 crore in Q3 December 2015 as against net loss of Rs 275.03 crore in Q3 December 2014. SpiceJet said that it reported its highest quarterly net profit in its history. The company's net sales rose 10.92% to Rs 1439.38 crore in Q3 December 2015 over Q3 December 2014. The result was announced at the fag end of the trading session on Friday, 22 January 2016.

Supreme Industries rose 2.35% after consolidated net profit rose 133.02% to Rs 82.14 crore on 6.07% decline in total income to Rs 1002.14 crore in Q3 December 2015 over Q3 December 2014. The result was announced during trading hours today, 25 January 2016.

Ashoka Buildcon jumped 7.22% after consolidated net profit spurted 952% to Rs 13.50 crore on 34% growth in total income to Rs 614 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours on Friday, 22 January 2016. Ashoka Buildcon's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 71% to Rs 186 crore in Q3 December 2015 over Q3 December 2014. The company's total engineering, procurement and construction (EPC) order backlog stood at Rs 4186 crore as on 31 December 2015.

Shemaroo Entertainment rose 5.52% after consolidated net profit rose 27.94% to Rs 12.82 crore on 15.72% rise in net sales to Rs 101 crore in Q3 December 2015 over Q3 December 2014. The result was announced on Saturday, 23 January 2016. Shemaroo Entertainment's EBITDA (earnings before interest, taxes, depreciation and amortization) rose 32.9% to Rs 26.92 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin stood at 26.6% in Q3 December 2015 as against 23.1% in Q3 December 2014.

Key indices edged higher for the second day in a row. The Sensex has gained 523.74 points or 2.18% in the preceding two trading sessions from its close of 23,962.21 on 21 January 2016. The Sensex has fallen 1,631.59 points or 6.24% in this month so far (till 25 January 2016). The Sensex is up 646.19 points or 2.71% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5538.79 points or 18.44% from a record high of 30,024.74 hit on 4 March 2015.

The stock market remains closed for the Republic Day holiday tomorrow, 26 January 2016.