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26
October 2016
I had mentioned in Tuesday’s closing report that Nifty, Sensex were losing
momentum. The major indices of the Indian stock markets suffered a sharp
correction on Wednesday and closed with losses of 0.88%-0.91% over Tuesday’s
close. NSE trading volumes were on the higher side underlining the magnitude of
the correction. The trends of the major indices in the course of Wednesday’s
trading are given in the table below:
The Total Investment & Insurance Solutions
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Major Indices (The Total
Investment & Insurance Solutions)
Disappointing
quarterly earnings results, combined with caution over the rise in
non-performing asset (NPAs) of the banking sector and negative global cues
dragged the Indian equity markets lower during the mid-afternoon trade session
on Wednesday. Besides, lower global crude oil prices and anxiety over the
upcoming F&O (futures and options) expiry dented investors' sentiments. The
BSE market breadth was firmly in favour of the bears -- with 1,5920 declines
and 1,180 advances. On the NSE, there were 469 advances, 1,006 declines and 45
unchanged. Hang Seng and Straits Times indices had also closed in the red
earlier in the day. The Total
Investment & Insurance Solutions
Lower
crude oil prices and negative Asian and European markets too dragged the key
domestic indices lower, pointed out market analysts. IT (information
technology), banking, pharma and FMCG (fast moving consumer goods) continue to
trade lower on profit booking. Auto and oil-gas stocks witnessed recovery from
lower levels on buying support. The
Total Investment & Insurance Solutions
Deficit
monsoon rain has affected Kharif production in 25 of the 30 districts across
Karnataka, resulting in an estimated crop loss worth Rs 11,000 crore in this
fiscal (2016-17), said an official on Tuesday. "Of the 71.67-lakh hectares
of farm lands where sowing was completed in June-July, 30.82-lakh hectares were
affected due to deficit rains in August and September in 25 districts across
the state," said Agriculture Director B.Y. Srinivas. The state government
has declared 110 taluks (local bodies) in 25 districts as drought-hit due to
below normal and deficit rainfall and affected cropping on 25.54-lakh hectares.
"Barring in northern and coastal districts, rainfall was erratic and
scattered in the state's central and southern districts resulting in prolonged
dry conditions during the second half of the monsoon season," lamented
Srinivas. Though normal rains in Kalaburgi district helped in harvesting a bumper
crop, especially pulses (tur dal), heavy rains in mid-September in Bidar
district damaged soyabean crop in several hectares of farm lands. In contrast,
of the 64-lakh hectares of agriculture lands where seeds for various crops were
sown last fiscal (2015-16), 32.72-lakh hectares were affected due to deficit
rains and drought situation. Bad news from the agriculture sector around the
festive season is likely to affect the major indices of the stock markets
adversely, due to fall in aggregate demand from the farmers.
India's
banking sector majors on Tuesday reported mixed earnings results for the second
quarter of the current fiscal. On a standlaone basis, lenders like HDFC Bank,
Kotak Mahindra and IDFC Bank came out with healthy quarterly numbers, while
Axis Bank and IDBI Bank reported disappointing figures. In a regulatory filing
made to the BSE, HDFC Bank reported a rise of 20.4 per cent in its net profit
for the quarter ended September 30 2016. The bank's Q2 net profit increased to
Rs 3,455.33 crore from Rs 2,869.45 crore. The banking major's net interest
income went up by 19.6 per cent to Rs 7,993.6 crore. However, Axis Bank posted
a decline of 83 per cent in its net profit to Rs 319.08 crore from Rs 1,915.64
crore. In contrast, the bank's net interest income for the period under review
edged-up by 11.12 per cent to Rs 4,513.87 crore from Rs 4,062.09 crore.
Besides, Kotak Mahindra Bank posted an increase of 43 per cent in its net
profit which edged-up to Rs 813 crore from Rs 570 crore. The bank's net interest
income went up by 19 per cent to Rs 1,995 crore. Private sector lender IDFC
Bank reported an exponential rise in its Q2 net profit to Rs 387.76 crore from
Rs 59.63 crore. On the other hand, IDBI Bank reported a 53.33 per cent decline
in its net profit for the quarter under review to Rs 56 crore from Rs 120
crore. The Bank Nifty closed at 19,483.60, down 1.77%. The Total Investment & Insurance Solutions
Telecom
major Bhrati Aritel on Tuesday reported Rs 1,461-crore consolidated net profit
for the second quarter (July-September) of fiscal 2016-17, registering a 4.9
per cent decline from Rs 1,536 crore in the like period a year ago. In a
regulatory filing to the stock exchanges, the city-based company said
consolidated income from operations grew 3.4 per cent to Rs 24,672 crore for
the quarter under review (Q2) from Rs 23,852 crore in the same period a year
ago. Sequentially, though the net profit was flat from Rs 1,462 crore in the
first quarter (April-June), the company income declined 3.5 per cent from Rs
25,573 crore in the previous quarter. "India revenue increased 10 per cent
year-on-year (YoY) while growth in Africa was 4.7 per cent YoY on underlying
basis," said the largest telecom services provider later in a statement.
The company’s shares closed at Rs318.05, up 2.25% on the BSE.
Tata Sons,
the holding company of the Tata Group, on Tuesday said two new members have
been inducted in the company's board as additional directors. According to a
statement from Tata Sons, Ralf Speth, Chief Executive Officer of Jaguar Land
Rover, and N. Chandrasekaran, Chief Executive Officer and Managing Director of
Tata Consultancy Services (TCS), have been appointed as Additional Directors on
the company's Board. "This is in recognition of their exemplary leadership
in their companies," Ratan N. Tata, Interim Chairman of Tata Sons, was
quoted as saying in the statement. The development comes a day after the
industrial conglomerate replaced Cyrus P. Mistry as its Chairman and named
Ratan Tata as the interim chairman of the company. Tata Steel shares closed at
Rs398.85, down 4.01% on the BSE.
The top
gainers and top losers of the major indices are given in the table below:
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Top Gainer (The Total
Investment & Insurance Solutions)
The
closing values of the major Asian indices are given in the table below: The Total Investment & Insurance
Solutions
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Asian Indices (The Total
Investment & Insurance Solutions)
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