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August 2017
I had
mentioned in Tuesday’s closing report that Nifty, Sensex were on an uptrend.
The major indices of the Indian stock markets were range-bound on Wednesday and
closed with losses over Tuesday’s close. The trends of the major indices in the
course of Wednesday’s trading are given in the table below: The Total Investment & Insurance
Solutions
 |
| Major Indices (The Total Investment & Insurance Solutions) |
The
Indian equity markets fell into the red after the Reserve Bank of India (RBI)
on Wednesday reduced its key lending rate by 25 basis points (bps). RBI in its
third bi-monthly monetary policy review of 2017-18 announced that the
repurchase rate, or the short-term lending rate for commercial banks on loans
taken from it, stands lowered to 6% from 6.25%. Selling pressure was witnessed
in metal, capital goods and FMCG (fast moving consumer goods) stocks. On the
NSE, there were 627 advances, 1,043 declines and 302 unchanged. Before the RBI
announcement also, investors were cautious and were trading on a flat note.
State-owned
Punjab National Bank (PNB) on Wednesday reported a 12.09% increase in the
standalone net profit for the first quarter (Q1) of 2017-18. According to the
bank, its standalone net profit during the quarter under review stood at
Rs343.40 crore as compared to Rs306.36 crore in the corresponding period of
2016-17. The lender's total income during the quarter under review rose by
7.37% to Rs14,468.14 crore from Rs13,475.41 crore earned during Q1 of FY17. The
amount of gross non-performing assets (NPAs) of the bank stood at Rs57,720.70
crore in the April-June period in 2017-18 as compared to Rs56,654.09 crore in
the corresponding period in the previous fiscal. PNB’s shares closed at
Rs158.90, up 0.89% on the BSE.
Coal
India reported that its production during July declined marginally to 36.64
million tonnes (mt) as compared to 36.74 mt produced in the same month last
year. According to the state miner's provisional data, it produced 155.48 mt of
coal during the first four months of the current financial year, down by 4.3%
from 162.38 million tonnes produced during the year-ago period. Its off-take
grew by 4.1% in the April-July period to 181.69 mt as against 174.66 mt sold in
the corresponding period and in July only, its off-take was at 44.33 mt, up by
6.89% from 41.47 mt in the year-ago month. Coal India's two subsidiaries --
South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Ltd (MCL) -- contributed
to majority of its July production by generating 9.95 mt and 10.24 mt of coal
respectively. The off-take from SECL during the last month was at 11.93 mt
while MCL achieved 11.09 mt of sales. Coal India shares closed at Rs250.25,
down 0.77% on the BSE. The Total Investment
& Insurance Solutions
FMCG
major Marico reported a decline of 12% in its consolidated net profit to
Rs235.94 crore for the first quarter (Q1) ended June 30. According to the
company, its India business during the quarter under review witnessed volume
decline of 9% against the backdrop of destocking by trade in June due to
transition to the Goods and Services Tax (GST) regime. The total income from
operations of the company slipped to Rs1,715.28 crore in Q1 -- down 3.73% --
from Rs1,781.78 crore reported during the same quarter of 2016-17. "For
the quarter Q1FY18, India business witnessed volume decline of 9% on the
backdrop of destocking by trade in June due to GST transition. However, the
offtake growth was satisfactory and we saw increase in the market shares across
all key franchisees," Marico said in a statement. "The volume decline
is attributable to steep pipeline correction across channels, especially
wholesale and rural, leading to a decline in the stock turnover ratios (STRs) in
trade. The northern and eastern markets were impacted more than the rest of
India," it added. The company’s shares closed at Rs326.50, up 0.09% on the
BSE. The Total Investment & Insurance
Solutions
A
host of brokerages, including Credit Suisse, Deutsche Bank and CLSA downgraded
the Godrej Consumer Products stock on lower than expected earnings for the
April-June quarter. Credit Suisse downgraded the stock to ‘neutral’ from
‘outperform’ and observed that the core of the business in Indonesia is under pressure
which will impact growth adversely in FY18 while steep valuations leave little
room for upside. The company attributed the weak profit to low sales after GST
and lower consumer spending in its Indonesia market which dragged down its
international business. Indonesia — once among the best-performing overseas
businesses — had a relatively weak quarter due to the Lebaran holidays. Godrej
shares closed at Rs925.00, down 4.07% on the BSE. The Total Investment & Insurance Solutions
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
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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