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3
August 2017
I had mentioned in Wednesday’s closing report
that Nifty, Sensex might go sideways. The major indices of the Indian stock
markets closed with losses. The trends of the major indices in the course of
Thursday’s trading are given in the table below: The Total Investment & Insurance Solutions
 |
Major Indices (The Total
Investment & Insurance Solutions)
Negative
global cues, coupled with selling pressure in banking and metal stocks, dragged
the Indian equity markets lower during the mid-afternoon trade session on
Thursday. Stocks of banking majors like Axis Bank, ICICI Bank and State Bank of
India were among the top losers. According to market observers, RBI's (Reserve
Bank of India) decision to reduce key lending rates dampened investors'
sentiments. The RBI in its third bi-monthly monetary policy review of 2017-18
on Wednesday lowered the repurchase and reverse repurchase rate by 25 basis
points. On the NSE, there were 455 advances, 1,202 declines and 310 unchanged. The Total Investment & Insurance
Solutions
The
benchmark indices opened lower tracking muted trend seen in Asian markets as
investors locked in recent gains. Indian investors were disappointed with just
25 bps rate cut by RBI as it was already priced in, believe experts. The Indian
rupee opened higher against the US dollar. Shares of TCS and Asian Paints rose,
whereas those of Cipla, Lupin, and Kotak Bank fell. Oil marketing companies
were trading higher.
Banks
may require an incremental provisioning of 20% against cumulative debt
totalling over Rs4.3 lakh crore of the 50 large bad debts or stressed assets in
construction, power, metals, and other sectors, a study released on Thursday
said. This constitutes about half of the gross Non-Performing Assets (NPAs) of
the banking sector, the joint study by industry body Associated Chambers of
Commerce and Industry of India and rating agency Crisil said. The study noted
that while banks may have already provisioned for a part of these exposures,
they need to adequately capitalise to absorb such losses that could fuel credit
growth and support the next leg of economic growth. The S & P BSE Bankex
closed at 27,885.86, down 1.66% on the BSE. The Total Investment & Insurance Solutions
State-run
lender UCO Bank on Wednesday reported a net loss of Rs663.02 crore in the
quarter ended June 30, 2017, widening by over 50% from Rs440.56 crore in the
year-ago period. The loss was attributed to higher provisioning for bad loans
and dip in income. The provisions for non-performing assets (NPAs) were
at Rs1,204.25 crore during the quarter under review, up by 28% from Rs942.73
crore in corresponding period last year. Provisions and contingencies increased
marginally by 1.7% over last year to Rs1,272.10 crore from Rs1,250.50 crore in
the corresponding period last year. The bank's asset quality worsened further
in the June quarter as its gross NPAs, in absolute terms, at Rs25,054.21 crore
rose by close to 11% over last years' Rs22,597.70 crore in the same quarter
last year. During the period under review, the public sector bank's total
income saw a 10.4% dip at Rs4,237.04 crore as against Rs4,727.93 crore in
the year-ago period. In the January-March quarter of last fiscal, the
city-based lender had posted a net loss of Rs582.08 crore. In May, the Reserve
Bank of India initiated prompt corrective action (PCA) for the bank in view of
high non-performing assets and negative return on assets. As per the revised
prompt corrective action framework for banks, the lender, which had posted net
losses for two consecutive years, was under "Risk Threshold 1" of the
PCA matrix, where it had restrictions on branch expansion plans, dividend
distribution and staff expansion, among others. It reported negative returns on
assets (RoAs) for two consecutive years, with net non-performing advances
(NNPA) ratio standing at 8.94% as on March 31. Even after initiation of PCA,
the banks' NNPA ratio further increased at 10.63% as on June 30. UCO Bank
shares closed at Rs32.75, down 1.21% on the NSE.
The Dow
Jones Industrial Average broke the 22,000 milestone for the first time as
shares of Apple soared following strong quarterly earnings. The Dow Jones
Industrial Average on Wednesday was up 52.32 points, or 0.24%, to 22,016.24. The
S&P 500 rose 1.22 points, or 0.05%, to 2,477.57. The Nasdaq Composite Index
ticked down 0.29 points, or less than 0.01%, to 6,362.65. After Tuesday's
closing bell, Apple announced quarterly revenue of $45.4 billion and quarterly
earnings per diluted share of $1.67. Shares of the tech giant rallied 4.73% on
Wednesday, and drove the Dow above 22,000 for the first time ever. This earning
season has been strong so far and has broadly been supportive of the stock
market recently. The Total Investment
& Insurance Solutions
The top
gainers and top losers of the major indices are given in the table below:
 |
| 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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