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4
August 2017
I had
mentioned in last Friday (28th July)’s closing report that Nifty and Sensex
might pause. The major indices of the Indian stock markets went through their
ups and downs during this week’s trading and finally ended flat on Friday over
previous week’s close. The trends of the major indices in the course of the
week’s trading are given in the table below: The Total Investment & Insurance Solutions
Weekly Indices (The Total
Investment & Insurance Solutions)
On
Monday, Indian markets traded with appreciable gains during the mid-afternoon
session as hopes of a rate cut by Reserve Bank of India (RBI), coupled with
expectations of healthy quarterly results, kept investors' sentiments buoyed.
Besides, the key equity indices pared their previous Friday losses on intense
buying activities in banking, capital goods and metal stocks.
The
benchmark Nifty climbed to 10,043 and Sensex surged over 133 points during the
opening session, with the help of a strong dose of better-than-expected
corporate earnings. The rally came on buying in capital goods, metal, oil and
gas, consumer durables and banking stocks, pointed out market analysts.
L&T, the engineering and construction conglomerate, rose 3.97% after the
company on Friday reported better-than-estimated earnings for the first quarter
with a 50.59% jump in consolidated net profit, which in turn helped the NSE
index.
Indian
equity markets traded on a flat-to-positive note during the late-morning trade
session on Tuesday. Profit bookings capped gains after NSE Nifty and BSE Sensex
rose on expectations of a monetary policy easing and broadly positive global
cues. Healthy quarterly results released on Monday had also enhanced investors
risk taking appetite during the initial phase of the day's trade. On the NSE,
there were 498 advances, 871 declines and 65 unchanged.
Tata
Motors on Tuesday reported a rise of 7% in its passenger and commercial vehicle
sales, including exports, for July 2017. According to the company, total sales
of its passenger and commercial vehicle increased to 46,216 units from 43,160
in July 2016. Tata Motors' domestic sales of commercial and passenger vehicles
for July 2017 were higher by 13% at 42,775 units from 37,789 units sold during
same month of last year. "The overall commercial vehicles sales in July
2017, in the domestic market were at 27,842 nos., higher by 15% over July 2016,
due to ramp-up of BS4 production, across segments," the company said in a
statement. "The company also passed on the benefits of GST to
consumers by reducing the prices of its vehicles across all commercial vehicle
segments." Tata Motors shares closed at Rs446.90, up 0.54% on the BSE.
Commercial
vehicles maker Ashok Leyland Ltd on Tuesday said it closed July 2017 with 14%
growth in its sales volumes. In a statement, the company said it sold 11,981
units in July -- up from 10,492 units sold in same month last year. However,
this fiscal till July, the company sold 40,479 units -- down from 41,657 units
sold during the comparable period of last fiscal. Ashok Leyland shares closed
at Rs111.05, up 1.42% on the NSE.
On
Wednesday, equity markets fell into the red after the Reserve Bank 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, investors were
cautious and were trading on a flat note. The
Total Investment & Insurance Solutions
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.
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 like Axis Bank, ICICI Bank and State Bank of India (SBI) were
among the top losers. According to market observers, RBI's decision to
reduce key lending rates dampened investors' sentiments. On the NSE, there were
455 advances, 1,202 declines and 310 unchanged.
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. The Total Investment
& Insurance Solutions
State-run
lender UCO Bank reported a net loss of Rs663.02 crore in the quarter ended June
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. 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. UCO Bank shares closed
at Rs32.75, down 1.21% on the NSE.
On
Friday, Indian stock market pared initial loss to close in the green as broadly
positive European markets and a surge in buying activities in consumer durables,
oil and gas, and metal stocks, lifted investors' sentiments. On the NSE, there
were 667 advances, 721 declines and 49 unchanged. The BSE market breadth
was bearish with 1,384 declines and 1,202 advances. At the end of trading on
Friday, the major indices closed 0.27%-0.53% higher over Thursday’s close - a
minor rally. The Total Investment & Insurance
Solutions
Reliance
Industries Ltd (RIL) says it been adjudged the Global Winner of ‘The DuPont
Operational Excellence Award - 2017. The bi-annual DuPont Safety and
Sustainability Awards recognise the most significant innovative projects
delivering concrete results, a company said in a statement. "This award is
a global recognition of RIL's demonstrated ability of unparalleled efficient
operations and excellent project execution. It showcases RIL's sustainable
approach towards Operational Excellence," said Hital Meswani, Executive
Director of RIL. Reliance Industries shares closed at Rs1,622.15, down
1.69% on the NSE.The Total Investment & Insurance
Solutions
