Barometers trade near day's low; PSU banks advance

The domestic equity benchmarks were currently near the day's low in mid afternoon trade. The Nifty held above the 17,800 mark. PSU banks extended gains for the fourth day in a row.

At 14:27 IST, the barometer index, the S&P BSE Sensex, was down 297.32 points or 0.50% to 59,731.74. The Nifty 50 index lost 79.30 points or 0.44% to 17,809.35.

Selling was broad based. The S&P BSE Mid-Cap index shed 0.50%. The S&P BSE Small-Cap index lost 0.45%.

The market breadth was negative. On the BSE, 1481 shares rose and 1733 shares fell. A total of 145 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index rose 1.13% to 2,960.85. The index has added 6.3% in four sessions.

Jammu and Kashmir Bank (up 1.93%), Canara Bank (up 1.43%), Bank Of Baroda (up 0.73%), Bank of India (up 0.80%) and Punjab National Bank (up 0.24%) advanced.

Union Bank of India (down 2.64%), Indian Bank (down 2.45%), Punjab & Sind Bank (down 1.92%), Bank of Maharashtra (down 0.94%), Indian Overseas Bank (down 0.93%), Central Bank of India (down 0.46%) and UCO Bank (down 0.35%) declined.

State Bank of India rose 2.40% to Rs 534.20. SBI posted a 66.7% rise in standalone net profit to Rs 7,626.57 crore on a 3.1% increase in total income to Rs 77,689 crore in Q2 FY22 over Q2 FY21.

Operating profit before provisions and contingencies rose by nearly 10% to Rs 18,079 crore in Q2 FY22 over Q2 FY21. Net interest income grew by 10.65% to Rs 31,184 crore in Q2 FY22 from Rs 28,181 crore posted in Q2 FY21. Net interest margin stood at 3.5% in Q2 FY22 as compared to 3.34% in Q2 FY21.

Loan loss provisions contracted nearly 52% to Rs 2,699 crore in Q2 FY22 from Rs 5,619 crore posted in Q2 FY21. The bank created provisions on account of change in family pension rules and reported an exceptional cost of Rs 7,418 crore in Q2 FY22.

On the asset quality front, slippages during the quarter tumbled 73.3% quarter on quarter to Rs 4,176 crore in Q2 FY22 from Rs 15,666 crore posted in Q1 FY22. Slippages in Q2 FY21 stood at Rs 2,756 crore. Slippage Ratio for Q2 FY22 stood at 0.66%, down from 2.47% posted in Q1 FY22.

Stocks in Spotlight:

RailTel Corp shed 0.29% to Rs 121.80. The state-run company said that it has received work order worth Rs 86.90 crore from Konkan Railway Corporation.

Zee Entertainment Enterprises (ZEEL) fell 1.54% to Rs 309.10. A meeting of the board of directors of ZEEL will be held on Thursday, 11 November 2021, to consider Q2 results.

Numbers to Track:

MCX Gold futures for 3 December 2021 settlement fell 0.51% to Rs 47,378.

The yield on India's 10-year benchmark federal paper was currently flat at 6.360%.

In the commodities market, Brent crude for December 2021 settlement fell $1.58 or 1.86% to $83.14 a barrel.

In the foreign exchange market, the partially convertible rupee rose to 74.51 from its previous closing of 74.6875.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 94.06.

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