Benchmark indices languish in negative zone

Key benchmark indices languished in negative zone in a narrow range in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was down 131.49 points or 0.47% at 28,047.59. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty 50 was currently down 22 points or 0.25% at 8,686.95. The market breadth indicating the overall health of the market was negative. On BSE, 1,343 shares fell and 1,254 shares rose. A total of 209 shares were unchanged. The BSE Mid-Cap index was currently down 0.32%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.03%, outperforming the Sensex.

In overseas stock markets, European stocks edged higher with corporate earnings dominating market moves. Asian stocks witnessed a mixed trend. US stocks registered impressive gains yesterday, 24 October 2016, on flurry of M&A deals, part of the single largest week for M&A since the dot-com era. More than five multi-billion dollar deals were announced over the past week. Latest data showed that the Markit flash US manufacturing purchasing managers' index rose to 53.2 in October from 51.5 in September.

Stocks of public sector banks edged lower. Bank of Baroda (down 0.57%), Indian Bank (down 0.57%), Canara Bank (down 0.64%), IDBI Bank (down 0.46%), Bank of India (down 0.35%) and State Bank of India (down 0.48%) declined. Union Bank of India (up 0.24%) and Punjab National Bank (up 0.01%) edged higher.

Stocks of private sector banks were mixed. RBL Bank (up 1.94%) and ICICI Bank (up 1.11%) edged higher. Yes Bank (down 0.29%) and IndusInd Bank (down 0.29%) edged lower.

Axis Bank rose 0.81%. The bank is scheduled to announce Q2 September 2016 results today, 25 October 2016.

HDFC Bank was down 0.81%. The bank's net profit rose 20.41% to Rs 3455.33 crore on 15.27% growth in total income to Rs 19970.89 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 25 October 2016.

The bank's provisions and contingencies rose 9.93% to Rs 748.99 crore in Q2 September 2016 over Q2 September 2015.

HDFC Bank's gross non-performing assets (NPAs) stood at Rs 5069.04 crore as on 30 September 2016 compared with Rs 4920.89 crore as on 30 June 2016 and Rs 3827.77 crore as on 30 September 2015. The ratio of gross NPAs to gross advances stood at 1.02% as on 30 September 2016 as against 1.04% as on 30 June 2016 and 0.91% as on 30 September 2015. The ratio of net NPAs to net advances stood at 0.3% as on 30 September 2016 as against 0.32% as on 30 June 2016 and 0.25% as on 30 September 2015.

Kotak Mahindra Bank was up 0.5% after consolidated net profit rose 27.65% to Rs 1202.40 crore on 25.05% growth in total income to Rs 8414.95 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 25 October 2016.

Cement stocks rose. UltraTech Cement (up 0.95%), Shree Cement (up 0.53%) and Ambuja Cements (up 0.37%) edged higher. ACC (down 1.05%) edged lower.

Grasim Industries was up 0.08%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Zee Entertainment Enterprises (Zee) rose 0.31% after consolidated net profit rose 27.04% to Rs 238.38 crore on 19.65% growth in total income to Rs 1655.77 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 25 October 2016.

Tata Power Company was down 1.32%. The company during market hours today, 25 October 2016 said that its wholly owned subsidiary Tata Power Renewable Energy (TPREL) announced the signing of the power purchase agreement (PPA) for a 100 megawatts (MW) solar project at Anantapuram solar park in Andhra Pradesh with the Solar Corporation of India (SECI). The commercial operations date (COD) of the project as per the PPA is 16 October 2017. The project has been secured through bidding in the open category under the Jawaharlal Nehru National Solar Mission (JNNSM).

Aditya Birla Nuvo rose 0.54% after the Reserve Bank of India (RBI) raised foreign investment limit in the company to 30% from 24% earlier. The RBI notified yesterday, 24 October 2016 that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can under the portfolio investment scheme (PIS) now invest up to 30% of the paid up capital of Aditya Birla Nuvo. The purchases could be made through primary market and stock exchanges. RBI stated that the company's board of directors has passed a resolution and its shareholders have passed a special resolution agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs.

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