Indices trade firm; PSU banks in demand

The market firmed up once again in early afternoon trade. At 12:29 IST, the barometer index, the S&P BSE Sensex, was up 231.95 points or 0.67% at 34,963.68. The Nifty 50 index added 77.40 points or 0.76% at 10,321.80.

In the broader market, the S&P BSE Mid-Cap index gained 1.73% while the S&P BSE Small-Cap index rose 1.22%.

The market breadth was strong. On the BSE, 1706 shares rose and 804 shares fell. A total of 167 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,237 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 880.66 crore in the Indian equity market on 19 June, provisional data showed.

Derivatives:

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 3.04% to 30.87. The Nifty June 2020 futures were trading at 10,301, a discount of 20.8 points compared with the spot at 10,321.80.

On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 43.16 lakh contracts at the 10,500 strike price. Maximum put OI of 44.14 lakh contracts was seen at 9,000 strike price.

Covid-19 Update:

India reported 1,74,387 active cases of COVID-19 infection and 13,699 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India. Total coronavirus cases worldwide stood at 89,52,428 far with 4,68,331 deaths, according to data from Johns Hopkins University.

Buzzing Index:

The Nifty PSU Bank index gained 2.47% to 1,453.45. The index has added 7.42% in three sessions.

Among the index constituents, Indian Bank (up 3.91%), Canara Bank (up 3.59%), Bank of Baroda (up 3.40%), Union Bank of India (up 3.09%), Punjab & Sind Bank (up 2.80%), SBI (up 2.09%), Indian Overseas Bank (up 1.51%), UCO Bank (up 1.15%), Jammu and Kashmir Bank (up 0.96%), Bank of India (up 0.87%) and Bank of Maharashtra (up 0.47%) advanced.

Punjab National Bank rose 2.03% to Rs 35.15 after the bank reported a net loss of Rs 697.20 crore in Q4 March 2020, lower than net loss of Rs 4749.64 crore in Q4 March 2019. Total income rose 11.3% year-on-year (YoY) to Rs 16,388.32 crore in Q4 FY20. Provisions and contingencies fell 51.3% to Rs 4,901.31 crore in Q4 March 2020 from Rs 10,071.11 crore in Q4 March 2019. The bank has made a total provision of Rs 383.19 crore in 9 accounts during the quarter.

The ratio of gross NPAs to gross advances stood at 14.21% as on 31 March 2020 as against 16.30% as on 31 December 2019 and 15.50% as on 31 March 2019. The ratio of net NPAs to net advances stood at 5.78% as on 31 March 2020 as against 7.18% as on 31 December 2019 and 6.56% as on 31 March 2019.

Deposits increased by 4.1% to Rs 7,03,846.32 crore in FY20 from Rs 6,76,030.13 crore in FY19. Advances grew by 3% to Rs 4,71,827.72 crore as on 31 March 2020 from Rs 4,58,249.20 crore as on 31 March 2019.

With respect to the impact of COVID-19 on its business operations, the bank said that the situation continues to be uncertain and it is evaluating the situation on ongoing basis. It added that the major identified challenges for the bank would arise from eroding cash flows and extended working capital cycles.

Earnings impact:

Akzo Nobel India fell 1.11% to Rs 1,836.75 after consolidated net profit slipped 23.1% to Rs 54.08 crore on 17.6% decline in net sales to Rs 581.27 crore in Q4 March 2020 over Q4 March 2019.

Meanwhile, the BMW Group has chosen Akzo Nobel to be a trusted supplier of vehicle refinish products and services to a large part of its distribution network around the world. The deal came into effect on 1 February 2020. Covering 44 locations, the agreement means that the company's premium Sikkens and Lesonal brands are now approved for paint repairs of BMW and Mini passenger cars at authorized dealers, repairers, importers and national BMW Group branches.

LIC Housing Finance slumped 6.01% to Rs 267.65 on BSE after consolidated net profit tanked 39.1% to Rs 424.31 crore on 5.1% rise in total income to Rs 4,903.54 crore in Q4 March 2020 over Q4 March 2019. The extent to which the COVID-19 pandemic will impact the results of company's business and financials in future, as the same will be dependent on future developments, which at present are extremely uncertain, the company said.

Powered by Capital Market - Live News