Market breadth turns negative from positive

After sliding to intraday low in afternoon trade, the key benchmark indices trimmed losses in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 87.76 points or 0.3% at 29,334.63. The Nifty 50 index was down 32.90 points or 0.36% at 9,103.50. Index heavyweights ITC and HDFC led the slide in domestic bourses. Weakness in European stocks dampened sentiment.

Key benchmark indices opened higher on positive Asian stocks. After hovering in a narrow range in positive terrain till early afternoon trade, indices slipped into the red to hit intrday low in afternoon trade.

The BSE Mid-Cap index was down 0.12%. The fall in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was up 0.08%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in mid-afternoon trade. On the BSE, 1,477 shares fell and 1,316 shares rose. A total of 145 shares were unchanged.

HDFC Bank advanced 2.05% after net profit rose 18.25% to Rs 3990.09 crore on 14.3% growth in total income to Rs 21560.66 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 21 April 2017.

The bank's gross non-performing assets (NPAs) rose to Rs 5885.66 crore as on 31 March 2017 as against Rs 5232.27 crore as on 31 December 2016 and Rs 4392.83 crore as on 31 March 2016.

The ratio of gross NPAs to gross advances stood at 1.05% as on 31 March 2017 as against 1.05% as on 31 December 2016 and 0.94% as on 31 March 2016. The ratio of net NPAs to net advances stood at 0.33% as on 31 March 2017 as against 0.32% as on 31 December 2016 and 0.28% as on 31 March 2016.

The bank's provisions and contingencies surged 90.47% to Rs 1261.80 crore in Q4 March 2017 over Q4 March 2016.

HDFC Bank's board recommended a dividend of Rs 11 per share for the year ended March 2017 (FY 2017).

FMCG stocks fell. Tata Global Beverages (down 1.35%), Procter & Gamble Hygiene and Health Care (down 0.86%), Jyothy Laboratories (down 1.14%), Bajaj Corp (down 1.4%), GlaxoSmithkline Consumer Healthcare (down 0.69%), Godrej Consumer Products (down 0.08%), Hindustan Unilever (down 0.45%), Marico (down 0.58%) and Nestle India (down 0.08%) fell. Colgate-Palmolive (India) (up 1.28%), Dabur India (up 0.14%) and Britannia Industries (up 0.18%) rose.

Metal and mining stocks declined. Vedanta (down 1.05%), JSW Steel (down 1.53%), Steel Authority of India (Sail) (down 1.07%), Hindustan Zinc (down 3.85%), Hindalco Industries (down 0.21%) edged lower. Jindal Steel & Power (up 0.67%), NMDC (up 0.9%) and Hindustan Copper (up 0.08%) rose.

Tata Steel fell 0.67% after the company's board at a meeting held yesterday, 20 April 2017, reviewed the performance, capital structure and financing plan of the company. Based on the review and pursuant to the existing shareholders approval, the board approved issue of debt securities of up to Rs 9000 crore in the form either of non-convertible debentures on private placement basis or foreign currency or rupee denominated bonds or a combination thereof in one or more tranches.

The funds will primarily be deployed towards re-financing the existing debt, capex/working capital requirements and general corporate purposes. The board of directors also authorized the finance committee of the board to determine and approve the timing and terms of such issue of securities. The announcement was made after market hours yesterday, 20 April 2017.

National Aluminium Company (Nalco) lost 1.98% to Rs 66.75 after the offer for sale by the Government of India to offload a total 10% stake in the company ended yesterday, 20 April 2017. Nalco's promoter, the Government of India's (GoI) offer for sale (OFS) for upto 9.66 crore equity shares of the company, representing 5% stake with an additional option to sell up to 5% stake in the company in two trading sessions concluded yesterday, 20 April 2017.

The OFS for non-retail investors completed on 19 April 2017 and for retail investors and non-retail investors who chose to carry forward their un-allotted bids, the OFS was completed yesterday, 20 April 2017. The two-day OFS had taken place through a separate, designated window on the stock exchanges.

The OFS received good response from non-retail investors' category on 19 April 2017, with an oversubscription of 184.25%. The clearing price for non-retail category was set at Rs 67 per share. The GoI held 74.58% stake in Nalco as per the shareholding pattern as on 31 March 2017.

The issue also received strong response from retail investors, with an oversubscription of 317.14%. For retail category, the clearing price was fixed at Rs 69.80 per share. Retail investors will be allocated offer shares at a discount of 5% to the cut off price. Earlier, before the start of the OFS, the floor price for the issue was fixed at Rs 67 per share.

Overseas, European bourses hovered around the flatline after a suspected terrorist attack in France, ahead the highly anticipated first round in the French presidential election on Sunday. A French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State militant group, as per reports.

Research group Markit said Germany's flash manufacturing purchasing managers' index slipped to 58.2 in April from 58.3 the previous month.

Asian stocks rose after Bank of Japan's (BOJ) Governor Haruhiko Kuroda maintained an accommodative monetary policy and on optimism for a US tax overhaul.

Japanese manufacturing activity expanded at a stronger pace in April as export orders surged, a preliminary survey showed, in a further sign of robust global demand. The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to 52.8 in April on a seasonally adjusted basis, from a final 52.4 in the previous month.

US stocks closed higher yesterday, 20 April 2017 on rising expectations for first-quarter corporate profits.

Elsewhere, finance ministers and central bank governors of the G-20 are gathered in the US, where the International Monetary Fund and World Bank carry on with their spring meetings.

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