Market registers modest gains

Banking, metal, telecom sector stocks and index heavyweight HDFC led modest gains for key benchmark indices. The barometer index, the S&P BSE Sensex rose 140.05 points or 0.5% at 28,124.42, as per the provisional closing data. The Nifty 50 index rose 40.05 points or 0.46% at 8,699.15, as per the provisional closing data. The Sensex provisionally settled above the psychologically important 28,000 level. It had closed below that level during previous trading session.

The Sensex rose 228.13 points or 0.81% at the day's high of 28,212.50 in morning trade, its highest level since 10 October 2016. The barometer index rose 47.20 points or 0.16% at the day's low of 28,031.57 in opening trade. The Nifty rose 67.90 points or 0.78% at the day's high of 8,727 in morning trade, its highest level since 10 October 2016. The index rose 19.20 points or 0.22% at the day's low of 8,678.30 in afternoon trade.

In overseas stock markets, European shares were mixed as investors were cautious ahead of a European Central Bank (ECB) meeting later in the day. Asian stocks witnessed a mixed trend. US stocks registered small gains yesterday, 19 October 2016, helped by better-than-expected earnings and rising oil prices. The Federal Reserve released the latest iteration of its Beige Book, which summarizes economic conditions in the US. In it, the Fed said economic activity increased at a modest pace in most regions.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,596 shares rose and 1,226 shares declined. A total of 226 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.04%. The BSE Small-Cap index provisionally rose 0.47%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 3383.22 crore, lower than turnover of Rs 3956.73 crore registered during the previous trading session.

Metal and mining stocks edged higher. Vedanta (up 4.28%), Hindalco Industries (up 2.95%), NMDC (up 2.79%), Steel Authority of India (up 1.75%), Jindal Steel & Power (up 1.05%) and Tata Steel (up 0.54%) rose. National Aluminium Company (down 0.29%), Hindustan Copper (down 0.08%) and JSW Steel (down 0.55%) edged lower.

Meanwhile, copper prices edged lower in global commodities markets. High Grade Copper for December 2016 delivery was currently down 0.5% at $2.093 per pound on the COMEX.

Hindustan Zinc rose 0.52%. The company's net profit fell 15.41% to Rs 1901.87 crore on 10.51% decline in total income to Rs 4647.62 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 6% to Rs 2077 crore in Q2 September 2016 over Q2 September 2015.

The company said its revenues decreased during the quarter on account of lower volumes, partly offset by higher zinc & silver prices and rupee depreciation. Net profit decreased during the quarter due to higher depreciation and lower investment income on account of smaller corpus despite higher mark to market gains. The result was announced after market hours yesterday, 19 October 2016.

Yes Bank rose 1.48% at Rs 1,311 after the bank reported 31.31% rise in net profit to Rs 801.54 crore on 24.7% rise in total income to Rs 4982.23 crore in Q2 September 2016 over Q2 September 2015. Yes Bank's gross non-performing assets (NPAs) stood at Rs 916.68 crore as on 30 September 2016 as against Rs 844.56 crore as on 30 June 2016 and Rs 491.35 crore as on 30 September 2015. The ratio of gross NPAs to gross advances stood at 0.83% as on 30 September 2016 as against 0.79% as on 30 June 2016 and 0.61% as on 30 September 2015.

The ratio of net NPAs to net advances stood at 0.29% as on 30 September 2016 as against 0.29% as on 30 June 2016 and 0.2% as on 30 September 2015. The bank's provisions and contingencies (excluding tax provisions) rose 55.54% to Rs 161.67 crore in Q2 September 2016 over Q2 September 2015.

Net interest income (NII) rose 30.5% to Rs 1446.20 crore in Q2 September 2016 over Q2 September 2015, on account of strong growth in advances and current account-saving account (CASA) deposits. Net interest margin (NIM) rose to 3.4% in Q2 September 2016 up from 3.3% in Q2 September 2015. The result was announced during market hours today, 20 October 2016.

Index heavyweight and housing finance major HDFC was up 1.54% at Rs 1,362.75. The stock hit a high of Rs 1,367 and a low of Rs 1,346.25 in intraday trade.

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