High volatility was witnessed as key benchmark indices trimmed losses after extending intraday slide in afternoon trade. At 14:16 IST, the barometer index, the S&P BSE Sensex, was off 75.96 points or 0.31% at 24,379.08. The 50-unit Nifty 50 index was currently off 22.75 points or 0.31% at 7,415.05. The Sensex hit its lowest level in more than 19 months when it fell 186.44 points or 0.76% at the day's low of 24,268.60 in afternoon trade. The barometer index rose 69.81 points or 0.28% at the day's high of 24,524.85 at onset of trading session. The Nifty also hit its lowest level in more than 19 months when it fell 58.35 points or 0.78% at the day's low of 7,379.45 in afternoon trade. The index rose 25.85 points or 0.34% at the day's high of 7,463.65 at onset of trading session.
In overseas stock markets, European stocks edged higher as global oil prices pared losses. Brent March 2016 futures were currently off 40 cents at $28.54 a barrel. The price had fallen below $28 a barrel earlier during the trading session. Crude oil prices fell after Western sanctions on Iran were lifted over the weekend, paving the way for the Middle Eastern nation's full re-entry into the global oil market.
Asian stocks declined amid ongoing worries that China is losing its grip on its economy. US stocks dropped sharply during the previous trading session on Friday, 15 January 2016, as oil prices plunged and investors worried about slowing growth in the US.
Closer home, the broad market depicted weakness. There were almost six losers against every gainer on BSE. 2,250 shares declined and 376 shares rose. A total of 138 shares were unchanged. The BSE Mid-Cap index was currently down 1.42%. The BSE Small-Cap index was currently down 2.65%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Shares of public sector banks were mixed. Bank of Baroda (up 3.45%), Oriental Bank of Commerce (up 2.64%), Punjab National Bank (up 1.74%), Canara Bank (up 1.17%) and Allahabad Bank (up 2.46%) edged higher. IDBI Bank (down 5.16%), Corporation Bank (down 2.51%), Dena Bank (down 2.04%), Central Bank of India (down 1.57%) and Indian Bank (down 2.21%) edged lower.
State Bank of India (SBI) rose 1.06% at Rs 186.70 after a committee of directors at its meeting held on 15 January 2016, inter-alia, authorized the bank to seek shareholders' approval and to write to the Government of India (GoI) and the Reserve Bank of India (RBI) seeking their approval for raising equity capital upto Rs 15000 crore till 31 March 2017 by various means. The announcement was made after market hours on Friday, 15 January 2016.
Bank of India rose 1.33% at Rs 95.30 after the bank announced that it has purchased additional 49% stake in its subsidiary BOI Shareholding from BSE. Post this acquisition, BOI Shareholding has become a wholly owned subsidiary of Bank of India. The announcement was made after market hours on Friday, 15 January 2016.
United Bank of India lost 2.77% at Rs 19.30. The bank announced that it is proposing to raise Rs 200 crore plus Green Shoe Option from unsecured, subordinated, non-convertible, rated, redeemable, Basel III compliant debentures on private placement basis. The announcement was made after market hours on Friday, 15 January 2016.
Shares of private sector banks edged lower. HDFC Bank (down 0.51%), IndusInd Bank (down 0.59%) and ICICI Bank (down 0.38%) declined. Axis Bank (up 2.42%) and Yes Bank (up 0.6%) edged higher.
Kotak Mahindra Bank (KMBL) lost 0.58% at Rs 672.05. The stock was volatile. The stock hit high of Rs 686.40 and low of Rs 665.10 so far during the day. The bank's net profit jumped 36.63% to Rs 634.72 crore on 61.77% rise in total income to Rs 4843.86 crore in Q3 December 2015 over Q3 December 2014. The results are not comparable due to merger of ING Vysya Bank with Kotak Mahindra Bank which took effect from 1 April 2015. The result was announced during market hours today, 18 January 2016.
On absolute basis, KMBL's gross non-performing assets (NPAs) stood at Rs 2690.34 crore as on 31 December 2015 as against Rs 2655.38 crore as on 30 September 2015 and Rs 1219.86 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 2.3% as on 31 December 2015 as against 2.35% as on 30 September 2015 and 1.87% as on 31 December 2014. The ratio of net NPAs to net advances stood at 0.96% as on 31 December 2015 as against 1.05% as on 30 September 2015 and 0.97% as on 31 December 2014.
The bank's provisions and contingencies surged 686.26% to Rs 235.25 crore in Q3 December 2015 over Q3 December 2014.
KMBL said that the merger process of ING Vysya Bank is broadly on schedule and based on the current progress, the bank expects complete integration by April/May 2016.
Cement stocks were mixed. Shree Cement (up 0.49%) and UltraTech Cement (up 0.01%) edged higher. Ambuja Cements (down 1.37%) and ACC (down 0.01%) declined.
Grasim Industries was up 0.23%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Meanwhile, the latest data showed that India's merchandise exports declined for the thirteenth straight month in December 2015. Exports fell 14.7% to $22.30 billion in December 2015 over a year ago, data released by the government today, 18 January 2016 showed. The trend of falling exports is in tandem with other major world economies, according to a government statement. Imports fell 3.9% to $33.96 billion. The trade deficit widened 27.1% to $11.7 billion in December 2015 from $9.18 billion in December 2014.
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