Positive market breadth

Key benchmark indices drifted lower in mid-afternoon trade on negative global cues. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 35.86 points or 0.14% at 25,844.52. The Nifty 50 index was currently down 5.40 points or 0.07% at 7,906.65. The market breadth indicating the overall health of the market was positive. On BSE, 1,238 shares gained and 1,187 shares declined. A total of 177 shares were unchanged. The BSE Mid-Cap index was currently up 0.12%. The BSE Small-Cap index was currently up 0.08%. Both these indices outperformed the Sensex.

In overseas stock markets, European stocks edged lower dragged down by fall in auto shares amid investor concerns that the emissions scandal could spread to more car makers. The European Central Bank (ECB) yesterday, 21 April 2016, left monetary policy unchanged as expected. ECB President Mario Draghi retained a hawkish stance when he said that he would use all the tools at his disposal for as long as needed. Most Asian markets edged lower following overnight losses for US stocks. US stocks closed lower yesterday, 21 April 2016, as big declines in defensive sectors such as consumer staples, telecom and utilities weighed on the main indexes.

HDFC Bank rose in volatile trade after reporting good Q4 results. The stock rose 0.29% to Rs 1,094.20. The stock hit high of Rs 1,100.90 and low of Rs 1,085.65 so far during the day. The bank's net profit rose 20.21% to Rs 3374.22 crore on 21.14% rise in total income to Rs 18862.61 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 22 April 2016.

The bank's gross non-performing assets (NPAs) stood at Rs 4392.83 crore as on 31 March 2016 as against Rs 4255.20 crore as on 31 December 2015 and Rs 3438.38 crore as on 31 March 2015. The ratio of gross NPAs to gross advances stood at 0.94% as on 31 March 2016 as against 0.97% as on 31 December 2015 and 0.93% as on 31 March 2015. The ratio of net NPAs to net advances stood at 0.28% as on 31 March 2016 as against 0.29% as on 31 December 2015 and 0.25% as on 31 March 2015. The bank's provisions and contingencies (excluding tax provisions) rose 14.88% to Rs 662.45 crore in Q4 March 2016 over Q4 March 2015.

The bank's net profit rose 20.36% to Rs 12296.23 crore on 23.50% increase in total income to Rs 70973.17 crore in the year ended March 2016 over the year ended March 2015.

On a consolidated basis, net profit rose 19.76% to Rs 12801.33 crore on 23.52% increase in total income to Rs 74373.22 crore in the year ended March 2016 over the year ended March 2015.

Capital goods stocks saw mixed trend. L&T (up 1.07%), BEML (up 0.86%), Bharat Electronics (up 0.27%) and Punj Lloyd (up 0.86%) rose. Bharat Heavy Electricals (Bhel) (down 1.16%), ABB India (down 0.55%), Siemens (down 0.2%) and Thermax (down 2.08%) fell.

Crompton Greaves lost 2.92% to Rs 58.10, with the stock sliding on profit booking after recent sharp gains. Shares of Crompton Greaves had rallied 18.04% in the preceding six trading sessions to settle at Rs 59.85 yesterday, 21 April 2016, from its close of Rs 50.70 on 8 April 2016.

Pharma shares saw mixed trend. Glenmark Pharmaceuticals (up 3.34%), Cadila Healthcare (up 1.92%), Cipla (up 0.11%), Dr Reddy's Laboratories (up 0.52%), Lupin (up 0.06%) and Wockhardt (up 0.45%) rose.

Sun Pharmaceutical Industries (down 1.32%), Alkem Laboratories (down 0.84%), GlaxoSmithKline Pharmaceuticals (down 0.41%) fell.

Aurobindo Pharma gained after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Esomeprazole Magnesium Delayed-release Capsules USP, 20 mg and 40 mg. The stock rose 2.07%. The launch of this product is based on the settlement terms/litigation outcome with AstraZeneca. The drug is used in the treatment of gastroesophageal reflux disease. It has an estimated market size of $4.2 billion in the US for the twelve months ended February 2016, according to IMS data.

Merck lost 0.88% on turning ex-dividend today, 22 April 2016, for dividend of Rs 7.50 per share for the year ended 31 December 2015. Before turning ex-dividend, the stock offered a dividend yield of 1.1% based on the stock's closing price of Rs 679.50 on the BSE yesterday, 21 April 2016.

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