Sensex, Nifty hit lowest level in more than two weeks

After hovering near the flat line in early afternoon trade, key benchmark indices lost ground in afternoon trade, with the barometer index, the S&P BSE Sensex, and the Nifty 50 index, both, hitting their lowest level in more than two weeks. At 13:16 IST, the Sensex was down 142.83 points or 0.56% to 25,460.27. The Nifty was currently down 41.30 points or 0.53% at 7,805.95. The Sensex and the Nifty, both, hit their lowest level in over two weeks. Weakness in global stocks weighed on the domestic bourses. Asian and European stocks edged lower in the wake of the Japanese central bank's decision against expanding monetary stimulus. ICICI Bank edged lower in choppy trade on increase in sticky loans in Q4 March 2016.

The Sensex lost 157.36 points, or 0.61% at the day's low of 25,445.74 in afternoon trade, its lowest level since 13 April 2016. The index rose 152.33 points, or 0.59% at the day's high of 25,755.43 in morning trade. The Nifty lost 52.25 points, or 0.66% at the day's low of 7,795 in afternoon trade, its lowest level since 13 April 2016. The index rose 41.80 points, or 0.53% at the day's high of 7,889.05 in morning trade.

The market breadth indicating the overall health of the market was weak. On BSE, shares 1,391 fell and 865 shares rose. A total of 162 shares were unchanged. The BSE Mid-Cap index was currently down 0.59%. The BSE Small-Cap index was currently down 0.66%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

In overseas stock markets, Asian and European stocks edged lower in the wake of the Japanese central bank's decision against expanding monetary stimulus. Losses for US stocks overnight also weighed on Asian markets. After the conclusion of a two-day monetary policy, the Bank of Japan (BOJ) yesterday, 28 April 2016, voted to keep its current level of asset purchases unchanged and rates on hold while announcing a 300 billion ($2.69 billion) lending program to support banks in the region hit by this month's Kyushu earthquake. Speculation was rise that the Japanese the central bank would announce a further easing of the monetary policy to stimulate Japan's economy. US stocks ended lower yesterday, 28 April 2016, under the combined weight of disappointing data and weak corporate earnings. US gross domestic product grew only 0.5% in the first quarter, its slowest pace of growth in two years.

ICICI Bank was down 2.89% at Rs 233.20 after the bank's net profit fell 75.98% to Rs 701.89 crore on 14.51% increase in total income to Rs 18590.86 crore in Q4 March 2016 over Q4 March 2015. The result was announced during trading hours today, 29 April 2016.

ICICI Bank made a collective contingency and related reserve of Rs 3600 crore during Q4 March 2016 over and above provisions made for non-performing and restructured loans as per Reserve Bank of India (RBI) guidelines. The bank's provisions excluding collective contingency and related reserve jumped 147.28% to Rs 3326 crore in Q4 March 2016 over Q4 March 2015.

The bank's provisioning coverage ratio, including cumulative prudential/technical write-offs was 61% as at 31 March 2016. The provisioning coverage ratio, excluding cumulative prudential/technical write-offs was 50.6%.

ICICI Bank's gross non-performing advances (net of write-off) stood at Rs 26221.25 crore as on 31 March 2016 compared with Rs 21149.19 crore as on 31 December 2015 and Rs 15094.69 crore as on 31 March 2015. The ratio of gross non-performing advances to gross advances stood at 5.82% as on 31 March 2016 compared with 4.72% as on 31 December 2015 and 3.78% as on 31 March 2015. The ratio of net non-performing advances to net advances stood at 2.98% as on 31 March 2016 as against 2.28% as on 31 December 2015 and 1.61% as on 31 March 2015.

The bank's current and savings account (CASA) deposits rose 17% in Q4 March 2016 over Q4 March 2015. CASA ratio improved to 45.8% as on 31 March 2016, from 45.2% as on 31 December 2015 and 45.5% as on 31 March 2015.

The board of directors of the bank has today approved the sale of a part of its shareholding in ICICI Prudential Life Insurance Company through an initial public offering by the company, subject to market conditions and necessary approvals. The size and other details of the offer would be determined in due course.

ICICI Bank said that the board of directors of the bank at its meeting held today, 29 April 2016 has approved seeking consent of the shareholders at the forthcoming Annual General Meeting for an enabling resolution which would be valid for a period of one year to invite subscription for non-convertible debentures or bonds on a private placement basis for an amount of upto Rs 25000 crore.

Auto stocks edged lower. Tata Motors (down 1.55%), Maruti Suzuki India (down 0.12%), Mahindra & Mahindra (M&M) (down 1.32%), Eicher Motors (down 1.32%), Ashok Leyland (down 0.52%), Bajaj Auto (down 0.61%), Hero MotoCorp (down 0.09%) and TVS Motor Company (down 0.93%) declined.

Telecom stocks dropped. MTNL (down 2.14%), Tata Teleservices (Maharashtra) (down 1.59%) and Reliance Communications (down 4.66%) fell.

Bharti Airtel lost 2.82% after the company said it will undertake buyback of shares only after the approval from Delhi High Court for the scheme of amalgamation of its wholly owned subsidiary with the company. Bharti Airtel said that the scheme of amalgamation of Augere Wireless Broadband India (Augere), a wholly owned subsidiary with the company is under consideration for approval by the Delhi High Court. The announcement was made before market hours today, 29 April 2016.

Bharti Airtel's board of directors at its meeting held on 27 April 2016, approved the proposal to buyback the shares on a proportionate basis through a tender offer. The buyback shall be up to an aggregate amount not exceeding Rs 1434 crore at a price of Rs 400 per share translating into approximately 3.58 crore shares, representing 0.9% of the total paid up equity share capital of the company.

Meanwhile, according to reports, a foreign brokerage has maintained its underperform rating on Bharti Airtel stock citing expensive valuations considering the near-term risks.

Idea Cellular slumped 7.86% after consolidated net profit fell 38.87% to Rs 575.63 crore on 10.63% growth in total income to Rs 9524.09 crore in Q4 March 2016 over Q4 March 2015. Idea Cellular's earnings before interest, taxation, depreciation and amortization (EBITDA) margin improved to 38.1% in Q4 March 2016 from 36.4% in Q4 March 2015. EBITDA rose 18% to Rs 3616 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 28 April 2016.

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