Strong market breadth

Firmness prevailed on the bourses in afternoon trade. At 13:27 IST, the barometer index, the S&P BSE Sensex, was up 118.59 points or 0.32% at 37,455.44. The Nifty 50 index was up 30.85 points or 0.27% at 11,309.20

Among secondary barometers, the BSE Mid-Cap index was up 0.37%. The BSE Small-Cap index was up 0.58%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1550 shares rose and 941 shares fell. A total of 162 shares were unchanged.

State Bank of India (up 3.98%), Bharti Airtel (up 2.98%), Vedanta (up 2.41%), Axis Bank (up 2.21%) and M&M (up 2.12%) edged higher from the Sensex pack.

HDFC Bank (down 1.75%), Infosys (down 1.12%) and L&T (down 1%) edged lower from the Sensex pack.

ICICI Bank rose 3.76% after the bank declared Q1 result after market hours on Friday, 27 July 2018. ICICI Bank reported net loss to Rs 119.55 crore in Q1 June 2018 as compared to net profit of Rs 2049 crore in Q1 June 2017. Total income rose 10.25% to Rs 18574.17 crore in Q1 June 2018 over Q1 June 2017.

The core operating profit (profit before provisions and tax, excluding treasury income) grew by 17% year-on-year to Rs 5042 crore in Q1 June 2018 over Q1 June 2017. Net interest income was Rs 6102 crore Q1 June 2018 compared to Rs 5590 crore in Q1 June 2017. Overall net interest margin was 3.19% in Q1 June 2018 compared to 3.23% in Q1 June 2017. The net NPA ratio decreased from 4.77% at 31 March 2018 to 4.19% at 30 June 2018.

The bank's total capital adequacy at 30 June 2018 as per Reserve Bank of India's guidelines on Basel III norms was 18.35% and Tier-1 capital adequacy was 15.84% compared to the regulatory requirements of 11.03% and 9.03% respectively.

Overseas, European stocks fell as a drop in metal prices weighed on mining companies and investors awaited critical monetary policy decisions this week. Asian stocks declined as markets took cues from declines in Wall Street's last session, with focus this week shifting to the Bank of Japan.

The Bank of Japan (BoJ) will declare its interest rate decision on Tuesday, 31 July 2018. BoJ left its key short-term interest rate unchanged at -0.1% at its June 2018 meeting.

US stocks closed lower Friday, 27 July 2018, following disappointing results from Twitter Inc. and bellwethers, including Exxon and Intel.

US second-quarter GDP grew at 4.1%, with a jump in consumer spending and business investment contributing to the figure. That was the quickest pace of growth since 2014. Separately, consumer sentiment fell to a six-month low in July, the University of Michigan said.

Meanwhile, the Federal Reserve's Federal Open Market Committee will embark on its two-day meeting on Tuesday, with the central bank expected to announce its decision during Wednesday, 1 August 2018, US hours.

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