Benchmark share indices came off their day's lows after select index heavyweights led by private lender ICICI Bank trimmed early losses.
At 12:20pm, the S&P BSE Sensex was down 146 points at 25,461 and the Nifty50 was down 36 points at 7,814. In the broader market, the BSE Midcap was up nearly 1% and Smallcap index was trading with marginal gains. Market breadth continued to remain negative with 1169 losers and 1074 gainers on the BSE.
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ICICI Bank which lost over 4% in early trades today was down 3.7%. Among other Sensex heavyweights ITC and Infosys were down 0.5%-0.8% each.
Lupin was trading nearly 1% higher amid reports that the pharma major plans to strengthen its brand and speciality business in the US
(Updated at 11:15am)
Markets have extended losses after growth in India's manufacturing sector dropped in April owing to weak demand. Losses in the largest private lender ICICI Bank post its quarter results along with Index heavyweights dragged the indices lower.
At 11:15 am, the S&P BSE Sensex has dropped 244 points to quote at 25,363 and the Nifty50 has fallen 67 points to trade at 7,783.
Top five losers in the Sensex include ICICI Bank, Dr Reddy’s Lab, Adani Ports, NTPC and ITC down between 1.5%-4.5%.
Among other prominent losers include IDFC down over 2% after the company reported nearly 32% drop in consolidated profit for the quarter ended March 2016 on the back of lower income from operations.
Oberoi Realty plunge 4% after the company reported a drop in its net profit to Rs 65 crore for the fourth quarter ended March 31 as compared to Rs 103 crore recorded in the corresponding quarter last year as sales of its residential projects reduced during the period.
Shares of Federal Bank have slipped over 2% on posting a 96% decline in net profit to Rs 10 crore for the fourth quarter ended March 31, owing to higher provisioning.
Shares of InterGlobe Aviation have cracked 4% to Rs 1,029 after the budget carrier posted a flat net profit of Rs 579 crore the fourth quarter on the back of rupee depreciation and pressure on yields owing to rising competition. The airline in the same quarter last year the airline had recorded a net profit of Rs 577 crore.
(updated at 9:30 am)
At 9:30 am, the S&P BSE Sensex has dropped 181 points to quote at 25,425 and the Nifty50 has fallen 49 points to trade at 7,80. However, BSE Midcap index continues to outperform the larger peers and is up 0.2%.
Geojit BNP Paribas in a technical note says, “Nifty’s dip on Friday towards 7,831 swung prices higher on anticipated lines. However, momentum was founding in the face of stiff resistance from 7,957 region. To this end, consolidation with elevated volatility is likely to be the major theme today. Broad bias continues to be remain positive, but cracks have begun to widen, but the next few days’ consolidation should set the tone for further directional moves.”
Asia markets have started the month of May on a lower note with the Japanese key index Nikkei giving away as much as 3.5% amid strengthening of Yen and BOJ stance. The Japanese market was closed on Friday for a public holiday while markets in China and Hong Kong are closed on Monday.
Back home, the Real Estate Act, designed to protect consumer interest and improve accountability of developers, came into force on Sunday, setting in motion the process of making necessary operational rules and creation of institutional infrastructure.
Vedanta Group firm, THL Zinc Ltd, has sought a rollover of a controversial $1.25-billion loan, taken from the conglomerate’s cash-rich oil explorer Cairn India in July 2014. The loan, which was extended for two years at floating rate of three per cent plus LIBOR, was to be repaid by July 2016. Vedanta is up over 2%.
State-owned oil marketing companies such as BPCL, HPCL and IOC are trading higher up to 1% after hike in retail fuel prices. Petrol was hiked by Rs 1.06/litre and diesel was raised by Rs 2.94/litre. On the flip side, aviation stocks are facing the heat with IndiGo, SpiceJet and Jet Airways have cracked up to 5%.
Mortgage lender HDFC will trading flat with positive bias ahead of its fourth quarter earnings later today.
Auto stocks are trading mixed amid monthly sales data announcement for the month of April. Hero Motocorp is trading flat with positive bias. M&M, Maruti Suzuki, Bajaj Auto and Tata Motors have lost up to 1%.
Yes Bank is up over 1% after the RBI permitted FIIs/Registered FPIs to invest up to 60% of the paid-up capital of the bank from 49% earlier.
ICICI Bank, the largest private lender, had its gross non-performing assets (NPAs) rise 24 per cent to Rs 26,221 crore at the end of the March quarter, from Rs 21,149 crore at the end of the December quarter. Gross bad loans as a percentage of all loans rose to 5.82 per cent from 4.72 per cent in the corresponding quarter last year. Net NPAs increased to 2.98 per cent from 2.28 per cent in the quarter ended December. It is top loser of the hour and is down nearly 3%.
Lupin is trading higher up to 1% amid reports that the pharma major plans to strengthen its branded and speciality business in the US.
Godrej Properties will be in focus after it acquired 49 per cent stake in its subsidiary Happy Highrises from Karelides Traders for Rs 248.50 crore.
IDFC slipped 3% after consolidated net profit for March quarter declined sharply to Rs 130 crore compare to Rs 382 crore in the March 2015 quarter.
Oberoi Realty cracked over 4% after net profit for March 2015 quarter to Rs 64.55 crore compared with Rs 103 crore in the same quarter last fiscal
Private sector lender Federal Bank on Saturday reported a 96% decline in net profit to Rs 10.26 crore for the fourth quarter ended March 31, due to higher provisioning. The stock is dowm 2.5%.