A divergent trend was witnessed among the two key benchmark indices, with barometer index, the S&P BSE Sensex, registering small losses and the Nifty 50 index registering minuscule gains on provisional basis. The Sensex fell 21.30 points or 0.08% to 25,581.80, as per the provisional closing data. The Nifty rose 2.55 points or 0.03% to 7,849.80, as per the provisional closing data. A divergent trend was witnessed among the various index constituents.
The Sensex lost 179.07 points, or 0.7% at the day's low of 25,424.03 in mid-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 58.55 points, or 0.75% at the day's low of 7,788.70 in mid-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 negative. On BSE, 1,359 shares fell and 1,135 shares rose. A total of 166 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.22%, outperforming the Sensex. The BSE Small-Cap index provisionally fell 0.05%. The fall in this index was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2797 crore, lower than turnover of Rs 2866.02 crore registered during the previous trading session.
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.
Index heavyweight Reliance Industries (RIL) fell 1.64% to Rs 981. The stock hit a high of Rs 998.75 and a low of Rs 977.85 in intraday trade.
Index heavyweight HDFC Bank rose 1.29% to Rs 1,129. The stock hit a high of Rs 1,136 and a low of Rs 1,106.80 in intraday trade.
Aurobindo Pharma fell 0.61%. The company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Lacosamide Tablets, 50 mg, 100 mg, 150 mg and 200 mg. The product is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Vimpat Tablets of UCB, Inc. The drug is indicated for adjunctive therapy in the treatment of partial-onset seizures. The drug had an estimated market size of $782 million in the US for the twelve months ended February 2016, according to IMS data. Aurobindo was one of the first applicants to submit a substantially complete Abbreviated New Drug Application (ANDA) ANDA with a paragraph IV certification and the company is eligible for 180 days of generic drug shared exclusivity. The launch of this product will be based on the outcome of the litigation in the United States Court with UCB, the company said in a statement. The announcement was made during trading hours today, 29 April 2016.
ICICI Bank edged lower in choppy trade on increase in sticky loans in Q4 March 2016. The stock lost 1.17% to Rs 237.35. ICICI Bank's net profit declined 75.97% to Rs 701.89 crore on 14.51% growth in total income to Rs 18590.86 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 29 April 2016.
The 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.
ICICI Bank said that the increase in non-performing assets was primarily due to the continuing challenges in the operating and recovery environment and the Reserve Bank of India's (RBI) objective of early recognition of stress and provisioning for the banking sector. The RBI has directed India's banks to review certain loan accounts and their classification over a period of two quarters starting from Q3 December 2015. ICICI Bank said that it has now completed the exercise of review of classification of cases highlighted by RBI.
ICICI Bank has created a collective contingency and related reserve of Rs 3600 crore in Q4 March 2016 over and above provisions made for non-performing and restructured loans. This contingency provision is towards exposure to certain stressed assets in certain sectors, including iron and steel, mining, power, rigs and cement. The weak global economic environment, the sharp downturn in the commodity cycle and the gradual nature of the domestic economic recovery has adversely impacted the borrowers in these sectors. Given the weak operating and recovery environment, it may take some time for resolution of stress on borrowers in these sectors, ICICI Bank said.
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%. 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.
ICICI Bank's board of directors at its meeting held today, 29 April 2016, approved seeking consent of the shareholders to invite subscription for non-convertible debentures or bonds on a private placement basis for an amount of upto Rs 25000 crore. The board approved the sale of a part of its shareholding in its insurance subsidiary ICICI Prudential Life Insurance Company through an initial public offer by the bank, subject to market conditions and necessary approvals. The size and other details of the offer would be determined in due course, the bank said.
HCL Technologies lost 6.24%, with the stock extending Thursday's losses triggered by disappointment from the company's earnings for the quarter ended 31 March 2016. The stock had lost 4.51% to settle at Rs 799.95 yesterday, 28 April 2016. As per media reports, a total of three brokerages have cut their price target on the HCL Tech stock following disappointing earnings. The company declared its results for the quarter ended 31 March 2016 before market hours yesterday, 28 April 2016.
HCL Tech's consolidated net profit rose 0.3% to Rs 1926 crore on 3.4% growth in revenue to Rs 10698 crore in the quarter ended 31 March 2016 over the quarter ended 31 December 2015. Revenue in constant currency terms rose 1.7% on sequential basis in the quarter ended 31 March 2016. In dollar terms, HCL Tech's net profit declined 2% to $285 million on 1.3% growth in revenue to $1,587 million in the quarter ended 31 March 2016 over the quarter ended 31 December 2015. HCL Tech has changed its accounting year to the period from 1 April to 31 March from earlier 1 July to 30 June.
Bharti Airtel lost 2.32% 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 6.32% 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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