Key benchmark indices provisionally ended with modest losses in a volatile session of trade. The barometer index, the S&P BSE Sensex, fell 82.19 points or 0.34% at 23,979.85, as per the provisional closing data. The 50-unit Nifty 50 index fell 32.50 points or 0.44% at 7,276.80, as per the provisional closing data. The Sensex provisionally settled below the psychological 24,000 mark. The barometer index alternately swung above and below that level in intraday trade after falling below that mark in mid-morning trade.
The Sensex fell 200.04 points or 0.83% at the day's low of 23,862 in afternoon trade. The barometer index jumped 289.79 points or 1.2% at the day's high of 24,351.83 at the onset of the trading session, its highest level since 19 January 2016. The Nifty fell 59.30 points or 0.81% at the day's low of 7,250 in afternoon trade. The index rose 89.40 points or 1.22% at the day's high of 7,398.70 at the onset of the trading session.
The market breadth indicating the overall health of the market was positive. On BSE, 1,342 shares gained and 1,246 shares declined. A total of 182 shares were unchanged. The BSE Mid-Cap index was provisionally off 0.3%. The fall in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was provisionally up 0.53%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2999 crore, lower than turnover of Rs 3088.57 crore registered during the previous trading session.
In overseas stock markets, European stocks rose as investors looked to the European Central Bank's (ECB) monthly policy meeting, hoping for some reassurance from President Mario Draghi as global markets remain extremely volatile.
Earlier during the global day, modest early gains in Asian markets were wiped out as bearish sentiment took hold later as interest rates in Hong Kong climbed and Bank of Japan Governor Haruhiko Kuroda said the bank isn't considering using negative interest rate policy to help the country's economy. In mainland China, Shanghai Composite ended 3.23% lower after extending losses towards the close of the trading session. In Hong Kong, the Hang Seng index fell 1.82%. In Japan, the Nikkei 225 Average ended 2.43% lower. US stocks ended a wild session sharply lower yesterday, 20 January 2016, but trimmed heavier losses scored earlier in the session as a modest bounce off session lows by crude-oil prices provided some relief.
Axis Bank surged 5.17% after net profit rose 14.5% to Rs 2175.30 crore on 14.66% rise in total income to Rs 12531.11 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 20 January 2016.
On absolute basis, Axis Bank's gross non-performing assets (NPAs) stood at Rs 5724.05 crore as on 31 December 2015, compared with Rs 4451.11 crore as on 30 September 2015 and Rs 3901.59 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 1.68% as on 31 December 2015 as against 1.38% as on 30 September 2015 and 1.34% as on 31 December 2014. The ratio of net NPAs to net advances stood at 0.75% as on 31 December 2015 as against 0.48% as on 30 September 2015 and 0.44% as on 31 December 2014.
The bank's provisions and contingencies rose 40.5% to Rs 712.59 crore in Q3 December 2015 over Q3 December 2014. As on 31 December 2015, the bank's provision coverage as a proportion of gross NPAs, including prudential write-offs was 72%. The provision coverage before accumulated write-offs was 82%, Axis Bank said in a statement.
Index heavyweight and software major Infosys advanced 1.46% to Rs 1,138. The stock hit high of Rs 1,142.50 and low of Rs 1,122.50 in intraday trade.
Cement stocks gained. Ambuja Cements (up 4.28%), ACC (up 1.63%), UltraTech Cement (up 2.66%) gained. Shree Cement fell 2.33%.
Grasim Industries was almost unchanged at Rs 3,465. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly said that investors will look at stable emerging markets (EM), including India once the volatility in global markets subsides. On the RBI's monetary policy stance next month, Rajan reportedly said that the rest of the world is facing a deflationary environment and that will help India disinflate. The RBI's next monetary policy review is scheduled on 2 February 2016. On the recent sharp drop in the Indian rupee, Rajan was quoted as saying that the Indian currency has been relatively strong when compared to other EM currencies.
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