After a strong start, key benchmark indices pared intraday gains in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 53.83 points or 0.20% at 27,512.82. The Nifty 50 index was up 18.75 points or 0.22% at 8,515.80. Investors' sentiment was positive as Asian stocks were trading higher.
The Sensex rose 141.72 points, or 0.52% at the day's high of 27,600.71 in early trade, its highest level since 3 November 2016. The index rose 10.66 points, or 0.04% at the day's low of 27,469.65 in morning trade. The Nifty rose 46.10 points, or 0.54% at the day's high of 8,543.15 in early trade, its highest level since 2 November 2016.. The index rose 5.75 points, or 0.07% at the day's low of 8,502.80 in morning trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,296 shares rose and 879 shares fell. A total of 91 shares were unchanged. The BSE Mid-Cap index was currently down 0.02%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.32%, outperforming the Sensex.
ICICI Bank gained 2.33% to Rs 285.25 after net profit rose 2.38% to Rs 3102.27 crore on 41.31% rise in total income to Rs 22759.08 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 November 2016. Gross non-performing assets (NPAs) rose to Rs 32178.60 crore as on 30 September 2016 as against Rs 27193.58 crore as on 30 June 2016 and Rs 15857.82 crore as on 30 September 2015. The ratio of gross NPAs to gross advances rose to 6.82% as on 30 September 2016 as against 5.87% as on 30 June 2016 and 3.77% as on 30 September 2015.
The ratio of net NPAs to net advances increased to 3.57% as on 30 September 2016 as against 3.35% as on 30 June 2016 and 1.65% as on 30 September 2015. The bank's provisions and contingencies (excluding tax provisions) jumped 651.75% to Rs 7082.69 crore in Q2 September 2016 over Q2 September 2015.
ICICI Bank's other income in Q2 September 2016 includes gains of Rs 5682 crore relating to sale of 12.63% stake of the bank in the initial public offer of ICICI Prudential Life Insurance Company, which completed its IPO recently. ICICI Bank's net interest income rose 0.04% to Rs 5253 crore in Q2 September 2016 over Q2 September 2015.
Pharmaceutical shares were mixed. Cadila Healthcare (down 1.96%), Strides Shasun (down 1.83%), Sun Pharmaceutical Industries (down 1.38%), Divi's Laboratories (down 0.93%), GlaxoSmithKline Pharmaceuticals (down 0.73%), Aurobindo Pharma (down 0.7%), Cipla (down 0.6%), Glenmark Pharmaceuticals (down 0.32%), Lupin (down 0.19%) and Wockhardt (down 0.01%), edged lower. Dr Reddy's Laboratories (up 0.11%), Piramal Enterprises (up 0.69%), IPCA Laboratories (up 0.83%) and Alkem Laboratories (up 1.39%), edged higher.
Sanofi India was up 0.14% after the company's net profit rose 11.17% to Rs 80.60 crore on 7.36% rise in total income to Rs 639 crore in Q3 September 2016 over Q3 September 2015. The result was announced after market hours yesterday, 7 November 2016.
GlaxoSmithkline Consumer Healthcare was up 0.18% after the company's net profit fell 16.62% to Rs 183.72 crore on 5.69% rise in total income to Rs 1138.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 November 2016.
FMCG shares were mixed. Tata Global Beverages (up 1.80%), Godrej Consumer Products (up 0.57%), Hindustan Unilever (up 0.43%), Dabur India (up 0.25%), Procter & Gamble Hygiene & Health Care (up 0.21%) and GlaxoSmithKline Consumer Healthcare (up 0.18%), edged higher. Bajaj Corp (down 0.03%), Colgate Palmolive (India) (down 0.23%), Jyothy Laboratories (down 0.54%), Marico (down 0.81%) and Nestle India (down 0.87%), edgd lower.
FMCG major Britannia Industries was down 2.31% to Rs 3,227 after consolidated net profit rose 6% to Rs 234 crore on 11% growth in revenue to Rs 2430 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 7 November 2016.
Commenting on the company's performance, Varun Berry, Managing Director of Britannia Industries said the company has witnessed positive momentum in the market growth over the last few months and expects the impact of good monsoon and flow through the 7th pay commission benefits would continue to support this trend. On the commodity front, prices of key raw material have had a high double digit inflation, which is much beyond what the company had originally estimated. While, the company has initiated price increases and accelerated its cost efficiency program, its focus is on remaining competitive in the market place and gain market share to build a sustainable business, Berry said. He further said that Britannia sees many untapped opportunities in its biscuit business and is actively working on other adjacent macro snacking business opportunities to ensure it stays ahead of market and achieves profitable growth to take it to the next level.
Britannia Industries announced the appointment of N. Venkataraman as the new chief financial officer (CFO) of the company with effect from 1 December 2016, pursuant to resignation of existing CFO Amlan Datta Majumdar with effect from closing business hours of 30 November 2016.
In overseas stock markets, Asian stocks were trading higher as the world's most closely watched election draws near. Japan's Nikkei 225 was, however, flat. US stocks on Monday, 7 November 2016, had their best trading day since March on a percentage basis. Gains were broad, with the Dow Jones Industrial Average reclaiming the key 18,000 level and the S&P 500 snapping its nine-day losing streak, the longest since 1980. The slide had been attributed partly to polls showing a closer contest between Clinton and Republican rival Donald Trump.
The outcome of United States presidential elections of 2016, which will be held today, 8 November 2016, will have a bearing on global stocks. Presidential election will be held between Democratic party candidate Hillary Clinton and Republican party candidate Donald Trump. The results are expected on the next day of elections.
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