The market ended higher due to firm global cues and strong buying in banking and capital goods shares. The barometer index, the S&P BSE Sensex, rose 256.10 points or 0.74% to 34,969.70, as per the provisional closing data. The Nifty 50 index rose 74.50 points or 0.70% to 10,692.30, as per the provisional closing data. Continuous buying by domestic institutional investors also boosted sentiment. The Sensex provisionally settled below the psychologically important 35,000 mark after crossing that level in intraday trade.
After seeing a gap-up opening, the key benchmark indices continued to trade with firmness in the intraday. The Sensex rose 351.77 points, or 1.01% at the day's high of 35,065.37 in mid-afternoon trade, its highest intraday level since 2 February 2018. The index rose 31.13 points, or 0.09% at the day's low of 34,744.73 in early trade. The Nifty rose 102 points, or 0.96% at the day's high of 10,719.80 in mid-afternoon trade, its highest intraday level since 2 February 2018. The index rose 29.75 points, or 0.28% at the day's low of 10,647.55 in early trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,417 shares rose and 1,204 shares fell. A total of 137 shares were unchanged.
The BSE Mid-Cap index provisionally rose 0.79%, outperforming the Sensex. The BSE Small-Cap index provisionally rose 0.42%, underperforming the Sensex.
State Bank of India (up 3.96%), ICICI Bank (up 3.41%), Sun Pharmaceutical Industries (up 2.49%), Asian Paints India (up 2.17%) and Tata Motors (up 2.03%), were the major gainers from the Sensex pack.
TCS (down 2.37%), Wipro (down 2.06%), Coal India (down 1.48%), Hindustan Unilever (down 1.18%) and Yes Bank (down 1.11%), were the major losers from the Sensex pack.
Reliance Industries gained 1.94% ahead of its Q4 results today, 27 April 2018.
Car major Maruti Suzuki India fell 2.11%. The company announced that its net profit rose 10% to Rs 1882.10 crore on 14.4% increase in net sales to Rs 20594.30 crore in Q4 March 2018 over Q4 March 2017. Increase in effective tax rate impacted net profit, the company said. The result was announced during trading hours today, 27 April 2018.
Axis Bank surged 8.70%, with the stock reversing intraday losses in highly volatile trade in reaction to Q4 result announced by the bank after market hours yesterday, 26 April 2018. The bank reported net loss of Rs 2188.74 crore in Q4 March 2018 as compared with net profit of Rs 1225.10 crore in Q4 March 2017. Total income rose 2.67% to Rs 14559.85 crore in Q4 March 2018 over Q4 March 2017.
Axis Bank said that after making mandatory appropriations to Statutory Reserve, Investment Reserve and Capital Reserve, no profits are available for distribution as dividend for the financial year ended 31 March 2018 (FY 2018). Accordingly, no dividend has been recommended by the board of directors for FY 2018.
As on 31 March 2018, the bank's Gross NPA and Net NPA levels rose to 6.77% and 3.40% from 5.28% and 2.56% as on 31 December 2017, respectively. As on 31 March 2018, the bank's Gross NPA stood at Rs 34249 crore and Net NPA stood at Rs 16592 crore.
The bank has recognised slippages of Rs 16536 crore in Q4 March 2018. This includes an accelerated recognition in the stressed loan book of the bank, particularly in the power sector. It also includes a onetime impact driven by recent regulatory guidelines on resolution of stressed assets.
As on 31 March 2018, the bank's provision coverage, as a proportion of Gross NPAs including prudential write-offs, stood at 65%. Under Basel III, Total Capital Adequacy Ratio (CAR) CAR & Tier I CAR stood at 16.57% and 13.04%, respectively. Net interest margin for Q4 March 2018 stood at 3.33%.
Overseas, shares in Europe and Asia rose after US equities were buoyed by solid earnings results and a rebound in technology stocks as US bond yields pulled back. Meanwhile, Euro was hovering near three-month lows after the European Central Bank kept interest rates unchanged.
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