The market ended almost flat after a volatile trading session. The barometer index, the S&P BSE Sensex, rose 8.18 points or 0.02% to 35,216.32, as per the provisional closing data. The Nifty 50 index rose 2.30 points or 0.02% to 10,717.80, as per the provisional closing data. Strength in ICICI Bank, Axis Bank and State Bank of India boosted key indices, while selling in Infosys, HDFC Bank and Larsen & Toubro capped gains.
Trading was volatile. The Sensex rose 180.73 points, or 0.51% at the day's high of 35,388.87 in early trade, its highest intraday level since 2 February 2018. The index fell 72.13 points, or 0.20% at the day's low of 35,136.01 in afternoon trade. The Nifty rose 43.05 points, or 0.40% at the day's high of 10,758.55 in early trade, its highest intraday level since 2 May 2018. The index fell 26.10 points, or 0.24% at the day's low of 10,689.40 in afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was off 0.10%, underperforming the Sensex. The BSE Small-Cap index was up 0.10%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,511 shares fell and 1,174 shares rose. A total of 125 shares were unchanged.
ICICI Bank jumped 7.12% after the bank announced Q4 result after market hours yesterday, 7 May 2018. ICICI Bank's net profit dropped 49.62% to Rs 1020 crore on 20.24% rise in total income to Rs 19942.97 crore in Q4 March 2018 over Q4 March 2017. The core operating profit (profit before provisions and tax, excluding treasury income) was Rs 4829 crore in Q4 March 2018 as compared to Rs 4609 crore in Q4 March 2017.
ICICI Bank's net interest income rose 1% to Rs 6022 crore in Q4 March 2018 over Q4 March 2017. The domestic net interest margin was 3.67% and the overall net interest margin was 3.24% in Q4 March 2018. The bank's capital adequacy at 31 March 2018 as per Reserve Bank of India's guidelines on Basel III norms was 18.42% and Tier-1 capital adequacy was 15.92% compared to the regulatory requirements of 10.98% and 8.98% respectively.
Gross NPA additions declined from Rs 4976 crore in Q1 June 2017 to Rs 4674 crore in Q2 September 2017 and Rs 4380 crore in Q3 December 2017. During Q4 March 2018, the gross additions to NPA were Rs 15737 crore. This included Rs 9968 crore of loans which were under RBI schemes and classified as standard at 31 December 2017.
The provision coverage ratio on non-performing loans, including cumulative technical/prudential write-offs increased by 690 basis points from 53.6% at 31 March 2017 to 60.5% at 31 March 2018. The net NPA ratio was 4.77% at 31 March 2018 compared to 4.20% at 31 December 2017 and 4.89% at 31 March 2017.
State Bank of India (up 1.44%), Axis Bank (up 1.14%), Power Grid Corporation of India (up 0.93%), Bharti Airtel (up 0.68%) and TCS (up 0.53%), were the other major Sensex gainers.
Mahindra & Mahindra (down 2.2%), Larsen & Toubro (L&T) (down 1.86%), Infosys (down 1.71%), Yes Bank (down 1.53%), Tata Motors (down 0.96%), IndusInd Bank (down 0.94%) and HDFC Bank (down 0.69%), were the major Sensex losers.
Overseas, European stocks were mostly lower as investors awaited critical news surrounding the Iran nuclear accord. Asian markets settled higher following firm leads from Wall Street. China's Shanghai Composite rose 0.79%. China's April exports rose 12.9% from a year earlier, rebounding from a drop in March, while imports grew 21.5%, both growing much faster than expected despite worries over an escalating trade dispute with the United States. That left the country with a trade surplus of $28.78 billion for the month, data showed on Tuesday, 8 May 2018.
US stock market settled higher on Monday, but well off the peak of the day, as energy shares pulled back following a late-afternoon tweet from President Donald Trump indicated that a decision was imminent on whether the US would decertify a 2015 Iran nuclear pact.
Trump tweeted that he would make an announcement on a possible decertification of the Iran nuclear agreement that the Obama administration had reached with the Middle Eastern country back in 2015. European leaders had urged Trump not to abandon the pact. Trump had until 12 May 2018 to decide whether to keep the deal intact. Abandoning it would trigger a reimposition of economic sanctions on Iran, hampering oil exports from the country and cutting global supply.
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