A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in afternoon trade. The S&P BSE Sensex was down 45.49 points or 0.22%, off close to 60 points from the day's high and up about 55 points from the day's low. The market breadth, indicating the overall health of the market, was weak. The market was still in the red as weakness in European stocks and Asian stocks hit market sentiment adversely. In the foreign exchange market, the rupee edged lower against the dollar on dollar buying by custodial banks ahead of the Reserve Bank of India's monetary policy review next week.
Hindalco Industries extended intraday losses. Private bank major ICICI Bank fell in volatile trade after reporting Q2 result. Idea Cellular declined on fall in net profit on sequential basis in Q2 September 2013. Shares of other telecom firms also declined after Idea Cellular's Q2 results. Most auto stocks dropped.
Key benchmark indices trimmed initial losses triggered by negative Asian stocks. Volatility continued in mid-morning trade as the key benchmark indices extended losses after staging a recovery from lower level. The barometer index, the S&P BSE Sensex, briefly turned positive to hit fresh intraday high only to once again slip in negative zone. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. It trimmed losses after hitting fresh intraday low in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 991.83 crore on Thursday, 24 October 2013, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was down 45.49 points or 0.22% to 20,679.94. The index lost 102.88 points at the day's low of 20,622.55 in afternoon trade, its lowest level since 23 October 2013. The index rose 13.33 points at the day's high of 20,738.76 in mid-morning trade.
The CNX Nifty was down 25.15 points or 0.41% to 6,139.20. The index hit a low of 6,125.95 in intraday trade, its lowest level since 23 October 2013. The index hit a high of 6,161.95 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,302 shares declined and 845 shares gained. A total of 148 shares were unchanged.
L&T (down 2.91%), Tata Steel (down 2.89%) and Bhel (down 2.21%), edged lower from the Sensex pack.
Hindalco Industries fell 4.28%, with the stock extending intraday losses.
Private bank major ICICI Bank fell 0.11% to Rs 1020.50 after reporting Q2 result. The stock was volatile. The stock hit high of Rs 1037 and low of Rs 1015 so far during the day. ICICI Bank's net profit rose 20.24% to Rs 2352.05 crore on 7.54% rise in total income to Rs 12979.75 crore in Q2 September 2013 over Q2 September 2012. The bank announced result during market hours.
ICICI Bank's operating profit excluding treasury jumped 31% to Rs 3967 crore in Q2 September 2013 over Q2 September 2012. Net interest income (NII) rose 20% to Rs 4044 crore in Q2 September 2013 over Q2 September 2012. Net interest margin (NIM) increased to 3.31% in Q2 September 2013 from 3% in Q2 September 2012 and from 3.27% in Q1 June 2013.
Fee income rose 17% to Rs 1994 crore in Q2 September 2013 over Q2 September 2012.
Cost-to-income ratio reduced to 37.3% in Q2 September 2013 from 40.9% in Q2 September 2012.
ICICI Bank said it has fully recognised the mark-to-market provisions of Rs 279 crore on its investment portfolio, and has not availed the option permitted by the Reserve Bank of India of recognising the same over three quarters.
ICICI Bank said it has seen healthy trends in current and savings account (CASA) deposits mobilisation. The bank's CASA ratio was maintained at 43.3% at end September 2013. The average CASA ratio improved to 40.3% in Q2 September 2013 from 39% in Q1 June 2013.
Total advances increased by 16% year-on-year to Rs 317786 crore as on 30 September 2013 from Rs 275076 crore as on 30 September 2012. The year-on-year growth in domestic advances was 14%. The bank has continued to see healthy growth in its retail disbursements. The outstanding mortgages and auto loan portfolios for the bank have grown by 23% and 27% respectively on a year-on-year basis at 30 September 2013. ICICI Bank has seen a year-on-year growth of 20% in its total retail portfolio at 30 September 2013.
ICICI Bank's capital adequacy as on 30 September 2013 as per Reserve Bank of India's guidelines on Basel III norms was 16.50% and Tier-1 capital adequacy was 11.33%, well above regulatory requirements. Including the profits for half-year ended 30 September 2013, the capital adequacy ratio for the bank as per Basel III norms would have been 17.21% and the Tier I ratio would have been 12.04%.
Net non-performing assets as on 30 September 2013 were Rs 2707 crore, compared to Rs 2472 crore as at 30 June 2013. The net non-performing asset ratio (NPA) was 0.73% as on 30 September 2013, higher than 0.69% as on 30 June 2013. The bank's provision coverage ratio, computed in accordance with the RBI guidelines was 73.1% at end September 2013. Net loans to companies whose facilities have been restructured were Rs 6826 crore as on 30 September 2013, compared with Rs 5915 crore as on 30 June 2013.
On consolidated basis, ICICI Bank's net profit rose 12.84% to Rs 2697.42 crore on 2.18% growth in total income to Rs 19015.58 crore in Q2 September 2013 over Q2 September 2012.
Mr. Rakesh Jha, Deputy Chief Financial Officer of the bank has been designated as Chief Financial Officer of ICICI Bank. He will continue to report to Mr. N. S. Kannan, Executive Director, ICICI Bank said.
Idea Cellular slipped 2.2% on fall in net profit on sequential basis in Q2 September 2013. The company's consolidated net profit declined 3.26% to Rs 447.61 crore on 3.29% fall in total income to Rs 6323,26 crore in Q2 September 2013 over Q1 June 2013.
The company after trading hours on Thursday, 24 October 2013, said its profit after tax (PAT) rose 13.2% to Rs 398.50 crore in Q2 September 2013 from Rs 351.90 crore (despite including Rs 154.30 crore dividend from Indus) in Q2 September 2012. Revenue jumped 18.1% to Rs 6317 crore in Q2 September 2013 over Q2 September 2012. Revenue growth and scale benefit translated into healthy EBITDA margin of 27.6% in Q2 September 2013. EBITDA margin registered year-on-year (YoY) improvement by 4%, the company said.
The company's consolidated profit after tax (PAT) jumped 86.5% to Rs 447.60 crore in Q2 September 2013 over Q2 September 2012. Revenue, including 16% Indus contribution rose 19% on YoY basis in Q2 September 2013. The consolidated EBITDA margin of 31.2% in Q2 September 2013 is a YoY improvement of 4.4%, Idea Cellular said. The company announced Q2 result after market hours.
As competitive intensity in the telecom sector declines and as the overcapacity phase comes to an inevitable end and also as visibility of spectrum quantum and pricing improves, Idea Cellular expects to further consolidate its position in the telecom voice and data market, the company said in a statement.
Shares of other telecom firms also declined after Idea Cellular's Q2 results. Bharti Airtel (down 0.76%), MTNL (down 1.22%) Tata Teleservices (Maharashtra) (down 2.22%) and Reliance Communications (down 2.29%) declined.
Most auto stocks dropped. M&M (down 2.37%), Tata Motors (down 0.69%), Ashok Leyland (down 1.18%), Hero MotoCorp (down 1.76%) and Bajaj Auto (down 0.85%), declined.
But, car maker Maruti Suzuki India rose 0.3% ahead of its Q2 result on Monday, 28 October 2013.
In the foreign exchange market, the rupee edged lower against the dollar on dollar buying by custodial banks ahead of the Reserve Bank of India's monetary policy review next week. The partially convertible rupee was hovering at 61.62, compared with its close of 61.46/47 on Thursday, 24 October 2013.
European stocks dropped on Friday as companies from Kering SA to Renault (RNO) SA reported quarterly sales that missed projections. Key benchmark indices in France, Germany and UK shed 0.11% to 0.63%.
Asian markets declined on Friday, 25 October 2013, as forecasts from Canon Inc. to Posco disappointed investors. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea fell by 0.25% to 2.75%.
South Korea's economic growth maintained the same robust pace in the third quarter as the preceding quarter, beating market expectations and bolstering hopes that Asia's fourth-largest economy stays on a recovery track. Gross domestic product rose a seasonally adjusted 1.1% in the July-September period from the previous quarter, when the economy grew at the same pace, the Bank of Korea said Friday. That is the strongest pace since the first quarter of 2011, when the economy grew 1.3% on quarter. On a year-on-year basis, the economy expanded 3.3% in the third quarter, accelerating from the second-quarter's 2.3% gain.
Trading in US index futures indicated that the Dow could fall 32 points at the opening bell on Friday, 25 October 2013. US stocks climbed on Thursday, with the S&P 500 gaining a day after halting a run to a record high, as economic data underscored views US monetary stimulus will be in place for long time.
The preliminary reading of Markit's US flash manufacturing purchasing managers index slipped to 51.1 in October from 52.8 in September, the lowest level for a year. Readings above 50 indicate expansion and the PMI in October signals only modest manufacturing growth.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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