End Session Commentary

Market settles with modest gains
(20-Apr-2017, 16:39 Hours IST)  

Key benchmark indices settled with modest gains after gyrating in a small range in the positive terrain throughout the day as largely positive global cues supported gains. The barometer index, the S&P BSE Sensex, rose 85.82 points or 0.29% to settle at 29,422.39. The Nifty 50 index rose 32.90 points or 0.36% to settle at 9,136.40. The Sensex gained for the second day in a row while Nifty snapped a five-day losing streak today, 20 April 2017. The Sensex hit its highest closing level in one-week.

Realty, IT, bank, capital goods and FMCG stocks hogged limelight in today's trade. Yes Bank dropped as the bank's bad loans rose in Q4.

Domestic bourses made a positive start to the session on higher Asian stocks. After trading with small gains in early trade, key indices steadily added on to the gains and hit fresh high in early afternoon trade. Indices hovered within a narrow range in positive terrain later during the session amid firm European cues.

The Sensex rose 85.82 points or 0.29% to settle at 29,422.39, its highest closing level since 13 April 2017. The index gained 116.49 points or 0.39% at the day's high of 29,453.06. The index rose 5.11 points or 0.01% at the day's low of 29,341.68.

The Nifty rose 32.90 points or 0.36% to settle at 9,136.40, its highest closing level since 17 April 2017. The index gained 40.40 points or 0.44% at the day's high of 9,143.90. The index fell 0.85 points at the day's low of 9,102.65.

The BSE Mid-Cap index rose 0.66%. The BSE Small-Cap index gained 1.14%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,829 shares rose and 1,040 shares fell. A total of 166 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (down 0.25%), the S&P BSE Energy index (down 0.3%), the S&P BSE Metal index (up 0.18%), the S&P BSE Telecom index (up 0.1%), the S&P BSE Utilities index (up 0.12%), the S&P BSE Healthcare index (down 0.14%), the S&P BSE Power index (down 0.17%), the S&P BSE Bankex (down 0.53%), and the S&P BSE Finance index (up 0.27%) underperformed the Sensex.

The S&P BSE Capital Goods index (up 0.69%), the S&P BSE Industrials index (up 0.85%), the S&P BSE Teck index (up 0.96%), the S&P BSE Realty index (up 2.14%), the S&P BSE Basic Materials index (up 1.54%), the S&P BSE Auto index (up 0.7%), the S&P BSE IT index (up 0.99%), the S&P BSE Consumer Durables index (up 1.23%), and the S&P BSE Consumer Discretionary Goods & Services index (up 1%), outperformed the Sensex.

The total turnover on BSE amounted to Rs 4026.09 crore, higher than the turnover of Rs 3364.37 crore registered during the previous trading session.

Index heavyweight and housing finance major HDFC advanced 1.82% to Rs 1,516.95. The stock hit high of Rs 1,531 and low of Rs 1,488.75 in intraday trade.

Most bank stocks gained. Among public sector banks, UCO Bank (up 1.35%), Syndicate Bank (up 1.76%), Punjab National Bank (up 0.84%), Corporation Bank (up 0.37%), Allahabad Bank (up 1.38%), Bank of Baroda (up 2.69%), State Bank of India (SBI) (up 0.25 %), Union Bank of India (up 3.17%), Canara Bank (up 2.34%), and Bank of India (up 1.88%) edged higher. United Bank of India shed 0.45%.

Among private sector banks, HDFC Bank (up 1.03%), Kotak Mahindra Bank (up 1.34%), Federal Bank (up 0.98%), and IndusInd Bank (up 0.29%) edged higher. Axis Bank (down 2.26%) and ICICI Bank (down 2.9%) declined.

Yes Bank dropped 3.76% as the bank's bad loans rose in Q4. Yes Bank's net profit rose 30.2% to Rs 914.10 crore on 29.44% rise in total income to Rs 5606.38 crore in Q4 March 2017 over Q4 March 2016. The bank announced Q4 results after market hours yesterday, 19 April 2017.

The bank's gross non-performing assets (NPAs) rose to Rs 2018.56 crore as on 31 March 2017 as against Rs 1005.85 crore as on 30 December 2016 and Rs 748.98 crore as on 31 March 2016.

The ratio of gross NPAs to gross advances rose to 1.52% as on 31 March 2017 as against 0.85% as on 31 December 2016 and 0.76% as on 31 March 2016. The ratio of net NPAs to net advances stood at 0.81% as on 31 March 2017 as against 0.29% as on 31 December 2016 and 0.29% as on 31 March 2016.

The bank's provisions and contingencies (excluding tax provisions) rose 66.11% to Rs 309.73 crore in Q4 March 2017 over Q4 March 2016. The board of directors of the bank recommended the payment of final dividend Rs 12 per share for the year ended 31 March 2017 (FY 2017).

The board has also approved raising of funds by way of issuance of debt securities including but not limited to non-convertible debentures, MTN (medium term notes), bonds upto Rs 20000 crore (in Rupee or foreign currency) by the bank to eligible investors on private placement.

Most realty stocks rose. DLF (up 1.47%), Sobha (up 7.26%), Godrej Properties (up 3.94%), Unitech (up 0.69%), Oberoi Realty (up 4.29%), Indiabulls Real Estate (up 2.77%), D B Realty (up 0.7%) gained. Housing Development and Infrastructure (down 0.28%), Parsvnath Developers (down 0.87%) and Prestige Estates Projects (down 0.8%) fell.

Meanwhile, the Sensex gained for the second day in a row today, 20 April 2017. The Sensex has gained 103.29 points or 0.35% in two sessions from a close of 29,319.10 on 18 April 2017. It has fallen 198.11 points or 0.66% in this month so far (till 20 April 2017). The barometer index has gained 2,795.93 points, or 10.5% in the calendar year 2017 (till 20 April 2017). From a 52-week low of 25,057.93 hit on 6 May 2016, the barometer index has risen 4,364.46 points or 17.41%. From a 52-week high of 30,007.48 hit on 5 April 2017, the barometer index is off 585.09 points or 1.94%. The Sensex is off 602.35 points or 2% from a record high of 30,024.74 hit on 4 March 2015.

Overseas, most European stocks rose as strong results from Unilever lifted bluechip consumers staples stocks and helped offset weakness in the energy sector.

Construction of buildings and infrastructure across the eurozone rose at the fastest pace in almost five years during February, reflecting a period of unusually mild weather and indicating that businesses and households may be more willing to invest after years of caution. The European Union's statistics agency said that output in the construction sector jumped 6.9% from January, the largest month-to-month rise since March 2012. Eurostat said output was 7.1% higher than in February 2016, the largest year-to-year gain since April 2014.

German producer prices remained unchanged in March, while the annual rate stabilized at the February level. Factory gate prices rose 3.1% in March from the same month of 2016, the federal statistics office Destatis said. The annual rate matched the February level, the strongest annual rise in over five years.

Asian stock markets ended on a mixed note. On the macro front, Japanese exports grew at the fastest rate in more than two years in March, supporting the bullish view in the debate over the health of the global economy.

Among US stocks, the Dow industrials and the S&P 500 ended lower yesterday, 19 April 2017 as a drop in oil prices fueled a selloff in energy shares while a drop in International Business Machines Corp. was responsible for half the session's losses in the blue-chip average. On the other hand, the Nasdaq Composite rose with big gains from shares of Intuitive Surgical Inc. and Lam Research Corp.

Meanwhile, the Federal Reserve's Beige Book report showed the US economy continued to expand steadily and Fed Vice Chairman Stanley Fischer painted a picture of brightening global growth that can better manage the spillover of gradual monetary tightening.

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