Equity

End Session Commentary

Market shuts shop on a dull note
(21-Apr-2017, 16:41 Hours IST)  

Trading for the week ended on a dull note as the key benchmark indices failed to hold onto intraday gains to settle with small declines. The barometer index, the S&P BSE Sensex, fell 57.09 points or 0.19% to settle at 29,365.30. The Nifty 50 index fell 17 points or 0.19% to settle at 9,119.40. Weakness in European stocks dampened sentiment.

Key benchmark indices opened higher on positive Asian stocks. After hovering in a narrow range in positive terrain till early afternoon trade, indices slipped into the red to hit intrday low in afternoon trade. After sliding to intraday low in afternoon trade, the key benchmark indices trimmed losses in mid-afternoon trade. Stocks traded in negative zone in late trade.

The Sensex, fell 57.09 points or 0.19% to settle at 29,365.30, its lowest closing level since 19 April 2017. The Sensex gained 161.95 points or 0.55% at the day's high of 29,584.34. The index fell 162.97 points or 0.55% at the day's low of 29,259.42.

The Nifty 50 index fell 17 points or 0.19% to settle at 9,119.40, its lowest closing level since 19 April 2017. The Nifty gained 47.25 points or 0.51% at the day's high of 9,183.65. The index fell 47.65 points or 0.52% at the day's low of 9,088.75.

The BSE Mid-Cap index rose 0.02%. The BSE Small-Cap index rose 0.25%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, once again turned positive from negative in late trade. On the BSE, 1,449 shares rose and 1,422 shares fell. A total of 143 shares were unchanged.

The total turnover on BSE amounted to Rs 3763.79 crore, lower than the turnover of Rs 4028.59 crore registered during the previous trading session.

Among the sectoral indices on BSE, the BSE FMCG index (down 0.97%), the BSE Healthcare index (down 0.76%) and the BSE Metal index (down 0.59%) underperformed the Sensex. The BSE Telecom index (up 0.75%), the BSE Bankex index (down 0.02%) and the BSE Realty index (up 2.37%) outperformed the Sensex.

Index heavyweight and cigarette major ITC fell 1.81% to Rs 274.35. The stock hit a high of Rs 281.50 and low of Rs 272.70 in intraday trade.

Index heavyweight Reliance Industries (RIL) advanced 2.22% after the compnay announced the successful and flawless commissioning of the second and final phase of Para-Xylene (PX) comprising of PX Crystallizers trains, Trans-alkylation and Aromatic Extraction units at Jamnagar. The announcement was made after market hours yesterday, 20 April 2017.

With the commissioning of this plant, RIL's PX capacity will be more than double. RIL will emerge as the world's second-largest producer of PX with about 11% of global production, it said.

Bank stocks fell. Among private bank stocks, RBL Bank (down 1.13%), Axis Bank (down 0.44%), Yes Bank (down 0.11%), Kotak Mahindra Bank (down 1.1%) and ICICI Bank (down 1.34%) fell. IndusInd Bank (up 0.55%) rose.

HDFC Bank gained 2.38% after net profit rose 18.25% to Rs 3990.09 crore on 14.3% growth in total income to Rs 21560.66 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 21 April 2017.

The bank's gross non-performing assets (NPAs) rose to Rs 5885.66 crore as on 31 March 2017 as against Rs 5232.27 crore as on 31 December 2016 and Rs 4392.83 crore as on 31 March 2016.

The ratio of gross NPAs to gross advances stood at 1.05% as on 31 March 2017 as against 1.05% as on 31 December 2016 and 0.94% as on 31 March 2016. The ratio of net NPAs to net advances stood at 0.33% as on 31 March 2017 as against 0.32% as on 31 December 2016 and 0.28% as on 31 March 2016.

The bank's provisions and contingencies surged 90.47% to Rs 1261.80 crore in Q4 March 2017 over Q4 March 2016.

HDFC Bank's board recommended a dividend of Rs 11 per share for the year ended March 2017 (FY 2017).

Among PSU bank stocks, State Bank of India (SBI) (down 0.97%), Bank of Baroda (down 2.42%), Punjab National Bank (down 0.06%), Canara Bank (down 0.89%), IDBI Bank (down 0.28%) and Bank of India (down 0.73%) fell. Indian Bank (up 1.34%) and Union Bank of India (up 0.94%) rose.

Most capital goods stocks gained. Thermax (up 1.98%), Bharat Electronics (up 1.26%), Bharat Heavy Electricals (Bhel) (up 0.37%), BEML (up 0.73%) rose. Punj Lloyd (down 0.65%) and Siemens (down 0.1%) and ABB India (down 0.24%) fell.

L&T rose 0.39% after the company said it has signed a contract with South Korea's Hanwha Techwin for execution of the 155mm/ 52 Cal Tracked Self Propelled (SP) Gun program for the Indian Army. The announcement was made during trading hours today, 21 April 2017.

L&T was declared as the sole qualified bidder, post User Evaluation Trials, based on the performance of the K9 VAJRA-T, a world class self-propelled howitzer appropriately customised and fielded by L&T with HTW as the technology partner. L&T shall not only manufacture K9 VAJRA-T in India, with over 50% indigenous content, but also provide through life support from India, the company said.

Tata Steel slipped 0.68%. The company's board at a meeting held yesterday, 20 April 2017, reviewed the performance, capital structure and financing plan of the company. Based on the review and pursuant to the existing shareholders approval, the board approved issue of debt securities of up to Rs 9000 crore in the form either of non-convertible debentures on private placement basis or foreign currency or rupee denominated bonds or a combination thereof in one or more tranches.

The funds will primarily be deployed towards re-financing the existing debt, capex/working capital requirements and general corporate purposes. The board of directors also authorized the finance committee of the board to determine and approve the timing and terms of such issue of securities. The announcement was made after market hours yesterday, 20 April 2017.

Sun Pharmaceutical Industries lost 2.41% on report that the company has received 11 observations from the US drug regulator for its Dadra unit. According to a media report, while inspecting the plant, the US Food & Drug Administration (USFDA) found incomplete lab records at Sun Pharmaceutical Industries' Dadra plant. These observations include failure to produce appropriate master or control record for each batch of drugs and failure to properly investigate batches that does not meet specifications. Inspection of the plant by USFDA was concluded in the first week of this month, report added.

Report suggested that the Dadra site is the biggest unit for the company after Halol plant, for supplying drug in the United States.

Bharti Infratel rose 2.77% to Rs 352.20 on reports that a foreign brokerage has maintained outperform rating on the stock for a target of Rs 400.

Realty stocks gained. DLF (up 6.22%), Indiabulls Real Estate (up 1.2%), D B Realty (up 1%), Unitech (up 0.52%), Sobha (up 1.47%), Godrej Properties (up 0.59%) and Prestige Estates Projects (up 3.78%) rose. Parsvnath Developers (down 0.31%) and Oberoi Realty (down 0.83%) fell.

Housing Development & Infrastructure rose 2.17% after the company said it has launched a new residential project 'The Nest' at Mulund, Mumbai, under the affordable housing brand 'Budget Homes', having 263 units open for sale in phase 1 of the project. The announcement was made after market hours yesterday, 20 April 2017.

Overseas, European stocks were trading on a mixed note after a suspected terrorist attack in France, ahead the highly anticipated first round in the French presidential election on Sunday. A French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State militant group, as per reports. Research group Markit said Germany's flash manufacturing purchasing managers' index slipped to 58.2 in April from 58.3 the previous month.

Asian stocks rose after Bank of Japan's (BOJ) Governor Haruhiko Kuroda maintained an accommodative monetary policy and on optimism for a US tax overhaul. Japanese manufacturing activity expanded at a stronger pace in April as export orders surged, a preliminary survey showed, in a further sign of robust global demand. The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to 52.8 in April on a seasonally adjusted basis, from a final 52.4 in the previous month.

US stocks closed higher yesterday, 20 April 2017 on rising expectations for first-quarter corporate profits.

Elsewhere, finance ministers and central bank governors of the G-20 are gathered in the US, where the International Monetary Fund and World Bank carry on with their spring meetings.

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