Wednesday 10 February 2016

PNB, Cairn keep Sensex, Nifty low; RIL bucks the trend

The INDIA VIX is up by 3.85% at 22.5650. Out of 1,786 stocks traded on the NSE, 1,230 declined,256 advanced and 290 remained unchanged today.


At 12:46 PM, the S&P BSE Sensex is trading at 23,834 down by 187 points, while NSE Nifty is trading at 7,231 down 68 points.

The BSE Mid-cap Index is trading down by 1% at 10,013. whereas BSE Small-cap Index is trading down by 1.24% at 10,296.

Among sectoral indices, the BSE Banking, Auto, Capital Goods and Pharma indices are shed over 1% each.

Infosys, RIL, Apollo Tyre, Jet Airways, HCL Tech and Reliance Infra are among the gainers, whereas Tata Motors, Dr.Reddy's, Adani Ports, ICICI Bank, Axis Bank, Coal India and Tata Steel are losing sheen on BSE.

The INDIA VIX is up by 3.85% at 22.5650. Out of 1,786 stocks traded on the NSE, 1,230 declined,256 advanced and 290 remained unchanged today.

A total of six stocks registered a fresh 52-week high in trades today, while 115 stocks touched a new 52-week low on the NSE.

Indian Rupee opened flat at 67.90/$ in early trade on Wednesday as against the previous close of 67.90/$. Today, the rupee movement will be in focus. On macroeconomic side, Indian economy grew 7.3% during the third quarter of the fiscal year 2015‐16, slower than the upwardly revised reading of 7.7% during the prior quarter. Indian government has projected growth for FY2015‐ 16 at 7.6%, better than the growth rate of 7.2% during the previous fiscal year.

Among results to watch for the day include Cipla, Ambuja Cements, ACC, Alstom T&D, Glaxosmithkline Pharma,  Bata India and Blue Dart Express among others. Following IEA's weak outlook for global oil demand, crude oil prices lost gains of a fortnight as Brent crude dropped below $31 while West Texas Intermediate was below $28 a barrel in New York.  Attention will be on what Janet Yellen says to the House Financial Services Committee later today. Global cues are subdued with Asian markets weak. US stock indices finished flat.

Mounting concerns over banking sector’s health in Europe and Yen’s appreciation against the greenback continued to haunt Asian stock markets. Besides, a subdued trading session at Wall Street and European stock markets overnight added to the misery of Asian stocks.

Meanwhile, crude oil prices were in green, with the WTI crude trading 2% higher at US$ 28.50/bbl and Brent Crude at US$ 31.30/bbl, up 2.34%.

Prestige Estates Projects slipped 6.7% to Rs.159.10 on BSE. The company reported 35% decline in standalone net profit at Rs. 64.85 crore for the quarter ended December.

Punjab National Bank cracked 5.5% to Rs.82.85 on NSE. The Bank posted a net profit of Rs. 510.10 million for the quarter ended December 31, 2015 where as the same was at Rs. 7745.60 mn for the quarter ended December 31, 2014.

Ashiana Housing slumped 10.4% to Rs.134 on BSE. The company reported a fall of 95% in net profit to Rs.0.26 crore for the quarter ended Dec. 31, 2015 as compared to Rs.5.3 crore in the same period last year.


Eros International Media slumped 7.7% to Rs.185.20. The company reported consolidated net profit of Rs.37.77 crore for the quarter ended December 31, 2015, registering decline of 65.46% yoy. The company’s consolidated revenue stood at Rs. 335.38 crore, down 31.66% yoy and 33.58% qoq.

Allahabad Bank tumbled 9.8% to Rs.46 on BSE. The bank reported standalone net loss of Rs. 486.14 crore for the quarter ended December 31, 2015. The bank's Net Interest Income (NII) stood at Rs. 1,416.22 crore, registering decline of 12.65% yoy and 11.87% qoq.The bank has raised capital fund through Private Placement of Basel III compliant Tier 2 Bonds in the nature of Debentures aggregating upto Rs. 500/-crore in one or more tranches during FY 2015-16. 


Deepak Fertilisers & Petrochemicals Corporation Ltd has informed BSE that pursuant to the Order by Ministry of Petroleum & Natural Gas (MOPNG), the supply of domestic gas to the Company's Plant in Raigad, Maharashtra had been stopped by Gas Authority of India Ltd. (GAIL) and Reliance Industries Ltd. (RIL) w.e.f. 6.00 a.m. on May 15, 2014. The Company challenged this decision by filing the Writ Petition W.P.(C) No. 2973 of 2014 before the Hon’ble High Court of Delhi.

The Single Judge of Hon’ble High Court of Delhi vide his Order dated July 07, 2015 disposed of the Writ Petition No. 2973 of 2014 and directed the Government of India to resume the supply of gas to the Company. However, the supply of natural gas was not restored and therefore an appeal was filed before the Division Bench of the High Court of Delhi. The Division Bench of Hon’ble High Court of Delhi vide its Order dated October 19, 2015, reaffirmed the direction of the Learned Single Judge in his Order dated July 07, 2015 to resume supply of natural gas to the Company. The Union Government of India filed a review petition before the Hon’ble High Court of Delhi, seeking review of the Order dated October 19, 2015. The Division Bench of the Hon’ble High Court of Delhi, vide its Order dated February 02, 2016, which has been received on February 09, 2016, dismissed the aforesaid review petition of Union Government of India for the reasons explained in the Order.

Apollo Tyres jumped 4.2% to Rs.140.80 on BSE. The tyre company reported consolidated net profit of Rs. 278.60 crore for the quarter ended December 31, 2015, registering growth of 51.25% yoy.

Jet Airways (India) is currently trading at Rs. 593.5, up by Rs. 16.65 or 2.89% from its previous closing of Rs. 576.85 on the BSE. The company is expected to place another large aircraft order, a top official at aircraft maker Boeing Co. has been quoted as saying by a business daily.

Butterfly Gandhimathi Appliances dropped 14% to Rs.213 on BSE. The company on Tuesday reported 264.14 per cent rise in its net profit figures to Rs. 1.06 crore for the quarter ended December 2015. The company earned 0.29 crore in the corresponding quarter a year ago.

Bank Nifty hits 52-week low; PNB to Nifty loser

Bank Nifty slumped 1.7 percent to 14,622, and PSU Bank index tumbled 2.9 percent to 2,102.

PNB cracked 5.5% to Rs.82.90 on NSE.  The Bank posted a net profit of Rs. 510.10 million for the quarter ended December 31, 2015 where as the same was at Rs. 7745.60 mn for the quarter ended December 31, 2014.

Bank of Baroda, Bank of India, Canara Bank and ICICI Bank are all down over 3.5% respectively.

Allahabad Bank tumbled 10% to Rs.45.95 on NSE. The bank reported standalone net loss of Rs. 486.14 crore for the quarter ended December 31, 2015. The bank's Net Interest Income (NII) stood at Rs. 1,416.22 crore, registering decline of 12.65% yoy and 11.87% qoq.The bank has raised capital fund through Private Placement of Basel III compliant Tier 2 Bonds in the nature of Debentures aggregating upto Rs. 500/-crore in one or more tranches during FY 2015-16. 

Central Bank of India plunged 10% to Rs.55.70. Central Bank of India reported a net loss of Rs.836.62 crore for the quarter ended 31 December compared with a net profit of Rs.138 crore in the year-ago quarter. The state-owned bank’s provisions more than doubled to Rs.1,499 crore from Rs.699 crore a year ago.

Aurobindo Pharma slipped 4% to Rs.713.90 on BSE. The pharmaceutical company reported consolidated net profit of Rs. 534.95 crore for the quarter ended December 31, 2015, registering growth of 39.18% yoy.


A total of 125 stocks touched 52-week low on BSE are Aarya Global Shares and Securities, Aban Offshore, Adani Ports, Adhunik Metaliks, Adlabs, A.F. Enterprises, Accel Frontline, AGC Networks, Allahabad Bank, Alok Industries, Andhra Bank, Aries Agro, Aurionpro, Bombay Burmah, Binani Industries, Birla Corporation, Central Bank Of India, Centum Electronics, Century Textiles & Industries, CESC, Claris Life, Cox&Kings, D B Realty, Den Network, Dena Bank, Dhanlaxmi Bank, DHFL, DLF, Eimco Elecon (India), Everest Inds, Excel Inds Federal Bank, Forbes Co, Great Eastern Shipping, Gujarat Mineral Development Corporation, Godavari, HGS, Inox Wind, Iob, Jindal Saw, JP Associates, Jindal Stainless (Hisar), Just Dial, Kamat Hotel,Karnataka Bank, KCL Infra, Kddl, L&T Finance Holdings, Lux Ind, Mastek, MBL Infra, Merck, Murli Ind, Nestle, Network18, Orchid Pharma, Orient Bank, Panacea Bio, Patel Eng, Phoenix, Pnb, Prestige, Prism Cement, Punjab & Sind Bank, RK Forge Rolta, Rs Software, SBT, Scan Steels, SETCO, Shanti Gear, Sml Isuzu, Snowman, Sona Koyo Steering Systems Speciality Restaurants, SRK, Surana Ind, Suryamark, Syndicate Bank, TCI Finance, Tech Mahindra, UCO Bank, Unitech, Urja Global, Vaibhav Global, Valecha Eng, Wheels, Wockhardt, Zicom.

Today, the Indian stock market has seen biggest sell-off on the back of global weakness.Most of PSU banks have plunged to their 52 week lows on account of growing bad loans which have sharply impacted the profitability of these banks in December quarter. The spike in provisions for bad assets comes in the wake of Reserve Bank Governor Raghuram Rajan's call for a clean-up of bank balance sheets by March 2017.

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