Closing bell: Sensex, Nifty close lower on profit booking; Asian Paints down 3%
Asian Paints remained top loser, down 3 percent followed by HDFC, ITC, Reliance Industries, ICICI Bank, Axis Bank and HDFC Bank.
3:30 pm Market Closing: Equity benchmarks closed lower on profit booking in banking & financials and FMCG stocks.
The 30-share BSE Sensex was down 62.83 points at 30,188.15 and the 50-share NSE Nifty slipped 21.50 points to 9,400.90.
About 1787 shares declined against 997 advancing shares on the BSE.
3:25 pm Corporate deals: Corporate India announced deals worth USD 1.96 billion in April through 28 transactions taking the year-to-date deal tally to USD 33.49 billion, says a Grant Thornton report.
According to the assurance, tax and advisory firm, M&A values nearly halved in April while volumes declined by 36 per cent due to the absence of domestic action which saw a ten- fold decline on a year-on-year basis.
Meanwhile, cross-border activity grew eight-fold supported by Flipkart's USD 1.4 billion investment round.
In the January-April period, there were 133 transactions worth USD 33.49 billion, registering a three-fold jump over the corresponding period last year when there were 168 transactions worth USD 11.52 billion.
3:15 pm Market trims losses: Equity benchmarks trimmed losses in late trade, with the Nifty getting back above 9400 level.
The 30-share BSE Sensex was down 67.68 points at 30,183.30 and the 50-share NSE Nifty fell 21.55 points to 9,400.85.
3:05 pm Gold Update: Gold prices rose for a second straight session as political uncertainty in the United States following the sacking of FBI chief James Comey pressured the dollar and equities fell.
Spot gold rose 0.37 percent to USD 1,228.70 per ounce. Spot gold rose 0.5 percent in the previous session, its best one-day gain in a month.
2:50 pm Earnings: Public sector lender Oriental Bank of Commerce posted highest ever loss at Rs 1,218 crore for January-March quarter against profit of Rs 21.6 crore in year-ago period, impacted by higher provisions. The loss was quite higher compared to analysts' estimates of Rs 77.4 crore.
Net interest income, the difference between interest earned and interest expended, fell 3.4 percent year-on-year to Rs 1,307.3 crore in the quarter ended March 2017, which was in line.
According to analysts polled by CNBC-TV18, net interest income was estimated at Rs 1,293.4 crore for the quarter.
Provisions for non-performing assets (NPA) increased nearly three times to Rs 3,050.6 crore compared with Rs 1,086.5 crore in same quarter last fiscal and nearly doubled from Rs 1,429.6 crore reported in previous quarter.
Asset quality as a percentage of gross and net NPAs improved during the quarter. Gross NPA declined 7 basis points sequentially to 13.73 percent and net NPA fell 72 bps to 8.96 percent in the quarter gone by.
2:30 pm Buzzing: Shares of IL&FS Engineering and Construction Company rose 4 percent intraday as it has got an order worth Rs 559.35 crore.
The company has received letter of intents (LOIs) from Jharkhand Bijli Vitran Nigam (JBVNL), Ranchi for rural electrification works of East Singhbhum package comprising East Singhbhum district, and West Singhbum package comprising West Singhbhum districts in Jharkhand state under Deen Dayal Upadhyay Gram Jyoti Yojna (DDUGJY).
The company has also received LOIs for urban electrification works of Jamshedpur electric supply area of JBVNL covering eight towns (Jamshedpur, Mango, Jugsalai, Chakuliya, Adityapur, Chaibasa, Chakradharpur, and Seraikela) in East Singhbhum, West Singhbum, and Seraikela-Kharsawan districts in Jharkhand state under integrated power development scheme (IPDS) on behalf of JBVNL.
The total value of both contracts is Rs 559.35 crore and the completion schedule of the works is 24 months.
2:10 pm Market Check: Bears looked to take control in the afternoon session, with benchmark indices trading in the red zone.
The Sensex was down 87.55 points at 30163.43, while the Nifty was down 32.60 points at 9389.80. The market breadth was negative as 895 shares advanced, 1748 shares declined, and 174 shares were unchanged.
Infosys and Hero MotoCorp were the top gainers, while Asian Paints, Axis Bank, Yes Bank and Zee Entertainment lost the most.
1:50 pm Management Speak: KBS Anand, MD & CEO, Asian Paints said the low double-digit volume growth is likely to be sustainable if the economy grows in a similar manner.
On the margin front, he said they would likely improve due to the two price hikes, which were to the tune of 5.7 percent, but it would also depend on how the rupee plays out and the raw material prices trend.
Talking about the home improvement business that saw a 19 percent growth in Q4, he said they are hopeful of revenue growth for the current fiscal too but it is a very small nascent business. It also correlates to the construction sector and so the extent of growth depends on the growth in the construction business, he said in an interview to CNBC-TV18.
1:32 pm Earnings: Dr Reddy's Laboratories said profit for March quarter rose 175.4 percent to Rs 337.6 crore compared with Rs 122.6 crore in same quarter last year.
The low base in year-ago quarter supported bottomline. Profit in Q4FY16 had impacted due to writedowns of Rs 400 crore on account of Venezuela.
Revenue during the quarter fell 4.8 percent to Rs 3,611.9 crore compared with Rs 3,795 crore in corresponding quarter of last fiscal, dragged by US sales that contributed more than 50 percent to global generics business.
Global generics sales slipped 5 percent year-on-year to Rs 2,913.8 crore while North America generic sales dropped 19 percent to Rs 1,534.9 crore.
Europe generic sales during the quarter increased 17 percent to Rs 206.6 crore and India sales rose 8 percent to Rs 571.1 crore compared with year-ago period.
1:12 pm NPA issue: In keeping with RBI's directive to banks on disclosure of divergences, Yes Bank reported Rs 4176.7 crore in gross non-performing assets in stark contrast to RBI's assessment of Rs 4176.7 crore for March 2016. The net NPAs, according to the annual report of the bank, were at Rs 3318.7 crore.
Explaining the RBI's assessment, Rana Kapoor, Yes Bank’s MD and CEO mentioned that the gross NPAs increased largely due to one single cement borrower (Jaiprakash Associates), the exposure to which stood at Rs 911 crore (88 percent of gross NPAs).”
Yes Bank’s gross NPAs as on March 2016 stood at Rs 750 crore while gross NPAs assessed by RBI were at Rs 4925.7 crore. Net NPAs for the bank were at Rs 284.5 crore, while RBI’s assessment for net NPAs stood at Rs 3603.1 crore.
1:00 pm Market Check: Equity benchmarks remained under pressure in afternoon, with the Sensex losing more than 100 points on profit booking after hitting record highs.
The 30-share BSE Sensex was down 101.70 points at 30,149.28 and the 50-share NSE Nifty slipped 41.20 points to 9,381.20.
The BSE Midcap and Smallcap indices extended losses, down 0.7 percent each as more than two shares declined for every share rising on the exchange.
Axis Bank, HDFC, Asian Paints, ICICI Bank and Reliance Industries were top five contributors to Sensex' losses, down 0.6-3 percent.
12:55 pm Earnings Estimates: Drug major Dr Reddy's Laboratories is expected to show more than 5-fold rise in fourth quarter consolidated profit at Rs 415.8 crore YoY due to low base in same quarter last year.
The company had reported profit of Rs 74.6 crore in Q4FY16 as that had impacted due to writedowns of Rs 400 crore on account of Venezuela.
Revenue during the quarter may fall 2 percent year-on-year to Rs 3,680 crore due to lower US growth, according to average of estimates of analysts polled by CNBC-TV18.
US business may continue declining on the back of pricing pressure, lack of high ticket launches, reaudit of facilities with warning letter February onwards, impact of cancellation of contract supply by McNeil Health in Q1FY17 and rupee appreciation (but mitigated by emerging market currencies strengthening).
Operating profit is seen rising 58.3 percent year-on-year to Rs 760.3 crore and margin may expand 810 basis points to 20.7 percent in the quarter ended March 2017.
12:40 pm Europe opening: European markets opened mixed after a subdued session on Wall Street, while oil prices extended gains on renewed optimism over potential production cuts.
The pan-European Stoxx 600 moved marginally higher shortly after the open with major bourses in positive territory and sectors pointing in opposite directions.
12:24 pm FII View: Sakthi Siva of Credit Suisse says the research house has reiterated its underweight call on the Expensive 4 club.
"While India fits our theme of best return on equity fundamentals in six years with return on equity rising from a low of 11.6 percent to 13.3 percent currently, we estimate implied return on equity to be 18.9 percent," he says.
12:22 pm Buzzing: There were only sellers in Shilpi Cable Technologies shares for the twelfth consecutive trading session Friday, with trading frozen at Rs 67.45. The stock has been sliding one way ever since an overseas lender filed a petition against the company under Insolvency and Bankruptcy Code.
The stock lost 67 percent since April 25, prompting the exchanges to reduce the intra-day circuit limit from 20 percent to 10 percent and finally to 5 percent.
On April 30, the company in its filing to exchanges said, "An overseas bank has filed a petition against Shilpi Cable before the National Company Law Tribunal (NCLT), under Section 8 & 9 of the Insolvency and Bankruptcy Code, 2016."
On May 5, Shilpi Cable informed exchanges that NCLT has reserved its order on the petition filed under Section 8 & 9 of the Insolvency and Bankruptcy Code.
12.02 pm Market Check: Benchmark indices continued to tread lower in noon, with the Nifty struggling below 9400 level due to consistent fall in private banking & financials and FMCG stocks.
The 30-share BSE Sensex was down 66.22 points at 30,184.76 and the 50-share NSE Nifty fell 32 points to 9,390.40.
The broader markets underperformed benchmarks, with the BSE Midcap and Smallcap indices falling half a percent each on weak breadth. About two shares declined for every share rising on the exchange.
Asian Paints remained top loser, down 3 percent followed by HDFC, ITC, Reliance Industries, ICICI Bank, Axis Bank and HDFC Bank.
11:45 am Management Speak: Throwing more light on the earnings performance and the outlook going forward, Gopal Bansal, Whole-Time Director, SML Isuzu said the current period for the commercial vehicle industry looks challenging, although on a long-term basis the trajectory looks good on the back of macroeconomic factors and growth that is expected in India.
11:30 am Expert Speak: A lot of two-wheeler stocks are doing well. In an interview with CNBC-TV18, Hitesh Goel, Senior Analyst at Kotak Institutional Equities shared his readings and outlook on two-wheeler space and specific stocks.
"We think that demand on the ground is not that strong, so we are not building a double-digit growth for the two-wheeler industry for FY18," said Goel.
11:10 am Market Check: Benchmark indices were off the day’s high points as investors could have looked to book profits after the bumper rally seen on Wednesday.
The Sensex was down 48.66 points at 30202.32, while the Nifty was down 21.60 points at 9400.80. The market breadth was in favour of declines as 772 shares advanced against a fall of 1,516 shares, while 125 shares were unchanged.
Asian Paints, GAIL and Zee Entertainment lost the most, while Infosys and Hero MotoCorp were the top gainers.
10:35 am Interview: Glenn Saldanha, CMD, Glenmark Pharma said FY18 looks to be a strong year despite price erosions in the US on the back of new launches. He said FY18 US sales would be better than FY17.
In an interview to CNBC-TV18, he said India business should continue to grow around 15 percent first quarter onwards.
Although the price erosion in the US market would continue, it would be at a lesser rate than seen in FY17. It would continue to be in the range of 10-15 percent, said Saldanha.
The company has completed 3 and half months of the total 6 months of exclusivity period for Zetia. They expect to clock revenue of USD 180-200 million for Zetia.
10:15 am SBI Life IPO: SBI Life Insurance Co Ltd is set to hire eight banks including Citigroup, Deutsche Bank and BNP Paribas to manage its up to $1 billion initial public offering of shares, IFR reported on Friday, citing three sources with knowledge of the deal.
The life insurance arm of top Indian lender State Bank of India will hire five local banks - Axis Capital, ICICI Securities, JM Financial, Kotak and SBI Capital Markets -IFR, a Thomson Reuters publication, said.
SBI Life now plans to offer a 12 percent stake in the IPO, up from the 10 percent earlier planned, IFR said.
9:50 am Market Check: Equity benchmarks turned lower amid consolidation in morning, with the Nifty breaking 9400 on profit booking.
The 30-share BSE Sensex was down 85.19 points at 30,165.79 and the 50-share NSE Nifty fell 34.85 points to 9,387.55. The broader markets were also under pressure on weak market breadth.
About two shares declined for every share rising on the BSE.
Asian Paints topped the selling list among Sensex stocks, down nearly 3 percent post earnings.
9:41 am Buzzing: Glenmark Pharmaceuticals share price hit a 52-week low of Rs 760, down 16 percent intraday after its quarterly earnings missed analysts' estimates and sequential profit was sharply lower.
Profit during January-March quarter increased 23 percent year-on-year to Rs 183.7 crore, largely aided by the exclusivity of generic cholesterol lowering drug Zetia, but overall earnings were much below Street estimates. Revenue rose 6 percent to Rs 2,457.2 crore YoY.
The bottomline growth was impacted by Rs 81 crore exceptional item, high expenses and decline in sales across Europe, Latin America, and other markets. The expenses shot up 13.6 percent to Rs 2,152 crore on sequential basis.
Profit on sequential basis declined 61 percent and revenues by 4 percent.
A CNBC-TV18 poll of analysts estimated the net profit to be in the range of Rs 511 crore to Rs 689 crore and revenues at Rs 2,982 crore for the quarter.
9:30 am FII View: Christopher Wood of CLSA says if Asia and emerging markets remain an overweight for Greed & Fear, India also remains the most preferred equity story in the emerging market universe on a 10-year view.
He further says the new approach (NPA ordinance) requires the RBI to execute proactively on its new powers. The good news is that the RBI's technocratic approach means that its management of the non-performing asset problem will be less politicised than if handled by other government agencies, he adds.
Wood says Greed & Fear remains constructive even if the Indian stock market is certainly expensive on a forward earnings basis.
9:15 am Market Check: Equity benchmarks started off last day of the week on flat note with a positive bias as investors awaited more corporate earnings after digesting good monsoon forecast.
The 30-share BSE Sensex was up 45.86 points at 30,296.84 and the 50-share NSE Nifty rose 14.30 points to 9,436.70.
Infosys, SBI, Tata Motors, HUL, M&M, Bank of Baroda and Kotak Mahindra Bank were early gainers while TCS, Bharti Airtel, ICICI Bank, HDFC Bank, Axis Bank, Bharti Infratel and Indiabulls Housing were losers.
The Indian rupee opened higher by 5 paise at 64.33 per dollar versus previous close of 64.38.
Ashutosh Raina of HDFC Bank expects the rupee to continue trading in 64.20-64.70/dollar range, with a weakening bias.
The dollar fell while treasury yields reversed earlier declines, as political uncertainty in the United States sent investors in search of safer investments like gold and the Japanese yen. The dollar fell half a percent versus the yen.Markets in Asia were mostly weaker, with the Japan's down 0.7 percent, following weak earnings from US retailer Macy's and ahead of the G7 finance meeting in Italy.