ICICI Bank and Axis Bank fell 1-2 percent in early trade after Yes Bank showed bad asset quality performance.
11:25 am Mutual Fund View: Harsha Upadhyaya of Kotak Mutual Fund believes that the market is in a consolidation mode and does not expect fireworks from the results as well.
“We are now looking for opportunities during the earnings season,” Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund told CNBC-TV18 in an interview.
He said investors must be cautious on midcaps due to higher valuations. There could be short term volatility in the space, but it may not be a bad idea from a 3-5 year perspective, he said.
11:10 am Market Check: Benchmark indices extended their gains from the morning session, with the Nifty trading above 9100-mark and the midcap indices performing well too.
The Sensex was up 86.22 points at 29422.79, while the Nifty was up 25.30 points at 9128.80. The market breadth was healthy as 1,682 shares advanced against a decline of 722 shares, while 126 shares were unchanged.
GAIL, HDFC and Grasim were top gainers on both indices, while ICICI Bank, Axis Bank and Yes Bank lost the most.
Reliance Power fell over 3 percent intraday after the Supreme Court disposed a plea for compensatory tariff for Sasan project.
“We are now looking for opportunities during the earnings season,” Harsha Upadhyaya, CIO-Equity, Kotak Mutual Fund told CNBC-TV18 in an interview.
He said investors must be cautious on midcaps due to higher valuations. There could be short term volatility in the space, but it may not be a bad idea from a 3-5 year perspective, he said.
11:10 am Market Check: Benchmark indices extended their gains from the morning session, with the Nifty trading above 9100-mark and the midcap indices performing well too.
The Sensex was up 86.22 points at 29422.79, while the Nifty was up 25.30 points at 9128.80. The market breadth was healthy as 1,682 shares advanced against a decline of 722 shares, while 126 shares were unchanged.
GAIL, HDFC and Grasim were top gainers on both indices, while ICICI Bank, Axis Bank and Yes Bank lost the most.
Reliance Power fell over 3 percent intraday after the Supreme Court disposed a plea for compensatory tariff for Sasan project.
10:58 am NPA policy: New NPA policy has received in-principle nod as Prime Minister's Office, Finance Ministry and RBI reached a consensus, reports CNBC-Awaaz quoting unnamed sources.
NPA policy doesn't need cabinet nod, hence RBI and finance ministry will issue circular soon. Sources say oversight committee will have special powers to resolve non-performing assets (NPA).
Formula for haircut to be taken by banks has been approved and banks can be allowed to take haircut within a permissible limit.
10:50 am IPO: CNBC-TV18 reports quoting government official said HUDCO IPO is likely to launch by June 30 but there is no timeframe for ONGC, Coal India deals.
The government deferred Hindustan Aeronautics IPO to July-September 2017 as company is yet to adopt new accounting rules, official said.
10:40 am Interview: National Aluminium Company (NALCO) has seen a strong response to their offer for sale (OFS) with the non-retail segment seeing a subscription of 1.84 times and the government has decided to retain full over subscription under the greenshoe option.
TK Chand, CMD of NALCO expects aluminium price to move between USD 1870 and USD 1950 in FY18.
Speaking about recent price increases in the aluminium sector, he said, "In Q4 our margins have significantly improved, so volume and price benefits have come into the company".
"We are expecting very good margin from aluminium segment", he further added.
10:20 am Results Estimates: Hindustan Zinc, the subsidiary of Vedanta Resources Plc, is expected to show a healthy 29 percent growth in profit at Rs 2,764 crore in January-March quarter compared with Rs 2,149 crore in year-ago period. Profit in Q4FY16 included a tax credit. Likely lower other income may restrict profit growth.
Revenue during the quarter is seen rising 88 percent to Rs 5,900 crore compared with same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.
Analysts believe Hindustan Zinc should report its best-ever quarterly EBITDA on the back of higher commodity prices and higher volumes, and stable cost.
Operating profit is likely to surge 156 percent year-on-year to Rs 3,347 crore and margin may expand 1490 basis points to 56.7 percent in the quarter gone by.
10:04 am Market Check: Benchmark indices remained moderately higher amid consolidation in morning while the broader markets continued to outperform. Oil and HDFC Group stocks supported the market while infra and select banks stocks were under pressure.
The 30-share BSE Sensex was up 33.78 points at 29,370.35 and the 50-share NSE Nifty gained 11.30 points at 9,114.80 while the BSE Midcap and Smallcap indices gained more than half a percent on positive breadth.
More than two shares advanced for every share falling on the BSE.
Investors remained cautious about earnings season after Yes Bank's bad asset quality performance and muted earnings by IT majors.
GAIL topped the buying list among largecaps, up 4 percent followed by HDFC, HDFC Bank and ONGC. Adani Ports extended gains by 2 percent.
9:59 am Buzzing: Petrochemical major Reliance Industries share price gained more than 1 percent intraday after the company successfully completed its Ethane Project in record time.
"...announces successful and flawless completion of its Ethane Project, including commissioning of its ethane receipt & handling facilities and ethane cracking, at its Dahej Manufacturing facility in Gujarat in a world record time of less than three years," the company said in its filing.
Reliance is the first company to globally conceptualize large-scale imports of ethane from North America as feedstock for its cracker portfolio in India.
9:50 am Provisions by banks: Exposure to a single cement company made a Rs 350 crore dent in the net profits of IndusInd Bank and Yes Bank, private lenders otherwise known to have better control on asset quality.
IndusInd Bank and Yes Bank had to make provisions of Rs 122 crore and Rs 227.9 crore, respectively, towards their exposure to this account in compliance with a Reserve Bank notification.
Both the banks stressed the reverses are temporary in nature, underlining that the cement company in question is all set to be acquired by a better performing city-based company soon and once the deal fructifies, there will be a write back.
9:32 am FII View: Nigel Tupper of Bank of America Merrill Lynch says the global wave continues its steady march upward, having troughed in June 2016.
The combination of improving macro data and earnings expectations, coupled with undemanding valuations of cyclicals remains a positive driver of global equity markets and cyclical sector performance, he feels.
Since the global wave troughed in June 2016, the MSCI All County World Index has returned 12.4 percent, Tupper says.
9:15 am Market Check: Benchmark indices opened marginally higher amid consolidation on Thursday, with the Nifty eyeing 9150 level following positive Asian cues.
The 30-share BSE Sensex was up 31.90 points at 29,368.47 and the 50-share NSE Nifty gained 16.05 points at 9,119.55. About 649 shares advanced against 181 declining shares on the BSE.
ICICI Bank and Axis Bank fell 1-2 percent in early trade after Yes Bank showed bad asset quality performance. The stock lost nearly 3 percent post earnings.
However, HDFC Bank, HDFC, Reliance Industries, ITC and Infosys supported the market.
The Indian rupee slipped in the early trade today. It has opened lower by 8 paise at 64.66 per dollar versus previous day's closing value of 64.58.
Mohan Shenoi of Kotak Mahindra Bank says the rupee is rangebound, consolidating after sharp gains in March. USD-INR trading range for the day is 64.50- 64.80/dollar, he adds.
The dollar rose, a day after dropping to a 3-week low, but gave up some gains after a report from the Federal Reserve suggested the outlook for the US economy isn't as rosy as it was earlier in the year.
Asian indexes were cautiously higher today, following key earnings on Wall Street and as oil prices came off two-week lows set earlier in the session.
NPA policy doesn't need cabinet nod, hence RBI and finance ministry will issue circular soon. Sources say oversight committee will have special powers to resolve non-performing assets (NPA).
Formula for haircut to be taken by banks has been approved and banks can be allowed to take haircut within a permissible limit.
10:50 am IPO: CNBC-TV18 reports quoting government official said HUDCO IPO is likely to launch by June 30 but there is no timeframe for ONGC, Coal India deals.
The government deferred Hindustan Aeronautics IPO to July-September 2017 as company is yet to adopt new accounting rules, official said.
10:40 am Interview: National Aluminium Company (NALCO) has seen a strong response to their offer for sale (OFS) with the non-retail segment seeing a subscription of 1.84 times and the government has decided to retain full over subscription under the greenshoe option.
TK Chand, CMD of NALCO expects aluminium price to move between USD 1870 and USD 1950 in FY18.
Speaking about recent price increases in the aluminium sector, he said, "In Q4 our margins have significantly improved, so volume and price benefits have come into the company".
"We are expecting very good margin from aluminium segment", he further added.
10:20 am Results Estimates: Hindustan Zinc, the subsidiary of Vedanta Resources Plc, is expected to show a healthy 29 percent growth in profit at Rs 2,764 crore in January-March quarter compared with Rs 2,149 crore in year-ago period. Profit in Q4FY16 included a tax credit. Likely lower other income may restrict profit growth.
Revenue during the quarter is seen rising 88 percent to Rs 5,900 crore compared with same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.
Analysts believe Hindustan Zinc should report its best-ever quarterly EBITDA on the back of higher commodity prices and higher volumes, and stable cost.
Operating profit is likely to surge 156 percent year-on-year to Rs 3,347 crore and margin may expand 1490 basis points to 56.7 percent in the quarter gone by.
10:04 am Market Check: Benchmark indices remained moderately higher amid consolidation in morning while the broader markets continued to outperform. Oil and HDFC Group stocks supported the market while infra and select banks stocks were under pressure.
The 30-share BSE Sensex was up 33.78 points at 29,370.35 and the 50-share NSE Nifty gained 11.30 points at 9,114.80 while the BSE Midcap and Smallcap indices gained more than half a percent on positive breadth.
More than two shares advanced for every share falling on the BSE.
Investors remained cautious about earnings season after Yes Bank's bad asset quality performance and muted earnings by IT majors.
GAIL topped the buying list among largecaps, up 4 percent followed by HDFC, HDFC Bank and ONGC. Adani Ports extended gains by 2 percent.
9:59 am Buzzing: Petrochemical major Reliance Industries share price gained more than 1 percent intraday after the company successfully completed its Ethane Project in record time.
"...announces successful and flawless completion of its Ethane Project, including commissioning of its ethane receipt & handling facilities and ethane cracking, at its Dahej Manufacturing facility in Gujarat in a world record time of less than three years," the company said in its filing.
Reliance is the first company to globally conceptualize large-scale imports of ethane from North America as feedstock for its cracker portfolio in India.
9:50 am Provisions by banks: Exposure to a single cement company made a Rs 350 crore dent in the net profits of IndusInd Bank and Yes Bank, private lenders otherwise known to have better control on asset quality.
IndusInd Bank and Yes Bank had to make provisions of Rs 122 crore and Rs 227.9 crore, respectively, towards their exposure to this account in compliance with a Reserve Bank notification.
Both the banks stressed the reverses are temporary in nature, underlining that the cement company in question is all set to be acquired by a better performing city-based company soon and once the deal fructifies, there will be a write back.
9:32 am FII View: Nigel Tupper of Bank of America Merrill Lynch says the global wave continues its steady march upward, having troughed in June 2016.
The combination of improving macro data and earnings expectations, coupled with undemanding valuations of cyclicals remains a positive driver of global equity markets and cyclical sector performance, he feels.
Since the global wave troughed in June 2016, the MSCI All County World Index has returned 12.4 percent, Tupper says.
9:15 am Market Check: Benchmark indices opened marginally higher amid consolidation on Thursday, with the Nifty eyeing 9150 level following positive Asian cues.
The 30-share BSE Sensex was up 31.90 points at 29,368.47 and the 50-share NSE Nifty gained 16.05 points at 9,119.55. About 649 shares advanced against 181 declining shares on the BSE.
ICICI Bank and Axis Bank fell 1-2 percent in early trade after Yes Bank showed bad asset quality performance. The stock lost nearly 3 percent post earnings.
However, HDFC Bank, HDFC, Reliance Industries, ITC and Infosys supported the market.
The Indian rupee slipped in the early trade today. It has opened lower by 8 paise at 64.66 per dollar versus previous day's closing value of 64.58.
Mohan Shenoi of Kotak Mahindra Bank says the rupee is rangebound, consolidating after sharp gains in March. USD-INR trading range for the day is 64.50- 64.80/dollar, he adds.
The dollar rose, a day after dropping to a 3-week low, but gave up some gains after a report from the Federal Reserve suggested the outlook for the US economy isn't as rosy as it was earlier in the year.
Asian indexes were cautiously higher today, following key earnings on Wall Street and as oil prices came off two-week lows set earlier in the session.
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