Stock Market

Sensex, Nifty end lower; Tata Steel falls 3%, HUL down 2%


Chillicious Bureau

3:30 pm Market closing: 

The market has closed lower with FMCG and IT stocks under pressure. The Sensex was down 87.66 points or 0.3 percent at 28091.42 and the Nifty was down 17.65 points or 0.2 percent at 8691.30. About 1352 shares advanced, 1438 shares declined and 234 shares were unchanged. 

Adani Ports, Dr Reddy’s Labs, Asian Paints, ICICI Bank and Axis Bank were gainers while M&M, Tata Steel, GAIL, HUL and ONGC.

2:59 pm Market Update: Equity benchmarks remained lower with the Sensex down 89.71 points at 28089.37 and the Nifty down 17.75 points at 8691.20.

About 1446 shares declined against 1291 advancing shares on the BSE.

2:50 pm Results: Public sector lender IDBI Bank disappointed analysts with its second quarter earnings on Tuesday. Profit during July-September quarter plunged 53.5 percent year-on-year to Rs 55.5 crore on higher provisions and low net interest income despite strong other income growth.

Net interest income during the quarter declined 0.4 percent to Rs 1,606 crore crore compared with year-ago period.

Asset quality deteriorated in the quarter ended September 2016 as gross non-performing assets (NPA) jumped to 13.05 percent from 11.92 percent and net NPA rose to 8.32 percent from 7.47 percent on sequential basis.

In absolute terms, gross NPA climbed 10.5 percent quarter-on-quarter to Rs 30,134 crore and net NPA spiked 12 percent to Rs 18,195 crore in Q2.

2:40 pm FII investment: Prudential Financial Inc (PFI) of the US today announced raising of its stake in DHFL Pramerica Life Insurance Company (DPLI) to 49 per cent, from 26 per cent, without disclosing the deal amount.

Under the new agreement, Prudential International Insurance Holdings, (PIIH), a wholly owned subsidiary of PFI, a financial services company headquartered in the US, has increased its stake in DPLI to 49 per cent, the maximum allowed by Foreign Direct Investment (FDI) regulations, a joint statement said.

“PIIH has acquired 12 per cent equity stake from Resources Realty Private Limited and 11 per cent equity stake from Yardstick Developers Private Limited,” it said.

Mortgage firm DHFL, along with one of its promoter entities, holds 51 per cent stake in DPLI.

2:20 pm Earnings: Private sector lender Kotak Mahindra Bank has reported a whopping 42.8 percent growth in second quarter standalone profit at Rs 813.3 crore compared with year-ago period. The growth was driven by strong net interest income, other income and operating profit.

Net interest income grew by 18.9 percent year-on-year to Rs 1,995.3 crore in July-September quarter, which was in-line with estimates.

Profit beat analysts’ estimates, which was expected at Rs 777.5 crore and net interest income estimated at Rs 1,970 crore for the quarter, according to analysts polled by CNBC-TV18.

Asset quality was stable during the quarter with standalone gross non-performing assets (NPA) at 2.49 percent against 2.50 percent and net NPA at 1.2 percent against 1.21 percent on sequential basis but in absolute terms, it weakened a bit.

Also read – Quick take: How to trade Tata group stocks post Mistry’s exit?

2:00 pm Market Check

Benchmark indices continued to trade lower in afternoon due to consistent sell-off in technology, Tata Group and HDFC Group stocks. The 30-share BSE Sensex was down 85.90 points at 28093.18 and the 50-share NSE Nifty declined 18.40 points to 8690.55.

Tata group stocks were under pressure after Tata Sons sacked Cyrus Mistry as chairman yesterday. Tata Steel, Tata Motors and TCS declined 1-2 percent.

Eropean stocks remained higher with corporate earnings dominating market moves. France’s CAC, Germany’s DAX and Britain’s FTSE were up 0.3-0.5 percent.

Markets in Asia finished mixed, as South Korea’s shares slipped after data showed economic growth slowed in the third quarter.

The Kospi index closed down 10.57 points, or 0.52 percent, at 2,037.17, while the Korean won slipped from levels near 1132.80 to a low of 1139.40 against the dollar after the data was released.