NEW
DELHI: Headline indices Sensex and Nifty logged solid gains on Monday on the
back of firm global cues and heavy buying in industry heavyweights RIL, ICICI
Bank and ITC.
The S&P
BSE Sensex rallied 293 points, or nearly 1 per cent, to 35,208, while NSE’s
Nifty50 index added 97.25 points, or 0.92 per cent, to 10,715.
Here’re the top newsmakers of the day:-
Here’re the top newsmakers of the day:-
PC Jeweller regains shine, and how!
Shares of the Delhi-based jewellery retailer gained for the third straight
session. The stock rallied 38 per cent to Rs 240.70. The company had on
Saturday informed the bourses that the board will hold a separate meeting on
May 10 to consider the proposal for buyback of its fully-paid equity shares.
This apart, around 7.8 lakh shares changed hands in three block deals in the
early trade.
Big Bull touch
lifts Karur Vysya NSE 1.44 %
Ace investor Rakesh
Jhunjhunwala has increased his stake in Karur Vysya Bank to 3.36 per cent in
January-March quarter from 3.09 per cent at the end of December quarter, latest
shareholding data showed. The Big Bull scooped up 19,50,000 shares in the
private bank in the March quarter. As a result, shares of the bank climbed
nearly 3 per cent in the intraday trade, before settling 1.44 per cent higher
at 105.50.
ICICI Bank gains
ahead of Q4 nos
Private lender ICICI
BankNSE 2.46 % is likely to register subdued numbers for the quarter to March,
taking a likely hit from higher provisions for bad loans.
An assessment by Systematix Shares & Stocks shows 35.70 per cent year-on-year (yoy) decline in standalone net profit at Rs 1,301.90 crore for ICICI Bank in Q4 FY18. The figure read Rs 2,024.60 crore in the same quarter last year.
Motilal OswalNSE -0.37 % sees 32 per cent YoY drop in ICICI bottom line, predicting a slide of 1.6 per cent in net interest income. The brokerage house believes that asset quality of the lender may worsen, projecting a jump in gross non-performing assets (GNPAs) to 9.8 per cent during the quarter under review, from 7.9 per cent a year ago. Percentage of net NPA may firm up to 5.20 per cent, from 4.90 per cent a year earlier.
An assessment by Systematix Shares & Stocks shows 35.70 per cent year-on-year (yoy) decline in standalone net profit at Rs 1,301.90 crore for ICICI Bank in Q4 FY18. The figure read Rs 2,024.60 crore in the same quarter last year.
Motilal OswalNSE -0.37 % sees 32 per cent YoY drop in ICICI bottom line, predicting a slide of 1.6 per cent in net interest income. The brokerage house believes that asset quality of the lender may worsen, projecting a jump in gross non-performing assets (GNPAs) to 9.8 per cent during the quarter under review, from 7.9 per cent a year ago. Percentage of net NPA may firm up to 5.20 per cent, from 4.90 per cent a year earlier.
Axis
CapitalNSE 0.00 % and Sharekhan also forecast nearly 35 per cent fall in net
profit for ICICI Bank for January-March.
Total other income, according to Sharekhan, should increase sharply, led by gains from stake sale in ICICI Securities. Pre-provisioning profit (PPoP) is expected to go up 65.10 per cent on a yearly basis.
Total other income, according to Sharekhan, should increase sharply, led by gains from stake sale in ICICI Securities. Pre-provisioning profit (PPoP) is expected to go up 65.10 per cent on a yearly basis.
“We have factored gains from the stake sale of
ICICI Securities, which will drive PPoP growth of 62 per cent yoy. Stress would
remain high with annualised slippage ratio of 10 per cent. We also await
clarity on differential between financial claim and reported NCLT 1 exposure,”
Systematix Shares said in a report.
Ujjivan bleeds on
farm loan waiver concerns
Shares of Ujjivan Financial
Services witnessed its biggest fall in three months on Monday, tanking nearly 6
per cent. Kotak Institutional Equities downgraded Ujjivan to ‘reduce’ from
‘add’ earlier but kept the target price unchanged. The stock slide is seen
mainly because of worries over farm loan waiver as parties jostle to outdo each
other on this count. The waiver was announced by the BJP would apply to loans
up to Rs 1 lakh from nationalised banks and co-operatives. Shares
of the company shut shop at Rs 395.45 apiece on BSE, down 5.91 per cent.
Rupee plunges to a
15-mth low
Rising crude oil prices in global markets and
strengthening dollar dragged the rupee below the 67-mark on Monday
for the first time since February 2017.
The local currency was down over 25 paise at 67.13 against the American currency in the afternoon trade against the previous close of 66.87.
Khoon Goh, Head of Asia Research at ANZ in an interaction with ETNow said, “Rising oil prices, the stronger US dollar rebound that we have had in the last few weeks are putting pressure on the Indian currency, but domestically as well there are also some issues that which are also not helping the rupee’s fortunes.”
Sustained selling by foreign investors in the domestic equity as well as bond markets have also affected forex market sentiment. For the past 13 consecutive sessions, foreign portfolio investors (FPIs) have remained net sellers of domestic stocks. They have net sold shares worth Rs 5,819 crore between April 16 and May 4.
Crude oil prices have risen over 65 per cent since June last year, touching the $70 a barrel last seen in the year 2014 when Prime Minister Narendra Modi came into the power.
Shilan Shah, Singapore-based economist at Capital Economics told ETNow, “The rise in the global oil prices has certainly had an impact on the rupee, given the importance of oil imports in particular so what that then means for trade balance and for the current account deficit as well, it may have spooked some investors in terms of the impact on inflation.”
The local currency was down over 25 paise at 67.13 against the American currency in the afternoon trade against the previous close of 66.87.
Khoon Goh, Head of Asia Research at ANZ in an interaction with ETNow said, “Rising oil prices, the stronger US dollar rebound that we have had in the last few weeks are putting pressure on the Indian currency, but domestically as well there are also some issues that which are also not helping the rupee’s fortunes.”
Sustained selling by foreign investors in the domestic equity as well as bond markets have also affected forex market sentiment. For the past 13 consecutive sessions, foreign portfolio investors (FPIs) have remained net sellers of domestic stocks. They have net sold shares worth Rs 5,819 crore between April 16 and May 4.
Crude oil prices have risen over 65 per cent since June last year, touching the $70 a barrel last seen in the year 2014 when Prime Minister Narendra Modi came into the power.
Shilan Shah, Singapore-based economist at Capital Economics told ETNow, “The rise in the global oil prices has certainly had an impact on the rupee, given the importance of oil imports in particular so what that then means for trade balance and for the current account deficit as well, it may have spooked some investors in terms of the impact on inflation.”
“There has
been a rebound in the US dollar as well so just to place the weakness in a
wider context most currencies, especially in the emerging markets have
weakened against the US dollar over the past few weeks and India has not been
spared this. So, I do think it reflects a number of factors really,” Shah
added.
The dollar index has strengthened over 3 per cent since the beginning of the ongoing financial year.
Market experts see further depreciation in the currency. Shah said, “In the near term, we could see a bit more weakness in rupee if oil prices continued to rise. Rupee can possibly go up to 68-69 but I think in the wider context the RBI’s FX reserves are pretty strong.”
The dollar index has strengthened over 3 per cent since the beginning of the ongoing financial year.
Market experts see further depreciation in the currency. Shah said, “In the near term, we could see a bit more weakness in rupee if oil prices continued to rise. Rupee can possibly go up to 68-69 but I think in the wider context the RBI’s FX reserves are pretty strong.”
Spurt in open interest
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