We had mentioned in Tuesday’s closing report that Nifty, Sensex were trendless. The major indices in the Indian stock markets reversed direction and made minor losses over Tuesday’s close after falling sharply at the open. Trading volumes were lower than usual. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Negative Asian and US indices and disappointing quarterly results, pushed the Indian equity markets down on Wednesday. This led the key indices to trade in the red during the mid-afternoon trade session, as selling pressure was witnessed in automobile, banking and information technology (IT) stocks. The Asian and domestic markets receded on the back of renewed fears of a US rate hike. In addition, reduced chances of the Reserve Bank of India (RBI) to further ease its key lending rates during the upcoming monetary policy review subdued investors' sentiments.
Public sector lender Punjab National Bank (PNB) on Wednesday posted a massive net loss of Rs.5,367.140 crore for the fourth quarter ended March 2016 caused by bad loans, as compared to net profit of Rs.306.56 crore in the corresponding period of last fiscal. For the entire fiscal 2015-16, the bank has posted a net loss of Rs.3,974.39 crore for the year ended March 31, 2016 as compared to net profit of Rs.3,061.58 crore for the year ended 31 March 2015, PNB said. PNB shares closed at Rs76.20, up 3.25% on the BSE.
The Foreign Investment Promotion Board (FIPB) has approved Rs.60.73 crore worth of foreign direct investment (FDI) proposals of Wockhardt, Aurobindo Pharma and Advanced Enzyme Technologies. "The government has approved three proposals of FDI amounting to Rs.60.73 crore approximately," the finance ministry said in a statement here on Wednesday. The decision was taken at a FIPB meet held on April 29, the statement said. The FIPB has also recommended to the Cabinet Committee on Economic Affairs (CCEA) for approval the Axis Bank proposal to increase the foreign investment limit in the bank to 74% from the current 62%, the statement said. The Axis Bank's proposal involves FDI of Rs.12,973.14 crore, it said. Wockhardt shares closed at Rs952.95, up 0.61% on the BSE. Aurobindo Pharma shares closed at Rs783.55, up 0.93% on the BSE. Axis Bank shares closed at Rs501.35, down 0.33% on the BSE.
Higher provisions for bad loans and contingencies turned state-run Syndicate Bank into red, with a whopping Rs.2,158 crore net loss for fourth quarter of 2015-16 from net profit of Rs.417 crore in like period year ago on standalone basis. "Total income, including interest for quarter under review also decreased marginally (1.1%) to Rs.6,525 crore from Rs.6,599 crore in same period year ago on standalone," the Manipal-based bank said in a statement here on Tuesday. For 2015-16 too, the bank posted a net loss of Rs.1,644 crore as against net profit of Rs.1,523 crore in 2014-15 on standalone basis. "Total income for fiscal under review, however, increased 8.4 percent to Rs.25,707 crore from Rs.23,725 crore year ago," the statement said. On consolidated basis, net loss for 2015-16 was Rs.1,517 crore as against net profit of Rs.1,664 crore in FY 2015. Total income (consolidated), however, increased to Rs.25,831 crore for FY 2016 from Rs.23,865 crore in 2014-15. "Provisions (other than tax) and contingencies shot up 237% year-on-year to Rs.2,412 crore in fourth quarter from Rs.715 crore in like period year ago and 116% YoY to Rs.4,348 crore for fiscal from Rs.2,011 crore in FY 2015 on standalone basis," the bank said in its profit-and-loss statement. Gross non-performing assets (GNPAs) ratios for the last quarter and fiscal doubled to 6.7% from 3.13% in like period year ago and net performing assets (NPAs) ration zoomed to 4.48% from 1.90% in same period year ago. "Cash recovery in NPA was Rs.2,702 crore in FY 2016 as against Rs.2,195 crore in FY 2015," the statement added. Syndicate Bank shares closed at Rs68.45, up 2.93% on the BSE.
The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday decided shift as many as 51 scrips to the trade-to-trade (the 'T' group) segment, while NSE would move 10 stocks to the category. The scrips to be moved to the restrictive segment on both the bourses include Resurgere Mines & Minerals, Sezal Glass, HMT Ltd, Suryajyoti Spinning Mills, Capital Trust Ltd, Kemrock Industries and Exports, Lumax Automotive Systems, Acropetal Technologies Ltd, Spectacle Ventures Ltd and others. No speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory in the segment.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: