If the Nifty manages to close above 6020, the uptrend may resume but looks like a downtrend has started
Sensex and the Nifty opened lower at 20,200 and 6,032. Yesterday we had mentioned that for the current up move to end, the Nifty should close below 6020. Today the index closed much below this level after hitting a five day low (including today). The NSE saw a volume of 56.02 crore shares, much higher than yesterday.
Late on Tuesday, the RBI took new steps to support the rupee to boost the local currency by tightening liquidity. The RBI lowered the overall limit for borrowing under the daily liquidity adjustment facility for each bank to 0.5% of deposits from 1%. The central bank also said banks now needed to maintain 99% of their daily cash reserve ratio requirements -- the deposits they must set aside -- with the RBI, compared with 70% now. The change takes effect from the two-weekly period starting July 27.
The indices tried to rise after the initial lows but quickly slipped within an hour to hit their respective lows after which they traded almost at the same level until making some recovery at the close of the session. The Sensex hit the high of 20,253 and 6,047 respectively. The lows hit were 19,994 and 5,963. Both the Sensex and the Nifty recorded their highest percentage loss after 3rd July 2013. The Sensex closed at 20,091 (fell 211 points, 1.04%) and the Nifty closed 5,991 (fell 87 points, 1.44%).
The broader indices too settled lower. The BSE Mid-cap index fell 1.82% and the BSE Small-cap index fell 1.42%.
BSE IT (up 1.03%) and BSE TECk (up 0.99%) were the only sectoral gainers while BSE Bankex (down 4.61%); BSE Consumer durables (down 3.13%); BSE Capital goods (down 2.98%); BSE Metal (down 2.09%) and BSE PSU (down 1.76%).
Out of the 30 stocks on the Sensex, 9 stocks settled higher. The main gainers were Bharti Airtel (up 2.18%); Wipro (up 2.02%); TCS (up 1.87%); Sun Pharma
(up 1.85%) and Cipla (up 1.68%). The main losers were Jindal Steel (down 3.99%); L&T (down 3.93%); ICICI Bank (down 3.73%); HDFC Bank (down 3.40%) and SBI (down 3.13%).
The top two A Group gainers on the BSE were—Idea Cellular (up 3.58%) and Dabur (up 2.40%).
The top two A Group losers on the BSE were—Wockhardt (down 20%) and Yes Bank (down 12.63%).
The top two B Group gainers on the BSE were—Modern Dairies (up 19.98%) and Patel Integrated Logistic (up 19.31%).
The top two B Group losers on the BSE were—Omnitech Info (down 19.96%) and Cerebra Integrated Technologies (down 19.92%).
Of the 50 stocks on the Nifty, 12 ended in the in the green. The major gainers were Bharti Airtel (up 2.08%); TCS (up 1.90%); Sun Pharma (up 1.83%); Cipla (up 1.67%) and Bajaj Auto (up 1.39%). The key losers were IDFC (down 9.02%); IndusInd Bank (down 8.41%); Jaiprakash Associates (down 6.48%); Axis Bank (down 6.29%) and Kotak Bank (down 5.82%).
Asian indices had a mixed performance. Jakarta Composite fell the most 1.03% while the Straits Times gained the most, up 0.65%. US stocks ended mostly lower on Tuesday after a decline in a regional manufacturing gauge prompted concern, but the Dow Jones Industrial Average climbed to a record close.
China's manufacturing weakened further in July, signaling the worst of the nation's slowdown has yet to be reached, according to a preliminary survey of purchasing managers. The reading of 47.7 for an index released today by HSBC Holdings Plc and Markit Economics, was less than estimated and if confirmed in the final report Aug. 1, it would be the lowest in 11 months. Readings below 50 indicate contraction.
The signs of euro zone recovery contrasted with weaker Chinese PMI data. German and French PMI surveys both beat expectations. Overall, the business polls indicated that the euro zone economy was likely to grow in the current quarter. The European indices all traded in the green and the US Futures were also trading in the positive.
Tech Mahindra has signed an agreement with UBS Fund Services (Luxembourg) (UBS FSL) as the first client for its new platform, Tech Mahindra Managed Data Services (MDS).The said contract is for an initial five-year term. However, the company has not disclosed the financial details of the contract. Under the agreement Tech Mahindra will provide UBS FSL with a fully managed service across four major areas of data management, namely securities reference data, pricing, corporate actions and tax data. Tech Mahindra rose 2.53% to close at Rs1,209 on the NSE.
Despite reporting 38% higher net profit in first quarter on robust revenues as well as lower bad debts; Yes Bank failed to cheer market as its share fell by over 12% to Rs383.3
Yes Bank saw its first quarter net profit grew 38% to Rs400.84 crore as against the Rs290.14 crore, same period last year. However, this failed to boost the market sentiments and Yes Bank shares fell 12.6% to Rs383.3.
For the first quarter to end-June, Yes Bank’s net revenues increase 31% to Rs2,839.97 crore as against Rs2174.44 crore in the corresponding period last year. Meanwhile its operating profit grew 48% y-o-y to Rs679.96 crore for the quarter ended 30 June 2013.
According to Moneylife analysis, the bank’s three-quarter average revenue growth rate stood at 30% while its revenues for the June 2013 quarter grew at 31%. The average operating profit growth rate for the last three quarters stood at 46% while the lender posted a 48% increase during the June quarter. The Bank despite the good showing, is quoting at a discount of sorts. Its market capitalisation is just 5.62 times its operating profit while the return on net worth stood at 24%.
The bank’s total advances grew 24.3% to Rs47,897 crore as at June 2013 when compared to the Rs38,533 crore recorded in the same period last year. Current and savings account (CASA) deposits grew 61.1% to Rs13,163.2 crore taking CASA ratio to 20.2%, up from 16.3% for the same period last year.
Total deposits of Yes Bank grew 29.9% to Rs65,244.8 crore for the quarter ended 30 June 2013 as against Rs50,208 crore recorded for the same period last year. The bank’s balance sheet stood at Rs100,802 crore, up 29.9% y-o-y.
The Bank’s tier-1 capital stood at 9.5%while total capital adequacy ratio 15.4%.
The bank’s gross non-performing advances ratio, for the June 2013 quarter, stood at 0.22% when compared to then 0.28% for the June quarter last year. Similarly, net non-performing advances ratio stood at 0.03%, or Rs12.1 crore, for the current quarter when compared to 0.06% for the same period last year.
Corporate and institutional banking accounted for 64.3% of the customer assets portfolio while commercial banking (mid-size) accounted for 18.6% of the portfolio. Retail banking constituted to 17.1% of the customers’ assets.
Commenting on the results and financial performance, Rana Kapoor, managing director and chief executive officer said, “Yes Bank has witnessed steady growth on back of strong net interest income, and continued to focus on revenue diversity leading to a healthy increase in non-interest income. The bank has continued the strong traction on CASA and retail deposits, with its CASA ratio crossing 20% for the first time since inception.”
During the quarter, Yes Bank added 45 branches (total 475 branches), 100 ATMs (total 1051 ATMs).
On Wednesday, Yes Bank closed 12.56% down to Rs383.3 on the BSE, while the benchmark Sensex ended the day 1% down at 20,090.