Investing in Banks and NBFCs? Don’t Forget These Factors –II
All lenders treat their loans as ‘assets’. Also, the investments they have (some for statutory reasons and others for reasons of liquidity management) are called ‘assets’. The net profit, after meeting all costs and write-offs, would be the ‘return on assets’ or RoA. This is another metric that analysts use; but, often, it could be a kind of hybrid one. A bank would get income from three...
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Nifty, Sensex under Pressure – Monday closing report

The major indices of the Indian stock markets suffered a correction on Monday and closed with losses over Friday’s close. On the NSE, there were 853 advances, 925 declines and 313 unchanged. The trends of the major indices in the course of Monday’s trading are given in the table below:

 

 
The key Indian equity indices traded negative on Monday, after opening sharply higher on the back of healthy April-June GDP figures released last week. The indices trimmed major gains made earlier in the day, due to weak Asian markets. Globally, Asian markets traded in the negative territory on concerns of escalations in the US-China trade war. According to analysts, buying was witnessed in consumer durables, healthcare and IT (information technology) stocks.
 
Global software major Wipro said it had won a USD1.5 billion (10,500 crore) 10-year deal from the US-based technology firm, Alight Solutions LLC. "We have won a 10-year engagement to provide a suite of solutions and services to the Illinois-based Alight Solutions, a leader in technology-enabled health, wealth, human resources and finance solutions," said the Bangalore-based IT major in a statement. Claiming the deal to be its largest win so far, the company said it would generate $1.5-1.6-billion revenues over the tenure. Wipro shares closed at Rs309.15, up 2.49% on the BSE.
 
Commercial vehicles maker Ashok Leyland Ltd and car maker Ford India said they had logged sales growth in August. In a statement issued here, Ashok Leyland said it sold 17,386 units last month as against 13,637 units logged in August 2017. Car maker Ford India said its total sales last month stood at 20,648 units as compared to 15,470 units sold in August 2017. The domestic wholesales in August rose to 8,042 vehicles as against 7,777 units in the same month last year. Exports grew to 12,606 vehicles compared to 7,963 units in August 2017, Ford India said. On its part, Honda Cars India Ltd sold 17,621 units last month, up from 17,361 units sold in August 2017. "There was an impact of Kerala floods and heavy rains in many parts of the country combined with GST-related high base effect of August 17. We hope to recover quickly and keep growing strongly with rollout of attractive offers starting from today through the festive season ahead," Rajesh Goel, SVP and Director, Marketing and Sales Honda Cars was quoted as saying in the statement. Ashok Leyland shares closed at Rs133.40, up 3.21% on the BSE.
Two-wheeler majors TVS Motor Company Ltd and Eicher Motors Ltd said they logged sales growth in August 2018. In a statement, TVS Motor said it sold a total of 343,217 units (two and three-wheelers) last month up from 317,563 units sold in August 2017. On the other hand, Eicher Motors said it sold 69,377 units last month, up from 67,977 units sold in August 2017. TVS  Motor Company shares Rs565.15, down 0.74% on the NSE. Eicher Motors shares closed at Rs28,715.00, up 2.34% on the NSE.
 
Automobile major Maruti Suzuki India reported a 3.4% dip in sales in August as the car maker sold a total of 158,189 units in the month, compared to 163,701 units sold in the year-ago month. "Sales during the month were adversely affected due to severe floods in Kerala and heavy rains in other parts of the country," it said. In the domestic market, it sold 147,700 units during August, down by 2.8% from 152,000 units sold in the corresponding month in 2017. The carmaker exported 10,489 units registering a 10.4% drop from 11,701 units shipped out in the year-ago month. It sold 114,261 units of passenger cars in the August 2018, falling by 1.4% from 115,897 units sold in the corresponding month 2017. Sales of its utility vehicles dropped by 16.2% to 17,971 units in August, while vans sales were at 13,663 units, decrease by 1.9% over corresponding month 2017. However, during the first five months of the current fiscal, it posted a 12.4% growth in sales to 813,037 units as compared to 723,618 units sold in the corresponding period of 2017-18. Maruti Suzuki India shares closed at Rs8,876.00, down 2.42% on the NSE.
 
The construction arm of L&T has won orders worth Rs2,654 crore across its businesses. The Transportation Infra business wins Rs2,095 crore order from MSRDC for 10th package of Nagpur-Mumbai Expressway. The Heavy Civil Infra business bags Rs559 crore order from MSRDC. Larsen & Toubro shares closed at Rs1,364.90, down 0.34% on the NSE.
 
Graphite India's subsidiary Graphite International BV has signed a definitive Agreement for investment of upto US$ 18.59 million in cash in General Graphene Corporation, a US-based unlisted company located in Knoxville, Tennessee, for a 46%  stake (approx.) in the company. Graphite India shares closed at Rs1,008.00, down 0.49% on the NSE.
 
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:
 
 

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GDP growth may propel Nifty, Sensex higher – Weekly closing report

We had mentioned in last week’s closing report that Nifty, Sensex were under pressure. The major indices of the Indian stock markets were range-bound during the week and closed with gains on Friday over last Friday’s close. The trends of the major indices in the course of the week are given in the table below:

 

 
The major indices of the Indian stock markets rallied on Monday and closed with gains over last Friday’s close. On the NSE, there were 986 advances, 825 declines and 94 unchanged.
 
The key Indian equity indices -- S&P BSE Sensex and the NSE Nifty50 -- crossed the psychological marks of 36,700 points and 11,700 points for the first time today before closing the day just below the landmark levels.
 
Supported by firm global cues, the Sensex and the Nifty 50 touched their all-time high levels of 38,736.88 points and 11,700.95 points, respectively and settled at record closing levels.
 
Healthy buying was witnessed in banking, consumer durables and IT (information technology) stocks. The S&P BSE banking index surged around 530 points during the day.
 
A major deadline in the process of resolving the country's most pressing corporate and banking problem of non-performing assets (NPAs), or bad loans ended on Monday. The Reserve Bank of India (RBI) had set this six-month timeframe for finalising resolution plans for around 70 large stressed accounts in banks that are worth over Rs3.8 lakh crore.
 
The major indices of the Indian stock markets opened up positively on Tuesday over previous day’s close and remained range bound. On the National Stock Exchange (NSE), there were 716 advances, 1028 declines and 329 unchanged.
Both the BSE Sensex and the NSE Nifty50 touched their respective record intra-day highs of 38,938.91 points and 11,760.20 points, before ending Tuesday's trade at record closing levels.
 
Market observers credited the easing of global trade tensions and buying in metal, auto and IT (information technology) stocks as factors, which pushed the key indices higher. 
 
ITI Ltd says it has received a letter of intent (LoI) valued at Rs2,658 crore for the selection as the Project Implementation Agency (PIA) for MahaNet-I (BharatNet Phase II) in Maharashtra for two packages, A and C, issued by Maharashtra Information Technology Corporation Ltd. 
 
Pharmaceutical company Lupin said it received final approval for its Gabapentin Tablets from the US FDA to market a generic version of Pfizer Inc's Neurontin tablets. The drug is use in the treatment of postherpetic neuralgia.
 
The major indices of the Indian stock markets were range-bound on Wednesday and closed with losses over Tuesday’s close. On the NSE, there were 832 advances, 891 declines and 349 unchanged.
 
Broadly negative global cues along with a weak rupee subdued the Indian equity market on Wednesday. Selling pressure was witnessed in the IT (information technology), energy and consumer durable stocks. Key Indian equity indices closed in the negative territory on Wednesday as the rupee slumped to an all-time low, while weak global cues further subdued the sentiments, analysts said. The Indian currency earlier in the day plunged to 70.55 per dollar, the lowest-ever level, which dampened the domestic investor sentiments. The market indices have continuously traded higher for the last six weeks and looks highly stretched.
 
Jain Irrigation bagged an export order valued at Rs127 crore from Rwanda Agriculture Board (RAB), Kigali, Rwanda for irrigation and watershed development project in Rwanda. 
 
Natural resources major Vedanta Ltd has won 41 of the 55 oil and gas exploration blocks offered through auction under the government's new open acreage licensing policy (OALP), the Directorate General of Hydrocarbons (DGH) said. 
 
The major indices of the Indian stock markets were range-bound on Thursday and closed with minor losses over Wednesday’s close. On the NSE, there were 973 advances, 770 declines and 328 unchanged.
 
The key equity indices traded in the red on Thursday due to a weak rupee along with profit booking ahead of August futures and options expiry later in the day. The indices had, however, opened on a positive note, but could not hold on to the gains. The Indian currency earlier in the day touched its lowest-ever mark of 70.81-82 per US dollar, which dampened the market sentiments. According to analysts, selling pressure was witnessed in banking stocks, followed by finance and FMCG (fast moving consumer goods) counters.
 
Cadila Health - Zydus has received the final approval from the USFDA (United States Food and Drug Administration) to market two products, Gemfibrozil Tablets USP and Aripiprazole Orally Disintegrating Tablets USP. Gemfibrozil used in treating high cholesterol, risk of stroke, heart attack and Aripiprazole is an antipsychotic drug. 
 
Tata Power has commissioned 820.8kWp World’s largest solar rooftop installation on a cricket stadium, at CCI, Mumbai. This will help to generate 1.12 million units per year which lead to 25% savings in power consumption cost and curbs CO2 emission of over 840 tonnes annually. 
 
The key Indian equity indices ceded all their gains made earlier in the day to trade in the negative territory on Friday as the rupee plunged further, along with decline in the global indices. The Indian currency earlier in the day touched its lowest-ever mark of 71 per US dollar, which dampened the domestic investor sentiments. Further, major Asian and other global indices traded on a negative note after US President Donald Trump in an interview threatened to pull out of the World Trade Organisation if the body "doesn't shape up". According to analysts, selling pressure was witnessed in banking stocks, followed by oil and gas stocks and metal counters.
 
Fortis Healthcare's Chief Financial Officer Gagandeep Singh Bedi has resigned, citing personal reasons. According to a BSE filing, the company Board at its meeting on Friday accepted Bedi's resignation "after discussion and deliberation" with effect from September 30 due to personal reasons. Fortis Healthcare shares closed at Rs146.65, down 1.35% on the NSE.
 
Jindal Stainless Group, which is planning to ramp up its capacity, is looking at a 15%-20% growth in revenue in the current financial year, an official said on Friday. "Given the stable condition of the commodity market, we are expecting 15-20 per cent growth in revenue in the current fiscal. In 2017-18, our revenue was around Rs20,000 crore," its Senior Vice President and Head (Sales and Distribution) Vijay Sharma said. He said that the volume growth is expected to be around 12%-13% in the current fiscal over last year. The group sold about 1.4 million tonnes of stainless steel in FY18 (2017-18). The stainless steel market is growing by around 5% globally and about 9%-10% in India, he said, adding that per capita consumption is around 2 kg in India, compared with a global average of 5 kg. The group, which presently has most exposure in the flat stainless products category, has a smelting capacity 1.6 million tonnes a year. "Our plan is to invest in cold rolling mills. Currently, we have a 450,000-tonne capacity in cold rolling and another 150,000 tonnes in our Indonesia facility. We will have about 200,000-tonne cold rolling capacity in our Jajpur plant," he said. Jindal Stainless shares closed at Rs66.50, down 3.41% on the NSE.

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