Market Live: Sensex sinks 250 pts; PSU Bank bucks trend ahead of SBI Q1 nos

1:12 pm Earnings: State Bank of India’s first quarter profit jumped three-fold to Rs 3,032 crore from Rs 1,046 crore on year-on-year basis.

Numbers were better than analysts’ expectations. Profit was estimated at Rs 2,485.3 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

SBI has reported NPA figures on standalone basis.

Gross NPA increased to Rs 1.88 lakh crore from Rs 1.12 lakh crore and net NPA jumped to Rs 1.07 lakh crore from Rs 58,277 crore on sequential basis.

Gross NPAs rose to 9.97 percent from and net NPA jumped to 5.97 3.71

State Bank of India earnings included numbers of associate banks that merged from April 1, 2017.

12:58 pm Cochin Shipyard update:

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12:44 pm All sectoral indices barring PSU Bank traded lower in afternoon trade.

PSU Bank index gained 0.5 percent ahead of earnings from country’s largest lender SBI due later today.

All eyes are its asset quality of the bank.

12:37 pm Market Update: Benchmark indices extended losses due to weak Europe opening.

The Sensex was down 244.73 points at 31,286.60 and the Nifty declined 75.80 points to 9,744.45 but the broader markets outperformed after 3-day fall.

The BSE Midcap index was up 0.4 percent and the advance:decline ratio also improved. About three shares declined for every share rising on the BSE against the ratio of 8:1 in early trade.

European markets opened lower as France’s CAC and Germany’s DAX fell 0.6 percent each.

12:25 pm Buzzing: MEP Infra rallied 7 percent on letter of acceptance from NHAI to collect user fee at NH-8.

12:14 pm Earnings Estimates: Healthcare major Sun Pharmaceutical Industries is expected to post weak set of earnings on Friday for the quarter quarter ended June 2017, due to pricing pressure in US (that contributes 45 percent to total revenue), Halol remediation and GST implementation in India (accounted for 26 percent of sales).

Profit is seen falling 44 percent year-on-year to Rs 1,144 crore and revenue may drop 14 percent to Rs 7,096 crore in Q1, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is likely to crash 40 percent to Rs 1,744.5 crore and margin may contract 1,080 basis points to 24.6 percent compared with same quarter last year.

12:00 pm Results: TTK Prestige has posted a consolidated profit of Rs 135.6 crore in Q1 against Rs 21.7 crore in same quarter last year, driven by one-time gain of Rs 129 crore.

Revenue increased 1.2 percent to Rs 384 crore while operating profit was up 0.3 percent at Rs 47.1 crore and margin contracted to 12.3 percent from 12.4 percent YoY.

11:48 am Poll: Aluminium major Hindalco Industries’ standalone profit is expected to increase 30 percent year-on-year to Rs 383 crore in the quarter ended June 2017. It may be partly supported by lower interest cost.

Revenue from operations may jump 32 percent to Rs 10,030 crore in April-June quarter compared with Rs 7,597.35 crore in same quarter last fiscal.

However, operating profit is seen falling at Rs 1,215 crore from Rs 1,231.7 crore and margin may shrink to 12.1 percent from 16.2 percent on year-on-year basis, according to average of estimates of analysts polled by CNBC-TV18.

Hindalco results will be supported by the LME rally. LME aluminum and copper prices increased 20 percent YoY. Aluminum physical premiums also increased during the quarter.

11:40 am Earnings: Cadila Healthcare’s Q1 numbers missed analysts’ expectations as profit plunged 65.3 percent year-on-year to Rs 138.4 crore and revenue was down 4.5 percent at Rs 2,229 crore.

Profit was estimated at Rs 340 crore for the quarter, according to analysts polled by CNBC-TV18.

Operating profit was at Rs 277.3 crore and margin at 12.6 percent against estimates of Rs 499 crore and 19.4 percent, respectively.

11:30 am Market Expert: Rahul Shah, VP- Equity Advisory at MOSL believes markets look good in near term, recent correction of 2.5 percent on Nifty augurs well for investors.

Good monsoon, improving macroeconomics and GST all augurs well for the market . It’s Just a small break in the party , but party is still on!, he feels.

11:10 am Market Check: Market Check: Benchmark indices recouped some early losses, led by technology and pharma stocks.

The 30-share BSE Sensex was down 205.93 points or 0.65 percent at 31,325.40 and the 50-share NSE Nifty fell 71.20 points or 0.73 percent to 9,749.05.

Infosys gained further, up 0.6 percent while SBI rebounded from early losses, up 0.5 percent ahead of earnings due later today.

Healthcare stocks, the most beaten down in recent correction, saw some short covering as Dr Reddy’s Labs, Sun Pharma and Lupin gained nearly 1 percent.

Selling continued in HDFC Bank, Reliance Industries, Asian Paints, L&T, Maruti Suzuki, Adani Ports and ONGC fell up to 2 percent.

10:55 am Earnings Estimates: Country’s largest lender State Bank of India is set to announce its consolidated earnings (along with other banking subsidiaries) today. Profit is expected to grow a whopping 394.2 percent to Rs 2,485.3 crore in the quarter ended June 2017, compared with Rs 502.9 crore in same quarter last year.

Net interest income, the difference between interest earned and interest expended, is likely to increase 3.7 percent year-on-year to Rs 18,767.2 crore in Q1.

Analysts feel lower trend of slippages (Rs 10,368 crore in Q4FY17) will be seen positive. If net interest margin comes above 2.8 percent then that will also be positive.

10:45 am Market Outlook: The market has been falling sharply for the fourth consecutive session, which was warranted after one-way rally seen since February.

Geopolitical tensions and the release of list of 331 shell companies by SEBI caused selling pressure.

The market has been waiting for this correction for long time, especially after one-way rally but it is very difficult to figure out the bottom, Hiren Ved, Director & CIO, Alchemy Capital Management said in an interview with CNBC-TV18.

He sees lot of opportunities in current correction.

Geopolitical tensions surrounding around North Korea is not expected to escalate further, he feels. It will be short term impact on markets, according to him.

10:30 am Market Check: Equity benchmarks recouped some losses from day’s low, though it continued to see selling pressure for fourth day.

The 30-share BSE Sensex was down 220.24 points at 31,311.09 while the 50-share NSE Nifty fell 71.30 points at 9,748.95.

10:15 am Earnings Estimates: Public sector lender Bank of Baroda’s first quarter profit is expected to increase 8.4 percent year-on-year to Rs 459.3 crore compared with Rs 423.6 crore in same quarter last year.

Net interest income is likely to rise 4.4 percent to Rs 3,519.6 crore from Rs 3,371.1 crore on year-on-year basis.

Slippages and operating profit growth will be key factors to watch out for. Slippages from restructured book will be seen closely. At the end of March 2017, restructured book was at Rs 10,785 crore.

Analysts said if slippages fall below Rs 3,500 crore (against Rs 4,077 crore in Q4FY17) and gross non-performing assets come below 10.7 percent (10.46 percent) then that will be positive.

Low cost deposit flow may remain strong in June quarter.

10:00 am New listing: Cochin Shipyard started off trade at Rs 466 today, higher by 8 percent over issue price.

The stock immediately crossed Rs 500 level, which was on expected lines after strong subscription of 76 times.

It was trading at Rs 528, up 22 percent.

9:50 am Pre-opening for new entrant: Cochin Shipyard share price settled at Rs 440 on the National Stock Exchange, up 1.85 percent over its issue price of Rs 432.

9:38 am Buzzing: Shares of J Kumar Infraprojects and Prakash Industries were locked at 20 percent lower circuit in the opening trade on Friday.

These shares traded for the first time today after they were banned for trading on SEBI order since Tuesday.

On Thursday evening, the Securities and Appellate Tribunal (SAT) has stayed SEBI’s order against J Kumar Infra & Prakash Industries, which were among the 331 companies that the market regulator had suspected as ‘shell’ companies.

9:30 am Nifty Bank dropped 200 points as Federal Bank, PNB, IDFC Bank, ICICI Bank, Canara Bank, IndusInd Bank and Bank of Baroda were down 1-3 percent.

9:25 am Stocks at Day’s low: Syndicate Bank, L&T Finance Holdings, M&M Financial, Bajaj Finance and Manappuram Finance fell up to 5 percent.

9:15 am Market Check: Equity benchmarks fell sharply in opening trade, with the Sensex losing more than 300 points and the Nifty trading near 9,700 level.

The 30-share BSE Sensex was down 287.79 points or 0.91 percent at 31,243.54 and the 50-share NSE dropped 93.55 points or 0.95 percent at 9,726.70.

Power Grid, Tech Mahindra and Wipro were only gainers among Nifty stocks.

The broader markets fell more than benchmarks as the BSE Midcap and Smallcap indices were down nearly 2 percent each.

About 11 stocks declined for every share rising on the NSE.

J Kumar Infra and Prakash Industries fell 20 percent each after beginning of trade for first time in last four consecutive sessions.
JP Associates, Indo Count, Balaji Telefilms, SCI and Indo Amines fell up to 6 percent. However, Gujarat Gas and MOIL rallied 4 percent after earnings.