Trade at Dalal Street continues to remain in fine
contour in tandem with that of Asian pacific markets after Italy's new
leader vowed to pull the debt-laden country back from the brink of a
fiscal disaster that has threatened to tear apart the euro zone. Former
European Union Commissioner Mario Monti was nominated on Sunday to
replace Silvio Berlusconi as prime minister and pledged to get to work
on tackling a crippling debt crisis in the euro zone's third-largest
economy. Meanwhile, Japan's positive third-quarter economic growth
figures, which have fuelled a rally in the Asian stocks, also spilled
some optimism at Dalal Street. Japan's gross domestic product (GDP) rose
an annualized 6.0% in the July to September period, the Cabinet Office
reported Monday. On a quarter-on-quarter basis, GDP grew 1.5%. Japan's
economy contracted 2.1% in the April-June period, in the wake of a
massive earthquake and tsunami that struck the country on March 11. US
stocks closed higher on Friday amidst thin, choppy session but ongoing
worries over the euro zone crisis limited gains. Both the Dow and
S&P 500 clocked gains but lackluster action among tech stocks left
the Nasdaq to end narrowly above the neutral line.
Back home, however, the benchmark indices gyrating in a tight band are trading listless ahead of the October month's WPI data. On one end, the widely followed 50 share index- Nifty- on NSE - trading in green has contracted its gains. On the other end, 30 share index- Sensex- trading in fine contour has expanded its gains. WPI Inflation, as measured by the wholesale price index (WPI), rose 9.72% in September 2011 as compared to 9.78% seen in the previous month and 8.98% during the corresponding month of the previous year. On the BSE sectoral front, although buying is witnessed across the pivotal, however, stocks from Information Technology, TECk and Healthcare counters have featured into the best list of performers. Sensex gaining over 150 points is trading over 17350 level. Meanwhile, Nifty- gyrating above 5200 mark. The broader indices too have surrendered some gains. The overall market breadth on BSE is in the favour of advances which have thrashed declines in the ratio of 1155:905, while 97 shares have remained unchanged.
The BSE Sensex is currently trading at 17,358.88, up by 166.06 points or 0.97%. The index has touched a high and low of 17,391.99 and 17,328.47 respectively. There were 25 stocks advancing against just 5 declining ones on the index.
The broader indices too were trading in the green; the BSE Mid cap and Small cap indices was up by 0.18% and 0.14% respectively.
Buying was witnessed across the board. However, the top gaining sectoral indices on the BSE were, IT up by 1.72%, TECk up by 1.68%, HC up by 1.34%, Bankex up by 0.94% and Realty up by 0.83%.
The top gainers on the Sensex were Hero MotoCorp up by 3.16% Sun Pharma up by 3.12%, Hindalco Industries up by 2.49%, HDFC Bank up by 2.38% and TCS up by 2.03%. On the flip side, Coal India was down by 1.20%, M&M down by 0.75%, Tata Power down by 0.69%, Tata Motors down by 0.52% and Tata Steel down by 0.48% were losers on the Sensex.
Meanwhile, Non-performing assets (NPAs) of the listed banks in India surged by 33.46% to Rs 1 lakh crore in the second quarter of current financial year, which reflects the impact of increasing interest rates and slowing economic growth. In June-September 2011, the gross NPAs of State Bank of India (SBI), India's largest bank increased by 46% to Rs 33,946 crore. Along with SBI, Punjab National Bank (PNB) also saw increase in NPA by 29% to Rs 5,150 crore in June-September 2011.
However, ICICI bank registered modest increase of 0.39% to Rs 10,021 crore in gross NPAs. As per the analysis of 37 listed banks in India, the gross NPA have increased by Rs 1.06 lakh crore in the second quarter of 2011-12 from Rs 79,078 crore in the same period of last financial year. In the last 18 months, to control high inflation, the Reserve Bank of India (RBI) has increased its interest rates by 13 times or 375 basis points, as a result, banks passed these rate hikes to consumers, which led to sharp increase in bad loans.
The banks are also under pressure from loans outgoes to the sectors, which are facing delays in execution of projects because of the uncertainty on many regulatory issues, hence increasing concern over the companies' ability to pay loan on time. The loan given to mining and power firms may become NPAs for banking sector because of the delay in the completion of projects on the back of regulatory issues, which is affecting the corporate profits. The increase in bad loans of banks has affected the investors' sentiments also, as the share of SBI declined by 7% on the day of result. SBI's NPA increased mainly from loans to export-oriented sector iron-steel, agro-based businesses and the government-sponsored schemes.
Earlier, the credit rating agency Moody's downgraded its outlook for banking sector from stable to negative, and stated that slowing economic growth could increase bad loans and impact profitability of companies. However, other global credit rating agency Standard and Poor's (S&P) has upgraded Indian banking sector by saying domestic regulations are in line with international standards.
The top gainers of the Nifty were Hero MotoCorp up by 3.22%, Sun Pharmaceuticals up by 3.21%, Hindalco Industries up by 2.45%, HDFC Bank up by 2.41% and Reliance Communications up by 2.39%.
On the flip side, Coal India down by 1.21%, BPCL down by 1.10%, M&M down by 0.86%, Tata Power down by 0.78% and BHEL down by 0.69% were the major losers on the index.
All the Asian equity indices were trading in the green, Shanghai Composite surged 1.68%, Hang Seng spurted 2.40%, Jakarta Composite soared 1.11%, KLSE Composite gained 0.67%, Nikkei 225 was up by 1.14%, Straits Times ascended 1.70%, Seoul Composite expanded by 2.30% and Taiwan Weighted gained 2.12%.
Back home, however, the benchmark indices gyrating in a tight band are trading listless ahead of the October month's WPI data. On one end, the widely followed 50 share index- Nifty- on NSE - trading in green has contracted its gains. On the other end, 30 share index- Sensex- trading in fine contour has expanded its gains. WPI Inflation, as measured by the wholesale price index (WPI), rose 9.72% in September 2011 as compared to 9.78% seen in the previous month and 8.98% during the corresponding month of the previous year. On the BSE sectoral front, although buying is witnessed across the pivotal, however, stocks from Information Technology, TECk and Healthcare counters have featured into the best list of performers. Sensex gaining over 150 points is trading over 17350 level. Meanwhile, Nifty- gyrating above 5200 mark. The broader indices too have surrendered some gains. The overall market breadth on BSE is in the favour of advances which have thrashed declines in the ratio of 1155:905, while 97 shares have remained unchanged.
The BSE Sensex is currently trading at 17,358.88, up by 166.06 points or 0.97%. The index has touched a high and low of 17,391.99 and 17,328.47 respectively. There were 25 stocks advancing against just 5 declining ones on the index.
The broader indices too were trading in the green; the BSE Mid cap and Small cap indices was up by 0.18% and 0.14% respectively.
Buying was witnessed across the board. However, the top gaining sectoral indices on the BSE were, IT up by 1.72%, TECk up by 1.68%, HC up by 1.34%, Bankex up by 0.94% and Realty up by 0.83%.
The top gainers on the Sensex were Hero MotoCorp up by 3.16% Sun Pharma up by 3.12%, Hindalco Industries up by 2.49%, HDFC Bank up by 2.38% and TCS up by 2.03%. On the flip side, Coal India was down by 1.20%, M&M down by 0.75%, Tata Power down by 0.69%, Tata Motors down by 0.52% and Tata Steel down by 0.48% were losers on the Sensex.
Meanwhile, Non-performing assets (NPAs) of the listed banks in India surged by 33.46% to Rs 1 lakh crore in the second quarter of current financial year, which reflects the impact of increasing interest rates and slowing economic growth. In June-September 2011, the gross NPAs of State Bank of India (SBI), India's largest bank increased by 46% to Rs 33,946 crore. Along with SBI, Punjab National Bank (PNB) also saw increase in NPA by 29% to Rs 5,150 crore in June-September 2011.
However, ICICI bank registered modest increase of 0.39% to Rs 10,021 crore in gross NPAs. As per the analysis of 37 listed banks in India, the gross NPA have increased by Rs 1.06 lakh crore in the second quarter of 2011-12 from Rs 79,078 crore in the same period of last financial year. In the last 18 months, to control high inflation, the Reserve Bank of India (RBI) has increased its interest rates by 13 times or 375 basis points, as a result, banks passed these rate hikes to consumers, which led to sharp increase in bad loans.
The banks are also under pressure from loans outgoes to the sectors, which are facing delays in execution of projects because of the uncertainty on many regulatory issues, hence increasing concern over the companies' ability to pay loan on time. The loan given to mining and power firms may become NPAs for banking sector because of the delay in the completion of projects on the back of regulatory issues, which is affecting the corporate profits. The increase in bad loans of banks has affected the investors' sentiments also, as the share of SBI declined by 7% on the day of result. SBI's NPA increased mainly from loans to export-oriented sector iron-steel, agro-based businesses and the government-sponsored schemes.
Earlier, the credit rating agency Moody's downgraded its outlook for banking sector from stable to negative, and stated that slowing economic growth could increase bad loans and impact profitability of companies. However, other global credit rating agency Standard and Poor's (S&P) has upgraded Indian banking sector by saying domestic regulations are in line with international standards.
The
Reserve Bank also stated that the Indian banking sector is not facing
any stress and there is no indication of a systemic threat. Non-stop
hike in RBI's key policy rates has increased the borrowing cost for
corporate and slowed the project investments. The slowdown is reflected
in the Index of Industrial Production (IIP) which declined to 5% in the
first half of 2011-12 compared to 8.2% in the April-September 2010. The
RBI has also estimated that Indian economy will grow by 7.6% in 2011-12
compared to 8.5% in the last financial year.
The S&P CNX Nifty is currently trading at
5,214.80 higher by 45.95 points or 0.89%. The index has touched a high
and low of 5,228.90 and 5,209.15 respectively. There were 40 stocks
advancing against 10 declining ones on the index. The top gainers of the Nifty were Hero MotoCorp up by 3.22%, Sun Pharmaceuticals up by 3.21%, Hindalco Industries up by 2.45%, HDFC Bank up by 2.41% and Reliance Communications up by 2.39%.
On the flip side, Coal India down by 1.21%, BPCL down by 1.10%, M&M down by 0.86%, Tata Power down by 0.78% and BHEL down by 0.69% were the major losers on the index.
All the Asian equity indices were trading in the green, Shanghai Composite surged 1.68%, Hang Seng spurted 2.40%, Jakarta Composite soared 1.11%, KLSE Composite gained 0.67%, Nikkei 225 was up by 1.14%, Straits Times ascended 1.70%, Seoul Composite expanded by 2.30% and Taiwan Weighted gained 2.12%.
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