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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Markets will remain closed on 1st May, 2017 on account of Maharashtra Day.

Indian Indices Open Weak
Wed, 10 Feb 09:30 am

Major Asian stock markets have opened the day on a disappointing note with stock markets in Japan and Singapore trading lower by 2.6% and 1.9% respectively. Other Asian stock markets are closed on account of Lunar New Year holidays. Major indices in Europe and US ended their previous session in red. The rupee is trading at 68.16 per US$.

Indian stock markets too have opened the day on a negative note. The BSE Sensex is trading lower by 156 points (down 0.7%) and NSE Nifty is trading lower by 35 points (down 0.5%). Both, BSE Mid Cap and BSE Small Cap are trading lower by 0.3% each. Major sectoral indices have opened the day on a negative note with stocks from metal and banking sectors witnessing maximum selling pressure.

Punjab National Bank (PNB) reported its results for the quarter ended December 2015. The disappointment came as the gross non-performing assets grew by 2.14% on a sequential basis to 8.5%. The bad loans were recognized as a part of the RBIs directive to account for the visible stressed assets.

Reportedly, fresh slippages or loans turning soar almost tripled to Rs 134.82 billion on a sequential basis. It is imperative to note, company has just recognized half of the stress on its books during the December quarter. The remaining half of bad loans will be recognized in the quarter ending March 2016.

The sharp increase in bad loans led to doubling of provisions, thereby eroding profits. Consequently PNB has reported a profit after tax (PAT) of Rs 0.51 billion vs Rs 7.7 billion during 3QFY15. Further, the company also benefited tax write back taken during the quarter of Rs 9 billion. Adjusting this non-recurring item company would have reported a loss of Rs 8.6 billion. The stock is trading down by 5.1%.

Dr Reddy's Laboratories Ltd too reported its results for the quarter ended December 2015. The net sales grew by 3% YoY to Rs 39.7 billion.

The sales of generic business in North America reported a growth of 18% YoY to Rs 19.4 billion. The growth was led by a sustained performance of the injectable franchise and market share gains in key molecules. However, among the emerging markets, sales from the Russian market declined by 21% to Rs 3 billion because of rouble depreciation and macro-economic uncertainties.

Certain payments to the extent of US$ 60.7 million are outstanding from Venezuela as the country ran out of forex reserves due to a slump in the crude oil prices. The company may have to take write off these outstanding receivables.

Further, sales from Active Pharmaceutical Ingredient (API) segment declined by 17% to Rs 5 billion on the back of remediation measures initiated at its API plants. The company had received warning letter from USFDA couple of months back on its API plants at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, and an oncology formulations facility in Visakhapatnam (Andhra Pradesh).

The company's net profit grew marginally by 1% to Rs 5.8 billion in the quarter. The management stated that the company is expecting a tough fourth quarter on the back of delayed launches. The stock is trading down by 2.2%.

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Apr 28, 2017 (Close)

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