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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian Indices Open Flat
Wed, 27 Apr 09:30 am

Major Asian stock markets have opened the day on a negative note. Stock markets in Japan and Singapore are trading lower by 0.6% and 0.4% respectively. Barring UK, major benchmark indices in Europe ended their previous session on a disappointing note. However, stock markets in the US ended their previous session on a flattish note. The rupee is trading at 66.73 per US$.

Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading lower by 8 points (down 0.03%) and NSE Nifty is trading lower by 2 points (down 0.02%). Both, BSE Mid Cap and BSE Small Cap have surged upwards and are trading higher by 0.4% and 0.3% respectively. Barring stocks from banking sector, major sectoral indices have opened the day on a positive note with stocks from telecommunication sector witnessing buying interest.

Maruti Suzuki reported its results for the quarter ended March 2016. The company's net profit declined by 11.7% YoY to Rs 11.3 billion during the quarter. The decline was on account of higher tax outgo and production loss from the unrest near its factory. The company paid tax at a higher rate of 33% owing to fewer benefits on research and development (R&D) and smaller tax free income.

However, the net sales grew by 12.5% YoY to Rs 149.2 billion during the quarter. Rural sales accounted for 35% of the total volumes in the fiscal year 2016. This ratio has advanced by 9% as compared to a year ago. The sales were boosted on account of traction from new models such as Vitara Breeza and Baleno.

Further, gross margins improved by 2.5% to 34%, which in-turn led to Earnings Before Interest Tax Depreciation Amortization (EBITDA) margins expanding by 0.6% to 15.4%. Operating margins increased on account of lesser discounts and sale of premium vehicles like Boleno and Breeza which command a higher selling price. Discount reduced by an average of Rs 4000 per unit as compared to the previous quarter.

Reportedly, the company's Gujarat plant, which is part of a contract manufacturing agreement with the parent Suzuki Motor Corp, will open in January 2017. Going forward, the response from new models will be the key things to watch out for. The stock is trading down by 0.6%.

In another news update, Axis Bank too reported its results for the quarter ended March 2016. The net profits reported a decline of 1.2% to Rs 21.5 billion. The decline was on account of rising provisions as the company set aside money to provide for bad loans. The provisions increased by around 63% to Rs 11.6 billion on a sequential basis.

Fresh slippages during the March quarter totalled Rs 14.7 billion, nearly double the level as seen in the year-ago period. Interestingly, this time the company has given a 'watch-list' of the loans totaling to Rs 226.2 billion. This watch-list indicates that there could be a further stress from this pile. The watch-list accounts for 4% of the company's total loan book and 13% of its corporate loan book. To add to the woes, the bank expects 60% of loans from this pile, or about Rs 130 billion, to turn bad over eight quarters.

However, net interest income (NII), considered to be the core income of the bank increased by around 20% to Rs 45.5 billion. Further, the loan book expanded by 21% to Rs 3.39 trillion as of 31 March 2016. Within the total advances, the retail segment clocked 24% growth and corporate loans grew by 22%. The asset quality will be the key things to watch for going forward. The stock is trading down by 1.7%.

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