Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Indian Indices Open Weak
Thu, 19 May 09:30 am

Barring China, major Asian stock markets have opened the day on negative note. Stock markets in Indonesia and Singapore are trading lower by 0.9% and 0.8% respectively. Benchmark indices in Europe and US ended their previous session on a encouraging note. The rupee is trading at 66.91 per US$.

Indian stock markets have opened the day on a weak note. The BSE Sensex is trading lower by 130 points (down 0.5%) and NSE Nifty is trading lower by 40 points (down 0.5%). However, BSE Mid Cap and BSE Small Cap are trading marginally higher by 0.02% and 0.1% respectively.

Major sectoral indices have opened the day in red with stocks from telecommunication and banking sectors witnessing selling pressure.

Punjab National Bank reported its results for the quarter ended March 2016. The bank posted a record loss of Rs 53.6 billion during the quarter as compared to a net profit of Rs 3 billion a year ago.

The gross non-performing asset (NPA) more than doubled to Rs 558.1 billion as compared to a year ago. As a % of total advances, gross NPAs shot up by 6.35% YoY to 12.9%. However, the worst is not over. The management stated that there could be further deterioration in the asset quality.

The provisions too increased sharply as the company set aside money to provide for the bad loans. Reportedly, the provisions increased by almost two fold to Rs 85.9 billion on a sequential basis.

Further, net interest income of the bank contracted by 27% YoY to Rs 27.6 billion. Net interest margins too fell to 2.6%. Asset quality will be the key things to watch out for the company going forward. The stock is trading down by 2.1%.

Indian Hotels too reported its results for the quarter ended March 2016. The company reported a standalone net profit of Rs 0.9 billion as compared to a net loss of Rs 1.2 billion a year ago.

The net sales grew by 12% YoY to Rs 6.8 billion. The topline witnessed a healthy growth on account of increased domestic and business travelling.

Further, the management stated that the company intends to sell the Taj hotel in Boston for the base price of US$ 125 million (about Rs 8.4 billion). Reportedly, the company had acquired Taj Boston hotel in 2006 from Millennium Partners for US$ 170 million.

The company stated that the strategy to divest the Boston-based hotel is part of its plan to evaluate the relevance of some of its existing assets in the portfolio to reduce leverage and focus on growth in high margin markets. The company is in the process of exiting non-profitable properties across geographies.

This restructuring process will help the company to improve its operating profitability. Further, the strategy will also help in cost rationalization.

Going forward, increase in tourism and economic activity will be the key things to watch out for in order to assess an improvement in the hotel industry.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Indian Indices Open Weak". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 20, 2018 (Close)