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 Firm
Fri, 27 May 09:30 am

Barring China, major Asian stock markets have opened the day on a positive note. Stock markets in Japan and Singapore are trading higher by 0.5% and 0.4% respectively. Benchmark indices in Europe and US ended their previous session in green. The rupee is trading at 67.28 per US$.

Indian stock markets have opened the day on a strong note. The BSE Sensex is trading higher by 140 points (up 0.5%) and NSE Nifty is trading higher by 43 points (up 0.6%). Both, BSE Mid Cap and BSE Small Cap are trading higher by 0.5% each.

Major sectoral indices have opened the day in green with stocks from oil & gas and pharmaceutical sectors witnessing buying interest.

Oil and Natural Gas Corporation (ONGC) reported its results for the quarter ended March 2016. The net profits grew by 12.2% YoY to Rs 44.1 billion. The growth in the profits was on the back of reversal of impairment charges due to a rebound in the oil prices.

The oil prices have rebounded to the levels of US$ 50 from the lows of US$ 30 a few months back. The company had taken an impairment charge of Rs 39.9 billion because of an oil price slump in the preceding quarter. However, the rise in the oil prices led to a reversal of this provision.

In addition to this, the company had booked an impairment charge of Rs 15.8 billion on account of the Krishna Godavari asset, stating that the development of field was un-viable. The company reversed this impairment charge too during the quarter.

ONGCs revenue declined by 24.3% YoY to Rs 164.2 billion during the quarter. Further, ONGC Videsh Ltd, the overseas arm of the company, slipped into the red for the first time in about a decade, reporting a loss of Rs 20.9 billion in the 2015-16 fiscal on account of impairment provisions for some of its assets. The stock is trading up by 0.8%.

In another news update, the bank credit growth has slipped to single digits in the month of April and has remained so in May. This is after witnessing more than 10% growth in the first three months of the year.

Reportedly, lack of demand in the system is the main culprit behind the credit growth remaining static. To aid credit growth, the Reserve Bank of India has cut interest rates by 1.5% so far. However, the transmission of rates by banks has been much lower. Hopefully, with the marginal cost of funds based lending rate, banks will be in a better position to pass on the rate-cuts.

However, more than this, the revival in the broad economy will play a key role in bringing about a more sustainable recovery in credit demand.

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 Firm". 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


Nov 24, 2017 (Close)