Senses Finishes Flat Ahead of the Fed Outcome

Wed, 14 Jun Closing

   Previous Close   

   Pre-Open   

   09:30 am   

   11:30 am   

   01:30 pm   

Indian share markets continued to trade just above the dotted line during the afternoon session as investors kept track of the two-day monetary policy meeting of the US Federal Reserve, which is due to announce its decision today.

At the closing bell, the BSE Sensex stood higher by 52 points, while the NSE Nifty finished up by 11 points. Meanwhile, the S&P BSE Mid Cap and the S&P BSE Small Cap finished up by 0.1% and 0.5% respectively. Gains were largely seen in realty stocks, capital goods stocks and energy stocks. Metal stocks and FMCG stocks witnessed selling pressure.

Asian stock markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.09%, while the Shanghai Composite & the Nikkei 225 fell 0.73% and 0.08% respectively. European markets are higher today with shares in France leading the region. The CAC 40 is up 0.99% while Germany's DAX is up 0.61% and London's FTSE 100 is up 0.34%.

The rupee was trading at Rs 64.31 against the US$ in the afternoon session. Oil prices were trading at US$ 45.81 at the time of writing.

In news from economy, in order to help small and medium enterprises (SMEs), the Reserve Bank of India (RBI) is examining the request to ease non-performing assets (NPAs) classification limit beyond existing 90 days.

At present, an account turns into a NPA or a bad loan if it is not serviced for 90 days. In case of small businesses and SMEs payments usually come late and if they miss 90-day period, they fall in the NPA category and their credit line is cut.

Reportedly, Indian banks are sitting on unrecognized stressed loans worth Rs 7.7 trillion in corporate and SME sectors and expect about 35% of them to slip into the NPA category in the next 12-18 months. There is a likelihood of Rs 2.6 trillion of corporate and SME loans, which are 3.2% of total bank credit to be recognized as stressed loans by 2019. Stressed loans include restructured assets that carry the risk of turning into NPAs.

For bringing NPA situation under control, Minister of State for Finance Arjun Ram Meghwal has stated that there is a need to boost loan restructuring mechanism. Recently, he also said that the government brought in the ordinance giving wide-ranging legislative powers to the RBI on the bad loans front.

On the three-year achievements of the Modi government, Meghwal has noted that whenever the review takes place, 2017 will be known as the year of economic reforms. He added that the highlights so far this year are the advancement of the budget, the merger of the railway budget with the general, the budgetary passage before March 31 and the proposed GST rollout from July 1.

PSU Bank stocks finished the trading day on a firm note with UCO Bank share price and Allahabad Bank share price leading the gains.

Moving on to news from pharma sector. Dr Reddy's Laboratories share price finished the trading day up by 1.4% after it was reported that the company has received Establishment Inspection Report (EIR) from the USFDA for its active pharmaceutical plant (API) at Miryalaguda indicating the successful closure of the agency's audit.

Miryalaguda plant is one of three facilities that received a warning letter from the USFDA in November 2015 for violation of good manufacturing facilities. After a re-inspection of the unit in February this year, the US drug regulator had issued Form 483 with three observations relating to lapses in quality.

The regulatory issues have affected the Hyderabad-based pharma major's earnings as new product approvals in the US from the three units were held back. The US is the biggest market for the company. In 2016-17, consolidated revenue declined 9% on year to Rs 140.80 billion, while net profit fell 40% to Rs 12.03 billion.

In another development, Dr Reddy's Laboratories is recalling over 325,000 cartons of Zenatane (isotretinoin) capsules, used for the treatment of severe acne, from the US market due to failed dissolution specifications.

The drug is manufactured by pharma firm Cipla at its Pune facility for Dr Reddy's Laboratories. The ongoing voluntary class II recall is nationwide in the US and Puerto Rico.

Cipla share price finished down 2.2% in today's trade.

In news from steel sector, JSW Steel reported crude steel production of 1.357 million tonnes in May 2017 with a growth of 1% compared to 1.348 million tonnes over the corresponding month in 2016.

The production of rolled products (long) increased to 309,000 tonnes compared to 298,000 tonnes in May 2016, representing a growth of 4%. The production of rolled products (flat) during the month increased to 939,000 tonnes, a rise of 1%, as compared to 930,000 tonnes in May 2016.

Meanwhile, as per an article in The Economic Times, the company looking to raise capital through a qualified institutional placement (QIP) route. The company is initially looking to raise anywhere between Rs 25-30 billion.

The fund-raising drive comes at a time when the company is embarking on a mega expansion drive. the company indicated that it plans to double its brownfield capacity in Dolvi to 10 million tonne per annum and revamp and upgrade its Vijaynagar capacity from 3mtpa to 4.5 mtpa.

JSW Steel has earmarked capex of Rs 268 billion for its brownfield expansions and plans to fund Rs 150 billion through debt which includes bond issuances. The company is looking to sustain its debt to equity ratio of 3.75.

No Takers For Domestic Steel

The government's proposal to give domestic steel companies a preference in government projects should protect them from cheaper imports. But in the meanwhile, the steel makers are chasing out imports by ramping up production.

In February, domestic steel output rose by 12.9% YoY, as large private steel producers such as Tata Steel and JSW Steel ramped up output. Imports during the first eleven months of FY17 dropped by 39% YoY.

But the bigger concern is weak consumption growth. The consumption data over the past few months clearly show that there are no takers for domestic steel. So steel makers have been forced to export more, with overseas shipments up by 78% YoY in the fiscal till February.

JSW steel share price finished the trading day up by 0.1% on the BSE.

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

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers