After opening firm, the Indian markets continued to edge upwards. Most sectoral indices are trading on a firm note with stocks from the pharma and auto sectors leading the gains.
The BSE-Sensex is trading up 303 points (up 1.1%) and the NSE-Nifty is trading up 80 points (up 0.1%). The BSE Mid Cap index is trading up by 1.2% while the BSE Small Cap index is trading up by 0.9%. The rupee is trading at 64.02 to the US dollar.
Stocks in the banking space are trading mixed with Yes Bank and ICICI Bank leading the gains. As per a leading financial daily, India's fourth-biggest private sector lender by assets Kotak Mahindra Bank is expecting its credit costs to jump this fiscal year. This was due to the increase in provisions related to its purchase of the smaller ING Vysya Bank. During the quarter ended June 2015, the provisions including for bad loans and employee retirement benefits jumped 22 times from a year earlier. This dragged down the net profit of the bank to Rs 1.89 bn during the concerned quarter. Gross bad loans as a percentage of total loans rose to 2.31% YoY in the June quarter. The stock of Kotak Mahindra Bank is trading down by 3.6%.
Engineering stocks are also trading mixed with Sanghvi Movers leading the gains and Manugraph India leading the losses. According to financial times, Crompton Greaves (CG) has won an important contract to supply ZIV single phase smart meters to Energias de Portugal (EDP). This makes CG the main supplier for data concentrators to EDP. ZIV's single phase smart meter model is nowadays the reference smart meter in the PRIME PLC market segment, after the deployment of over 3 million ZIV units worldwide. EDP is one of the major European operators in the energy sector. Crompton Greaves is a global pioneer in the management and application of electrical energy. Currently the stock of Crompton Greaves is trading up by about 1.1%.