Indian equity markets started the day on a positive note, but quickly moved in negative territory. Markets continued to remain weak amid a volatile trading session because of selling pressure in private banks. Rate sensitive shares were among the top losers on rising fears that the central bank may hike key policy rates after double-digit consumer price inflation. Auto and consumer durables were the only ones leading pack of gainers. While the BSE-Sensex closed lower by 87 points, the NSE-Nifty closed lower by 28 points. BSE Mid Cap and the BSE Small Cap closed on a negative note.
As regards global markets, Asian indices closed in the red. European indices have also opened in the red. The rupee was trading at Rs 63.5 to the dollar at the time of writing.
Hindalco has announced its financial results for the quarter ended September 2013. On a standalone basis, net sales of the company increased by 2.3% YoY on back of lower volumes. Operating profits of the company increased by 4.8% YoY due to lower input costs. Operating margins were up by 0.2% YoY. Net profit declined by 0.5% YoY due to high interest cost Net margins declined by 0.1% YoY. For the half year ended September 2013, net sales declined by 0.4% YoY and net profits increased by 6.1% YoY.
State Bank of India (SBI) declared its results for the second quarter (2QFY14) and first half (1HFY14) of the financial year 2013-14. Net interest income grows by 11.6% YoY in 1QFY14 on the back of 19.2% YoY growth in advances. Other income fell by 2.1% YoY in 2QFY14. NIMs (net interest margins) came down significantly from 3.5% in 1HFY13 to 3.2% in 1HFY14. Net NPAs (Non Performing Assets) increased from 2.4% in 2QFY13 to 2.9% in 2QFY14 marking continued asset quality pressures. Net profit falls significantly by 35.1% YoY in 2QFY14 on account of higher operating costs, higher provisions and poor other income performance 2QFY14. Capital adequacy ratio stood at 11.69% at the end of 1HFY14 as per Basel III norms.