Indian share markets traded on a positive note throughout the day and ended higher. Gains were seen in the metal sector, capital goods sector and power sector, while telecom stocks witnessed selling pressure.
At the closing bell, the BSE Sensex stood higher by 196 points (up 0.6%) and the NSE Nifty closed higher by 71 points (up 0.7%). The BSE Mid Cap index ended the day up 1.3% and the BSE Small Cap index ended the day up by 2.1%.
Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up by 0.6% and the Shanghai Composite was up by 1.8%. The Nikkei 225 was up 1%.
The rupee was trading at 70.86 against the US$.
In the news from the automobiles sector, SML Isuzu share price witnessed buying interest today as the company reported 32.8% rise in February 2019 sales.
Shares of the company were locked in upper circuit of 20% on back of the above news.
In the news from the macroeconomic space, India's GDP growth slipped to 6.6% in the third quarter of FY19. The economy had grown 7.1% in the second quarter and 8.2% in the first quarter.
Reports state that weaker domestic and external demand are key factors behind the sub-7% growth. India would still be growing faster than China's 6.4% growth in the same quarter.
Manufacturing's share of GDP has risen just 1.5% in the last three years to stand at 18%. The GDP growth for 2018-19 in the December policy was projected at 7.4%.
Moving on to the news from the banking space, Yes Bank share price was in focus today after Ravneet Gill took charge as Managing Director and CEO of the bank.
As per an article in The Economic Times, his tenure as approved by the Reserve Bank of India (RBI) is 3 years from the date of joining.
Here's an excerpt from the article:
Last month, shares of Yes bank recorded its sharpest intra-day rally since its listing on news that the bank received "no observation on divergence" in the bank's asset classification and provisioning in the RBI's Risk Assessment Report for FY2018.
As per an article, against the Rs 7.5 billion of gross NPAs reported by the lender as on March 31, 2016, the RBI assessment showed the tally at Rs 49.3 billion, leading to a divergence of Rs 41.8 billion.
Here's an excerpt from the article:
Reportedly, the divergence increased to Rs 63.4 billion in FY17 which was the main reason former CEO Rana Kapoor's tenure was reduced last year by the central bank.
Yes bank share price ended the day up by 2.3%.
To know more about the company, you can read Yes bank's latest result analysis on our website.
In another news, shares of public sector banks (PSBs) rallied up to 10% after finance minister Arun Jaitley on Thursday, assured government funding support to state-owned banks.
Oriental bank of Commerce and Union bank of India gained 10%. While PNB, Allahabad bank, Syndicate bank and IDBI bank ended up in the range of 2-6%.
According to reports, the finance minister expressed hope that the six lenders, which remain under the RBI's prompt corrective action (PCA) framework will soon come out of it.
The Insolvency and Bankruptcy Code (IBC) has been a success story and the government has maintained arm's length distance from the process being forward.
According to reports, since 2014-15, PSU banks have recovered Rs 2.87 trillion bad loans up till December 2018.
Also, speaking of bad loans and PCA, one should note that there are faster recoveries happening since the Insolvency and Bankruptcy Code (IBC).
If we consider two successful closures, i.e. Bhushan Steel and Electrosteel, the lenders have already recovered close to Rs 421 billion.
The government expects close to Rs 1.8 trillion through the IBC. Similarly, banks expect to write back more than Rs 1 trillion from the resolution of the 'Dirty Dozen' constituting 12 big NPA accounts referred to IBC by the RBI.
This is what the RBI said in its report on trend and progress in the banking industry:
The IBC is positive for the long-term health of the banking system and it is evolving with time.
More importantly, lending in the next credit cycle will be more disciplined as a result of the above developments.
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