It has been a positive start to the month of June as the Indian stock market closed the first trading session in the green. The gross domestic product (GDP) number for January-March quarter was robust however it failed to build the momentum. India’s GDP grew 7.9% in the January-March quarter of 2015-16, taking the overall economic growth to a five-year high of 7.6% for the entire fiscal. Even the country’s manufacturing PMI came in at 50.7 as against 50.5 in April indicating an uptick in the manufacturing data. Nifty closed with again of 20 points at 8,180, while BSE Sensex ended with again of 46 points at 26,714.

On the global front, most of the Asian indices closed the day on a negative note. Hong Kong’s Hang Seng ended lower by 0.26%, while Japan’s Nikkei 225 ended lower by 1.62%. The European indices also witnessed selling pressure. The FTSE 100 was down 0.72%, France’s CAC 40 was down 0.83% and Germany’s DAX was down 0.7%. The rupee was trading at Rs 67.45 to the dollar at the time of writing.

As per a leading financial daily, ONGC Videsh, a wholly owned subsidiary ofOil and Natural Gas Corporation (ONGC), has completed acquisition of 15% equity from Rosneft Oil Company, in JSC Vankorneft.

The deal was initially signed in September 2015. Back then, ONGC Videsh and Rosneft had signed agreement for ONGC Videsh to acquire not less than 15% shares in JSC Vankorneft, for a consideration of US$ 1,268 million.

The stock of ONGC closed the day lower by 0.2%.

Moving on to news from the banking space. As per an article in a leading financial daily, the Reserve Bank of India (RBI) has raised the cap on foreign share holding in Axis Bank. RBI has raised foreign shareholding to 62%, from the earlier limit of 49%.

Reportedly, foreign institutional investors (FIIs) and registered foreign portfolio investors (RFPIs) can now invest up to 62% of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS).

This was moved by the board and was approved by the shareholders through a special resolution.

Axis Bank is the third largest bank in India. In its results for the fourth quarter ended March 2016, the bank reported 18.3% YoY and 11.8% YoY growth in net interest income and net profits respectively in FY16. Both the gross and net non-performing asset levels were higher in March 2016. The provision coverage ratio was at 72% at the end of March 2016 (82% before accumulated write-offs). The restructured advances were 2.3% of total loan book. To know our view on the stock of Axis Bank, you can read our detailed result analysis (subscription required).

The stock of Axis Bank closed the day down by 0.4%.

After opening the day firm, the Indian indices have continued their momentum and are presently trading on a positive note. Sectoral indices are trading on a mixed note with stocks from the telecom, FMCG and IT sectors leading the gains.

Crude oil is witnessing volatility. At the time of writing, crude oil was trading at Rs 3,286 per barrel, down by around 1.4%. This is seen on the back of a stronger dollar and concerns about the outcome of this week’s OPEC meeting. One shall note that the Organization of the Petroleum Exporting Countries (OPEC) are going to meet in Vienna this week where a deal on capping production is to be discussed.

USDINR trade today trading down 16 paise at 67.42 per US dollar.

Out of 1,400 stocks traded on the NSE, 597 declined and 759 advanced today.

Top 5 Nifty Gainers: Tata Motors (1.74%), Coal India (1.15%), Infosys Ltd (1.00%), M&M (0.61%) and Bharti Airtel (0.59%).

Top 5 Nifty Losers: L&T (-1.47%), Bajaj Auto (-1.23%), Axis Bank (-1.09%), ITC Ltd (-1.08%) and GAIL (-1.01%)

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The BSE Sensex and NSE Nifty snapped a 5-day winning streak on Tuesday. The Indian equity market opened on a firm note but was unable to carry forward the momentum. Nifty closed with a loss of 18 points at 8,160 while Sensex ended with a loss of 58 points at 26,668..

Asian markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 3.34% while Japan’s Nikkei 225 is up 0.98% and Hong Kong’s Hang Seng is up 0.90%. European markets are lower today with shares in France off the most. The CAC 40 is down 0.21% while Germany’s DAX is off 0.12% and London’s FTSE 100 is lower by 0.10%.

Buying activity was witnessed across majority of the automobile stocks. Tata Motor’s DVR and Tata Motor lead the pack of gainers as the latter posted a three fold rise in net profits. Meanwhile, in another development, Tata Motors’ subsidiary — Jaguar Land Rover (JLR) is also planning to invest around 3.75 billion pounds during the current fiscal 2016-17. The investment will go into expansion of global production capacity, new technologies and new vehicles, such as the Jaguar F-PACE and the Range Rover Evoque Convertible that will unleash the potential of both brands in the future.

Shares of Bajaj Auto finished the trading day on an optimistic note (up 0.6%) after it was reported that the company is planning to invest Rs 5.75 billion this fiscal in a bid to capture 25% share in the Indian motorcycle market. The company plans to use major chunk of the investment in launching new products.

The company is planning to launch an upgrade for the Platina (entry-level model) and a totally new Pulsar at the top-end in the next quarter. The company, which is currently strong in the entry level and top-end performance segment of the bike market, is looking to strengthen presence in the mid-executive segment. On the overall sales target, Bajaj Auto is reportedly targeting to sell 4.6 million units of two and three wheelers combined this fiscal, up from 3.9 million units in the previous fiscal.

The automobile industry is cyclical. Sales and profit growth depend a lot on how economic growth shapes up. When the economy is growing rapidly, auto companies see healthy growth in volumes as demand is robust. It is when the economy is bad that their mettle is really tested. In our recent edition of The 5 Minute Wrap Up Premium, we have explained what factors drive the demand for automobiles (Subscription Required).

Moving on to news from banking sector. According to an article in The Economic Times, Bank of Baroda’s non-performing assets stood below the 10% mark as the bank acquired loans from various banks for terms running from three to four months. The bank acquired ‘standard’ loans, thus lowering the proportion of bad debt in the total loan book (Subscription Required).

Bank of Baroda reported gross NPAs at 9.99% in FY16. The transactions took place under the Inter-Bank Participation Certification (IBPC) scheme, which allows the seller to buy back loans within 90 to 120 days. Of the total amount, close to Rs 35 billion of loans were reportedly acquired from Bank of India in two tranches.

Meanwhile, global rating agency Standard & Poor’s has downgraded four public sector banks and issued a negative outlook on a fifth following a surge in their bad loans. The downgraded banks are Syndicate Bank, Indian Overseas Bank, IDBI Bank and Bank of India.

The rating action was driven by a sharp rise in bad loans in 2015-16 and a bleak outlook for asset quality over the next 12 months. However, the agency said that it expected these banks to remain afloat on the back of strong government support.

USDINR trade today tradingg down 1 paise at 67.17 per US dolla.

Out of 1,813 stocks traded on the NSE, 951 declined and 597 advanced today..

Top 5 Nifty Gainers: Adani Ports & Sez (2.96%), Asian Paints (2.33%), ITC Ltd (1.99%), TCS (1.72%) and Bharti Airtel (1.42%).

Top 5 Nifty Losers: Tata Motors (-0.98%), HDFC Bank (-0.62%), ICICI Bank (-0.49%), HDFC (-0.23%) and BHEL (-0.17%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.

The Indian equity market closed in the green extending its winning streak to fifth consecutive trading session. After opening with a positive bias, indices were stuck in a narrow trading range. The benchmarks lost its early momentum on account of selling pressure in the realty, health care and oil & gas stocks. However, gains in the metals, IT and auto stocks saw the benchmarks end with modest gains.. Nifty closed with a gain of 22 points at 8,179 while Sensex ended with a gain of 72 points at 26,726.

On the economy front, GDP numbers, purchasing managers’ index (PMI) data for services and manufacturing sectors will be announced during this week.

Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 1.39%, while Hong Kong’s Hang Seng is up 0.26% and China’s Shanghai Composite is up 0.05%. European markets are trading mixed today. The German DAX is higher by 0.31%, while the CAC 40 is even. The London markets are closed.

Mahindra & Mahindra slipped 0.6% to Rs.1327. The company reported a net profit of Rs.5837.30 mn for the quarter ended March 31, 2016 as compared to Rs.5505.60 mn for the quarter ended March 31, 2015.

Claris Life sciences hit 20% upper circuit after the company announced that it received EIR for its manufacturing facility located near Ahmadabad wherein US FDA concluded that the inspection stands closed.

Granules India jumped 6% after the company said that it received Establishment Inspection Report (EIR) from the United States Food & Drug Administration (USFDA) for its Jeedimetla plant for the inspection conducted at the facility in December 2015.

Dynamatic Technologies rallied 17% to Rs.2650 after the company reported over three-fold jump in consolidated net profit at Rs.19.22 crore for the quarter ended March 2016. The company had posted net profit of Rs.5.04 crore in a year ago quarter.

Muthoot Finance rallied 8.7% to Rs.233.The company posted a net profit of Rs. 2652.213 million for the quarter ended March 31, 2016 as compared to Rs. 1651.858 million for the quarter ended March 31, 2015.

Tech Mahindra gained 1.5% to Rs.544 on BSE. The company said its board has approved the proposal to acquire Target TOPCO Ltd, a UK-based entity.

BHEL dropped 5.8% to Rs.121. The company’s standalone revenue stood at Rs. 10,004.77 crore, down 21.5% yoy but up 87.86% qoq.

Tree House Education plunged 10% to Rs.71. The net profit stood at Rs.6.78 crore, while revenue from operations was at Rs.209.33 crore, for FY16.

Coal India zoomed 3.8% to Rs.292.The company posted a net profit of Rs. 42479.30 mn for the Quarter ended March 31, 2016 as compared to Rs. 42385.50 mn for the Quarter ended March 31, 2015.

Jubilant Food works tumbled 8% to Rs.1,024.The company posted a net profit of Rs. 294.663 million for the quarter ended March 31, 2016 as compared to Rs. 315.322 mn for the quarter ended March 31, 2015.

Punj Llyod dropped 5.3% to Rs. 20.50 on BSE. The company posted a net loss of Rs. 4679.90 million for the quarter ended March 31, 2016 as compared to net profit of Rs. 2685.30 million for the quarter ended March 31, 2015.

Aurionpro Solutions gained 3% to Rs.148 after the company secured an order from Nagpur Metro Rail Corporation.

USDINR trade today trading down 21 paise at 67.24 per US dollar.

Out of 1,824 stocks traded on the NSE, 739 declined and 774 advanced today..

Top 5 Nifty Gainers: Tata Motors (7.47%), NTPC (1.64%), HDFC (0.69%), Maruti Suzuki (0.63%) and Axis Bank. (0.59%).

Top 5 Nifty Losers: Sun Pharma (-4.09%), GAIL (-1.94%), Bharti Airtel (-1.75%), Infosys Ltd (-1.42%) and L&T (-1.07%)

To qualify NCFM Capital Market Dealers Module certification examination, register with Intelivisto.com and buy Capital Market comprehensive question bank which features mock test, chapter-wise and full length test as per NCFM standards. It also includes performance analysis tools to analyze the performance. For more information call on: +91-9582000102.