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%)

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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%)

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The Indian equity market once again closed in the green extending its winning streak to fourth straight session on Friday. The Nifty closed at highest level in 7 months registering its biggest weekly gain in nearly 3 months. Hopes of economic recovery, strength in rupee and prediction of above average monsoon lifted sentiments higher. Nifty closed with a gain of 87 points at 8,156 while Sensex ended with again of 287 points at 26,654.

On the global front, most of the Asian indices closed their day on a positive note. The Hong Kong’s Hang Seng ended higher by 0.88%, while Japan’s Nikkei 225 ended higher by 0.37%. The European indices also witnessed buying interest. The FTSE 100 is up 0.05%, France’s CAC 40 is up 0.06% and Germany’s DAX is up 0.9%. The rupee was trading at Rs 66.97 to the dollar at the time of writing.

SBI reported its results for the quarter ended March 2016. The net profits declined by 66% YoY to Rs 12.6 billion during the quarter. The decline was mainly because of higher provisioning on account of bad loans.

The gross non-performing assets (NPAs) increased to 6.5%, higher than 5.1% as reported in the preceding quarter. As an absolute number the gross NPAs increased by 35% to Rs 981.7 billion on a sequential basis.

Further, provisions increased by 65% to Rs 131.7 billion on a sequential basis. The provisions increased as the company set aside more money to provide for the bad loans. Net interest income (NII), the difference between the interest earned on loans and that spend on deposits, increased by 4% YoY to Rs 152.9 billion during the quarter.

SBI’s earnings have been hit in the March 2016 quarter on account of the clean-up exercise undertaken in line with RBI’s Asset Quality Review (AQR).

While the fallout of the same has resulted in higher provisions that have curtailed earnings, but it will also enable banks to quickly tide over the NPA crisis. A check on the asset quality will be the key things to watch out for going forward.

One shall note that the bank is going to merge its five associate banks, along with Bharatiya Mahila Bank, with itself. The bank recently announced that its board has given in-principle approval for the bank to discuss the possibility of acquiring its associate banks.

The stock of SBI closed higher by 9.4%.

Tata Steel recently reported its results for the fourth quarter ending March 31, 2016 (4QFY16). The company posted a year on year (YoY) decline of 12.4% in its consolidated revenues. Consolidated net loss of the company stood at Rs 33 billion as against Rs 57 billion in the corresponding quarter last year. Operating profits, however, remained strong. The company’s EBITDA (earnings before interest, tax, depreciation and amortization) came in at 23 billion, up by 44% on a YoY basis.

For the overall business, the company recorded steel deliveries of 6.94 million tonne (MT) during the quarter, down 1.6%.

Stock of Tata Steel closed the trading day up by 1.7%.

USDINR trade today trading up 16 paise at 67.01 per US dollar.

Out of 1,440 stocks traded on the NSE, 566 declined and 817 advanced today.

Top 5 Nifty Gainers: Coal India (4.34%), Tata Motors (1.95%), TCS (1.20%), Dr Reddys Lab (0.88%) and Axis Bank. (0.86%).

Top 5 Nifty Losers: BHEL (-2.89%), Lupin Ltd (-1.26%), ITC Ltd (-1.11%), ICICI Bank (-1.07%) and HDFC (-0.79%)

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.