Posts Tagged ‘HDFC Bank’

Sensex Tumbles 216 Points on Weak Global Cues

Stocks dropped on Wednesday, triggered mainly by weak sentiments in Asian markets  on concern over rising dollar, ahead of the expiry of October series of futures and option contracts.

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European markets saw a gap-down opening, but recovered later, helping the market to gain some ground in the last half-an-hour of trade. The BSE Sensex trimmed 216.02 points, or 1.07 per cent, to close at 20,005.37. Nifty index declined 69.35 points, or 1.14 per cent, to 6,012.65.

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“Strengthening of the dollar against a basket of major world currencies dragged the market on Wednesday. The Dollar Index, which has an inverse relationship with different assets classes, is rebounding these days. Due to which, investors have turned cautious on equities markets,” said Jagannadham Thunuguntla, head of research at SMC Global Securities.

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The Dollar Index on Wednesday rose to 77.92 against 76.64 on October 14. Before this, the index was falling continuously from the middle of July.

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There was also speculation that US Federal Reserve’s asset purchase plan may be a disappointing one, said Alex Mathews of Geojit BNP Paribas.

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“Nifty has a major support at 5,963 while on the upside, it faces resistance at 6,089 level. On Thursday, we are going to see the October F&O expiry. The rollovers at the end of Wednesday’s session was around 45 per cent,” he said.

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Banking stocks continued to weigh heavy while disappointing results of heavyweight NTPC hurt sentiments on the power counter.

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Union Bank, ICICI Bank and HDFC Bank fell 5.85 per cent, 2.23 per cent and 1.93 per cent, respectively. SBI inched up 0.41 per cent to Rs 3,193.45. Union Bank on Wednesday posted 40 per cent decline in September quarter PAT to Rs 303 crore compared with the same period a year ago.

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NTPC fell 3.24 per cent after the company reported 2.07 per cent drop in PAT on 20.46 per cent year-on-year rise in net sales for the September quarter. The results were announced after Tuesday’s trading hours.

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Among other stocks in news, MRPL rose 1.76 to Rs 83.95 after its Q2 net profit jumped 56.70 per cent to Rs 281.57 crore. ONGC and HPCL, the two stakeholders of the company, dipped 1.80 per cent and 1.42 per cent.

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Shriram Transport Finance hit an all-time high and rose 3.94 per cent to Rs 89.45 after its net profit surged 44.11 per cent year-on-year to Rs 298.96 crore.

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PM Adviosry Panel Suggests Drop in Inflation Rate to 7%

PM Adviosry Panel Suggests Drop in Inflation Rate to 7% by March End

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The Prime Minister”s advisory panel said inflation could fall to 7% by fiscal-end, in the midst of projection that inflation could touch the double-digit mark.

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However, noting that food prices which have pushed inflation to 7.31% for December are expected to ease in the coming months stated PMEAC Chairman C Rangarajan.

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Whereas, the Reserve Bank of India (RBI) should take some money control measures to tame the rising prices.

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Meanwhile, his optimism is in contrast to alarming projections given by market analysts.

Citi said that if the uptrend seen in fuel and metals continues, inflation could enter the double-digit range in the coming months.

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HDFC Bank Economists stated that inflation is expected to touch 8.5% by March-end.

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Moreover, Rangarajan said the rise in inflation is mainly because of the increase in prices of food articles, which is largely due to supply shortfalls.

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Rangarajan expected the RBI to take back some special refinance facilities from the system while the RBI has projected inflation to be around 6.5% by this fiscal-end.

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The RBI had offered refinance facility to various sectors of the economy, faced with credit squeeze in the economy due to financial crisis that broke out in September 2008.

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ICICI, SBI write off, sell debt to reduce bad loans

By restructuring the repayment terms of prospective bad loans and writing off loans in Q3, the leading banks are putting in check their non-performing assets (NPAs).
ICICI, SBI write off, sell debt to reduce bad loans
However, State Bank of India (SBI) restructured Rs 2,832 crore loans, while ICICI Bank did so with Rs 850 crore of loans. Further, SBI wrote off Rs 900 crore of bad loans in the first half of 2009-10 while ICICI has written off Rs 600 crore in Q2.

Moreover, the level of gross NPAs depends on the amount of write-offs/upgrades of NPAs hence; the more relevant figure is the absolute level of net NPAs while SBI”s advances are growing faster than the system at 16%, but its NPAs are also growing.

Meanwhile, there is no need for concern as most loans are in the recoverable category and they stemmed from home loans, education loans and international business, which were closely related to the downturn.

In addition, the sale of bad loans also helped ICICI Bank ensure its gross NPAs were lower at Rs 9,200.89 crore at the end of Q2.

On the other hand, the bank restructured about Rs 4,800 crore of bad loans whereas in the next 2-3 quarters they should be able to clean up their balance sheet.

As for HDFC Bank, gross NPAs rose to Rs 2,025.88 crore at the end of Q2, about 20% higher than a year earlier while most of the bad loans on HDFC Bank”s books are on account of the merger of Centurion Bank.

IDFC, KRIBHCO Buy 5% Stake Each in ICE :)

IDFC-KRIBHCO-buy-5%-stake

IDFC and Krishak Bharati Cooperative Limited (KRIBHCO)have purchased a stake of  5% each in Indian Commodity Exchange, which jointly promoted by Indiabulls Financial Services and MMTC.

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According to sources, the bourse will apply to Forwards Markets Commission, the regulator, after the completion of the formalities of the shareholding agreement.

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With the latest divestment, the current holding of Indiabulls stood at 40% while MMTC has 26%. The other shareholders include HDFC Bank, Yes Bank and Indian Potash.

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FMC guidelines stipulate a maximum shareholding of 40% in a commodity exchange by an anchor investor.
This has to be reduced to 26% within a period of two years starting with the fourth year from the date of exchange’s recognition.

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Earlier, FMC (Forward Markets Commission) rejected United Stock Exchange’s proposal to pick up 10% stake in Indian Commodity Exchange since it was yet to receive full recognition from capital markets regulator SEBI.

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The bourse is the latest entrant into the commodity futures space and will vie with the predominantly metals and energy bourse MCX and agri bourses NCDEX and NMCE.

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In August, FMC had directed the exchange, which had received recognition from the Ministry of Commerce over a year ago, to offer 10 per cent equity of USE to other competent partners and re-submit the application by September-end.

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Market trading firm: Sensex hits 10-month high :)

Sensex hits 10-month high

Sensex hits 10-month high

After a gap up opening, the domestic markets are marching towards the northward on the back of strong rally across other Asian markets. Further, bulls are driving the major Indian bourses to its highest in 10 months, with an expectation that the government will increase public spending in the budget next month to boost economic growth.

Buying interest has emerged across all the sectoral indices.

Among the BSE sectoral indices, Metal, Consumer Durable (CD) and Capital Goods (CG) stocks gained by 3.80%, 3.51% and 3.46% respectively.

Overall market breadth is positive. Out of the total 2,482 stocks traded at BSE, 1,670 advanced, 759 declined while 53 remained unchanged.

Gainers from the BSE Sensex Pack are Tata Power Company Ltd,HDFC Bank, Reliance Infrastructure, L&T, Sterlite Industries and ONGC.

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Market continues its thrust on 10/6/2009:)

Market continues its thrust

Market continues its thrust

After a spectacular opening, the key benchmark indices extended gains on sustained buying by foreign funds.

Foreign funds bought shares worth Rs. 955.31 crore on Tuesday 9 June 2009.

Indian stocks roared on expectations that ample liquidity in pipeline and a return of risk appetite will nudge India Inc corporate profits. India Inc has already raised almost Rs. 5,000 crore from three qualified institutional placements (QIPs) so far in 2009 and announced plans to raise another Rs 20,000 crore.

On the sectoral front, out of 13 Indices, all were traded in green.

Oil stocks advanced as crude oil surged towards $71 a barrel for the first time in seven months on a larger-than-expected fall in crude oil stocks and a view that falling oil demand may have bottomed.

IT stocks fell on stronger rupee.

Banking stocks gained on reports the Reserve Bank of India may standardize the way banks calculate their prime lending rates (RLRs) and bar them from lending below their respective PLRs for more transparency.

Metal stocks gained as six metals traded on the London Stock Exchange jumped 3.8% overnight.

The Market breadth, indicating the overall strength of the market, was strong.

On BSE, out of 2,717 stocks traded so far, 1,411 shares advanced while 1,241 shares declined. Nearly 65 shares are unchanged.

Major gainers from the BSE Sensex pack are

Wipro Ltd 5.96% to Rs. 449.00, along with,

Tata Power Ltd spurted 5.70% to Rs. 1,205.35,

HDFC Bank Ltd spurted 5.66% to Rs. 1,495.50,

Larsen & Toubro 4.97%% to Rs. 1,652.00,

Reliance Infrastructure Ltd by 4.76% to Rs. 1,204.00,

Sterlite Industries Ltd by 4.61% to Rs. 684.00,

ONGC Ltd by 4.30% to Rs. 1,180.00,

Hindustan Uniliver Ltd rose 3.74% to Rs. 266.00 and

Bharti Airtel Ltd 3.17% to Rs. 838.55 among others.

Losers from the BSE Sensex Pack are

DLF Ltd plunged 0.98% to Rs. 398.75 along with

Tata Motors Ltd fell 0.68% to Rs. 366.00,

State Bank of India 0.41% to Rs. 1,756..00 and

Sun Pharmaceuticals Ltd by 0.36% to Rs. 1,331.00 among others.