Home / Business / Money / Sensex, Nifty volatile; Midcap, Smallcap outperform

Sensex, Nifty volatile; Midcap, Smallcap outperform

12:00

The News International Team

12:30pm Union Bank under pressure

Union Bank of India has disappointed street with the third quarter net profit falling 8.1 percent year-on-year to Rs 302.4 crore, impacted by higher provisions. Other income, however, supported the bottomline but asset quality of the bank deteriorated during the quarter.

Net interest income grew 8 percent to Rs 2,121 crore in the quarter ended December 2014 from Rs 1,963 crore in the year-ago period, which was in line. According to a CNBC-TV18 poll, the profit was expected at Rs 489 crore and net interest income at Rs 2,176 crore for the quarter.

Other income (non-interest income) climbed 29 percent to Rs 877.2 crore from Rs 679.9 crore on yearly basis.

Provisions for bad loans spiked 39.7 percent year-on-year (up 8.5 percent sequentially) to Rs 852 crore in Q3FY15, with provision coverage ratio at 57.25 percent as on December 2014.

Asset quality worsened during the quarter with gross non-performing assets (NPA) rising 123 basis points Y-o-Y (up 39 bps Q-o-Q) to 5.08 percent. Net NPA jumped 69 bps on yearly basis (up 24 bps sequentially) to 2.95 percent in the quarter gone by.

12:00pm Market Check

The market remained volatile after showing more than 1900-point gain on the Sensex in past seven consecutive sessions. However, the broader markets marginally outperformed frontline indices.

The Sensex advanced 51.14 points to 29329.98 and the Nifty rose 5.90 points to 8841.50. The BSE Midcap and Smallcap indices gained 0.5 percent each.

Asian markets traded mixed largely discounting Grexit worries. Shanghai declined while Nikkei surged. Investors also watch out for the US Federal Reserve meet that kicks off today.

Defence stocks like BHEL, L&T, Piavav Defense and Walchandnagar gained today on optimism of US and India breaking a six-year logjam over operationalising the civil nuclear deal and separately deepening defence ties.

Ranbaxy under pressure, falling nearly a percent as the company lost its 180-day exclusivity over the generic version of Nexium. The USFDA has approved Teva’s generic version of Nexium. Meanwhile, Cipla gained 2 percent as it is expected to supply the drug to Teva.

Finance Minister, Arun Jaitley is confident of a turnaround in India, saying he committed to meeting the FY15 fiscal deficit target of 4.1 percent. He reiterates that the government is working towards investor-friendly tax administration.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...