The News International Team
02:40pm Market Update
The 30-share BSE Sensex continued to consolidate at around 28250 level, up 22.30 points to 28249.69 while the 50-share NSE Nifty rose 7.40 points to 8533.75.
About 1172 shares have advanced, 1465 shares declined, and 216 shares are unchanged on the Bombay Stock Exchange. The broader markets were under pressure as the BSE Midcap was trading flat with negative bias and Smallcap declined 0.5 percent.
02:30pm United Bank falls
United Bank of India has turned profitable during October-December quarter due to sharp slide in provisions and jump in other income. However, the net was impacted by lower net interest income.
Net profit for the quarter stood at Rs 41.8 crore in December quarter against loss of Rs 1,238 crore in same quarter last year. However, net interest income (the difference between interest earned and interest expended) fell 18.2 percent year-on-year to Rs 622.5 crore during the same period.
Other income (non-interest income) shot up 92.5 percent to Rs 426 crore and operating profit climbed 10.6 percent to Rs 602.8 crore on yearly basis.
Provisions for bad loans dropped 72 percent year-on-year (up 47.8 percent sequentially) to Rs 520.4 crore with provision coverage ratio at 52.48 percent in December quarter.
02:00pm Market Check
The market gave up all it’s gains in afternoon with the Nifty trading below 8500 due to selling in Reliance Industries, HDFC and TCS. The 30-share BSE Sensex declined 135.18 points to 28092.21 and the 50-share NSE Nifty lost 38.80 points to 8487.55.
The market breadth was also weak. About 1092 shares have advanced, 1483 shares declined, and 230 shares are unchanged on the Bombay Stock Exchange.
Arvind Sanger of Geosphere Capital Management says India continued to look interesting in the short term. He remains positive on banks, but sees headwinds like higher oil prices, weak earnings for the market.
IT sector was under pressure after industry body NASSCOM says that IT sector growth in FY15 has come in at 13 percent which was at the lower end of guidance of 13-15 percent, adding currency volatility led to drop in overall revenues.
TCS lost 2.7 percent and Wipro declined 1 percent. Index heavyweights Reliance Industries plunged 3.6 percent and HDFC decliend 2.6 percent. Sun Pharma, L&T, Axis Bank, ONGC, HUL and Maruti Suzuki were down 1-2.7 percent.
However, Infosys, Tata Motors, ICICI Bank, M&M, SBI, GAIL and Coal India gained 1-2.6 percent.
Global markets traded weak as tensions of Greek debt negotiations and geopolitical concerns in Ukraine weighed on sentiment. Fresh Chinese inflation data also added to investors’ concerns. France’s CAC, Germany’s DAX and Britain’s FTSE were down 0.2-0.5 percent.
In Delhi elections, AAP won 67 out of 70 seats with massive 61 percent of the vote share, the biggest ever win by any party in Delhi to date. However, BJP got just three seats while it’s a complete rout for the Congress.