Markets open with little gains on global cues2 min read . Updated: 29 Jul 2019, 09:43 AM IST
- Shares of ICICI Bank Ltd rose 3% after the lender reported weak NPA and lower provisioning
- Auto stocks were trading lower after weak June quarter earnings
Mumbai: Indian markets on Monday opened little changed tracking losses in global equity markets as analyst look forward to the resumption of US-China trade talks and the Federal Reserve’s policy meeting this week.
At 9.35 am, the benchmark Sensex Index fell 0.18% to 37815.68 while Nifty Index down 0.34% to 11246.35 points.
The US Federal Reserve Meet on 30-31 July and is expected to cut interest rates by a quarter percentage point.
The US and Chinese trade negotiators will meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough.
"Global cues have also been negative in terms of earnings as most companies who have reported to date saw a decline in earnings and further reducing EPS making it a second straight quarterly drop", said Mustafa Nadeem, CEO, Epic Research.
"We believe this is a time for caution rather than being aggressive and going out with a shopping bag. It is now only select few stocks that need to be handpicked at this point of time. While Index may consolidate between 11200 - 11450 in the short term", Nadeem added.
Shares of ICICI Bank Ltd rose 3% after the lender reported weak non performing assets and lower provisioning. Its gross non-performing assets (NPAs) as a percentage of gross advances declined 232 bps to 6.49%, and the net NPA ratio stood at 1.77%, down 242 bps from the same period last year. The provisioning for bad loans and contingencies fell to ₹3,495.73 crore for April-June 2019 as against ₹5,971.29 crore a year earlier.
Auto stocks were trading lower after weak June quarter earnings and release of a draft notification dated 24 July 2019 to increase vehicle registration fees by government. Hero MotoCorp Ltd fell 4%, Bajaj Auto Ltd 3.4%, Tata Motors Ltd 3.4%, Maruti Suzuki India 2.4%, Mahindra & Mahindra Ltd 1.3%
"Overall, our conclusion is that if the notification goes through, it will hurt the sales of the already struggling auto sector. 2Ws will be hit harder due to a higher cost increase for them followed by cars and MHCVs. CV OEMs may be relatively better off if the scrappage scheme is made effective" said Noumura Research in a note to its investors.
Indiabulls Group stock were trading lower after Subramanian Swamy charges India Bulls of laundering more than Rs. 1 Lakh Crores. Demands probe by SIT and Special Audit. Indiabulls real Estate Ltd fell 7.2%, Indiabulls Housing Finance 7%, Indiabulls Ventures Ltd 7%.