BSE Sensex rose for a fourth consecutive day on Friday, as State Bank of India (SBI) surged after bad loans rose only slightly in the previous quarter, with sentiment also underpinned by stable consumer inflation data and stronger global markets.
India’s NSE index was up 1.7 percent for the week, snapping two consecutive weeks of falls, after data this week was revised sharply upwards.
Hopes about the economy were further buoyed after data on Thursday showed India’s retail inflation stayed well below the central bank’s target, bolstering prospects for further interest rate cuts.
The benchmark BSE index closed 1.01 percent higher at 29,094.93 points.
The NSE index gained 1.08 percent to 8,805.50 points.
Gains tracked a rally in Asian shares that sent the MSCI Asia-Pacific index excluding Japan up 1.5 percent.
Shares in State Bank of India closed 7.97 percent higher, its biggest single-day gain since May 23, 2014.
The lender said on Friday its bad loans as a percentage of total loans were 4.9 percent for the three months to Dec. 31, compared with 4.89 percent a quarter earlier. Analysts had expected the number to be higher.
Saday Sinha, banking analyst, Kotak Securities:
SBI Q3FY15 Results: Good Set of numbers
Core earnings came in line with our expectations while PAT came lower than our expectations on back of higher provisions. NII grew 9% YoY (in line with our expectation of Rs.138 bn) on stable NIM (3.1%; QoQ) while loan book grew at moderate pace (~7% YoY). Operating profit came ahead our expectations on back of strong non-interest income (25% YoY), while PAT (Rs.29.1 bn; 30.2% YoY) came marginally lower than our estimates due to higher NPA provisions (Rs.47.2 bn in Q3FY15; 52.3% YoY). Positive surprise came on the fresh impairment which is down QoQ to Rs.96.2 bn as against the run-rate of ~Rs.125 bn seen during previous two quarters. Even headline NPL has remained stable at 4.9%, positive in our view. Although PAT came marginally lower than our expectations (due to higher provisions) despite better than expected operating performance, good performance on asset quality front is likely to bode well for the stock. We retain positive bias on SBI which is the only stock in our PSU banking coverage space.
Dipen Shah, Head- Private Client Group Research, Kotak Securities
Markets closed the week with another positive day of trading. Supporting global markets, cease-fire between Russia / Ukraine and expectations of a pro-growth budget, helped markets overcome the results of the Delhi assembly elections. The better-than-expected numbers from SBI, M&M also helped sentiments and so also the lower-than-expected CPI numbers.
Going ahead, the pre-budget expectations will start building up and the corresponding sectors may see increased interest. We believe that, the budget will emphasize on the Government’s favoured themes like Make in India, Infrastructure growth, non-adversial taxation as well as other reforms. We also expect the FM to adhere to the fiscal consolidation path.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Few set of healthy numbers at the end of the result season when earnings where continuously been downgraded, has influenced the momentum today. Fair CPI below the RBI target and experts suggesting further correction in this trajectory is positive for the market. All this factors will help market to develop momentum by the budget expectation.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets were trading higher due to positive global cues and easing concerns over Greece, after they reached an agreement with its euro zone counterparts to solve their current debt crisis. Some of the large cap company’s good quarterly performance were also supported the markets.
Nifty today closed at 8805, up around 93 points. The market breadth was flat as there were seen 1447 stocks advancing against 1437 stocks declining. The Nifty volatility index, India VIX stood at 20.1025 down around 0.27%.
The mid cap and the small cap sector ended up around 0.73% and 0.27% respectively.
Barring the Realty and Oil & gas sectors which closed down around 1% and 0.24% respectively, all other sectors ended in green. The major gainers for the day were FMCG and Health care, ended up around 1.89% and 1.41% respectively.
In the stocks’ front, buying were seen in SBIN and M&M, closed up around 8.23% and 4.99% whereas selling were seen in GAIL and BHEL which closed down around 4.07% and 3.10% respectively.
The FIIs were net sellers in the capital market segment, sold shares worth Rs 406.28 crore on Thursday, 12 February 2015. On the other hand the DIIs were net buyers on 12 February 2014, bought shares worth Rs 705.53 crore as per the provisional data from the stock exchanges.
The European markets rose as of the better German GDP data. The US index futures were also trading higher.
WPI Inflation data will be the major trigger for Indian markets on Monday.
Sensex above 29K, Nifty regains 8,800 mark after SBI good show
(PTI) Domestic markets rose for the fourth straight session with the benchmark Sensex today closing above 29,000-mark for the first time since February 3 while the Nifty reclaimed 8,800-level as bluechips led by banking rallied after robust SBI earnings.
Besides, expectations of faster reforms and a growth oriented Budget as well as recent data strengthening the case for more monetary easing boosted the sentiment, brokers said.
Global cues were positive after news of a ceasefire in Ukraine and as Greece appeared closer to a possible overhaul of its bailout, they added.
Continuing its surge for the fourth session, the BSE Sensex recaptured the landmark 29,000-level for the first time since February 3. It hit an intra-day high of 29,154.67 before settling 289.83 points, or 1.01 per cent, higher at 29,094.93 over its previous close.
The gauge has now gone up by 867.54 points in four days.
Also, the NSE Nifty continued its winning run and zoomed to regain the 8,800-mark by soaring 93.95 points, or 1.08 per cent to close at 8,805.50. Intra-day, it shuttled between 8,729.65 and 8,822.10.
Buying activity gathered momentum soon after SBI posted better-than-estimated third quarterly earnings.
Stocks of SBI spurted by 7.96 per cent after it reported over 30 per cent jump in net profit for December quarter.
Other Sensex components which supported the key benchmark to reclaim 29,000-mark were M&M, TCS, Coal India, ITC, Maruti Suzuki, Sun Pharma, HDFC, Axis Bank and Bharti Airtel. In the 30-share Sensex, 24 ended with gains and six ended lower.
Sectorwise BSE FMCG index gained the most by rising 1.77 per cent, followed by Healthcare 1.56 percent, Banking 1.32 percent, Auto 1.08 percent and Metal 1 percent among others.
Buying activity in smallcap and midcap shares also gathered momentum, with the BSE Midcap index rising by 0.74 and Smallcap index gaining 0.35 per cent.
Meanwhile, Foreign Portfolio Investors (FPIs) remained the net sellers on the bourses. FPIs sold shares worth a net Rs 406.28 crore yesterday, according to provisional data.