Indian stock markets opened lower as the corporate earnings fail to cheer after the country’s largest private sector bank ICICI Bank and the pharma major Dr Reddy's yesterday reported weak results for the April-June quarter.
Indian stock markets opened lower as the corporate earnings fail to cheer after the country’s largest private sector bank ICICI Bank and the pharma major Dr Reddy’s yesterday reported weak results for the April-June quarter. Shares of ICICI Bank fell 2% to Rs 300.9. BSE Sensex fell as much as 216 points to hit a low of 32,167.05 points while NSE Nifty 50 slipped 53 points to hit a low of 9,967.4 points.
Shares of HDFC remain the top gainer and highest pointwise contributor on the benchmark Sensex. The stock gained 1.82% to hit a new lifetime high of Rs 1,760 while the shares of Idea, Dr Reddy’s, Biocon, ONGC traded lower on the account of weak results. ICICI Bank and Dr Reddy’s Laboratories drag the Sensex down, contributing as much as 62 points collectively to the index downfall.
Idea Cellular shares tripped 5.77% top Rs 87.3 after the telecom company reported a loss of Rs 815.9 crore for the first quarter ended June 30, impacted by sustained pressure from disruptive tariffs of Reliance Jio.
Shares of Dr Reddy’s Laboratories were among the worst loser after the pharma company reported a decline of 53% to Rs 59.1 crore owing to price erosion in the US market and implementation of GST in India. The stock fell over 5.77% to Rs 2,470 on BSE while Biocon shares tumbled 6.86% to Rs 371.7 after it reported 51.2% drop in consolidated net profit, the company accounted weakening of the US Dollar and GST impact for the decline in net profit.
Shares of ONGC were down 1.25% after India’s biggest oil and gas producer reported an 8.2% drop in net profit for the June quarter after a sharp reduction in natural gas rates took away gains made from higher oil prices. ONGC reported a net profit of Rs 3,884.73 crore, or Rs 3.03 a share, in April-June compared to Rs 4,232.54 crore, or Rs 3.30 per share, in the same period of the previous fiscal, the company said in a statement.
However, shares of ITC rose 0.54% to Rs 290.2 today after the Diversified conglomerate reported 7.37% rise in standalone net profit to Rs 2,560.50 crore for the first quarter ended June 30, 2017, driven mainly by revenue growth from FMCG and cigarettes business. Stocks of the Maruti Suzuki rose 0.79% 7,652 to Rs after the India’s largest carmaker yesterday posted a 4% rise in net profit at Rs 1,556.4 crore for the first quarter of FY 2018. Reliance Capital shares rose as much as 5.24% to Rs 693.7 after it reported a 15% rise in consolidated net profit at Rs 238 crore in the first quarter ended June 30, 2017.
ICICI Bank’s net profit on a standalone basis for the April-June quarter of 2017-18 fell 8.2% to Rs 2,049 crore from Rs 2,232.35 crore a year ago in the same period. The bad loans rose to 7.99% of the total gross advances, compared to 5.28% as on 30 June 2016.