Home World Business Sensex regains 30,000, up over 150 points; ICICI Bank jumps 5% post...

Sensex regains 30,000, up over 150 points; ICICI Bank jumps 5% post Q4

SHARE

Nifty PSU Bank index was the leading gainer among sectoral indices

SI Reporter  |  New Delhi  May 4, 2017 Last Updated at 09:25 IST

The benchmark indices opened higher on Thursday thanks to gains in banking stocks after the Cabinet on Wednesday approved a new policy to deal with non-performing assets (NPAs). 


At 09:17 am, the S&P BSE was trading at 30,050, up 155 points, while the broader Nifty50 was ruling at 9,348, up 36 points.


In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.5% and 0.4%, respectively.

“Yet another day’s flattish close in the previous session raises the potential for expansion in trading range. Such a move could set a 100-point perimeter centering 9,330 initially. A broadening wedge pattern seen in hourly charts is still in formation and confirms the potential for expanded trading range,” said brokerage Geojit Financial Services in a technical note.

Buzzing stocks 

PSU Bank index was the leading gainer among sectoral indices, led by gains in Oriental Bank, Union Bank and Syndicate Bank. 

ICICI Bank jumped over 5% to Rs 286 after the the country’s largest private sector lender reported manifold jump in standalone net profit to Rs 2,024.64 crore for the quarter ended March 31. The bank had made a net profit of Rs 701.89 crore in the January-March quarter of the fiscal year 2015-16. 


Cabinet approves new NPA policy


The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved a new framework for dealing with Rs 6 lakh crore worth of non-performing assets (NPAs) in the banking system. 


The framework includes the promulgation of an Ordinance to amend the Banking Regulation Act to give more teeth to the Reserve Bank of India (RBI) and its oversight committees to act on behalf of banks while deciding on NPAs. The proposals are now awaiting the President’s assent.


Fed outcome


At the end of its two-day meeting, the kept its benchmark interest rate steady as expected, but downplayed weak first-quarter economic growth and emphasised the strength of the labor market, a sign it was still on track for two more rate increases this year.


Futures traders are now pricing in a 72% chance of a June rate hike, from 63% before the Fed’s statement, according to the CME Group’s FedWatch Tool.


Global markets


Asian stocks retreated tracking subdued trade on MSCI’s broadest index of Asia-Pacific shares outside Japan slid 0.15% in early trade on Thursday.


Australian shares were 0.3% lower.


Japan is closed for the Golden Week holiday. South Korea’s KOSPI bucked the weaker trend and was up 0.5% after touching an all-time high earlier in the session on strong corporate earnings.



The Nasdaq fell 0.4% as Apple shares slid after reporting lower than expected iPhone sales on Tuesday.

Sensex regains 30,000, up over 150 points; ICICI Bank jumps 5% post Q4

Nifty PSU Bank index was the leading gainer among sectoral indices

Nifty PSU Bank index was the leading gainer among sectoral indices

The benchmark indices opened higher on Thursday thanks to gains in banking stocks after the Cabinet on Wednesday approved a new policy to deal with non-performing assets (NPAs). 


At 09:17 am, the S&P BSE was trading at 30,050, up 155 points, while the broader Nifty50 was ruling at 9,348, up 36 points.


In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices gained 0.5% and 0.4%, respectively.

“Yet another day’s flattish close in the previous session raises the potential for expansion in trading range. Such a move could set a 100-point perimeter centering 9,330 initially. A broadening wedge pattern seen in hourly charts is still in formation and confirms the potential for expanded trading range,” said brokerage Geojit Financial Services in a technical note.

Buzzing stocks 

PSU Bank index was the leading gainer among sectoral indices, led by gains in Oriental Bank, Union Bank and Syndicate Bank. 

ICICI Bank jumped over 5% to Rs 286 after the the country’s largest private sector lender reported manifold jump in standalone net profit to Rs 2,024.64 crore for the quarter ended March 31. The bank had made a net profit of Rs 701.89 crore in the January-March quarter of the fiscal year 2015-16. 


Cabinet approves new NPA policy


The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved a new framework for dealing with Rs 6 lakh crore worth of non-performing assets (NPAs) in the banking system. 


The framework includes the promulgation of an Ordinance to amend the Banking Regulation Act to give more teeth to the Reserve Bank of India (RBI) and its oversight committees to act on behalf of banks while deciding on NPAs. The proposals are now awaiting the President’s assent.


Fed outcome


At the end of its two-day meeting, the kept its benchmark interest rate steady as expected, but downplayed weak first-quarter economic growth and emphasised the strength of the labor market, a sign it was still on track for two more rate increases this year.


Futures traders are now pricing in a 72% chance of a June rate hike, from 63% before the Fed’s statement, according to the CME Group’s FedWatch Tool.


Global markets


Asian stocks retreated tracking subdued trade on MSCI’s broadest index of Asia-Pacific shares outside Japan slid 0.15% in early trade on Thursday.


Australian shares were 0.3% lower.


Japan is closed for the Golden Week holiday. South Korea’s KOSPI bucked the weaker trend and was up 0.5% after touching an all-time high earlier in the session on strong corporate earnings.



The Nasdaq fell 0.4% as Apple shares slid after reporting lower than expected iPhone sales on Tuesday.

image

SI Reporter

Business Standard

http://bsmedia.business-standard.com/_media/bs/wap/images/bs_logo_amp.png 177 22

LEAVE A REPLY

Please enter your comment!
Please enter your name here