10:30
Moneycontrol BureauLive Market Commentary
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Equity benchmarks are directionless but the broader markets gained a percent. The Sensex slipped 16.26 points to 20,481.99, and the Nifty declined 1.70 points to 6,072.00.
About 1198 shares have advanced, 630 shares declined, and 161 shares are unchanged.
Index heavyweights HDFC, HDFC Bank and ITC extended losses, falling between 0.5-1.4 percent.
10:50am SBI talks to CNBC-TV18 post QIP issue
The Reserve Bank of India 's new rules on bad loan recognition and resolution is a big positive for banks, said SBI chairperson Arundhati Bhattacharya.
Among other things, the new rules reward banks for early recognition of stressed loans and also make future loans costlier for borrowers who do not co-operate in resolution of bad loans.
Also Read: SBI raises over Rs 7,000 cr in share sale via QIP
Speaking to CNBC-TV18 Latha Venkatesh and Sonia Shenoy, Bhattacharya said the joint lender forum will help control corporate accounts more and high provisioning is likely to keep a check on lenders.
On tepid response to SBI's qualified institutional placement (QIP) of shares, Bhattacharya said the recent sell off in emerging markets weakened demand from institutional investors.
The bank was looking to raise around Rs 9,500 crore through the QIP, but had to settle for Rs 8,032 crore and that too mainly with support from the LIC and treasuries of other state-owned banks, which pumped in close to Rs 5,000 crore between them.
She said the QIP had got had got good response from FIIs during roadshows, but sentiment for emerging markets in general soured following the currency crisis in Argentina and Turkey.
She said the QIP would have got better response if it had been launched a week later. "I don't think we need to raise capital over next 2 years," she said adding that the capital adequacy ratio post QIP will be 13.2 percent.
10:40am SKS Microfinance on buyers' radar
Shares of SKS Microfinance rose 7 percent as it completed a securitisation deal of Rs 55.56 crore though a private sector bank. The country's only listed micro-lender said that this is the fifth microfinance securitisation in FY14.
"With this, the total sum of securitisations completed during FY14 (YTD) is Rs 727.37 crore. The first four substantial securitizations were: Rs 321 crore (on September 30), Rs 80.81 crore (on December 11), Rs 215 crore (on December 19) and Rs 55 crore (on December 30)," it said in a statement.
The company added that it has downloaded the receivables from micro loans extended to more than 60,000 rural women entrepreneurs to a special purpose vehicle, and Pass Through Certificates (PTCs) have been purchased by a private sector bank.
10:30am Arvind talks to CNBC-TV18 post earnings
Arvind Mills is confident of outperforming all its earlier guidance buoyed by the recovery seen in export markets like US and Europe.
Speaking to CNBC-TV18, Sanjay Lalbhai, chairman and managing director, Arvind Mills says that the company will maintain its 20 percent growth and outperform its volume guidance of 14 percent.
With capex plans of 12 metric tonne in garment business in Gujarat and Karnataka, Lalbhai is aiming at a 30-40 percent growth in FY15 topline.
10:20am PNB to declare Q3 earnings today
During September quarter, profit after tax crashed 53 percent, the lowest in six years due to provisions spiking 77 percent with mark-to-market (MTM) loss of Rs 400 crore. Hence, in December quarter, the CNBC-TV18 poll of analysts expect the decline to continue. Any growth in profit will be a positive.
Asset quality is the other key concern for the bank. After the September quarter earnings, the management guided for lower slippages and restructured assets in October-March period of FY14, but analysts are still skeptical. Restructured book is expected to be lower by Rs 3,000 crore due to Rajasthan State Electricity Board (SEB) restructuring.
PNB's total stressed assets stood at 16 percent of the loan book as of September quarter, the highest among PSU peers. Outstanding restructured book was Rs 34,800 crore at the end of Q2 and SEB exposure was Rs 9,695 crore.
Its net interest income is expected to rise 10 percent to Rs 4,103 crore versus Rs 3,733 crore and PAT may fall 28 percent to Rs 934 crore versus Rs 1306 crore.
10:10am Market Experts
The Nifty fell almost 3 percent in the last series and having fallen continuously for the last five-six days, the market is oversold at this point of time, VK Sharma of HDFC Securities said.
"We begin the new series on a stock Futures of almost one crore fifty one lakh shares, which is the highest in 11 months. Although we do not read too much into what happened yesterday in the last half an hour trade because that is essentially a compulsion what Call and Put writers would do to take the price higher," he added.
Sharma is positive on the current series and believes that worst is over. "The Nifty may revisit bearish phase, if we do see a close below 5,970 otherwise, before the market begins to falter again, there is room for upside till 6,150," he said.
On the flipside, Shardul Kulkarni, Angel Broking said that recovery in the last half trading session on Thursday has led to a formation of bullish hammer pattern on daily charts. However, given the overall chart structure and momentum oscillators, the broking firm sees the Nifty sliding to lower to 5950 over the next couple of trading sessions. "6030 has acted as a support yesterday, however we expect that support to break overall over the next couple of trading sessions," he said.
Kulkarni has a negative outlook on the market and suggests selling the index on any rise. One should sell, with a stop loss at 6,180 on the higher side, he said.
10:00am The market gained some strength with the Nifty inching towards the 6100 level supported by banks, technology and metals stocks.
The Sensex rose 67.55 points to 20,565.80, and the Nifty climbed 22.70 points to 6096.40 while the broder markets outperformed benchmarks.
The BSE Midcap and Smallcap indices gained more than a percent. Three shares advanced for every share declining on the BSE.
Shares of TCS , Mahindra and Mahindra and Tata Steel rallied more than 2 percent followed by L&T, State Bank of India, Bharti Airtel , Axis Bank and Sesa Sterlite with a percent gain.
However, shares of Tata Motors and NTPC are under pressure, falling nearly 3 percent. HDFC and HDFC Bank declined 1 percent and 0.3 percent, respectively.
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