ICICI Bank's share price rises nearly 7%; markets end on choppy note as investors pocket gains

Mumbai: The Indian Stocks weathered yet another choppy session on Tuesday to end with modest gains as participants chose to book profits amid elevated global crude oil prices and geopolitical uncertainties.

ICICI Bank was the star performer in Tuesday's session, comfortably topping the gainers' list by surging nearly 7 percent. Led by the sharp rally in the stock, the company's market valuation zoomed Rs 12,786.96 crore to Rs 1,98,812.96 crore.

The private sector lender on Monday reported a 45 percent drop in March quarter net profit following a spike in bad loans due to changes in asset classification norms

However, investors took heart from the management's commentary that the bulk of the bad loans problem is behind it and the focus now shifts to recoveries and resolution, brokers said.

Representational image. Reuters

Representational image. Reuters

Global crude oil prices hovered above the $75 per barrel mark on uncertainties over the US re-imposing sanctions on Iran, fanning fears of a supply disruption.

The 30-share Sensex opened positive and advanced to the session's high of 35,388.87. However, profit-booking by investors ahead of Karnataka elections this week trimmed the gains, with the gauge sinking to the day's low of 35,136.01.

It finally settled 8.18 points or 0.02 per cent higher at 35,216.32.

The NSE Nifty, after hitting a high of 10,758.55, closed at 10,717.80, up just 2.30 points, or 0.02 percent. It touched a low of 10,689.40 intra-day.

Meanwhile, domestic institutional investors (DIIs) net bought shares worth Rs 1,037.23 crore, while foreign portfolio investors (FPIs) sold equities worth Rs 635.24 crore on Monday, provisional data showed.

"Market turned volatile as investors are concerned on the movement of rupee and surge in oil price which could eventually lead to tight monetary policy.

"Albeit, banks outperformed as sentiment improved on account of early recognition of stressed assets. Continued outflow of foreign money will keep rupee on tenterhook while increasing GST collection and RBIs open market operation may soften the volatility," said Vinod Nair, Head of Research, Geojit Financial Services.

In the Sensex pack, ICICI Bank emerged on top with a rise of 6.86 percent, followed by SBI 1.42 percent and Axis Bank 1.18 percent.

Other winners were Power Grid 1.14 percent, Bharti Airtel 0.69 percent, NTPC 0.47 percent, TCS 0.39 per cent, Maruti Suzuki 0.37 percent, Coal India 0.34 percent, Adani Port 0.29 percent, ITC 0.16 percent, Dr Reddy's 0.15 percent and HUL 0.13 percent.

On the other hand, M&M fell 2.26 percent, IndusInd Bank 1.78 percent, L&T 1.70 percent, Infosys 1.52 percent, Yes Bank 1.19 percent, Tata Motors 0.88 percent, Bajaj Auto 0.87 percent, HDFC Bank 0.75 percent, Wipro 0.67 percent, Asian Paints 0.60 percent, HDFC 0.48 percent, RIL 0.43 percent, Sun Pharma O.40 percent, ONGC 0.35 percent and Kotak Mahindra Bank 0.25 percent.

Sector-wise, bankex index spurted 1.32 percent, followed by realty 1.06 percent, PSU by 0.80 percent, oil and gas 0.36 percent, FMCG 0.19 percent and Power 0.17 percent.

However, capital goods slipped 0.85 percent, consumer durables 0.81 percent, teck 0.57 percent, IT 0.53 percent, auto 0.42 percent, infrastructure 0.19 percent, healthcare 0.18 percent and metal 0.16 percent.

Broader markets showed a mixed trend. The S&P BSE Small-Cap index inched up 0.10 percent while the mid-cap index shed 0.10 percent.

Asian markets closed mostly higher following firm leads from Wall Street overnight.

However, European shares opened broadly flat as investors prepared for President Donald Trump's decision on whether to withdraw the US from the Iran nuclear deal.

Brent crude futures, the international benchmark for oil prices, shed 0.85 percent to $75.52 a barrel.

Hong Kong's Hang Seng rose 1.36 percent, Shanghai Composite Index gained 0.79 percent and Japan's Nikkei ended 0.18 percent higher.

In Europe, Paris CAC declined 0.42 percent, while Frankfurt's DAX traded lower by 0.44 per cent in early deals. London's FTSE, however, was up 0.08 percent.


Updated Date: May 08, 2018 19:26 PM

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