Share markets in India are presently trading on a negative note, tracking weak global cues as investors fretted over weak economic data and rising COVID-19 cases.
The BSE Sensex is trading down by 247 points while the NSE Nifty is trading down by 68 points.
The BSE Mid Cap index is trading up by 0.2%, while the BSE Small Cap index is trading on a flat note.
Sectoral indices are trading on a mixed note with stocks in the power sector and banking sector witnessing selling pressure, while healthcare stocks are trading in green.
The rupee is trading at 76.01 against the US$.
Gold prices are currently trading down by 0.1% at Rs 45,360.
Speaking of the current stock market scenario, after a sharp rally in the past few weeks, the markets have turned volatile again.
You would be interested in knowing when the market will likely bottom out.
Moving on, market participants are tracking RBL Bank share price, Cyient share price and Gillette share price as these companies are scheduled to announce their March quarter results later today.
In news from the FMCG sector, shares of Hindustan Unilever (HUL) slipped 5% in early trade today after UK-based Glaxo-SmithKline (GSK) offloaded its stake in HUL via block deals.
According to the term sheet, over 133 million shares are being offered in the range of Rs 1,850-1,950 to investors through a special block window. The deal will be valued roughly between Rs 246 billion to Rs 259 billion.
GSK and Horlicks are selling up to US$ 3.4 billion worth of HUL shares through what could be India's biggest secondary market block trades.
The British drug maker is looking to monetize about 5.7% of HUL stock it had got after last year's merger of GSK Consumer Healthcare and HUL.
As per the scheme of amalgamation amongst GSK Consumer Healthcare and HUL, GlaxoSmithKline Pte had received 54.08 million shares of HUL, meanwhile, Horlicks received 79.69 million shares.
Accordingly, parent company Unilever Plc and group companies' stake in HUL reduced to 61.9%, from 67.2% earlier after the issue of new shares.
HUL share price is presently trading down by 1.7%.
Moving on to news from the banking sector, Yes Bank share price is in focus today. The stock of the private lender surged 20% today after the bank reported better-than-expected March quarter (Q4FY20) results.
Yes Bank posted a net profit of Rs 26.3 billion on the back of one-time gain attributed to an exceptional item of Rs 63 billion.
The bank has written-down additional tier-1 bonds as part of its planned reconstruction scheme, leading to a one-time gain of Rs 63 billion.
In the absence of the exceptional gain, the bank would have reported a net loss of Rs 36.7 billion.
The bank had reported a net loss of Rs 15.1 billion a year ago, while the same was Rs 185.6 billion in Q3FY20.
The bank's net interest income (NII) for the March quarter came in at Rs 12.7 billion, up 19.6% sequentially.
Net interest margin (NIM) for Q4FY20 came in at 1.9%, compared to 3.1% a year ago.
On the asset quality front, gross non-performing assets (NPA) fell 19% QoQ to Rs 328.8 billion, mostly on account of write-offs.
The bank's deposits plunged to Rs 1.05 lakh crore, down 54% YoY compared with Rs 2.27 lakh crore.
Meanwhile, Advances declined 29% YoY to Rs 1.7 lakh crore from Rs 2.4 lakh crore in the year-ago quarter.
For the financial year 2019-20 (FY20), the private lender posted a loss of Rs 164.2 billion, on a standalone basis, compared to net profit of Rs 17.2 billion in the previous year.
Speaking of the banking sector, the low access to credit for micro small and medium enterprises (MSMEs) tells us there is a huge opportunity for lenders.
This is evident from the chart below:
India's Huge Lending Opportunity
Of the 60 million MSMEs in India, only 11% had access to credit from organized lenders. Most of them are self-financed or get credit from unorganized sources.
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