Sensex Ends 93 Points Higher; Oil & Gas And Realty Stocks Witness Buying

Indian share markets traded on a volatile note throughout the day and ended marginally higher.

Sectoral indices ended on a mixed note with stocks in the oil & gas sector and realty sector witnessing buying interest, while power stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood higher by 93 points and the NSE Nifty closed up by 43 points. The BSE Mid Cap index ended the day down by 0.1%, while the BSE Small Cap index ended up by 0.2%.

Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up 0.6% and the Shanghai Composite stood lower by 0.4%. The Nikkei 225 was up 1.2%.

The rupee is trading at 71.37 against the US$.

In news from the banking sector, private sector lender Federal Bank reported 56.7% growth in its net profit, driven by other income and lower tax cost. Profit rose to Rs 4,167 million against Rs 2,660 million in same period last year.

Net interest income grew by 9.9% year-on-year (YoY) to Rs 11,238 million. Loan growth came at 14.8%.

The bank's asset quality weakened during the quarter under review with gross non-performing assets (NPA), as a percentage of gross advances, rising 8 bps to 3.07% and net NPA increasing 10 bps to 1.6% quarter-on-quarter.

Fresh slippages increased to Rs 5.4 billion at the end of Q2FY20 against Rs 4.2 billion at the end of Q1FY20.

Provisions increased sharply to Rs 2.5 billion versus Rs 1.9 billion in Q1FY20 but fell from Rs 2.9 billion in Q2FY19.

On a consolidated basis, net profit came in at Rs 4,253.4 million, up 51.6%. The bank had reported a net profit of Rs 2,806.1 million in the corresponding quarter last year.

Federal Bank share price ended the day down by 2.6%.

Speaking of the banking sector, note that 2019 has been brutal for some banking stocks.

The market has severely punished them. This is due to issues such as worsening asset-quality, corporate governance, and inadequate capital.

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Disclaimer: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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