CNX Bank Nifty to log worst fall, Axis Bank, ICICI Bank shares Plunge

The CNX Bank Nifty registered its worst fall in two-weeks on Wednesday losing 351.3 points or 1.8% to close at 19,483.6, largely due to a 8.3% and a 3.7% drop in the shares of Axis Bank and ICICI Bank, respectively.

The 8.3% fall in the shares of Axis Bank, which had announced its September quarter results after market hours on Tuesday, was the biggest in over a year. The bank had reported a 83% (y-o-y) drop in net profit to `319 crore in Q2FY17 as provisions it is required to set aside for non performing loans had jumped 71% (y-o-y) to `3,623 crore.

The reason behind this big jump in provisioning requirement was `8,772 crore worth of loans slipping and turning non performing during the quarter. The bank’s management said 83.1% of the fresh slippages during the quarter came from the ‘watch list’ it had earlier created.

As a result, the bank’s watch list reduced by 32% (q-o-q) and stood at `13,789 crore at the end of September. After the declaration of Q1 results, Sridharan had said that only about 60% of the watch list would slip in to NPAs.

“We now believe that slippages from the watch list (`22,600 crore) will be more than the 60% that we had originally envisaged. A materially higher portion of the watch list could turn NPA by the end of FY18,” said Jairam Sridharan, chief financial officer of the bank.

Visit Us At

Zoid Research
Office 101, Shagun Tower 
A.B. Commercial Road, Indore

Pin-452001
Mobile: +91 9039073611
Email: info@zoidresearch.com

Website: www.zoidresearch.com

Jio Entry Resist The Growth Of Airtel Data

Leading telecom service provider Bharti Airtel is likely to witness a slow data growth because of the entry of Mukesh Ambani-led Reliance Jio in the sector.

Analysts said Airtel’s data realisation was expected to fall 10 per cent quarter-on-quarter. The data usage growth is likely to come under more pressure in October-December quarter because of the full impact of Reliance Jio.

“We see some continued softening of data growth because of the new competitor. We will need to bundle 4G services in a much better way,” said Gopal Vittal, managing director and chief executive officer, India and South Asia, Bharti Airtel, during an investor call on Wednesday.

Jio launched its commercial services on September 5. It is offering the whole bouquet of services free of cost till December 31. This has hit incumbent operators. According to a Deutsche Bank report, Airtel’s India business grew at 10.2 per cent and the mobile division performance was marginally below estimates because of a sharper fall in voice and data pricing.

“Data usage growth at 55 per cent year-on-year was stable, although pricing fell 20 per cent y-o-y. 3G subscriber penetration has improved quarter on quarter after stagnating for six months at 23 per cent,” the report said.

Free Trial On Stock Market Tips Subscribe at http://bit.ly/1T3cqCb

Zoid Research
Office 101, Shagun Tower 
A.B. Commercial Road, Indore

Pin-452001
Mobile: +91 9039073611
Email: info@zoidresearch.com

Website: www.zoidresearch.com

Nifty and Sensex down almost 1%; Axis Bank, ICICI Bank weigh

Telecom majors outperformed even as the benchmark indices continued to languish in negative terrain weighed down by selling pressure in select private banks while caution was seen in FMCG majors ahead of their second quarter earnings later today.

At 12pm, the S&P BSE Sensex was down 215 points at 27,877 and the Nifty50 was down 54 points at 8,637. In the broader market, the BSE Midcap was trading flat while the Smallcap index was up 0.3%. Market breadth was firm with 1291 gainers and 1116 losers on the BSE.

Bharti Airtel was up over 2% on better-than-expected profit and higher margins. The telecom major posted a 4.9% year-on-year (y-o-y) drop in its consolidated net profit at Rs 1,461 crore for the quarter ended September 30, 2016, mainly on account of higher spectrum amortisation, increase in net interest costs and devaluation of Nigerian currency. The profit figure, however, was much better than Bloomberg consensus estimate of Rs 1,229 crore. Further, reports suggest that the company is exploring stake sale in Bharti Infratel. Meanwhile, the company has announced new 10-day packs for international roaming with unlimited incoming calls.

Idea Cellular was up 4%. The company’s revenue, however, increased 7.2 per cent to Rs 9,300.23 crore in the reported quarter from Rs 8,675.37 crore in the year-ago period. Idea Cellular on Monday reported a 88 per cent year-on-year (y-o-y) drop in its consolidated net profit at Rs 91.46 crore for the September 2016 quarter mainly on account of higher expenses and inflationary pressures even as the company witnessed a decline in voice realisation.

Axis Bank was the top loser down nearly 7% after the private lender reported a 83% drop in net profit to Rs 319 crore in July-September quarter as compared to Rs 1,915.64 crore in the same quarter last year. This sharp drop in profit was led by higher provisioning that increased by over five times as bad loans increased.

For More Info On Stock & Derivatives Market Tips, Click at

Zoid Research
Office 101, Shagun Tower 
A.B. Commercial Road, Indore

Pin-452001
Mobile: +91 9039073611
Email: info@zoidresearch.com

Website: www.zoidresearch.com

Tata Sons board removes Cyrus Mistry from chairman's post

Tata Sons Board replaces Mr. Cyrus P. Mistry as Chairman, Selection Committee set up for new Chairman

Tata Sons today announced that its Board has replaced Mr. Cyrus P. Mistry as Chairman of Tata Sons. The decision was taken at a Board meeting held here today.

The Board has named Mr. Ratan N. Tata as Interim Chairman of Tata Sons. The Board has constituted a Selection Committee to choose a new Chairman. The Committee comprises Mr. Ratan N. Tata, Mr. Venu Srinivasan, Mr. Amit Chandra, Mr. Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.

Stay Connect For More Updated Stock Tips at

Zoid Research
Office 101, Shagun Tower 
A.B. Commercial Road, Indore

Pin-452001
Mobile: +91 9039073611
Email: info@zoidresearch.com

Website: www.zoidresearch.com