Indian markets edge upward..

After opening firm, the Indian markets continued to edge upwards. Most sectoral indices are trading on a firm note with stocks from the pharma and auto sectors leading the gains.

The BSE-Sensex is trading up 303 points (up 1.1%) and the NSE-Nifty is trading up 80 points (up 0.1%). The BSE Mid Cap index is trading up by 1.2% while the BSE Small Cap index is trading up by 0.9%. The rupee is trading at 64.02 to the US dollar.

Stocks in the banking space are trading mixed with Yes Bank and ICICI Bank leading the gains. As per a leading financial daily, India's fourth-biggest private sector lender by assets Kotak Mahindra Bank is expecting its credit costs to jump this fiscal year. This was due to the increase in provisions related to its purchase of the smaller ING Vysya Bank. During the quarter ended June 2015, the provisions including for bad loans and employee retirement benefits jumped 22 times from a year earlier. This dragged down the net profit of the bank to Rs 1.89 bn during the concerned quarter. Gross bad loans as a percentage of total loans rose to 2.31% YoY in the June quarter. The stock of Kotak Mahindra Bank is trading down by 3.6%.

Engineering stocks are also trading mixed with Sanghvi Movers leading the gains and Manugraph India leading the losses. According to financial times, Crompton Greaves (CG) has won an important contract to supply ZIV single phase smart meters to Energias de Portugal (EDP). This makes CG the main supplier for data concentrators to EDP. ZIV's single phase smart meter model is nowadays the reference smart meter in the PRIME PLC market segment, after the deployment of over 3 million ZIV units worldwide. EDP is one of the major European operators in the energy sector. Crompton Greaves is a global pioneer in the management and application of electrical energy. Currently the stock of Crompton Greaves is trading up by about 1.1%.

For information on how to pick stocks that have the potential to deliver big returns click here.http://www.rpshares.com/news.html

Rupee slips 13 paise vs USD, falls past 64-mark:

 After a brief pause, the rupee on Thursday fell by 13 paise to end at 64.04 against the US currency on strong month-end dollar demand from importers.

Stronger dollar sentiment overseas against the backdrop of Federal Reserve's decision to leave interest rates unchanged predominantly pressurised the local unit, a forex dealer commented.

Consistent unwinding by foreign investors from Indian equities and debt markets, too, weighed on the rupee.

The dollar hit multi-year highs against all other Asian currencies amid expectations of rate hike at its September policy meet and also US second-quarter growth data later in the day.

The rupee resumed marginally higher at 63.93 per dollar against yesterday's closing level of 63.91 at the Interbank Foreign Exchange market supported by mild dollar selling as well as firm equities.

However, the local currency turned weak following good dollar demand from state banks, most likely on behalf of their institutional clients to hit a fresh intra-day low of 64.04, before ending down by 13 paise, or 0.20 percent, at 64.04.

It briefly touched a high of 63.92 during the trade.

The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up by 0.31 per cent at 97.52.

Meanwhile, Foreign portfolio investors (FPIs) sold shares worth a net Rs 186.24 crore yesterday, as per provisional data released by the stock exchanges.

The benchmark Sensex rallied by 141.93 points to end at 27,705.35. 

Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee traded weak today taking cues from strong dollar at USD 97.33 which is heading towards to post its third daily gain in a row. It traded in a thin range but eventually depreciated by over 14 paise for the day to close down at 64.04."

Most Asian currencies traded weak against the dollar as it continues to trade higher ahead of the release of US GDP data due for the day which is expected to show growth, he added.

The trading range for the Spot USD/INR pair is expected to be within 63.70 to 64.40.

In the forward market, the premium for dollar declined further on sustained receivings from exporters.

The benchmark six-month premium payable in December moved down further to 184-186 paise from 189-191 paise yesterday while, far-forward contracts maturing in June 2016 also eased to 411-413 paise from 417-419 paise.

The RBI fixed the reference rate for the dollar at 64.0061 and for the Euro at 70.0739.

The rupee fell further against the pound sterling to close at 100.10 from 99.94 yesterday and recovered against the euro to 70.18 from 70.58.

It recouped against the Japanese currency to 51.49 per 100 yen from 51.67 previously.

Dr Reddy's shares gain over 5% on Q1 net jump.

 Shares of drug major Dr Reddy's Laboratories on Thursday surged over 5 percent, adding Rs 3,287.19 crore to its market valuation, after the company reported a 13.67 percent rise in consolidated net profit for the quarter ended June 30.

The stock ended the day with a gain of 5.23 percent at Rs 3,907.55 on BSE. During the day, it climbed 5.91 percent to Rs 3,933.

At the NSE, shares of the company rose by 5.4 percent to close at Rs 3,913.10.

The company's market valuation went up by Rs 3,287.19 crore to Rs 66,618.19 crore.

Dr Reddy's today reported a 13.67 percent rise in its consolidated net profit to Rs 625.65 crore for the quarter ended June 30, on account of robust sales in North America, Europe and India.

The company had posted a net profit of Rs 550.39 crore for the corresponding quarter of the previous fiscal, it said in a BSE filing.

Consolidated net income from sales and services also rose to Rs 3,757.76 crore for the quarter under review as against Rs 3,517.54 crore for the same period year ago. 

ITC shares gain 4%; add Rs 9,600 crore in m-cap post Q1 earnings

Shares of ITC on Thursday rose by 4 percent, adding Rs 9,600 crore to the company's market valuation, after the firm posted 3.61 percent rise in net profit for the first quarter ended June, 2015.

The stock ended the day at Rs 315.80, up 3.90 percent from its previous close on the BSE. During the day, it gained 4.62 percent to Rs 318.

At the NSE, shares of the company settled 3.93 percent higher at Rs 315.95.

The company's market valuation surged by Rs 9,600 crore to Rs 2,53,231 crore.

On the volume front, 8 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.

ITC Ltd today posted a subdued 3.61 percent rise in net profit at Rs 2,265.44 crore for the first quarter ended June 30, due to pressure on cigarette sales and sluggish demand for other FMCG products.

The Kolkata-based company had posted a net profit of Rs 2,186.39 crore during the same period of 2014-15 fiscal.

Net sales of the company, however, declined 7.18 per cent to Rs 8,505.53 crore for the quarter under review as against Rs 9,164.42 crore during June quarter of the previous fiscal, ITC Ltd said in a statement.

Meanwhile, in the broader market, the BSE Sensex ended the day at 27,705.35, up 141.92 points.

Share-based benefit rules don't apply to notional issues: Sebi

Market regulator Sebi has said the notional stock appreciation right (SAR) unit issued by companies to its promoters or employees does not qualify for share-based employee benefit regulations.

Under the regulations, the scheme should actually involve "dealing in or subscribing to or purchasing securities of the company directly or indirectly".

The Securities and Exchange Board of India (Sebi) has conveyed its views in response to an 'informal guidance' sought by Mindtree on an employee benefit scheme, Phantom Stock Scheme, introduced by the company.

In August 2013, the stock appreciation rights scheme was introduced by Mindtree pursuant to which SAR units (Phantom Stock) were granted to six employees, who are also promoters of the company. 

The scheme was later renamed as Phantom Stock Program.

The company has issued notional SAR units at a pre- -determined grant price and the promoters are entitled to get cash payment for appreciation in the share price over the grant price for the awarded units, based on realisation of the specified revenue targets.

In its response, Sebi said share-based employee benefit regulations 'may not apply to the instant Phantom Stock Scheme' as it does not involve any actual purchase or sale of the equity shares of Mindtree.

In a separate case, the market watchdog said the managing director (MD) benefits scheme introduced by Saregama India does not qualify for the 'share-based employee benefit regulation' as it does not involve any actual purchase or sale of shares of the company. 

Sensex breaks 4-day losing streak; recovers 104 points.

 The market benchmark Sensex on Wednesday recovered from over one-month lows by rising 104.20 points to 27,563.43 as investors preferred to create positions in IT, capital goods and auto stocks ahead of F&O expiry tomorrow.

BSE Sensex managed to end four-day losing streak, in which it had lost close of 1,050 points, as market found immediate support in the continuing fall in crude prices.

Oil fell for a sixth day today to USD 53.06 per barrel.

Moreover, experts hoping that an imminent rate hike by the US Fed this year will have a minimal impact on emerging markets, including India, supported the upside.

"This is evident from the hike in global bond yields, the appreciation of the dollar and the sharp fall in commodities," said Vinod Nair, Head-Fundamental Research at Geojit BNP Paribas Financial Services.

Sill, some investors remained cautious ahead of the US Fed FOMC meet outcome which is expected to come tonight.

The BSE 30-share barometer resumed higher and improved further to a high of 27,609.29 before falling back to a low of 27,470.09. 

It finally, closed at 27,563.43 -- a gain of 104.20 points or 0.38 percent.

Among the 30-Sensex constituents, 20 shares ended higher.

The broad-based NSE Nifty also ended higher by 38.05 points or 0.46 percent to 8,375.05. Intra-day, it shuttled between 8,381.50 and 8,338.45.

Covering-up of outstanding short positions by traders in view of tomorrow's July's month expiry in the derivatives segment too supported the recovery.

Asian stocks closed mixed with upward bias. Shanghai index rebounded 3.44 percent after three sessions of losses.

European markets were too higher in late morning deals.

Back home, stocks of Tata Steel and Hindalco were back in demand and rose up to 0.95 percent as prices of industrial metals recovered in global markets.

Other Sensex gainers were Tata Motors, Lupin, BHEL, Maruti Suzuki, Hero MotoCorp, L&T, Bharti Airtel, ICICI Bank, HDFC, Sun Pharma, Vedanta, Cipla, Axis Bank, Bajaj Auto and ONGC.

Among BSE sectoral indices, Capital Goods gained the most by rising 1.89 percent, followed by IT 1.48 percent, auto 1.39 percent, teck 1.34 percent and Realty 1.22 percent.

Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 1,375.66 crore yesterday, as per provisional data. 

Rupee recovers 12 paise against dollar in trade

 The rupee recovered by 12 paise to 64.04 against the dollar in early trade Tuesday on fresh selling of the US currency by exporters.

Forex dealers said a weakening dollar against some currencies overseas and early gains in domestic equity markets also supported the rupee.

The rupee had lost 12 paise to close at a new 6-week low of 64.16 per dollar yesterday on persistent demand for the US currency from banks and importers amid a massive plunge in equities.

The benchmark BSE Sensex rose by 100.08 points, or 0.36 per cent, to 27,661.46 in early trade.

Market down for 4th straight day; Sensex falls below 27,500

 The benchmark BSE Sensex fell for the fourth straight session Tuesday by 102.15 points to 27,459.23 as realty and auto shares dropped on receding hopes of a rate cut by the Reserve Bank and mixed bag of corporate earnings.

After resuming in the positive zone, the BSE barometer gave up all of its gains as investors preferred to remain on the sideline ahead of the RBI's policy review on August 4.

Brokerage houses including, Morgan Stanley, RBI and DBS say the apex bank will maintain status quo key lending rate.

Gaurav Jain, Director at Hem Securities said, indices traded in a narrow range awaiting clue from the US Federal Reserve's FOMC meet, which begins from today.

The gauge opened on a better note, but in noon trade it succumbed to selling pressure giving up initial gains to hit the day's low of 27,416.39 on across-the-board losses.

It, finally settled 102.15 points or 0.37 percent down at 27,459.23 -- its weakest closing since June 19.

The index has lost 1,045.70 points in last four sessions on muted earnings by some blue-chips amid fears over stricter norms on participatory notes (PNs) and a Chinese stock rout.

The 50-share NSE Nifty, after touching the session's high of 8,397.40 intra-day, succumbed to selling pressure at higher levels and settled the day lower by 24.00 points or 0.29 percent at 8,337.00.

Of the 30-pack Sensex, 18 ended with losses.

Bucking the trend, shares of country's largest carmaker Maruti Suzuki rose 0.46 percent to Rs 4,195.65 after it posted 56.49 percent growth in its standalone net profit at Rs 1,192.92 crore in the first quarter of this fiscal.

The losers which contributed to the BSE fall included, Dr Reddy's, Hero MotoCorp, HDFC, ICICI Bank, Tata Motors, Bajaj Auto, Bharti Airtel, Cipla, Tata Steel, Wipro, Coal India, GAIL, M&M, ONGC and Lupin.

Sector-wise, BSE realty index suffered the most by losing 2.72 percent, followed by healthcare (0.87 percent), metal (0.73 percent), auto (0.69 percent), oil&gas (0.45 percent) and teck (0.42 percent).

In line with overall trends, the mid-cap index fell 0.18 percent and small-cap index shed 0.17 percent.

Meanwhile, Foreign portfolio investors (FPIs) sold shares worth Rs 859.94 crore yesterday, as per provisional data.

A mixed closing was seen at other Asian markets. Shanghai witnessed another round of wild volatility, a day after its heaviest one-day fall in more than eight years.

Europe was in green in its early trade after some companies earnings beat estimates.

PFC stake sale subscribed 36% in initial hour of trade.

The government's 5 per cent stake sale in power sector lender PFC kicked off on Monday with the issue getting subscribed 36 per cent in the initial hour of trade.

The government is looking to raise over Rs 1,600 crore from sale of 6.60 crore shares in Power Finance Corp (PFC) through a one-day OFS route at a floor price of Rs 254 apiece.

PFC is the second PSU to be divested in the current fiscal under the government's disinvestment programme. In April, government had sold 5 per cent stake in REC to garner Rs 1,550 crore.

The share sale, which began at 0915 hours, received good response from institutional investors and portion reserved for them was subscribed 42 per cent by 1025 hrs.

The portion reserved for retail investors, who are also getting 5 per cent price discount, was subscribed 11 per cent, as per the stock exchange data.

Overall, the Offer was subscribed 36 per cent and the subscription may rise further during the day as bidding will continue till 1530 hrs.

As against a floor price of Rs 254 a share for the OFS, PFC shares were trading at Rs 257.70. The current market price was, however, down 0.71 per cent over previous close on BSE.

The floor price of Rs 254 a share was at a discount of 2.14 per cent over Friday's closing price of Rs 259.55.

At the floor price, the government is expected to mobilise around Rs 1,676 crore through the divestment.
At present, government holds 72.80 per cent equity in Power Finance Corporation. After sale of 6.60 crore shares representing 5 per cent stake on offer, government's holding will be reduced to 67.80 per cent.

PFC is the first disinvestment under the modified OFS rules of Sebi under which companies are allowed to disclose stake sale plans two 'banking' days ahead of the issue.

The Department of Disinvestment had approached Sebi in March saying they do not want trading days in-between the announcement and stake sale.

Earlier, the companies were required to give an advance notice of two trading days before the OFS, which the government says gave scope for speculators to beat down the share price of the disinvestment-bound PSU.

The Department has a Rs 69,500-crore target from PSU disinvestment in the current fiscal, of which Rs 41,000 crore would come from minority stake sale and Rs 28,500 crore from strategic stake sale.

As much as 20 per cent of the issue size is reserved for retail investors and 25 per cent for mutual funds and domestic insurance companies.

The remaining portion is left for institutional investors, which are usually lapped up mostly by domestic financial institutions and foreign funds. 

RIL shares down over 1% on profit-booking.

Shares of Reliance Industries on Monday fell by over 1 per cent on profit-taking amid an overall weak broader market even as the company reported highest quarterly profit in seven-and-a-half years on strong refining and petrochemical margins.

The stock opened the day on a positive note but later fell by 1.24 per cent to Rs 1,012.25 on BSE. At the NSE, shares of the company were down 1.31 per cent to Rs 1,011.55.

On Friday, RIL had reported a standalone net profit of Rs 6,318 crore or Rs 19.5 per share in April-June quarter, which was 11.8 per cent higher than Rs 5,649 crore or Rs 17.5 a share in the same period a year ago.

The first quarter profit in the current financial year 2015-16 was highest since earning in October-December 2007.

Revenue fell 26 per cent to Rs 77,130 crore, hurt by a sharp fall in prices of crude oil and petroleum products, the company had said in a statement.

Consolidated net profit rose 4.4 per cent to Rs 6,222 crore in April-June quarter of the current fiscal as against Rs 5,957 crore a year ago, the statement said.

In the broader market, the BSE Sensex was quoting 326.60 points down at 27,760.89. 

Sensex falls 551 points, marks biggest one-day percentage fall in nearly two months.

 The BSE Sensex fell nearly 2 percent on Monday, its biggest one-day percentage loss in nearly two months, on China`s stock market rout and concerns that possible stricter norms for participatory notes back home may hit foreign investments.

The BSE Sensex ended down 1.96 percent, marking its biggest single-day fall since June 2.

The Nifty closed 1.88 percent lower, its biggest percentage fall in a day since June 11.

Cairn India shares gain over 6% on bourses.

Shares of Cairn India Thursday gained over 6 percent amid reports that its erstwhile parent firm Cairn Energy may vote against the merger of the company with Vedanta.

The stock ended the day 6.20 percent higher at Rs 177.30 on the BSE. During the day, it rose by 10.33 percent to Rs 184.20.

On the NSE, shares of the company jumped 6.43 percent to Rs 177.70.

Meanwhile, the BSE has sought clarification from Cairn India with respect to news that Cairn Energy is set to vote against Vedanta's Cairn India offer.

The minority shareholders of Cairn India have raised concerns over the company not getting a "fair valuation" in the USD 2.3 billion all-share merger with parent Vedanta Ltd and use of its over Rs 24,000 crore of cash pile.

The merger needs approval of half of the non-promoter shareholders. Life Insurance Corp (LIC) holds 9.06 percent and Cairn Energy plc of UK another 9.82 percent of Cairn India. Vedanta owns a 59.88 percent stake in Cairn India.

Overall, Vedanta Group has Rs 77,752 crore debt, a part of which can be paid using Cairn India cash. 

Rupee loses further, down 20 paise to 63.97 against dollar

Falling for the third consecutive day, the rupee weakened by another 20 paise to trade at 63.97 against the dollar in early trade on Friday on appreciation of the American currency against other major currencies globally as the US Federal Reserve prepares to hike rates.

Besides, increased demand for dollar from importers and a lower opening in the domestic equity market, weighed on the local currency, forex dealers said.

The rupee had plunged by 19 paise to close at over 3-week low of 63.77 against the US dollar in yesterday's trade on persistent demand for the American currency from banks and importers on the back of higher greenback in the overseas market.

Meanwhile, the benchmark BSE Sensex was down by 111.72 points, or 0.39 percent, to 28,259.12 in early trade today. 

Sensex down 111 points on earnings concern

The benchmark BSE Sensex declined by 111 points in early trade on Friday due to selling by funds and investors on earnings concerns amid a weak trend overseas.

The 30-share barometer, which had lost 134.09 points in the previous session, fell further by 111.72 points, or 0.39 percent, to 28,259.12 in early trade.

Capital goods, banking, auto, power and FMCG stocks were among the major losers.

On similar lines, the broad-based National Stock Exchange index Nifty shed 20.65 points, or 0.24 percent, to 8,569.15.

Brokers said disappointing quarterly earnings from some bluechip companies and a weak trend at other Asian markets dampened trading sentiment here.

Bucking the trend, Reliance Industries was trading a shade higher at Rs 1,045.75 ahead of its financial results, to be announced later today.

Among other Asian markets, Hong Kong's Hang Seng fell by 0.92 percent, while Japan's Nikkei moved down by 0.68 percent in early trade.

The US Dow Jones Industrial Average ended 0.67 percent lower yesterday on weak corporate earnings. 

Fall in gold prices not yet a concern for rupee: Nomura

 Decline in gold prices is not likely to add pressure to India's current account deficit or the domestic currency, as the metal's appeal has diminished, Nomura said in a research note today.

According to the global financial services firm, the recent decline in gold prices is not yet a "concern" for the Indian rupee.

According to the Japanese brokerage firm, since 2009, lower inflation, improved RBI credibility and strong performance in financial assets have diminished gold?s appeal as an investment.

Gold prices are currently hovering around Rs 25,000 per 10 grams, after it dropped to a four-year low in the domestic market.

Moreover, the correlation between gold prices and gold demand in India had turned from "negative" to "positive" since 2009. This change in correlation was attributed to a number of factors including a "growing preference for gold as an investment asset rather than purely as a consumer good", Nomura said.

As per the brokerage, an investment in the NIFTY index in the 12 months to end-June, would have yielded more returns than an investment in gold in rupee terms.

"While we acknowledge a potential pick-up in seasonal demand towards the end of the year, this does not change our medium-term constructive view on INR," Nomura said.

The rupee is hovering around Rs 63 per US dollar.

It further noted that "coupled with a gradual economic recovery, we note that India's external vulnerability metrics continue to improve, amid signs that the RBI is being less aggressive in its USD buying/INR selling intervention".

Moreover, trade data continued to show weakness in gold demand, with import volumes dropping 21 percent month-on-month in June by our estimates.

This is attributed to a number of factors, chief among them the seasonal slowdown in demand during the monsoons. In addition, with rural consumers accounting for the vast majority of gold purchases, the decline in agricultural wage growth is also likely to be a factor in weakening demand, Nomura said. 

Lupin buys US generic drugmaker GAVIS for $880 million

 Lupin Ltd, India`s fourth-largest drugmaker by sales, has agreed to buy US peer GAVIS Pharmaceuticals LLC for $880 million to increase its presence in the United States, its largest market, where sales growth has slowed.

Lupin said US sales fell 31 percent to $180 million in April-June, leading to a net profit decline of 16 percent to 5.25 billion rupees ($82.35 million). That compared with the 6 billion rupees estimate of 45 analysts polled by Reuters.

The drugmaker`s US growth has been hampered by a slower pace of winning generic drug approvals since the US Food and Drug Administration overhauled its generics review process.

Lupin said buying privately held GAVIS would give it access to 66 generic drugs for which the New Jersey firm has sought approval, representing a potential market value of $9 billion.

Lupin would also gain dermatology drugs, controlled substance products and other speciality generics.

The Indian drugmaker said it expects GAVIS to contribute to earnings in the first full year after purchase. Last year, GAVIS` sales reached $96 million.

GAVIS could not be reached for comment outside of regular US business hours.

Shares of Lupin closed 5.3 percent lower after the announcement, compared with a 0.5 percent fall in the Nifty. 

IDBI Bank to raise Rs 26,000 crore through equity, bonds

 Public sector lender IDBI Bank plans to raise Rs 26,000 crore through a mix of equity and bonds to fund its business growth.

The bank proposes to "issue such number of equity shares of the face value of Rs 6,000 crore (inclusive of premium amount) to be added to the existing paid-up capital of IDBI Bank in such a way that the central government shall at all times hold not less than 51 percent of the paid-up capital of the bank...," IDBI Bank said a filing on the BSE.

The fund from sale of shares would be raised in one or more tranches.

Besides, the bank plans to raise Rs 20,000 crore from bonds in one or more tranches during the current fiscal.

Permission has been sought by the bank for "mobilisation of in one or more tranches up to Rs 20,000 crore comprising of senior or infrastructure bonds, Basel III compliant or Additional Tier I Bonds by way of private placement or public issue during 2015-16 or during one year from the date of passing this resolution whichever is later", it added.

The bank would seek nod from shareholders for these proposals during the Annual General Meeting on August 12.

In addition, the bank would also seek approval for increase in the number of whole time directors (Deputy Managing Directors) from two to three.

The board of IDBI Bank has also approved the proposal for separating the post of Chairman and Managing Director into 2 posts of a Chairman and a Managing Director and CEO by effecting amendments in the Articles of Association.

For the full fiscal 2014-15, IDBI Bank had posted a net profit of Rs 873.39 crore, a 22 percent decline over last fiscal.

The bank had a net profit of Rs 1,121.40 crore in 2013-14.

Total income increased to Rs 32,161.62 crore during 2014-15, from Rs 29,576.27 crore in previous fiscal.

On a consolidated basis, the group posted a net profit of Rs 941.80 crore in 2014-15.

The net profit after minority interest and share of profit of associates was Rs 1,151.74 crore in 2013-14 fiscal.

IDBI shares closed at Rs 63.50 apiece on BSE, down 2.46 percent from previous close. 

HDFC Bank shares pare early gains; down 1.5% at close

Shares of HDFC Bank pared early gains and ended 1.5 percent lower Tuesday amid an overall weakness in the broader market even as the company reported 20.72 percent growth in net profit for the quarter ended June.

After rising 1.1 per cent to Rs 1,127.90 in intra-day trade, shares of HDFC Bank gave up the gains and finally ended at Rs 1,098.60, down 1.52 percent on the BSE.

At the NSE, shares of the company closed 1.54 percent down at Rs 1,098.05.

"HDFC Bank reported Q1 FY16 results which were in-line with our estimates," said Vaibhav Agrawal, VP Research --- Banking, Angel Broking.

Private sector lender HDFC Bank today reported 20.72 percent growth in net profit at Rs 2,695.72 crore for the quarter ended June 30.

The bank had earned a net profit of Rs 2,233.04 crore in the April-June quarter of 2014-15.

Total income of the bank rose 26.25 per cent to Rs 16,502.97 crore during the quarter under review as compared to Rs 13,070.65 crore in the same period last year, HDFC Bank said in a BSE filing.

As of June 30, HDFC Bank's gross non-performing assets (NPAs) were at 0.95 percent of gross advances, as against 1.07 percent at the end of first quarter of the last fiscal.

On quarter-on-quarter basis, it rose to 0.95 percent from 0.93 percent.

Net non-performing assets stood at 0.27 percent of net advances as on June 30, 2015.