Nifty50: 17,829 ▲+151 (+0.8%)
Sensex: 59,771 ▲+477 (+0.8%)
- The markets opened on a positive note and closed in the green.
- Out of the Nifty50 pack, 40 stocks posted gains.
| Top gainers | Today's change |
| Titan | ▲ 4.5% |
| IOC | ▲ 4.5% |
| Bajaj Finsv | ▲ 4.1% |
| Top losers | Today's change |
| IndusInd | ▼ 10.5% |
| Divis Lab | ▼ 5.1% |
| M&M | ▼ 1.3% |
For more updates on F&O, click here.
Here are the top stories of the day.
IndusInd shares fall after allegations
Shares of the private bank dipped 12% intraday after a whistleblower reportedly levelled allegations of loan evergreening (reviving loan accounts which are on the verge of default). However, the bank has dismissed the claims, calling them inaccurate and baseless.
The bank said that all loans managed by its subsidiary Bharat Financial are fully compliant with regulatory guidelines. It also added that the bad loans recognition process runs on a daily basis without any manual intervention.
Muthoot soars on strong Q2
The non-banking finance company’s consolidated net profit 8% year-on-year to ₹1,002 crore. In the same period, the lender’s asset quality slightly deteriorated with bad loans rising to 1.8% of the overall loan book in Q2FY22 from 1.2% in Q2FY21.
Meanwhile, the management said that it will be able to maintain strong growth momentum as all its branches are open now. It also added that it is optimistic about the growth in the gold loan segment in the second half of FY22 as the demand environment remains strong.
IPO party continues on D-Street
The IPO of One97 communications, which is the parent company of Paytm, was subscribed 18% on day 1. The public issue received strong interest from retail investors with the retail portion being subscribed 78%.
Besides Paytm’s IPO, two more companies will launch their public issue this week. Sapphire Foods, which is the franchise operator of KFC, Pizza Hut and Taco Bell, will launch its IPO tomorrow. On Wednesday, Latent View Analytics’ IPO will open for subscription. You can apply for IPOs on Upstox.
Closing bell
Despite a weak opening, the markets rose for the second day in a row. The reduction in petrol and diesel prices could have a cooling effect on inflation, which augurs well for the markets. The bounce back in the bank stocks from day's low also helped the rally. The market movement suggests sideways action ahead.
Good to know
What is loan evergreening?
The loan evergreening refers to a lender’s attempt to cover-up the rise in non-performing assets (NPAs). A bank tries to revive a loan account which is on the verge of defaulting by lending it more money. This means the lender doesn’t have to recognise the loan as an NPA in the near-term. However, this can hurt the lender’s balance sheet in the long run as the defaults could sharply rise in the future.
We'd love your thoughts on this market recap.
Haven't tried out Upstox yet? Click here to open your account now!
To catch our latest educational videos, join our Telegram channel here.
Disclosures and Disclaimer
Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.