NIFTY50: 19,570 ▼ 26 (-0.1%)
SENSEX: 65,864 ▼ 106 (-0.1%)
Hello, friends!
Coldplay has gone green! The pop group has released a sustainability report for their ‘Music of the Spheres’ world tour. According to the report, the tour has adopted a host of initiatives to reduce the carbon footprint of the world tour. Not only has the band managed to reduce emissions by 47% over their last stadium tour, they have also generated energy from in-venue installations and kinetic dance floors! While Coldplay is doing all it can to make our ‘Paradise’ green, the markets ended in the red. More on that later.
- Market reverse early gains, metal stocks trade under pressure
- In all, 31 of the NIFTY50 stocks closed in the red
- China’s exports slumped 14.5% YoY to a five month low of $281 billion in July
Among the NIFTY sectoral indices, PSU Bank (+3.3%) and Media (+0.7%) were the top gainers, while Metal (-1.1%) and Auto (-0.3%) were the top losers.
| Top gainers | Today's change |
| SBI Life | 1,354 ▲ 51 (+3.9%) |
| Hero MotoCorp | 3,069 ▲ 115 (+3.9%) |
| Cipla | 1,268 ▲ 44 (+3.6%) |
| Top losers | Today's change |
| Adani Enterprises | 2,477 ▼ 73 (-2.8%) |
| Hindalco | 455 ▼ 9.8 (-2.1%) |
| M&M | 1,500 ▼ 26 (-1.7%) |
What’s trending
⭐ Hindalco Industries posts weak Q1 results
Hindalco Industries reported a 40.4% YoY decline in consolidated net profit to ₹2,454 crore for Q1FY24. Meanwhile, its revenue fell by over 8% YoY ₹52,991 crore. The subdued performance is attributed to lower aluminium prices and unfavourable economic conditions that impacted the specialties markets. Following the result announcement, Hindalco shares declined over 2%, while other metals stocks, including JSW Steel and Tata Steel traded lower.
⭐ Olectra Greentech posts mixed Q1 results
Olectra Greentech shares were down by 5% after reporting mixed quarterly earnings. Its revenue from operations declined 23% YoY to ₹216 crore mainly due to lower sales in its electric bus division. Despite the revenue falling, the company reported an 8.7% YoY increase in net profit to ₹18 crore on the back of strong operating performance.
⭐ Genus Power surges after order win
Genus Power bagged a new order worth ₹2,209.8 crore to provide 21.7 lakh smart electricity meters to State Electricity Boards (SEBs). The metering solutions company announced that after this new order, its total order book stands at over ₹8,200 crore. The company’s shares were up by 5.7% today.
⭐ Crude falls on weak China trade data
International crude oil prices declined more than 2% today, with Brent Oil Futures trading near to $83.5 per barrel. This comes after China, which is one of the largest oil importers, reported a double-digit decline in its imports and exports trade. Its imports contracted by 12.4% in July, while exports fell by 14.5% indicating sluggish economic growth in China.
In Focus
PSU Banks post record profits
Public sector banks (PSBs) have once again delivered stellar performance in the first quarter of FY24. Combined net profit of 12 state-owned banks rose 127% YoY to ₹34,774 crore for the quarter ended June 2023. This growth came on the back of healthy growth in net interest income (NII) and robust loan growth. Here are the complete details
Banks that outperformed
Most of the state-owned banks reported robust profitability. The pack was led by Punjab National Bank, which reported a 307% YoY jump in its net profit to ₹1,255 crore. This was followed by State Bank of India (SBI), which reported ₹16,884 crore in profit, up 178% YoY. Infact, SBI accounted for nearly half of the total profits earned by all PSBs.
Other PSBs including Bank of India, Bank of Maharashtra, Bank of Baroda and UCO Bank reported profit growth in the range of 50% to 176% on an yearly basis. Except for Punjab & Sind Bank, which saw a 25% YoY drop in net profit, all other banks reported a rise in quarterly profit.
Key factors behind robust profitability
One of the key factors behind this profitability has to be stronger demand for loans, which grew by 16% YoY as on 30 June 2023. Rise in net interest income (NII), which rose by 26.3% YoY was another key factor behind increased profitability. Most banks recorded a net interest margin (NIM) of over 3% thanks to a high-interest regime.
Besides this, bank provisions for bad loans dropped 19.8% YoY to ₹19,008 crore and also supported profitability. Combined gross non-performing assets (NPAs) fell by 23% YoY to ₹4 lakh crore.
Other than this, timely repricing of loans amid hike in RBI policy rates and a lag in deposit rate revision also helped public banks put up a strong show.
State-owned banks, thus, clearly seem to be giving tough competition to private lenders. Meanwhile, the NIFTY PSU Bank index is up over 2.7% this week.
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