Nifty50: 18,114 ▼−63 (0.3%)
Sensex: 60,821 ▼−101 (0.1%)
Markets extended weakness for the fourth consecutive session and closed in the red. Out of the Nifty50 pack 35 stocks closed lower.
Among the Nifty sectoral indices, Realty (+2.5%) and Nifty Bank (+0.7%) were the top gainers and Metal (-3.0%) and Media (-2.2%) were the top losers.
| Top gainers | Today's change |
| HDFC | ▲ 2.2% |
| Bajaj Auto | ▲ 1.7% |
| Kotak Bank | ▲ 1.3% |
| Top losers | Today's change |
| Hindalco | ▼ 4.6% |
| Coal India | ▼ 3.6% |
| Tata Motors | ▼ 3.4% |
For more updates on F&O, click here.
Here are the top stories of the day.
Yes Bank’s profit soars in Q2
The lender’s net profit rose by 74% year-on-year to ₹225 crore in the September quarter. The sharp growth in profit was aided by a 65% drop in provisioning for non-performing assets (NPAs). However, its net interest income (NII) declined by 23% YoY to ₹1,512 crore.
Meanwhile, the bank’s asset quality improved with gross NPAs, declining to 15% in Q2FY22 from 16.9% in Q2FY21. In the same period, the CASA ratio also increased to 29.4% from 24.8%. Despite the improvement in performance, shares of Yes Bank were down 4% today.
KEC surges on new orders
The Mumbai-based engineering and construction company’s shares surged 11% intraday as it bagged new orders worth ₹1,829 crore. The orders fall under the transmission & distribution, civil works, among other areas of business. The management has said that it has received orders worth more than ₹7,000 crore till date this year, a 70% jump from last year’s order book.
Further, it also has managed to widen its global footprint with its first transmission and distribution order in Europe worth ₹656 crore. Shares of KEC pared some of their early gains and closed 5.4% higher.
IEX posts robust Q2 results
India's leading electricity trading exchange, Indian Energy Exchange net profit rose 74% year-on-year to ₹77 crore in the September quarter. The jump in profit was supported by a robust 55% growth in its revenues to ₹122 crore.
The strong performance was backed by a 58% increase in the volumes on the exchange. This was driven by a rise in electricity consumption in the country and growing preference of utilities to meet their short-term supply needs through IEX. The company’s board has also recommended a bonus issue of two equity shares for every one share held. Meanwhile, shares of IEX were up 0.7% today and are up 18% so far this month.
Closing bell
In contrast to the US market (mainly the Dow Jones) which is on the roll and is back to its lifetime highs, the Indian markets saw profit booking for most part of this week. Despite the decline in the broader market, investors didn’t shy away from buying stocks where the quarterly results have delivered a surprise. Next week, there are no major data releases and hence we would continue to see stock specific activity based on the September quarter results. These are the times when traders should be careful to not to get caught on the wrong foot seeing price spikes.
Good to know
What is profit booking?
Profit booking, also known as profit-taking, is when a trader or investor exits a trade or open position to cash out the profits. The events that lead an investor to profit booking could be stock specific, sector-specific or macro-economic data. For a trader, trend reversals are typically reasons for profit booking. It must be noted that if a position is squared off to avoid losses, then such a situation cannot be called profit booking.
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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.