Nifty50: 19,389 ▲ 66 (+0.3%)
Sensex: 65,479 ▲ 274 (+0.4%)
Namaste, friends!
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- Markets extended rally, closing at fresh high with financial services in lead
- In all, 29 of the Nifty50 stocks closed in the green
- International soybean prices have surged nearly 20% in the last one month amid a supply shortage
Among the Nifty sectoral indices, PSU Bank (+1.8%) and IT (+1.0%) were the top gainers, while Oil & Gas (-0.6%) and Auto (-0.4%) were the top losers.
| Top gainers | Today's change |
| Bajaj Finance | 7,868 ▲ 535 (+7.3%) |
| Bajaj Finserv | 1,628 ▲ 87 (+5.7%) |
| Hero MotoCorp | 3,035 ▲ 136 (+4.7%) |
| Top losers | Today's change |
| Eicher Motors | 3,410 ▼ 220 (-6.0%) |
| Grasim | 1,767 ▼ 26 (-1.4%) |
| Bharti Airtel | 866 ▼ 12 (-1.4%) |
What’s trending
⭐ Bajaj Finance soars after strong Q1 update
After a strong Q1 business update, Bajaj Finance shares soared by over 7% to ₹7,868. The NBFC recorded the highest-ever quarterly growth in assets under management (AUM) to about ₹270,050 crore. The company also reported a 34% increase in new loans booked during Q1 compared to the same quarter last year. Meanwhile, its customer franchise rose to 73 million as of June 2023, from 60 million in the previous year.
⭐ Eicher Motors slips as competition intensifies
Shares of Royal Enfield maker Eicher Motors fell by 6% at ₹3,410 today after competitor two-wheeler manufacturers launched products in the premium segment. On Tuesday, Hero MotoCorp launched a premium bike in collaboration with Harley Davidson, while Bajaj Auto will launch its premium bike with Triumph on Wednesday. Eicher Motors recently announced that total sales of Royal Enfield bikes in June increased by 26% YoY to 77,109 units.
⭐ Genus Power soars on smart metering venture
Shares of electricity metering solutions provider Genus Power rose by almost 9% to ₹141 on Tuesday after it announced a smart metering venture. Singapore-based sovereign wealth fund GIC will hold 74% stake in the venture, while Genus will hold the remaining 26% stake. The venture will have an initial capital outlay of $2 billion. On Monday, the company announced an order worth ₹2,207.5 crore for the design and supply of nearly 28 lakh smart prepaid meters.
⭐ Crude oil gains on supply cuts
International oil prices rose sharply on Tuesday. This comes after top oil exporters Saudi Arabia and Russia extended voluntary supply cuts till August. On Monday, Saudi Arabia said it plans to extend its existing one million barrels per day (bpd) output cut to August, amid a weak global economic outlook. Meanwhile, Russia and Algeria volunteered to lower their output and export levels for August by 500,000 bpd and 20,000 bpd, respectively.
In Focus
Mergers trending in the banking sector
India’s financial sector is going through a major consolidation phase. The merger of HDFC Limited and HDFC Bank came into effect on 1 July 2023. Now, another private sector lender, IDFC First Bank has announced a merger with IDFC. What is the vision behind these mergers and how will it impact shareholders? Let's find out.
Bigger business entities
As per experts, the mergers will help these banks become bigger business entities in domestic and global markets. For instance, the tie-up of HDFC Bank and HDFC Ltd has created a new entity, which is the world's fourth largest bank by market cap. These giant corporations will have a bigger client base, enhanced branch network and a say in the global business system.
Margin improvement
Furthermore, experts believe that after the merger, banks will have better control on their expenditure and create cost synergies across their branch networks. This may help improve margins and deliver better quarterly numbers in the coming quarters, leading to a positive impact on the stock price of the combined entity.
Ease in raising funds
Besides this, the merged entity would find it easier to raise funds because of its enhanced balance sheet and business prospects. Also, mergers will help companies improve their fundamentals and corporate governance standards as they emerge as too big to fail as a corporation.
With multiple factors in favour, these merger trends look quite promising for investors and customers. Will other banks too follow the same route? For that, we will have to wait and watch.
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