Nifty50: 17,698 ▲ 39 (+0.2%)
Sensex: 59,462 ▲ 130 (+0.2%)
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- Benchmark indices closed marginally higher after a subdued trading session.
- In all, 26 of the Nifty50 stocks closed in the green.
- India’s retail inflation eased to 6.7% in July as compared to 7.01% in June.
Among the Nifty sectoral indices, Oil and Gas (+2.2%) and Metal (+1.6%) were the top gainers, whereas Media (-1.4%), IT (-1.1%) and Pharma (-1.1%) were the top losers.
| Top gainers | Today's change |
| ONGC | 139 ▲ 6.7 (+5.0%) |
| NTPC | 159 ▲ 5.3 (+3.4%) |
| TATA Steel | 112 ▲ 3.7 (+3.3%) |
| Top losers | Today's change |
| Divi's Lab | 3,721 ▼ 226 (-5.7%) |
| Apollo Hospitals | 4,303 ▼ 126 (-2.8%) |
| Infosys | 1,593 ▼26 (-1.6%) |
What’s trending
⭐ Apollo Hospitals’ profit drops
APOLLOHOSP (NSE): 4,303 ▼ 126 (-2.8%)
Chennai-based healthcare group Apollo Hospitals reported a 35% year-on-year (YoY) fall in net profit to ₹317 crore. Meanwhile, revenue from operations remained flat at ₹3,795 crore. The company's healthcare services business posted revenues of ₹2,032 crore, up 4.5% YoY. Meanwhile, its clinics business saw revenues fall by 5% YoY to ₹293 crore.
⭐ Paytm shares tumble
PAYTM (NSE): 786 ▼ 39 (-4.8%)
Shares of the mobile payment company, Paytm declined by nearly 5% on Friday. The proposal to reappoint the company’s CEO for another five years was opposed by Institutional Investor Advisory Services India Limited (IIAS), citing the poor performance of the stock since its listing. IIAS is a proxy advisory firm that provides suggestions to institutions like mutual funds on how to vote for corporate actions.
⭐ ADIA to invest in ABHI
ABCAPITAL (NSE): 110 ▲ 1.9 (+1.7%)
Aditya Birla Health Insurance (ABHI) is set to get an investment of ₹665 crore for a 9.9% stake from Abu Dhabi Investment Authority. ABHI is a 51:49 joint venture between Aditya Birla Capital and Momentum Metropolitan Strategic Investments. ABHI plans to use these funds to drive its growth in the health insurance market in India.
⭐ Phoenix Mills posts strong results
PHOENIXLTD (NSE): 1,318 ▲ 45 (+3.5%)
Real-estate firm Phoenix Mills reported a consolidated net profit of ₹718 crore in Q1 FY23. The company had posted a net loss of ₹26 crore in the same quarter last year. Its revenue from operations stood at ₹574 crore, up 181% YoY. The management said retail consumption stood at ₹2,190 crore, which is 23% higher than the pre-Covid period of Q1 FY20.
⭐ Steady start for Syrma SGS IPO
The IPO of electronic components maker Syrma SGS was subscribed 37% on Day 1. Retail investors showed strong interest, applying for more than 60% of the shares reserved for them. The company had also raised ₹252 crore from anchor investors on Thursday. Click here to apply for the IPO on Upstox.
In Focus
Banking sector shifts gears
The Indian banking industry seems to be in a sweet spot this year. The Nifty bank index has risen over 10% year-to-date. But what’s driving investor interest in banks? Let’s dig in.
The post-pandemic economic recovery saw a high demand for corporate and retail loans. In Q1FY23, the industry reported strong loan growth of 4% quarter-on-quarter compared to negative growth registered in the first quarter of the last three fiscal years.
Strong loan disbursement is generally followed by high amounts of bad loans and rise in non-performing assets (NPAs), as witnessed in earlier industry trends. However, things seem to be different this time around.
Bad loan provisioning, which is the amount that banks set aside from their profits or income in a particular quarter towards NPAs, is on the decline. The combined provisioning of listed banks fell by 23.7% YoY to ₹29,185 crore during the June quarter. This is the second consecutive quarter when banks have decreased their provisioning.
Private sector banks took the lead with a 59.7% drop in loan loss provisioning, while public sector banks reported a 5.4% increase in provisioning.
This shift in trend is mainly due to an improvement in NPAs driven by better loan recoveries. Overall, the gross NPAs of Indian banks have declined to less than 6% in June 2022 from about 12% a few years ago. The fall in NPAs results in lower provisions and better profitability for banks.
Going forward, the downtrend in NPA numbers is expected to continue led by improved economic sentiments and a better credit growth trajectory.
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Good to know
What is IPO oversubscription?
An initial public offering (IPO) is considered to be oversubscribed when the number of shares that investors have applied for exceeds the shares offered by the company. For example, if a company has offered 1 lakh shares and there are applications for 10 lakh shares, then it means that the IPO was oversubscribed 10 times. In case of a large oversubscription, the shares are allotted through a lottery draw.
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