Adani Group companies surge, Netweb Technologies IPO fully subscribed & more

NIFTY50: 19,711 ▲ 146 (+0.7%)
SENSEX: 66,589 ▲ 529 (+0.8%)

Namaste, friends!

Traffic violations are no laughing matter, but Mumbai Police is known for its quirky Twitter posts that raise awareness about them. Its latest series of memes about traffic offences have the caption “Barbie start, Oppenheimer ending,” capitalising on the frenzy surrounding the two movies releasing this week. Even the markets were in an upbeat mood today and closed at fresh highs. More on that later.

• Markets scaled new peaks, as Nifty closes above 19,700 level
• In all, 29 of the NIFTY50 stocks closed in the green
• Robust Q1 results from HDFC Bank lifted banking stocks. More on this later

Among the NIFTY sectoral indices, Media (+3.1%) and PSU Bank (+2.2%) were the top gainers, while Auto (-0.3%) and Realty (-0.03%) were the top losers.

What’s trending

⭐ Adani Group stocks rise on multiple factors

Shares of Adani Group companies, including Adani Enterprises (1.4%), Adani Power (1.4%) and Adani Transmission (3.7%) were among top gainers on Monday. Over the weekend, Adani Group commissioned India’s first transnational power project wherein 100% of the generated power will be supplied to Bangladesh. In addition, the Maharashtra government approved Adani Group’s proposal to rehabilitate residents of the Dharavi slum in Mumbai, eight months after the group won the bid to redevelop India’s largest slum. 

⭐ Oil stocks tumble after windfall tax is reimposed  

Shares of major oil producers, such as ONGC and Oil India, traded lower after the government imposed windfall tax of ₹1,600 per tonne on domestic crude production. The tax has been brought back after two months, amid a recent spike in crude oil prices.  

⭐ Ashok Leyland bags major defence order 

Shares of Ashok Leyland touched a new 52-week high of ₹174.7 per share intraday. This comes after the automaker secured an order worth ₹800 crore from the Indian Army. The order involves procurement of field artillery tractors (FAT 4x4) and gun towing vehicles (GTV 6x6). 

⭐ Netweb Technologies IPO fully subscribed

The ₹631 crore public issue of Netweb Technologies India was subscribed 2.33 times on Day 1, with the retail portion being subscribed 3 times. Netweb Technologies designs, manufactures and deploys high-end computing solutions for its clients. The company has set the price band at ₹475 to ₹500 per share. The public issue is open for subscription till Wednesday, 19th July. To apply for this IPO, click here.

In Focus

HDFC Bank shines after posting stellar results

Private lender HDFC Bank announced robust June quarter results on Monday. The bank’s net profit jumped by 30% year-on-year to ₹11,952 crore, mainly due to a rise in net interest income (NII) and lower bad loan provisioning. After the results announcement, HDFC Bank shares gained over 2%, while shares of other banks, including SBI and ICICI Bank also gained 2% to 3%. Here are the key takeaways from HDFC Bank’s Q1FY24 results.

Core business improves

During the June quarter, HDFC Bank's total advances grew by 15.8% YoY to ₹16.1 lakh crore. Domestic retail loans grew by 20%, while commercial and rural banking loans grew by over 29%. Corporate and other wholesale loans grew by 11.2%.

As a result, the bank’s NII jumped over 21% YoY to ₹23,599 crore. NII is the difference between the income a bank earns from its lending activities and the interest it pays to its depositors.

Bad loans drop further 

HDFC Bank’s bad loan or gross non-performing assets (NPAs) stood at 1.17% of gross advances, which is lower compared to gross NPAs of 1.28% in the same period last year. This prompted the bank to reduce the provisions (or the amount set aside) for bad loans by over 10% to ₹2,860 crore. 

Retail deposits shows strong growth

Total deposits showed a healthy growth of 19.2% YoY stood at ₹19.1 lakh crore. Meanwhile, low-cost current account saving account (CASA) deposits grew by 10.7% YoY. Share of CASA deposits in overall deposits stood at 42.5% at the end of first quarter.

All in all, HDFC Bank has kickstarted Q1 results for the banking sector with a bang. Investors now await results of other banking heavyweights like ICICI Bank, which will be announced later this week.

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