Nifty50: 17,780 ▲ 203 (+1.1%)
Sensex: 59,558 ▲ 695(+1.1%)
- .After a gap-up opening, the markets held on to their gains and closed higher for the third day in a row.
- 40 of the Nifty50 stocks closed in the green, indicating broad-based buying.
- Banks are supporting the markets and until they show signs of cracking, they’ve ‘got the markets back’.
All Nifty sectoral indices closed in the green, with maximum gains seen in PSU Bank (+3.4%) and Bank (+2.1).
| Top gainers | Today's change |
| Bajaj Finserv | ▲ 4.9% |
| IndusInd Bank | ▲ 4.9% |
| HCL Tech | ▲ 3.5% |
| Top losers | Today's change |
| Tech Mahindra | ▼ 1.3% |
| Ultratech Cement | ▼ 1.0% |
| Britannia | ▼ 0.8% |
For more updates on F&O, click here.
Here are the top stories of the day.
HDFC delivers strong Q3
India’s largest housing finance company reported net profit of ₹3,261 crore, up 11% year-on-year in the December quarter. The strong growth in the profit was aided by lower loan impairment costs and a rise in the net interest income (NII).
While loan impairment costs fell by 33% to ₹393 crore, the NII rose 7% to ₹4,284 crore. The gross non-performing loans stood at 2.3% of the total loan book, up from 1.6% in the same period last year. The management said that the demand for home loans and pipeline of applications remain strong. Meanwhile, shares of HDFC were up 2% today.
Tech Mahindra misses street estimates
Shares of Mahindra group’s IT arm were subdued today as its December quarter profit of ₹1,369 crore was lower than street estimates of ₹1,454 crore. Its revenue increased by 5.2% to 11,451 crore.
The revenue growth was supported by its largest revenue segment communications, media and entertainment (CME), which grew 6.2%. Meanwhile, just like its larger peers, the company’s attrition rate zoomed to 24% - it was 12% last year.
Voda-Idea receives ratings boost
Rating agency Care Ratings upgraded the company's long term bank facilities to ‘stable’. This came as a surprise and the stock jumped 11% intraday with a surge in volumes.
As per Care, the upgrade is on the back of improvement in the industry dynamics post telecom reforms by the Government, recent tariff hikes across players and Voda-Idea’s (Vi) on-time payment of large debt obligations. Further, the agency also expects fund-raising activity to pick up pace for the company in the near future.
IPO corner
Insurance behemoth LIC is likely to file its draft papers with the market regulator SEBI within the next two weeks, according to the DIPAM secretary. He added that the LIC valuations are yet to be finalised. Finance Minister Nirmala Sitharam has said that the IPO will be launched in this financial year in all probability.
Good to know
What is an open offer?
When company A acquires a majority stake in company B, it is required to provide an opportunity to the existing shareholders of company B to sell their shares. This is referred to as an open offer. In India, an open offer is triggered when a company buys a controlling or 25% stake in a listed company. The acquirer has to make an open offer to buy at least an additional 26% stake in the company. It is seen as an exit route for the minority shareholders in the event of a new management taking over.
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