Nifty50: 18,598 ▲99 (+0.5%)
Sensex: 62,846 ▲344 (+0.5%)
Howdy, folks!
Isn't it absolutely infuriating when your phone decides to slip through your fingers while attempting a selfie? The frustration amplifies tenfold if you happen to be at a scenic spot and the phone takes a plunge into the water. You're left with no choice but to curse your ill fate and move on, right?
Well, not if you are a local government official. In a mind-boggling incident, a Chhattisgarh government official decided to pump out 21 lakh litres of water over a span of three whole days from a reservoir because his phone fell into it.
Anyway, while our dear official was busy lowering the water level, the stock markets have been going up. Let's take a look.
- Markets breached the 18,600 mark intraday, to settle just below it at close
- In all, 34 of the Nifty50 stocks closed in the green
- Rupee falls 4 paise to close at 82.64 against US dollar
Among the Nifty sectoral indices, Metal (+0.9%) and Realty (+0.7%) were among the top gainers, while Oil & Gas (-0.5%) and IT (-0.3%) were the top losers.
| Top gainers | Today's change |
| M&M | 1,325 ▲ 43 (+3.3%) |
| Titan | 2,813 ▲ 71 (2.6%) |
| Coal India | 246 ▲ 4 (1.8%) |
| Top losers | Today's change |
| ONGC | 159 ▼ 4 (-2.9%) |
| Divi’s Lab | 3,474 ▼ 40 (-1.1%) |
| Power Grid | 234 ▼ 2 (-1.0%) |
What’s trending
⭐ Sundaram Finance posts profit growth
Shares of Sundaram Finance rose by 2.2% after the lender announced positive Q4 results. Its consolidated net profit for Q4FY23 grew by 6% YoY to ₹316.3 crore from ₹298.8 crore in the previous year. Revenue from operations also increased by 10.8% YoY to ₹1,054.3 crore from ₹939.7 crore. The company stated that it has regained its pre-Covid growth trajectory while maintaining improved asset quality. Its board has proposed a final dividend of ₹15 per share.
⭐Goodyear India profit zooms
Tyre maker Goodyear India (-1.4%) posted a net profit of ₹33.6 crore for Q4FY23, up 94% YoY from ₹17.3 crore in the same quarter last year. Its revenue was up 9% YoY to ₹656.1 crore. The company attributed the growth to better demand in the original equipment (OE) segment. Meanwhile, the decrease in raw material costs, coupled with cost efficiencies, contributed to higher profitability in the quarter.
⭐Bajaj Hindusthan Sugar zooms
Shares of Bajaj Hindusthan Sugar rose by 10% today following robust Q4 results posted by the company. The company reported a consolidated net profit of ₹130.9 crore in Q4FY23, up 119.2% YoY from ₹59.7 posted last year. Its revenue from operations also showed a growth of 26.6% YoY to ₹2,053.8 crore.
⭐ Gold relatively subdued
Global gold prices hovered around the $1,975 per ounce mark during morning trades as the dollar continued to climb on optimism surrounding the US debt-ceiling issue. This spot price saw a marginal decline of 0.05% compared to its closing price on Friday. Meanwhile, domestic gold futures contracts reached an intraday peak of ₹59,407 per 10 grams.
In Focus
Why are bank stocks on a roll?
The Nifty Bank index has been on an upward trajectory since last year and hit an all-time high today. The index is up around 2.5% this month, supported by strong inflows from foreign investors.
Let’s take a look at the reasons for the rise in the share prices of banks.
Banking on credit
Banks reported a credit growth of 15% year-on-year in FY23, the highest since FY12. Pick up in economic activities drove the demand for loans. Personal loans (given for buying cars, electronic items and homes) were one of the key contributors to robust loan growth. This segment rose 18.5% year-on-year amid a revival in consumption.
Analysts expect the loan growth to remain in double digits this financial year on the back of a falling inflation rate. This could provide a boost to demand for retail loans. Besides this, Indian companies could kick-start their capacity expansion cycle as their profitability improved. The new phase of the investment cycle could also drive demand for loans.
Better quality
The improvement in asset quality has led to a fall in provisioning for bad loans. With many banks witnessing a decline in bad loans, the provisioning has dropped for the fifth consecutive quarter in Q4FY23. Basically, as fewer companies and individuals default on repayment of loans, banks don’t need to set aside large amounts of money for covering bad loans. This could translate into higher profits.
However, the intense competition for garnering funds, i.e. deposits, remains a key concern. With banks willing to offer higher interest rates to woo depositors, profitability could come under pressure.
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