Informist, Monday, Nov 7, 2022

By Apoorva Choubey 

MUMBAI – Benchmark indices ended a choppy session with marginal gains, but the day belonged to state-owned banks, which rallied on hopes that strong Jul-Sep earnings and better asset quality reported by these lenders may be a signal that their fortunes have turned a corner.

India's largest lender, State Bank of India, surged to a lifetime high after reporting a 74% year-on-year increase in the net profit for Jul-Sep, with a 26% year-on-year fall in provisions for non-performing assets to 20 bln rupees. The stock closed slightly off this high to close over 3% higher.  

Public sector banks have actually been gaining traction this entire month, and investors had added bullish positions over the last four weeks or so, in the expectation of strong results. 

Apart from SBI, others such as Bank of Baroda also reported similar improvements. Higher credit growth, improvement in provision coverage ratios and better net interest margins have been the major highlights in the earnings of public sector banks this time around, said analysts. The Nifty PSU Bank index ended as the top sectoral gainer with a rise of over 4%.  

The gains in SBI, coupled with positive global cues and a rise in Britannia Industries' shares, helped the Nifty 50 and Sensex end higher today. The movement in benchmark indices was choppy amidst concerns about a global economic slowdown and expensive valuations of Indian stocks. 

The Nifty 50 rose 0.5%, or 85.65 points, to end at 18202.80 points, while the Sensex rose 0.4%, or 234.79 points, to close at 61185.15 points.

The 50-stock index closed decisively above its crucial resistance of 18150 points, after attempting it for a few times in the last few months. This breach of resistance is actually seen as a signal of strength, which might pave the way for the index testing 18350 in the coming days, believe analysts. 

"Notwithstanding the encouraging domestic environment, markets are likely to be volatile in the near term due to global uncertainties and interest rate hikes across the globe," said George Thomas, fund manager at Quantum Mutual Fund. 

While data in the US is signalling some weakness in the labour market in the world's largest economy, investors around the world remain concerned about aggressive interest rate hikes by the Federal Reserve, they said. Tightening of liquidity in global financial markets typically leads to outflows from risky assets such as emerging market equities.   

Global markets though rose today, amidst some hopes of a slower pace of interest rate hikes by the Fed. The positive global cues helped gains in mid- and small-cap stocks as well. 

The overall participation and turnover in the secondary market may have been lower because of initial public offers of two companies being open, which may have attracted inflows, said a sales trader. 

Among the major movers was Britannia Industries, which jumped 8.8% as its consolidated net profit surpassed market expectations while Divi's Laboratories fell close to 9% due to weak earnings. 

Automobile and metals sectors also fared well on hope of robust demand, while pharmaceuticals saw some profit booking. 

* Among Nifty 50 stocks, 32 rose and 18 fell

* Among Sensex stocks, 18 fell and 12 rose

* On the BSE, 2,006 stocks rose, 1,570 fell, and 175 were unchanged

* Nifty PSU Bank: Up 4.5%; Nifty Pharma: Down 1.4%; Nifty Metal: Up 1.6%

BSE                                                National Stock Exchange
Sensex: 61185.15, up 234.79 pts (0.4%)             Nifty 50: 18202.80, up 85.65 pts (0.5%) 

S&P BSE Sensitive Index                             Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021)           :  Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021)       :  Record Close High: 18477.05 (Oct 18, 2021)

2022 1st day close: 59183.22 (Jan 3)             :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             :  2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 51360.42 (Jun 17)              :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17)          :  2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 50921.22 (Jun 17)           :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)             :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)              :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)          :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)           :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)             :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)              :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)          :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)           :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)          :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)           :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))          :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)            :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)          :  2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Monday, Nov 7, 2022

By Apoorva Choubey 

MUMBAI – Benchmark indices ended a choppy session with marginal gains, but the day belonged to state-owned banks, which rallied on hopes that strong Jul-Sep earnings and better asset quality reported by these lenders may be a signal that their fortunes have turned a corner.

India's largest lender, State Bank of India, surged to a lifetime high after reporting a 74% year-on-year increase in the net profit for Jul-Sep, with a 26% year-on-year fall in provisions for non-performing assets to 20 bln rupees. The stock closed slightly off this high to close over 3% higher.  

Public sector banks have actually been gaining traction this entire month, and investors had added bullish positions over the last four weeks or so, in the expectation of strong results. 

Apart from SBI, others such as Bank of Baroda also reported similar improvements. Higher credit growth, improvement in provision coverage ratios and better net interest margins have been the major highlights in the earnings of public sector banks this time around, said analysts. The Nifty PSU Bank index ended as the top sectoral gainer with a rise of over 4%.  

The gains in SBI, coupled with positive global cues and a rise in Britannia Industries' shares, helped the Nifty 50 and Sensex end higher today. The movement in benchmark indices was choppy amidst concerns about a global economic slowdown and expensive valuations of Indian stocks. 

The Nifty 50 rose 0.5%, or 85.65 points, to end at 18202.80 points, while the Sensex rose 0.4%, or 234.79 points, to close at 61185.15 points.

The 50-stock index closed decisively above its crucial resistance of 18150 points, after attempting it for a few times in the last few months. This breach of resistance is actually seen as a signal of strength, which might pave the way for the index testing 18350 in the coming days, believe analysts. 

"Notwithstanding the encouraging domestic environment, markets are likely to be volatile in the near term due to global uncertainties and interest rate hikes across the globe," said George Thomas, fund manager at Quantum Mutual Fund. 

While data in the US is signalling some weakness in the labour market in the world's largest economy, investors around the world remain concerned about aggressive interest rate hikes by the Federal Reserve, they said. Tightening of liquidity in global financial markets typically leads to outflows from risky assets such as emerging market equities.   

Global markets though rose today, amidst some hopes of a slower pace of interest rate hikes by the Fed. The positive global cues helped gains in mid- and small-cap stocks as well. 

The overall participation and turnover in the secondary market may have been lower because of initial public offers of two companies being open, which may have attracted inflows, said a sales trader. 

Among the major movers was Britannia Industries, which jumped 8.8% as its consolidated net profit surpassed market expectations while Divi's Laboratories fell close to 9% due to weak earnings. 

Automobile and metals sectors also fared well on hope of robust demand, while pharmaceuticals saw some profit booking. 

* Among Nifty 50 stocks, 32 rose and 18 fell

* Among Sensex stocks, 18 fell and 12 rose

* On the BSE, 2,006 stocks rose, 1,570 fell, and 175 were unchanged

* Nifty PSU Bank: Up 4.5%; Nifty Pharma: Down 1.4%; Nifty Metal: Up 1.6%

BSE                                                National Stock Exchange
Sensex: 61185.15, up 234.79 pts (0.4%)             Nifty 50: 18202.80, up 85.65 pts (0.5%) 

S&P BSE Sensitive Index                             Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021)           :  Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021)       :  Record Close High: 18477.05 (Oct 18, 2021)

2022 1st day close: 59183.22 (Jan 3)             :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             :  2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 51360.42 (Jun 17)              :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17)          :  2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 50921.22 (Jun 17)           :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)             :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)              :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)          :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)           :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)             :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)              :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)          :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)           :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)          :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)           :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))          :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)            :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)          :  2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.