The Indian equity market started off the week with smart gains as the NSE Nifty managed to once again close above the 6300 mark. Sentiment got a boost after heavyweights like Reliance Industries, HDFC Bank and Wipro delivered better than expected quarterly results. While ITC was inline with market expectations.
Today’s upswing was so strong that barring the oil and gas index all the other BSE sectoral indices ended with smart gains. The IT, telecom and the FMCG stocks led from the front. The banking, power and realty stocks were among the other major gainers.
Even the mid-cap and the small-cap stocks participated in todays rally.
HDFC Bank’s third quarter profit rose 25%. Net profit increased to Rs. 2,326 crore, or Rs.9.7 per share, in the three months ended 31 December from Rs. 1,859 crore, or Rs.7.8, in the year-earlier period.
Commenting on the same, Amar Ambani, Head of Research at IIFL said, “HDFC Bank delivered a better than expected loan growth of 18% yoy. Deposits growth was strong 23% yoy with the bank raising FCNR (B) deposits worth ~US$3.4bn under the concessional swap facility of the RBI.Versus our expectation of 10bps improvement, HDFC Bank’s NIM declined by 10bps qoq to 4.2.On the back of benign slippages, the increase in Gross NPLs was modest at 2.6% qoq.We estimate HDFC Bank’s RoA to remain at historically high level of 1.9% in FY15/16 supported by robust NIMs and resilient asset quality. Absolute valuation does not look expensive in the context of elevated RoA delivery, so we remain bullish.”
Finally, BSE Sensex closed at 21,205 up 141 points, while NSE Nifty closed at 6,304 up 42 points over the previous close.
Today’s upswing was so strong that barring the oil and gas index all the other BSE sectoral indices ended with smart gains. The IT, telecom and the FMCG stocks led from the front. The banking, power and realty stocks were among the other major gainers.
Even the mid-cap and the small-cap stocks participated in todays rally.
HDFC Bank’s third quarter profit rose 25%. Net profit increased to Rs. 2,326 crore, or Rs.9.7 per share, in the three months ended 31 December from Rs. 1,859 crore, or Rs.7.8, in the year-earlier period.
Commenting on the same, Amar Ambani, Head of Research at IIFL said, “HDFC Bank delivered a better than expected loan growth of 18% yoy. Deposits growth was strong 23% yoy with the bank raising FCNR (B) deposits worth ~US$3.4bn under the concessional swap facility of the RBI.Versus our expectation of 10bps improvement, HDFC Bank’s NIM declined by 10bps qoq to 4.2.On the back of benign slippages, the increase in Gross NPLs was modest at 2.6% qoq.We estimate HDFC Bank’s RoA to remain at historically high level of 1.9% in FY15/16 supported by robust NIMs and resilient asset quality. Absolute valuation does not look expensive in the context of elevated RoA delivery, so we remain bullish.”
Finally, BSE Sensex closed at 21,205 up 141 points, while NSE Nifty closed at 6,304 up 42 points over the previous close.
No comments:
Post a Comment