Sensex Rises 101 Points, Nifty Ends Above 10,200; PSU Banks Outperform
HDFC Bank was trading flat after reporting stable asset quality in September quarter
- Oldest First
Indian equity benchmarks gained for second straight day led by gains in government owned banking shares. Zee Entertainment and Asian Paints also added to gains after they beat consensus analysts' estimates compiled by Bloomberg.
The S&P BSE Sensex rose 0.31 percent to 32,607 and the NSE Nifty 50 Index rose 0.22 percent to 10,238.
Fourteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Power Index's 1.3 percent gain. On the other hand, the S&P BSE Information Technology Index was the top sectoral loser, down 0.8 percent.
Asian Paints Rises As Profit Beats Estimates In Q2
Shares of the paint maker jumped as much as 4.57 percent, the most in over three months, to Rs 1,227.80 after it beat consensus analysts' estimates compiled by Bloomberg.
- Net profit rises 21 percent to Rs 576 crore against estimate of Rs 514 crore
- Q2 revenue rises 2.3 percent to Rs 4,274 crore versus estimate of Rs 4,273 crore
- Total costs at Rs 3,570 crore
- EBITDA jumps 13.5 percent to Rs 801 crore versus 705.6 crore (YoY)
- EBITDA margins at 18.8 percent versus 19 percent (YoY)
- Tax expenditure increased 21.6 percent to Rs 242 crore versus Rs 199 crore (YoY)
- Raw material cost fell 6 percent to Rs 2,004 crore versus Rs 2,134 crore (YoY)
- Decorative business in India registered high single digit volume growth
- Impact of GST continued through July and recovery of sorts was seen only in September
Radico Khaitan Slips Post Q2 Earnings
Shares of the liquor maker fell as much 2.2 percent to Rs 219.25 crore post September quarter earnings.
- Q2 net profit jumps 27 percent to Rs 28.6 crore from Rs 22.5 crore
- Income from operations rises 23 percent to Rs 1,490.89 crore from Rs 1,209.50 crore in the same period last year
HDFC Bank Management On Q2 Earnings
- Fee income rose 24 percent (YoY)
- Cost to income ratio improved to 42.6 percent (YoY)
- First half net profit up 20.2 percent at Rs 8,044 crore
- Gross NPAs were more or less flat this quarter
- Received observations from RBI for an account under 5:25 framework
- Made contingent provisions for the 5:25 account
- Financial products in retail space have grown at a good pace
- Current account growth has come off since June
- CASA ratio lower from the peak also a function of current account related to IPOs
- Feel CASA ratio of above 40 percent is positive
- Increased funding from broad-based mix has led to 4.3 percent net interest margin
- Indian equity benchmarks were holding on to the gains
- The S&P BSE Sensex was up 0.28 percent at 32,596 and the NSE Nifty 50 Index held on to crucial psychological level of 10,200
- Nifty PSU Bank Index was the top sector gauge, up 4 percent and the Nifty Bank Index was up 0.7 percent
- From the Nifty 50 basket, 29 shares were trading higher while 21 were among the laggards
- Zee Entertainment was best among the Nifty 50 stocks on Q2 earnings beat, the stock rose as much as 9.3 percent, the most in over two years, to Rs 537.50
- Twelve out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Power Index's 1.4 percent gain