Morning Update: On Friday, US markets finished substantially lower for the day and week as investors worried about future interest rate hikes and the development of the Israel-Hamas war.
Sensex- fall -170 points at 65,227.23
Nifty 50 -slips -67 points at 19,476.75
Indian Market
FII AND DII
| FII purchased | 456.21 Cr |
| DII purchased | 8.53 Cr |
Indian Market News
- Taiwan Weighted and Shanghai Composite were both down 0.5 percent on Monday, while the Nikkei was down 0.3 percent.
- Wall Street closes substantially lower, posting weekly losses; Middle East fears rise
- So far in October, FPIs have pulled Rs 12,000 crore from equities and invested Rs 5,700 crore in debt.
- As humanitarian convoys arrive in the besieged Gaza Strip, oil prices fall.
- SLMC plans an IPO of Rs 700 crore next year.
- The net earnings of Creditaccess Grameen Bank has nearly doubled to Rs 347 crore.
- Sterling and Wilson Renewable Energy’s net loss in the third quarter has been reduced to Rs 54.51 crore.
- Mamaearth’s parent company intends to launch an IPO worth Rs 1,700 crore on October 31.
- Kotak Mahindra Bank’s Q2 net profit rises 24% to Rs 3,191 crore, as asset quality remains strong.
- YES Bank’s net profit in the second quarter increased by 47% to Rs 225.21 crore.
- ICICI Bank’s net profit in the second quarter increased 36% to Rs 10,261 crore, while bad loan provisions decreased.
Global Market Check
GIFT Nifty
Trends on the GIFT Nifty indicate that the larger index in India is off to a good start, with a gain of 94.50 points, or 0.49 percent. The Nifty futures were trading near 19,521 points.
The US Markets
On Friday, US markets finished substantially lower for the day and week as investors worried about future interest rate hikes and the development of the Israel-Hamas war.
The S&P 500 and Nasdaq both declined more than 1%. All 11 sectors of the S&P 500 index finished lower in broad-based selling, with technology and financials being the largest drags.
The Dow Jones Industrial Average sank 286.89 points, or 0.86 percent, to 33,127.28, the SP 500 dropped 53.84 points, or 1.26 percent, to 4,224.16, and the Nasdaq Composite slid 202.37 points, or 1.53 percent, to 12,983.81.
The Dow was down 1.6 percent for the week, the S&P 500 was down 2.4 percent, and the Nasdaq was down 3.2 percent.
Asian Economies
The risk of a bigger confrontation in the Middle East weighed on Asian markets on Monday, clouding confidence in a week packed with data on US GDP and inflation, as well as earnings from some of the world’s greatest technology companies.
Oil Costs
Oil prices fell on Monday after supply convoys began to arrive in Gaza over the weekend, amid diplomatic efforts to keep a conflict between Israel and the Palestinian Islamist party Hamas from spreading to the rest of the oil-rich area.
Brent crude prices declined 60 cents to $91.56 per barrel at 0038 GMT, while US West Texas Intermediate crude futures slid 61 cents to $87.47 per barrel.
News updates
ICICI Bank’s net profit in the second quarter increased 36% to Rs 10,261 crore, while bad loan provisions decreased.
On October 21, ICICI Bank reported a 35.7 percent increase in standalone profit and a 24 percent increase in net interest income in the July-September quarter of fiscal year 2023-24 (Q2), with a considerable decrease in bad loan provisions.
The Mumbai-based bank’s standalone profit increased to Rs 10,261 crore for the quarter, up from Rs 7,557.84 crore in the same time last year, according to a BSE filing.
Net profit of Rs 10,261 crore (36 percent year on year growth) above experts’ expectations of Rs 9,422 crore (25 percent YoY growth) in Q2.
YES Bank’s net profit in the second quarter increased by 47% to Rs 225.21 crore.
YES Bank recorded a 47.4 percent increase in net profit to Rs 225.21 crore in the second quarter of the current fiscal year on October 21. The bank’s net profit for the previous quarter was Rs 152.82 crore. Net profit declined by more than 34% sequentially.
The bank’s asset quality improved in the reporting quarter, with a gross non-performing asset (NPA) ratio of 2% and a net NPA ratio of 0.9 percent.
In absolute terms, gross NPA stood at Rs 4319.03 crore as of September 30, while net NPA stood at Rs 27419.11 crore.
Kotak Mahindra Bank’s Q2 net profit rises 24% to Rs 3,191 crore, as asset quality remains strong.
On October 21, private sector lender Kotak Mahindra Bank recorded a net profit of Rs 3,191 crore for the July-September FY24 quarter, a 23.66 percent increase over the previous year.
The net profit of Rs 3,191 crore exceeded market expectations of Rs 3092 crore. The net interest income (NII) of Rs 6,297 crore increased by 23.49 percent from Rs 5,099 crore reported in the previous fiscal’s equivalent quarter. In addition, the NII came in marginally higher than the market forecast of Rs 6,226 crore.
The yen is hovering around 150 as Middle East tensions rise.
On Monday, the Japanese yen was in the spotlight in Asia, hovering at the 150-per-dollar level in a tug of war between investors banking on higher dollar yields and those expecting Japanese authorities to interfere in markets.
The week begins with growing concerns about the Middle East conflict, as Israel launched air strikes on Gaza early Monday, extending a two-week bombardment that began after an October 7 rampage by the Islamist group Hamas on southern Israeli communities, and as the US sent more military assets to the region.
Stock in News
ICICI Bank: India’s second-largest private sector lender reported a significant 35.8 percent year-on-year increase in standalone profit at Rs 10,261 crore for the quarter ended September FY24, owing to a dramatic drop in provisions, while asset quality improved sequentially. Net interest income for the quarter climbed by 23.8 percent year on year to Rs 18,308 crore, with net interest margin increasing 22 basis points to 4.53 percent.
Kotak Mahindra Bank: The private sector lender increased standalone profit by 24% year on year to Rs 3,191 crore for the fiscal quarter ended September FY24, with operational profit increasing by 29% year on year to Rs 4,610 crore and asset quality improving. Net interest income climbed by 23% to Rs 6,297 crore, with a 7-bps improvement in net interest margin.
One 97 Communications: Paytm, the mobile payments and financial services startup, has reduced its net loss to Rs 290.5 crore for the fiscal quarter ending September FY24, down from Rs 571.1 crore in the same period previous year. Revenue for the quarter increased by 32% year on year, to Rs 2,519 crore, driven by increases in gross merchandise value (GMV), merchant subscription revenues, and loan distribution growth through the platform.
Ipca Laboratories: The manufacturing plant in Ratlam, Madhya Pradesh, has received a Voluntary Action Indicated (VAI) Establishment Inspection Report from the US Food and Drug Administration (US FDA). According to current good manufacturing practice (CGMP), the facility is in a minimally acceptable state of compliance. From June 5 to 13, the Ratlam factory was inspected by the US Food and Drug Administration.
RBL Bank: The private sector lender reported higher-than-expected earnings for the July-September period of FY24, with standalone profit increasing 46 percent year on year to Rs 294 crore despite significantly higher provisions, mostly due to tax write-back. Net interest income climbed by 26% year on year to Rs 1,475 crore during the quarter.
Yes Bank: The private sector lender posted a net profit of Rs 225 crore for the fiscal quarter ended September FY24, up 47.4 percent year on year, thanks to lower provisions and greater other revenue. Net interest income fell 3.3 percent year on year to Rs 1,925 crore, but net interest margin increased 39 basis points year on year to 4.89 percent during the quarter.
JSW Energy: The JSW Group company increased its consolidated earnings by 82.6 percent year on year to Rs 850.2 crore for the quarter ended September FY24, owing to a strong contribution from the acquired renewable energy portfolio, merchant sales, and hydro truing up impact. For the quarter, revenue from operations increased by 36.5 percent year on year to Rs 3,259 crore.
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