Stocks in Focus: GIFT Nifty traded flat at 19,435 up merely 8 points or 0.04%, indicating a lacklustre opening for domestic indices NSE Nifty 50 and BSE Sensex on Monday. Previously on Friday, the NSE Nifty 50 advanced 97.35 points or 0.51% to settle at 19,230.60, while the BSE Sensex added as much as 282.88 points to 64,363.78.
“The Indian market is resurging amidst a drop in investors’ anxiety as Nifty VIX contracts generously. The optimism is buoyed by firm global clues, steady macro-economic data and strong domestic corporate earnings. Clues that FED is unlikely to hike rates in the future and modest decline in oil prices are adding to the optimism. While the ongoing Q2 results explore healthy expansion in Indian operating margin, leading to a strong bounce in earnings growth. In the midst of the earnings season, large cap companies indicate a solid 40% growth in PAT on a YoY basis. And moderation in global inflation and steady domestic and external demand is lifting H2 corporate earnings outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.
On a standalone basis, SBI posted net profit at Rs 14,330 crore. Operating profit for the quarter in review was at Rs 19,417 crore, down 8.07% on-year. The bank’s ROA and ROE for the half year stood at 1.10% and 22.57% respectively. Net Interest Income (NII) for Q2FY24 increased by 12.27% YoY. Domestic NIM for Q2FY24 decreased by 12 bps YoY to 3.43%.
Bank of Baroda
The net profit of Bank of Baroda rose 28.4% year-on-year in the second quarter of FY24 due to growth in its advances. The state-owned bank posted a bottomline of Rs 4,253 crore in the quarter under review, up 4.5% on a sequential basis. The net profit topped the Rs 3,921 crore estimated by Bloomberg. The bank’s domestic gross advances rose nearly 17% year-on-year to Rs 8.3 trillion as on September 30, aided by a growth in retail loans. Going ahead, the bank’s loan book is expected to grow at over 15%. The corporate loan book is expected to grow at 12-13%, and the retail book is expected to grow at over 20%.
Bank of India
State-owned Bank of India on Saturday reported a 52% jump in the net profit at Rs 1,458 crore in the September 2023 quarter, reported PTI. The city-headquartered bank had reported a post tax profit of Rs 960 crore in the year-ago period, Bank of India said in a release. The bank’s core net interest income rose 13% to Rs 5,740 crore during the quarter on the back of a 10% growth in advances and a 0.04% widening in the net interest margin to 3.08%.
Vedanta
The mining major posted a consolidated net loss of Rs 1,783 crore for the second quarter of FY24, hit mainly by a one-time exceptional item following the adoption of new tax rate. In comparison, the company had posted a net profit Rs 1,808 crore in the year-ago quarter. During the quarter under review, billionaire Anil Agarwal-led VEDL’s revenue rose 6.3% to Rs 38,945 crore from Rs 36,654 crore recorded during the same year-ago period. The company also got board approvals to invest Rs 2,650 crore to increase its ferrochrome production in India to 450,000 tonne per annum.
NTPC
State-owned power giant NTPC on Saturday said its group installed capacity has reached 73,874 MW after its arm started commercial operations of a 50 MW wind energy unit, reported PTI. “NTPC Renewable Energy, a wholly owned subsidiary of NTPC, has on Nov 4 declared commercial operation of its first project of 50 MW Wind at Dayapar Project in Gujarat, taking the group installed capacity to 73,874 MW,” a company statement said.
Delhivery
The board of directors has approved the proposal for acquiring an additional 4.75% equity share capital of Falcon Autotech Pvt Ltd, for a total consideration of approximately Rs 52 crore. Post this acquisition, Delivery will have a total shareholding of 39.33% in Falcon Autotech.
Indian Oil Corporation (IOC)
IOC has acquired Mercator Petroleum for about Rs 148 crore in an insolvency proceeding, according to regulatory filings by the company. “The resolution plan submitted by IOC for acquisition of 100% stake in Mercator Petroleum Limited (MPL) has been approved by the National Company Law Tribunal, Mumbai Bench vide its order dated November 2, 2023 under the relevant provisions of the Insolvency and Bankruptcy Code, 2016,” the firm said in the filing. MPL has an onland oil and gas exploration block located in Cambay Basin, Gujarat. The block CB-ONN-2005/9, which the company had won in 7th NELP bid round in 2008, has potential oil discovery of 45.5 million barrels of in place reserves, reported PTI.
JSW Infrastructure
JSW Infrastructure, the ports business of Sajjan Jindal-led JSW Group, is planning to hike capacity utilisation across all its ports to about 80-85% in the coming years, banking on a rise in cargo movement in the country. The firm is also planning to nearly double total cargo handling capacity to 300 million tonne per annum, a top official said.
“The present capacity utilisation across our ports is at about 64%, due to the mix of terminal and greenfield ports. We can probably take this up to 80-85% with the existing investment as all these assets are strategically located. With cargo volumes increasing, utilisation would rise, and on top of that, we are looking to acquire under the government’s privatisation move,” JSW Infrastructure joint MD & CEO Arun Maheshwari told FE in an interview.
Companies scheduled to report their Q2 earnings today-
Hindustan Petroleum Corporation
Adani Energy Solutions
Bajaj Electricals
Sun Pharma
TVS Supply Chain Solutions
NHPC
Sobha
Gland Pharma
Bharat Forge
(With agency inputs.)
