Indusind Bank net profit jumps 17% in Q3, Reliance industry will publish its results today : Daily Market Update Equity 19 Jan 2024 | Globe Capital Market LTD.
Indusind Bank net profit jumps 17% in Q3, Reliance industry will publish its results today : Daily Market Update Equity 19 Jan 2024

Private sector lender IndusInd Bank on January 18 reported a net profit of Rs 2,301 crore for the October-December quarter of financial year (FY) 2023-24, clocking a 17.1 percent rise from Rs 1,963.64 crore in the yea-ago period. The bank's gross non-performing asset (NPA) stood at 1.92 percent, down from 2.06 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.57 percent, improving from 0.662 percent on a year-on-year basis. Net Interest Income for the quarter ended December 31, 2023, at Rs 5,296 crores, grew by 18 percent YoY and 4 percent QoQ. Net Interest Margin for Q3 of FY24 stood at 4.29 percent as against 4.27 percent for Q3 of FY23 and 4.29 percent for Q2 of FY24.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended higher in range 0.54% to 1.35%.
  • European equity markets also settled higher in range 0.17% to 1%.
  • Majority of Asian equity markets are trading higher
  • GIFT Nifty is up by 50 points, Nifty futures are likely to open around 21500 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equity markets are trading higher in early trade on Friday, buoyed by overnight gains in tech stocks on Wall Street following positive earning reports from companies.
  • U.S. bond yields climbed on speculation that the Federal Reserve will be in no rush to cut interest rates as the economy shows signs of resilience.
  • Brent crude was trading 0.05% lower at $79.06 a barrel.


Important news updates from the domestic front

  • IndusInd Bank Q3 FY24 (Consolidated, YoY) – NII at Rs 5,295.7 crore vs Rs 4,495.3 crore, up 17.8%. Net profit at Rs 2,301.5 crore vs Rs 1,963.6 crore, up 17.2%. GNPA at 1.92% vs 1.93% (QoQ). NNPA at 0.57% vs 0.57% (QoQ).
  • IndiaMart InterMesh Q3 FY24 (Consolidated, YoY) Revenue at Rs 305.3 crore vs Rs 251.4 crore, up 21.43% (Bloomberg estimate: Rs 308.47 crore). Ebitda at Rs 85.7 crore vs Rs 70.2 crore, up 22.07% (Bloomberg estimate: Rs 85.4 crore). Margin at 28.07% vs 27.92% (Bloomberg estimate: 27.7%). Net profit at Rs 81.9 crore vs Rs 112.8 crore, down 27.39%.
  • State Bank of India raised Rs 5,000 crore through 10-year AT-1 bonds.
  • REC has been designated as the overall implementation agency for the rooftop solar programme of the Renewable Energy Ministry. The company aims to achieve a cumulative capacity of 40,000 MW from rooftop solar panels by 2026.
  • JSW Infrastructure clarified on media reports that it is leading the race to acquire Navkar Corp. The company said there are no specific proposals underway regarding the matter in the news.
  • Bandhan Bank received an RBI nod, appointing Rajinder Kumar Babbar as executive director for 3 years.
  • Wipro will acquire a 14% stake in Huoban Energy 11 to enhance renewable energy usage.
  • Power Finance Corp incorporated two special-purpose vehicles for developing transmission projects in Gujarat and Rajasthan.
  • Indian Bank received approval from the RBI for setting up a new unit for operations support.


Nifty Overview & Outlook

Benchmark Nifty index ended lower at 21462 levels, down over 100 points from its previous closing values after a volatile trading session.

Nifty Midcap index outperformed the benchmark as it was up nearly 0.5% while Small cap index ended on a flat to negative note against 0.5% decline of frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Pharma was at the top of the tally, rose over 1% followed by Oil & Gas, Realty and PSU Bank index that were up over 0.5% each.  On the other hand, Financial Services, FMCG, IT, Metal and Media indices led the decline, down in range 0.5% to 1%.

Technically, Nifty index took a pause after three days of decline. Going ahead, we reiterate our short term negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 21750 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty and Finnifty futures with increase in open interest by 9.6% and 9.8% respectively, whereas long unwinding was seen in Banknifty futures with decrease in open interest by 1.3%.

On the sectoral front, long buildup was observed in Oil & Gas, Technology and Telecom stocks, whereas short buildup was seen among Finance, Infra, FMCG and Banking stocks. Some short covering was seen in Media stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 21000 PE and 22000 CE followed by 21700 CE


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 9902 Cr in the cash segment, sold stocks futures and index future worth Rs 1873 Cr and Rs. 2508 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 5977 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21640-21800; Supports 21270-21090

Banknifty – Resistances 46560-47070; Supports 45230-44730

Finnifty – Resistances 20650-20840; Supports 20140-19930





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