Sensex Today | Share Market Live updates: Sensex, Nifty flat; RIL top gainer, Infy lags | Mint – Mint

Earnings beat led by higher NII/NIM and lower provisions; miss on asset quality

–NII was a beat at Rs2.85bn (PLe Rs2.67bn) as NIM surprised positively at 3.80% (PLe 3.56%)

–Yield improvement outpaced funding cost rise leading to 21bps QoQ NIM increase

–Loan growth came in exactly as expected at 18% YoY to Rs325bn

–Disbursals were a bit lower Rs19.7bn (PLe Rs20.3bn) that was offset by softer repayments at Rs10.24bn (PLe Rs11.05bn)

–Other income was a miss at Rs60mn (PLe Rs85mn) due to lower fee income although opex was in-line at Rs435mn (PLe Rs429mn)

–PPoP at Rs2.48bn was 6.3% higher to PLe led by higher NII

–Asset quality deteriorated as GNPA/NNPA rose by 8bps each QoQ to 0.63%/0.34% while PCR dipped QoQ to 46.6% from 52.3%

–However, provisions were lower Rs137mn (PLe Rs200mn).

–PAT was a beat at Rs1.84bn (PLe Rs1.6bn) driven by stronger NII and lower provisions

–At CMP, the stock trades at 2.2x FY25E ABV.

(1) Management was not bullish with regard to NIM guidance given factors at play that cancel each other out. (2) There was a sequential decline in slippages and credit cost is approaching their FY24 guidance. (3) Management stated that microfinance business was sluggish due to transient factors. (4) Management guided for an improvement in cost to income ratio next year in FY25. (5) We maintain ‘Buy’ rating on IIB with a revised price target of ₹1705.

Shares of L&T Technology Services slipped 1.6% as investors were disappointed with the mid-cap IT company’s June quarter (Q1FY24) earnings performance. Much like its peers, a delay in decision-making and seasonal impact on its Smart World and Communication (SWC) segment were key factors that weighed on LTTS’ Q1 revenues. In a post-earnings discussion, LTTS management said that there has been an improved decision-making trajectory in June and July, instilling confidence in potential growth acceleration from Q2FY24. (Read more)

The company said the National Health Mission of Rajasthan has withdrawn the letter of acceptance issued for the provision of laboratory services across the state. This service was intended as part of a free diagnostics initiative, employing a hub and spoke model. The company said the cancellation occurred due to a demand for additional performance security, which was not met due to disagreements rooted in certain technicalities.

Jio Financial Services share listed on the National Stock Exchange at ₹273 per share. This calculation came after Reliance share price settling on NSE at ₹2,580 per share in special pre-open session on Thursday as the RIL stock had ended at ₹2853 apiece on NSE

“Even when the market is scaling new highs and the undercurrent is positive, there are strong views that the current high valuations cannot be sustained for long. It is important to understand that the DIIs are not bullish about the market at the current elevated valuations. They were sellers in 12 out of the last 13 trading sessions and have cumulatively sold for ₹16321 crores and may sell more at higher levels. In January and February when the FIIs were selling DIIs were consistent buyers. The 3000 point rally in Nifty from the March lows has given DIIs huge profits and, therefore, profit booking would be a rational response. Selling and profit booking at high levels are easy decisions while buying at high prices can be risky.

The demerger of Jio Financial Services from RIL and the Q1 results of Infosys, HUL and a host of mid-cap IT companies can cause a lot of price action in the market today.”

In the lead-up to the demerger of Reliance Industries and Reliance Strategic Investments Limited, the RIL board has confirmed the acquisition costs of both Reliance and Jio Financial Services Ltd. It has been communicated to the Indian stock market exchanges that post-demerger, the acquisition cost for Reliance Industries Ltd will constitute 95.32% of the total, leaving the remaining 4.68% to Reliance Strategic Investments Limited.

Shares of Acknit Industries Ltd, John Cockerill India Ltd, Duncan Engineering Ltd, Fortis Healthcare Ltd, GPT Infraprojects Ltd, Graphite India Ltd, HCL Technologies Ltd, Kanco Tea & Industries Ltd, MRF Ltd, Natural Capsules Ltd, Novartis India Ltd, Oriental Carbon & Chemicals Ltd, Rossell India Ltd, Tata Consultancy Services Ltd, and Weizmann Ltd, among others will be on investors’ radar as they trade ex-dividend today.

Billionaire Anil Agarwal’s Vedanta Ltd is seeking to sell ESL Steel Ltd, formerly known as Electrosteel Steels Ltd, after acquiring the asset for ₹5,320 crore through a bankruptcy resolution process five years ago, two people familiar with the development told Mint. (Full report)

Nifty Outlook: Nifty extended the gains further ahead with the strong run continuing making new highs each day closing above the 19,800 zone with bias maintained strong and as said earlier, further rise anticipated for our next target of 20,000 in the coming sessions. The overall sentiment has turned optimistic with majority of the frontline stocks along with the broader indices participating actively to pull the index to new heights. Immediate support for Nifty today is placed at 19,700 levels while the resistance is seen at 20,000 levels.

Bank Nifty: After the gap-up opening, witnessed sideways movement throughout the session resisting near 45,700 zone and would need a decisive breach above 45,900 levels with majority of the frontline banking stocks well placed and can pull the index to new heights with next target of 47,000 to 47,500 levels wide open. Bank Nifty would have the daily range of 45,300 to 46,000 levels.

Hindustan Unilever, Infosys, Havells India, MphasiS, Dalmia Bharat, Persistent Systems, Coforge, Reliance Industrial Infrastructure, Goa Carbon, United Spirits, Union Bank of India are some of the companies that will declare their earnings today

Asian markets are mixed in trade on Thursday as US stock futures dipped in early trading, largely influenced by the underwhelming performance reported by companies like Netflix and Tesla. Japan’s equity market saw a decline, whereas those for Australia remained relatively stable.