Daily market update
NIFTY rose on April derivatives expiry day, thanks to optimistic earnings result. The 50-share NSE index NIFTY rose 0.45% to finish at 10617.80 on Thursday. The Indian benchmark NIFTY trading in a narrow range for most part of the day but surprisingly surged in the closing hours led by earnings positivity private banks. The sentiment was subdued today on covering up of pending positions by speculators on the day of expiry of April derivatives contracts.
Looking overseas, European markets trading higher following Asian markets which finished mixed to higher on Thursday. The global stock markets remained submissive today as investors worried over rising US Treasury yields and speculation that interest rates will rise four times this year.
Seven out of eleven sector gauges compiled by the NSE ended higher led by NIFTY FMCG, NIFTY PVT BANK, NIFTY IT and NIFTY BANK as top gainers. On the flip side, NIFTY PSU BANK and NIFTY REALTY are top losers.
From the NIFTY 50 basket of shares, YESBANK, INDUSINDBK, HINDUNILVR, ITC, TCS, EICHERMOT and KOTAKBANK outperformed as top gainers while BHARTIARTL, LUPIN, INFRATEL, TECHM and WIPRO are top losers.
Top stocks to watch on today 27 April
SRF: This stock surged by 6.84% and ended at Rs.2318.8 on Thursday. This stock trading volume rose by 177 percent with numerous intraday trades. This stock is currently settled above the recent resistance zone and the short-term support is around Rs.1958.
RCOM: This stock plunged by 4.82% and to close at Rs.16.8 at last trading session. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.25.
PFC: This stock dropped by 2.47% and ended at Rs.82.95. This stock trading volume rose by 148 percent with 59% of the trades are deliverable volume. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.91.
PCJEWELLER: This stock slipped by 3.07% and closed at Rs.236.9. This stock trading volume rose by 806 percent with numerous intraday trades. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.326.
NIITTECH: This stock surged by 5.74% and to close at Rs.1149.9. This stock trading volume hiked by 285 percent with numerous intraday trades. This stock is currently settled above the recent resistance zone and the short-term support around Rs.857.
HINDPETRO: This stock is listed in top traded counters. with 64% of the trades are deliverable volume at last trading session. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.364.
BHARTIARTL: This stock declined by 2.54% and settled at Rs.409.2. This stock is one among the top traded stocks with 58% of the trades gone for delivery. This stock is currently oscillating nearer to its resistance zone of Rs.416.
Q4 Result Insights
· Net Profit grew by 29.0% y-oy for Q4FY18 and 26.9% y-o-y in FY18.
· Net Interest Income grew by 31.4% y-o-y for Q4FY18, and 33.5% y-o-y in FY18.
· Consistent return ratios with RoA at 1.6% and RoE at 18.8% for Q4FY18. For FY18, RoA at 1.6% and RoE at 17.7%.
· Total Assets grew by 45.3% y-o-y to Rs.3,12,445.6 Crores. IBU Assets grew by 166.0% y-o-y to US$ 2.8 billion and Deposits grew by 40.5% y-o-y to Rs2,00,738.1 Crores
· Received RBI approval to open Representative Offices in London and Singapore. This is in continuation with YES Bank’s international foray to expand services to the NRI population and Indian origin business at these locations and to also be positive for International Business development.
· Branch network stood at 1,100 branches as on March 31, 2018 an increase of 50 branches during the quarter. ATM Network stood at 1,724 which includes 565 Bunch Note Acceptors/Cash Recyclers
· Dividend of Rs2.7 per share (135%) recommended by Management & Board.
Viewpoint: Yes bank ended with healthy asset quality delivery, improvement in both and NNPA. Management also commented that they are continuing to invest in Digital and technology initiatives.
· Net Profit for FY18 contracted by 93% and stood at Rs.276 crores.
· Net Interest Income for FY18 grew 3% YOY and Net interest margin stood at 3.44%.
· Net Loss for Q4FY18 stood at Rs.2,189 crores.
· Loan growth during the quarter stood at 18% YOY led by pickup across all segments.
· The shareholders’ funds of the Bank grew 14% YOY and stood at Rs.63,445 crores as on 31st March 2018
· As on 31st March 2018, the Bank’s Gross NPA and Net NPA levels rose to 6.77% and 3.40% from 5.28% and 2.56% as on 31st December 2017, respectively.
· During Q4FY18, the Bank added 114 branches to its network across the country, taking the tally of new branches opened during FY18 to 400 branches.
· Core operating revenue declined by 10% to Rs.7304 crores.
Viewpoint: Axis bank ended the financial year on the negative note but its capital adequacy ratio remained at 16.57%. The company’s future is embedded in its growth in loan book and increasing the asset quality.