The indices climbed out of a big hole on Thursday as they completed a drop back to 7800 without losing the uptrade, with ICICI Bank results on 31st likely to see better levels for itself and the market. IDFC and YES remain the best picks followed by higher returning midcap Pharma stocks like Glenmark. Futures trades
Afternoon wires and press notes from the bank are likely to see the cementing of the bank into a stable mode with growth in mortgages and continuing improvement in international margins. Markets will thence follow SBI and ICICI Bank upward out of 7800 levels at close.
CASA score kept pace with Kotak’s catch up trade at 29% from 22% 4 quarters ago as Profits remained stuck at INR 4.39 Bln after reduction in provisions. NIMs remained an underperforming 3% as NII expectedly moved to INR 7.93 Bln and Net NPAs remained near 0 (0.07%) (Wires)
And like all yesterdays news markets will trade lower till afternoon after reaching the 7800 mark, to figure out if they can indeed proceed. Bank results being a good instinct to follow markets will thus trade likely at near 7800 levels till the ICICI Bank numbers hit the ticker in the afternoon before close. I
Equities continue strong despite an overnight cut in the Dow as Asia follows in its wake ahead of China data towards the end of the week. HDFC and HDFC Bank are good for a long trade and more accumulation at these prices. Kotak and LIC housing also followed up in buying after impressive results last week
The 30% PAT line growth was breached however the bank has 20% revenue growth and NII has grown to INR 70.25 Bln even as a 65% growth in provisions makes the score on the Net Income also even at 21% instead of our long observed achiever baseline of 30% for performing Indian businesses. Net Revenues