India Morning Report: Life is but waiting at another peak

And probably just waiting for the sun to go down, another trek to 8200 completed as the Economy still has no redeeming inflows of great import and results above expectations from ICICI Bank were not really too great esp in linked quarter terms while on year comparisons brought in a 15% growth in net profit and an improvement in net margin

One ‘redeeming’ feature of yesterday’s rally was the coming out of ITC and Bharti from the near term consolidation zone around 350. IDFC in fact is the investment story of the day having operationalised the bank structure and survived an excruciatingly slow year in infrastructure. ICICI Bank in our view did great by finally jumping all Fee based income tby 27% on year to INR 27 Bln

YES Bank is obviously happy it has grown beyond our benchmark 30% increase in net profit in yearly comparisons and increasing NII again by One billion from Q1 to INR 8.5 Bln (INR 7.5 bln) in the quarter, Fee Income has also grown nearly 20% to INR 5 Bln and this is (to reiterate) sequentially from June of this year, a big jump given that most banks have been sufficing increasing the restructured portfolio and selling it in the onward quarter without growing credit portfolios

The increase in Topline has kept pace with increases in Capital during the period keeping the EPS ata reported 11.6 and making it a leading investment in this market up cycle. Understandably the Banknifty scaled the 16700 peak and the 1635- consolidation levels and is holding steady in Friday’s trading. However, the Banknifty should likely, rationally only see a rerating of the components post Results Thursday

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