Post Market Analysis 04-08-2021

Benchmark Indian indices closed at record highs as banking and financial stocks rallied led by State Bank of India after it reported strong results and on investor optimism. The Sensex closed 1.02% higher at 54,369.77 and Nifty closed 0.79% up at 16,258.80.

Nifty Financials jumped 2.59% and Nifty Bank climbed 2.33%. Top gainers were HDFC (4.75%), Kotak Bank (3.81%), ICICI Bank (3.51%), ICICI Prudential Life (2.88%), SBI (2.34%), HDFC Bank (2.13%) and Axis Bank (2.06%).

Indian rupee ended higher at 74.18, after hitting 6-week high at 74.08, helped by record buying in the domestic equity markets.

Earnings Update

State Bank of India: The country’s largest bank reported robust quarterly results with its standalone net profit rising 55.24% to Rs 6,504 crore for for the quarter ended June 2021, as against a net profit of Rs 4,189.4 crore in the year-ago period. Net interest income rose 3.7% to Rs 27638 crore in the quarter, from Rs 26641.6 crore in the corresponding quarter of last year. Gross GNPA ratio stood at 5.32% at the end of Q1 of FY22, compared with 5.44% at the end of Q1 of FY21. Shares of the bank closed 2.34% higher at Rs 456.95.

Adani Green Energy: The company’s consolidated net profit jumped to Rs 219 crore in Apr-Jun quarter of FY22, compared with a net profit of Rs 22 crore in Q1 of FY21. Total income rose to Rs 1,079 crore in the quarter, from Rs 878 crore in the year-ago period. The company’s electricity sales rose to 2,054 million units in the quarter, from 1,385 million units in the same period of last year.