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Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of microfinance and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, <keyword id="46717" type="General" weightage="20" keywordseo="IndusInd-bank" source="Orion">IndusInd Bank</keyword> set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e., an <keyword id="79363" type="General" weightage="20" keywordseo="npa" source="Orion">NPA</keyword>, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals, i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, <keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword>, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv, from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending installments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honor any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its <keyword id="763994" type="General" weightage="20" keywordseo="Gross-NPA" source="Orion">gross NPA</keyword> for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. <keyword id="62152" type="General" weightage="20" keywordseo="IDFC-bank" source="Orion">IDFC Bank</keyword>’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in unsecured loans, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. Kotak Mahindra Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical Bollywood headmaster who runs his dominion with an iron fist and takes things (and ceiling rates) into their own hands. However, that's a story for another day.

Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

Bloodbath on the D-Street entered its fifth straight day today, with <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> dipping by 218 points to close the day at 24,180.80, much below the 25,000-mark. <keyword id="19896382" type="General" weightage="100" keywordseo="Sensex" source="keywords">Sensex</keyword> also dropped a massive 662 points to close the week at 79,402.29 points. Notably, this was the worst weekly run experienced by the markets over the last 14 months. Clearly, the markets are not in the mood to embrace the impending festivities. Only 12 out of 50 stocks on the Nifty50 advanced today, while the other 38 declined. It was no different on the BSE, where an astounding 3,101 stocks slipped during the day, while just 841 inched up. Smallcaps bore the biggest brunt of this drawdown, with the smallcap 100, 50, 250, and microcaps each sliding by over 2% during the day. Amidst sectors, media, metal, PSU banks, consumer durables, and oil and gas skidded over 2% each today. Gaurav Garg, Research Analyst at Lemonn Markets Desk, explains that on a weekly basis, benchmarks had recorded five consecutive daily losses. Markets appear oversold, with RSI (Relative Strength Index) falling to 27 levels, its lowest in more than a year. Persistent foreign outflows with a record ~97000 crores so far in October, along with disappointing <keyword id="23378466" type="General" weightage="20" keywordseo="Q2-earnings" source="keywords">Q2 earnings</keyword>, have led to sharp valuation corrections in stocks with high multiples as investors adjust their expectations for future growth. Per media reports, investors saw their wealth diminish by a massive Rs 6.80 lakh crore today, largely due to a sharp, 18% dip in the shares of <keyword id="19901053" type="General" weightage="20" keywordseo="IndusInd-Bank" source="keywords">IndusInd Bank</keyword> and uncontrolled exodus of <keyword id="19900795" type="General" weightage="20" keywordseo="foreign-investors" source="keywords">foreign investors</keyword>. Reportedly, IndusInd Bank reported a 40% decline in its net profits for the quarter ended September 30, 2024. "Another major factor contributing to this dip is disappointing earnings reports from Indian companies, especially in the consumption sector, which signal an economic slowdown, particularly in urban consumption," Santosh Meena, Head of Research at Swastika Investmart, said. Mahindra &amp; Mahindra, Larsen &amp; Toubro, NTPC, Adani Ports, Tata Steel, Maruti, Bajaj Finance and Titan were also among the laggards. "Markets continued its downward trajectory as a broader selloff pulled down key benchmarks with Sensex ending below the crucial 80k mark. The dismal Q2 earnings so far has aggravated the investors' woes while persistent <keyword id="21360658" type="General" weightage="20" keywordseo="FII-selling" source="keywords">FII selling</keyword> continued to create havoc in the market," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. On October 24, 2024, i.e. yesterday, foreign investors offloaded a massive Rs 5,062.45 worth of equities, while domestic investors remained net buyers, purchasing around Rs 3,620.47 crore worth of shares. Thus far in October, foreign investors have pulled out a record Rs 97,205.42 crore from Indian markets. Shrikant Chouhan, Head Equity Research, Kotak Securities expects that the "market sentiment will continue to be weighed down by weaker-than-expected Q2FY25 earnings prints and continued weak commentary. FPI flows are expected to remain volatile in the days to come". "Indian equity markets corrected sharply this week as FII continued with selling in Indian markets. Benchmark indices (Nifty 50 and Sensex 30) declined between 2-3% this week. The midcap and the <keyword id="20187540" type="General" weightage="20" keywordseo="smallcap-stocks" source="keywords">smallcap stocks</keyword> witnessed selling pressure. As a result, the BSE Midcap and the BSE Smallcap indices underperformed the larger peers and were down between 5-8% on a weekly basis. All the sectoral indices ended the week in the red with multiple indices seeing a weekly fall in excess of 6%", added Chouhan Per Chouhan, in the coming weeks, key events that will determine the market's course of action include the US elections and the US FOMC meet. Stock specific action will continue based on Q2FY25 financial performance and management commentary. Garg also anticipates that in the near term, the markets will trade rangebound. Market veteran Raamdeo Agrawal, who heads Motilal Oswal Financial Services, called the ongoing <keyword id="22528556" type="General" weightage="20" keywordseo="market-downturn" source="keywords">market downturn</keyword> the "healthiest possible correction".

Massacre continues on Sensex and Nifty as foreign investors withdraw Rs 97,205.42 crore in October

Both <keyword id="20204377" type="General" weightage="20" keywordseo="indices" source="keywords">indices</keyword>, <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> and <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword>, opened the day in green, with Sensex up by over 100 points to trade at 80,543.05 points, and Nifty trading at 24,624.20, up by 0.21% <keyword id="19908646" type="General" weightage="20" keywordseo="BPCL" source="keywords" meta.keywordsubtype="org" meta.entityname="BPCL" meta.hostid="261" meta.entityid="BPCL">BPCL</keyword>, <keyword id="20366589" type="General" weightage="20" keywordseo="Hero-Moto-Corp" source="keywords" meta.keywordsubtype="org" meta.entityname="Hero Moto Corp" meta.hostid="261" meta.entityid="Hero Moto Corp">Hero Moto Corp</keyword>, <keyword id="19950203" type="General" weightage="20" keywordseo="TCS" source="keywords" meta.keywordsubtype="org" meta.entityname="TCS" meta.hostid="261" meta.entityid="TCS">TCS</keyword>, <keyword id="19901053" type="General" weightage="20" keywordseo="IndusInd-Bank" source="keywords" meta.keywordsubtype="org" meta.entityname="IndusInd Bank" meta.hostid="261" meta.entityid="IndusInd Bank">IndusInd Bank</keyword>, and <keyword id="19963567" type="General" weightage="20" keywordseo="UltraTech-Cement" source="keywords" meta.keywordsubtype="org" meta.entityname="UltraTech Cement" meta.hostid="261" meta.entityid="UltraTech Cement">UltraTech Cement</keyword> gained early lead during today's trade, while ONGC, Cipla, Bharti Airtel, Power Grid Corporation of India, and JSW Steel were amidst the leading laggards. All broad market indices opened in green, with the exception of India VIX, which dipped by 0.59%. With the exception of Nifty Realty, all other sectoral indices opened the day in green. Aditya Gaggar, director of Progressive Shares, noted that non-directional trade ended marginally higher at 24,573. The Index has formed a small red candle but the overall uptrend is intact and as per the range breakout, the approximate target comes to 24,870 with the downside being protected at 24,420. "BankNifty has been oscillating in a well-maintained range of 49,730-,50,730, and awaiting a breakout for a clear picture. The Energy sector is likely to extend its positive momentum as it has given a breakout. We continue to hold our positive stance on the IT and <keyword id="19933821" type="General" weightage="20" keywordseo="pharma" source="keywords">Pharma</keyword> sectors. With a positive divergence in the RSI, the metal sector stands at the higher end of its consolidation range, and in the case of a breakout, one can expect a strong rally. The defensive sector i.e. the FMCG is on the verge of providing a breakout, and post the breakout, we can witness a sharp up move. Some of the stocks appear strong on a technical front namely BEPL, Bharat Wire, D-Link / Supreme Petro, Kopran, and Sequent Scientific / Shriram Finance", he continued.

Stock market today: Nifty, Sensex open with muted gains, realty index takes a dip

Mumbai, <keyword id="19896379" type="General" weightage="20" keywordseo="benchmark" source="keywords">Benchmark</keyword> equity indices declined in early trade on Tuesday, halting their three days of rally, on profit-taking amid weak trends from the US markets and foreign fund outflows. The 30-share BSE <keyword id="19896382" type="General" weightage="20" keywordseo="sensex" source="keywords">Sensex</keyword> declined 222.02 points to 73,792.53. The NSE Nifty dipped 47.65 points to 22,414.35. Later, the benchmark indices faced volatile trends and were trading with marginal gains. From the Sensex basket, ICICI Bank, <keyword id="19950119" type="General" weightage="20" keywordseo="tata-consultancy-services" source="keywords">Tata Consultancy Services</keyword>, Wipro, Infosys, Bajaj Finance, and Asian Paints were the major laggards. <keyword id="19901053" type="General" weightage="20" keywordseo="indusind-bank" source="keywords">IndusInd Bank</keyword>, HDFC Bank, Tata Steel and Titan were among the gainers. In Asian markets, Seoul traded lower while Tokyo, Shanghai, and Hong Kong quoted in the positive territory. Wall Street ended mostly lower on Monday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 522.30 crore on Monday, according to exchange data. Global oil benchmark Brent crude climbed 0.48 per cent to USD 87.84 a barrel. "Profit-taking may come into play due to excessive optimism, subdued US market close in overnight trades, and FIIs turning net sellers in Monday's positive session," <keyword id="20226500" type="General" weightage="20" keywordseo="prashanth-tapse" source="keywords">Prashanth Tapse</keyword>, Senior VP (Research), <keyword id="21163359" type="General" weightage="20" keywordseo="mehta-equities-ltd" source="keywords">Mehta Equities Ltd</keyword>, said in his pre-opening market comment. Extending its winning momentum to the third day in a row on Monday, the BSE benchmark jumped 363.20 points or 0.49 per cent to settle at 74,014.55. During the day, it zoomed 603.27 points or 0.81 per cent to hit the record intra-day high of 74,254.62. The NSE Nifty climbed 135.10 points or 0.61 per cent to 22,462. During the day, it jumped 203.05 points or 0.90 per cent to hit the all-time peak of 22,529.95.

Markets fall in early trade on profit-taking, foreign fund outflows

New Delhi, BSE Sensex jumped more than 1,000 points on Friday reacting to India's impressive GDP numbers. Sensex was trading up by 1045.99 points up by 1.44 per cent at 73,549.64 points. Metal stocks are top gainers with <keyword id="19950204" type="General" weightage="20" keywordseo="tata-steel" source="keywords">Tata Steel</keyword>, JSW Steel up more than 4 per cent, L&amp;T up 3 per cent, Titan up 3 per cent. ICICI Bank, Tata Motors, Maruti, <keyword id="19901053" type="General" weightage="20" keywordseo="indusind-bank" source="keywords">Indusind Bank</keyword>, <keyword id="19990613" type="General" weightage="20" keywordseo="powergrid" source="keywords">Powergrid</keyword> are up 2 per cent. The main factor influencing the market on Friday is likely to be the better-than-expected Q3 GDP growth number which has come at an impressive 8.4 per cent, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The impressive GDP numbers provide the fundamental support to the bull market. Large-caps like RIL, Bharti Airtel, L&amp;T and ICICI Bank have the potential to lead the rally. Tepid private consumption numbers will be a drag on consumer staples stocks like HUL, he said. The broad trend of the market, going forward, will be the outperformance of large-caps over the broader market, he added. Devarsh Vakil - Deputy Head, of <keyword id="20154464" type="General" weightage="20" keywordseo="retail-research" source="keywords">Retail Research</keyword>, HDFC Securities said surpassing the expectations of analysts, India's Gross Domestic Product (GDP) registered a robust growth of 8.4 per cent on an annual basis in the third quarter (October-December), as against 8.1 per cent in the previous quarter, data released by the National Statistical Office (<keyword id="20067517" type="General" weightage="20" keywordseo="nso" source="keywords">NSO</keyword>) showed Thursday. The number for Q1, Q2 FY24 has also been revised upwards to 8.2 per cent (against 7.8 per cent) and 8.1 per cent (against 7.6 per cent) respectively.

Sensex jumps more than 1,000 points on impressive GDP numbers

The <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) has approved <keyword id="19895995" type="General" weightage="20" keywordseo="hdfc-bank" source="keywords">HDFC Bank</keyword>'s proposal to acquire an up to 9.5% stake in <keyword id="19901053" type="General" weightage="100" keywordseo="indusind-bank" source="keywords">IndusInd Bank</keyword>. "Pursuant to Regulation 30 of the <keyword id="35210" type="General" weightage="20" keywordseo="SEBI" source="Orion">SEBI</keyword> Listing Regulations, we would like to inform you that the Reserve Bank of India vide its letter dated February 5, 2024 has accorded its approval to HDFC Bank Limited ("applicant") for acquiring "aggregate holding" of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank Limited. The aforesaid RBI approval has been granted with reference to the application made by the applicant to the RBI," IndusInd Bank said in a stock exchange filing. The approval also stipulates that if the "aggregate holding" of HDFC Bank falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights. The RBI approval is subject to compliance with the <keyword id="19976511" type="General" weightage="20" keywordseo="banking-regulation-act" source="keywords">Banking Regulation Act</keyword>, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended), provisions of the Foreign Exchange Management Act, 1999, regulations by the Securities and Exchange Board of India (SEBI), and other applicable statutes, regulations, and guidelines, the filing noted. --IANS sps/dpb

HDFC gets RBI nod to acquire 9.5% stake in IndusInd Bank

<keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> scaled the 76,000 level for the first time while <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> hit a new lifetime peak before closing marginally down on Monday as investors booked profits at record levels amid high volatility ahead of the results of <keyword id="19912155" type="General" weightage="20" keywordseo="Lok-Sabha-polls" source="keywords">Lok Sabha polls</keyword>. The 30-share <keyword id="19895774" type="General" weightage="20" keywordseo="BSE" source="keywords" meta.keywordsubtype="org" meta.entityname="BSE" meta.hostid="261" meta.entityid="BSE">BSE</keyword> Sensex closed lower by 19.89 points or 0.03 per cent lower at 75,390.50. Intra-day, the barometer climbed 599.29 points or 0.79 per cent to an all-time peak of 76,009.68 following gains in select banking, financial and IT shares. However, investors preferred to book profits at record levels and the index declined around 835 points from the day's high to hit a low of 75,175.27. Broader Nifty of the <keyword id="6354646" type="General" weightage="20" keywordseo="NSE" source="Orion">NSE</keyword> declined by 24.65 points or 0.11 per cent, to end at 22,932.45. The 50-issue barometer rose by 153.7 points or 0.66 per cent to hit a new lifetime high of 23,110.80 during the day. However, it tanked around 240 points at the fag-end due to selling in oil, energy and FMCG shares. Index heavyweight Reliance Industries declined nearly 1 per cent, dragging the benchmark indices into the negative. Selling in FMCG giant ITC also eroded gains. Equity benchmarks were on a record-breaking rally for the third straight day ahead of the results of Lok Sabha polls and a rally in global markers. The results of the ongoing general elections will be declared on June 4. Sensex breached the historic 75,000-mark for the first time on April 9. It took 31 trading sessions for the benchmark to climb 1,000 points to reach the 76,000-mark on Monday. The BSE benchmark took 21 trading sessions to reach 75,000-mark on April 9 after hitting the 74,000-level on March 6. From the Sensex pack, Wipro, NTPC, Sun Pharma, Mahindra &amp; Mahindra, ITC and Reliance Industries were among the biggest laggards. IndusInd Bank, Axis Bank, Bajaj Finance, HDFC Bank, Larsen &amp; Toubro and State Bank of India were among the major gainers. "The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee-jerk reaction in the market ahead of the election result. Better earnings growth, the expectation of a revival in private capex, and a moderation in FIIs selling intensity are the key positive triggers in the market," Vinod Nair, Head of Research, Geojit Financial Services, said. "Nifty ended almost flat in a volatile session after hitting record highs in the early part of the session," said Deepak Jasani, Head of Retail Research, HDFC Securities. Ajit Mishra - SVP, Research, Religare Broking Ltd said that the tone was positive in the first half, but profit-taking in heavyweights in the second half erased all the gains. In the broader market, the BSE midcap gauge climbed 0.63 per cent while smallcap index dipped 0.09 per cent. Among the indices, oil and gas declined 0.71 per cent. Commodities (0.61 per cent), power (0.49 per cent), utilities (0.37 per cent) and consumer discretionary (0.15 per cent) also dropped. Financial Services, industrials, IT, bankex, realty and services were among the gainers. Analysts said that the presence of resistance around the 23,100 level in the Nifty, along with a rise in the volatility index, India VIX, limited the upside. India VIX, which measures market volatility surged nearly 7 per cent to 23.13 points. "Nifty remained mostly volatile during the day as India awaits the final phase of the general election (on June 1)," Rupak De, Senior Technical Analyst, LKP Securities said. In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the positive territory. European markets were also quoting in the green. Wall Street ended with gains on Friday. Global oil benchmark Brent crude climbed 0.38 per cent to USD 82.44 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 944.83 crore on Friday, according to exchange data. On Friday, the BSE benchmark dipped 7.65 points or 0.01 per cent to settle at 75,410.39. The Nifty breached the 23,000 mark for the first time on Friday. It, however, pared all the gains and ended with a marginal decline of 10.55 points or 0.05 per cent at 22,957.10.

Sensex scales 76,000 peak, Nifty hits new high before closing lower; IndusInd, L&T, SBI biggest gainers

Benchmark indices Sensex and <keyword id="19896381" type="General" weightage="20" keywordseo="nifty" source="keywords">Nifty</keyword> fell for the third day running on Thursday, dragged by continuous selling in <keyword id="19895995" type="General" weightage="20" keywordseo="hdfc-bank" source="keywords">HDFC Bank</keyword> and profit-taking in consumer durables and utility shares. The 30-share <keyword id="19895774" type="General" weightage="20" keywordseo="bse" source="keywords">BSE</keyword> Sensex fell by 313.90 points or 0.44 per cent to settle at 71,186.86. During the day, it tanked 835.26 points or 1.16 per cent to 70,665.50. The Nifty declined 109.70 points or 0.51 per cent to 21,462.25. During the day, it plunged 286.4 points or 1.32 per cent to 21,285.55. The heavy fall in the markets comes on the back of a recent record-breaking rally. The BSE benchmark hit an all-time high of 73,427.59 on Tuesday, and the Nifty also reached its lifetime peak of 22,124.15 the same day. "The benchmark indices exhibited recovery from the day’s low and ended in red amid weak global cues, as investors are trimming bets on rapid FED cuts due to strong US retail sales and the resulting rise in global bond yields. Furthermore, oil price advances and rate escalation risks have led to disruptions in global shipping and crude production. The broader market continued its selling pressure given the elevated valuation and profit booking with an aim for sector rotation," said <keyword id="19969359" type="General" weightage="20" keywordseo="vinod-nair" source="keywords">Vinod Nair</keyword>, Head of Research, Geojit Financial Services. Among the Sensex firms, HDFC Bank, NTPC, Asian Paints, Power Grid, Titan, <keyword id="19901053" type="General" weightage="20" keywordseo="indusind-bank" source="keywords">IndusInd Bank</keyword>, Nestle and Maruti were the major laggards. HDFC Bank fell over 3 per cent, extending its previous days' huge fall, after the company's December quarter earnings failed to impress investors. The private lender alone contributed 305 points to the fall. “While markets suffered losses for the third consecutive session, key indices pared losses in the second half amid recovery in European and select Asian indices. Investors will be more watchful about the ongoing earnings season as any stress on quarterly numbers could dampen the sentiment in the near term. A sharp rise in crude oil prices also cautioned investors to trim their positions in banking, IT and power stocks," said <keyword id="20226500" type="General" weightage="20" keywordseo="prashanth-tapse" source="keywords">Prashanth Tapse</keyword>, Senior VP (Research), Mehta Equities Ltd. <keyword id="20026907" type="General" weightage="20" keywordseo="sun-pharma" source="keywords">Sun Pharma</keyword>, <keyword id="19924892" type="General" weightage="20" keywordseo="tech-mahindra" source="keywords">Tech Mahindra</keyword>, <keyword id="19906967" type="General" weightage="20" keywordseo="tata-motors" source="keywords">Tata Motors</keyword>, Mahindra &amp; Mahindra, Axis Bank and Larsen &amp; Toubro were among the gainers. In Asian markets, Tokyo settled lower while Seoul, Shanghai and Hong Kong ended in the positive territory. European markets were trading on a mixed note. The US markets ended lower on Wednesday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 10,578.13 crore on Wednesday, according to exchange data. On Wednesday, the BSE benchmark plunged 1,628.01 points, or 2.23 per cent, to settle at 71,500.76. The Nifty tanked 460.35 points or 2.09 per cent to settle at 21,571.95. Global oil benchmark Brent crude climbed 0.50 per cent to USD 78.27 a barrel.

Stock markets fall for 3rd day on profit-taking, HDFC Bank major drag

New Delhi, Shares of <keyword id="46717" type="General" weightage="20" keywordseo="indusind-bank" source="Orion">IndusInd Bank</keyword> climbed nearly 4% on Wednesday morning after the company reported a 30 per cent jump in its consolidated net profit in the April-June quarter. The stock gained 3.81% to hit its 52-week high of ₹1,443.35 on the BSE. At the NSE, it jumped 3.82% to reach its 52-week high of ₹1,443.40. In the equity market, the 30-share <keyword id="53232" type="General" weightage="50" keywordseo="bse-sensex" source="Orion">BSE Sensex</keyword> climbed 321.91 points to reach its new all-time intraday peak of 67,117.05 in morning trade. The <keyword id="372424" type="General" weightage="50" keywordseo="nse-nifty" source="Orion">NSE Nifty</keyword> gained 92.4 points to hit a record intraday high of 19,841.65. IndusInd Bank on Tuesday reported a 30% jump in its consolidated net profit in the April-June quarter at ₹2,124.50 crore, helped by core income growth and lower bad loan provisions. In the reporting quarter, the bank's core net interest income grew 18% to ₹4,867 crore on a 22% increase in advances and a 0.08% expansion in the net interest margin to 4.29%. The other income was up 14% to ₹2,210 crore, while the overall deposits rose 15%. The overall provisions reduced to ₹991 crore -- the best in three years, as compared to ₹1,251 crore in the year-ago period. On the asset quality front, the gross non-performing assets ratio improved to 1.94% , as against 2.35% in the year-ago period and 1.98% in the March quarter. The outperformer The stock has been outperforming the Bank Nifty --- by 14% in the last three months and 24% over one year. According to J M Financial, it's still trading an attractive valuation. "We believe a broad based growth momentum led by positive macros in microfinance industry (MFI) and vehicle finance industry, strong delivery on profitability metrics and healthy asset quality should aid in future stock price performance," the research firm said. A report by Kotak Institutional Equities says that the company is showing lower volatility in a more predictable business environment. "Loan growth is higher than the industry average, with some key portfolios within retail and MFI showing solid traction. Despite a sharp increase in cost of funds, net interest margins NIM (net interest margin) has held up well at around 4.1-4.3%," it said. The stock has been performing well, as its business fundamentals are improving. "However, a re-rating from hereon is likely to be a lot more gradual. With return ratios and growth metrics unlikely to be meaningfully different, the probability of IndusInd Bank to trade at a premium looks unlikely at this stage. In our view, the valuations of large banks are likely to create a possible cap to the banks’ valuations, unless we see a meaningful difference," Kotak added. (With PTI inputs)

IndusInd Bank stock hits 52-week high after a strong Q1 show

<ul><li>Sensex and Nifty closed 364 points and 107 points higher in Friday’s session.</li><li>Real estate stocks were the top gainers in the session with Nifty Realty gaining 3%.</li><li>Experts see the positive momentum continuing, with Q2 earnings taking over next week. </li></ul>Indian benchmark indices closed 0.5% higher on Friday, after receiving a sentimental boost from the central bank. The Reserve Bank of India’s (RBI) rate setting panel decided to keep its key policy rates unchanged in its October meeting. Even as the pause was much expected by the markets, Sensex and Nifty gained 364 points and 107 points respectively. Most Nifty indices closed in the green with the exception of Nifty Media. But the best performers of the session were the usual suspects – real estate stocks. Nifty Realty rose by 3%, with eight of its constituents closing in the green. <keyword id="6362997" type="General" weightage="20" keywordseo="dlf" source="Orion">DLF</keyword>, <keyword id="19040981" type="General" weightage="20" keywordseo="godrej-properties-and-lodha-developers" source="Orion">Godrej Properties and Lodha Developers</keyword> gained 4% during the session. “Realty shares hogged the limelight after taking the hammering in recent trades amid hopes that no change in interest rates may boost home sales, especially during the festive season,” said Amol Athawale, VP of technical research at Kotak Securities. The Asian market performance too added to the euphoria in the markets. US equities however were weighed down this week as the 10-year US Treasury yield hit a 16-year high this week. Experts also believe that Nifty could hold on to these levels going forward and will be guided by the earnings season which starts next week. Positive sentiment to continue Nifty took support near 19,350 and bounced back sharply in the last two trading sessions. Nifty recouped all of the losses seen earlier this week on the back of firm global cues. Sentiments got a lift after US Treasury yields retreated and as oil prices plummeted, said Prashanth Tapse, Senior VP (Research), Mehta Equities. “Currently, the index is trading near the 50-day SMA (Simple Moving Average), and on weekly charts it has formed a Hammer kind of formation which is largely positive. As long as the index is trading above the 50-day SMA or 19575 level the positive sentiment is likely to continue,” added Athawale. The Nifty Bank index fell by 0.5% this week due to sell-offs in banking stocks. It however gained during Friday’s session. “Overall, sentiment is expected to stay positive as long as it maintains above the critical support level of 19,500, as put writers are likely to offer support at this level,” said Rupak De, senior technical analyst at LKP Securities. <keyword id="85462" type="General" weightage="20" keywordseo="bajaj-finserv" source="Orion">Bajaj Finserv</keyword>, <keyword id="111876" type="General" weightage="20" keywordseo="bajaj-finance" source="Orion">Bajaj Finance</keyword>, <keyword id="6359357" type="General" weightage="20" keywordseo="titan" source="Orion">Titan</keyword>, <keyword id="46717" type="General" weightage="20" keywordseo="indusind-bank" source="Orion">IndusInd Bank</keyword> and <keyword id="8836175" type="General" weightage="20" keywordseo="tata-consumer" source="Orion">Tata Consumer</keyword> were the top gainers in the Nifty50 pack. Hindustan Unilever, Coal India, ONGC, Asian Paints and Bharti Airtel were top losers.

You Searched For "indusind" and got 10 results

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Sensex jumps more than 1,000 points on impressive GDP numbers

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HDFC gets RBI nod to acquire 9.5% stake in IndusInd Bank

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Sensex scales 76,000 peak, Nifty hits new high before closing lower; IndusInd, L&T, SBI biggest gainers

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Stock markets fall for 3rd day on profit-taking, HDFC Bank major drag

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IndusInd Bank stock hits 52-week high after a strong Q1 show

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Stock markets close on a high; real estate stocks shine

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