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Slow and steady – Upstox

Nifty50: 17,698 39 (+0.2%)
Sensex: 59.462 130 (+0.2%)

Hello people!

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  • Benchmark indices closed marginally higher after a subdued trading session.
  • In all, 26 of the Nifty50 stocks closed in the green.
  • Indian retail inflation fell to 6.7% in July, from 7.01% in June.

Among the handy sector indices, Oil & Gas (+2.2%) and Metals (+1.6%) were the biggest winners, while Media (-1.4%), IT (-1.1%) and Pharma (- 1.1%) were the best. losers.

Top winners Today’s change
ONGC 139 6.7 (+5.0%)
NTPC 159 ▲ 5.3 (+3.4%)
TATA Steel 112 3.7 (+3.3%)
Top losers Today’s change
Divi’s Lab 3,721 226 (-5.7%)
Apollo Hospitals 4,303 126 (-2.8%)
infosys 1,593 ▼26 (-1.6%)

what is trending

Apollo Hospitals profit falls

APOLLOHOSP (NSE): 4.303 126 (-2.8%)

Chennai-based healthcare group Apollo Hospitals reported a 35% year-over-year decline in net profit ₹317 crore. Meanwhile, the operating income remained stable at ₹3,795 crore. The company’s healthcare business posted revenue of ₹2,032 crore, up 4.5% year-on-year. Meanwhile, the clinics saw revenues fall by 5% year-on-year to 293 crore.

Paytm Shares Tumble

PAYTM (NSE): 786 39 (-4.8%)

Shares of mobile payment company Paytm fell nearly 5% on Friday. The proposal to reappoint the CEO of the company for another five years was opposed by Institutional Investor Advisory Services India Limited (IIAS), citing the stock’s poor performance since listing. IIAS is a proxy consultancy that provides suggestions to institutions such as mutual funds on how to vote for corporate actions.

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ADIA invests in ABHI

ABCAPITAAL (NSE): 110 ▲1.9 (+1.7%)

Aditya Birla Health Insurance (ABHI) receives an investment of ₹665 crores for a 9.9% stake of Abu Dhabi Investment Authority. ABHI is a 51:49 joint venture between Aditya Birla Capital and Momentum Metropolitan Strategic Investments. ABHI plans to use these funds to drive its growth in the health insurance market in India.

Phoenix Mills posts strong results

PHOENIXLTD (NSE): 1.318 45 (+3.5%)

Real estate company Phoenix Mills reported a consolidated net profit of ₹718 crore in Q1 FY23. The company posted a net loss of ₹26 crore in the same quarter last year. Operating income was ₹574 crore, an increase of 181% year-on-year. Management said retail consumption was ₹2,190 crore, which is 23% higher than the pre-Covid period of Q1 FY20.

Steady start for Syrma SGS IPO

On Day 1, 37% was subscribed to the IPO of the electronic component manufacturer Syrma SGS. Private investors showed strong interest and requested more than 60% of the shares reserved for them. The company had also increased ₹252 crore from anchor investors on Thursday. Click here to request the IPO on Upstox.

in focus

Banking sector switches


The Indian banking sector appears to be in a good position this year. The Nifty banking index is up more than 10% so far. But what drives investor interest in banks? Let’s dig.

Due to the economic recovery after the pandemic, there was a high demand for corporate and private loans. In Q1FY23, the industry reported strong credit growth of 4% quarter-on-quarter compared to negative growth in the first quarter of the last three financial years.

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Strong loan disbursements are generally followed by large amounts of bad loans and a rise in non-performing assets (NPAs), as evidenced by past industry trends. However, it seems to look different this time.

Bad loan provisions, the amount banks set aside of their profits or income for NPAs in a given quarter, are decreasing. The combined provisions of listed banks decreased by 23.7% year-on-year to ₹29,185 crore during the June quarter. This is the second consecutive quarter in which banks have reduced their provisions.

Private sector banks led the way with a 59.7% decline in loan loss provisions, while public sector banks reported a 5.4% increase in provisions.

This trend shift is mainly due to an improvement in NPAs due to better loan recoveries. Overall, Indian banks’ gross NPAs have fallen below 6% in June 2022 from about 12% a few years ago. The decline in NPAs leads to lower provisions and better profitability for banks.

Going forward, the downward trend in NPA data is expected to continue, led by improved economic sentiment and an improved credit growth trajectory.

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Good to know

What is IPO Oversubscription?

An initial public offering (IPO) is considered oversubscribed when the number of shares that investors have applied for exceeds the number of shares offered by the company. For example, if a company has offered 1 lakh shares and there are applications for 10 lakh shares, then it means that the IPO has been oversubscribed 10 times. In the event of a large oversubscription, the shares will be allocated by lottery.

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