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Nifty (+1.8%) and Sensex (+1.6%) hit a new all-time high! the benchmarks indices closed higher for an 8th consecutive week. That's INSANE! Midcaps (+1.8%) and SmallCaps (+1%) were also up big time. 390 stocks in the NSE 500 closed in the green.
Not a single sector ended lower. Metals (+3%), Auto (+2.4%) and IT (+2.3%) gained the most.
RBI is hitting banks with its liquidity hammer again! Read our top story to understand what's going on and what it means for their earning.
Shriram finance was the top nifty gainer after its Q1 show outshine peers.
meanwhile, cyient cracked -6% after rough Q1 numbers.
Tata power was up +5% after UBS initiated coverage on the stock, the brokerage sees a +15% upside from current levels.
Sobha (-3%) fell after 47.4 lakh shares (5% equity) changed hands in a block deal, report say the Godrej family may have been the likely seller.
Indus tower (+5%) will consider a share buyback proposal at its board meeting on July 30.
Mankind pharma (-4%) was in focus after it said it would acquire Bharat serums for Rs. 13630 cr. Classic buy on rumor sell on confirmation trade.
Sanstar had a decent market debut, ending the day +21% over its 21% IPO price of Rs. 95 p/sh.
Sterling & Wilson renewable gained 5% after bagging Rs 328 cr in multiple orders for solar & battery contracts. SJVN rallied +13% intraday after winning a Rs. 14000 cr Mizoram hydropower project.
Banks Continue to Face the Heat
Banking stocks opened in the red today after the RBI increased the liquidity requirements wef April 2025! The new rule is to specifically protect retails deposits in the case of a bank run. But it will also hurt bank margins and therefore earnings. This is the last things lenders need after a rough H1FY24, but what can you do? Here's everything you need to know.
After the 2008 global financial crisis, the RBI introduced a new liquidity coverage ratio (LCR) framework for Indian banks. Basically, lenders had to set aside some money in 'high-quality liquid asset' aka cash or GOI bonds in case customers yanked out their deposits.
What's changed since then? For starters, with mobile banking apps and payment mechanism like UPI, depositors can pull out money a lot faster than regulators ever imagined. Case in point: see Silicon Valley bank's collapse back in 2023.
To take care of that, the RBI is doing a few things. The most important change is that all banks need to assign an EXTRA 5% 'run-off factor' for retails deposits that are enabled with internet and mobile banking facilities.
IIFL securities estimates that net cash outflow can increase by 7% to 16% for banks! This is a huge negative for federal bank (3%) and IDFC First Bank, according to experts. The worst part is that this will further ramp up the deposit war. Lower margins and lower earnings will shortly follow.
Higher liquidity norms will hurt banks. PSU lenders should weather the storm better than private rivals.
Earnings Roundup
SHRIRAM FINANCE Q1 results met street expectations. Strong demand across key verticals helped boosts its lending. Its core CV loan segment was up +14% YoY to hit Rs 1.1 lakh cr. overall assets under management grew +21% YoY to Rs. 2.33 lakh cr.
That said, on the flip side, a couple of sour notes. The NBFC's gross stage 3 assets, or loans overdue for more than 90 days, were up +8% YoY to hit Rs 12,408 cr. its provision from the same were also up +5% YoY. Not super alarming just yet but will be a key monitorable.
If the result were just okey, why did the stock jump +10% and end up the top nifty gainer? it's mostly because the company is doing a lot better than its peers. Bajaj finance, its biggest NBFC rival, is stuck in a rut. And private banks are not too hot right now either. Leading the pack has its merits!
Here are its key stats:
- Net interest income: Rs 5354 cr +21% YoY (vs erst: Rs 5297 cr)
- PAT: Rs 1981 cr + 18% YoY (vs erst: Rs 2018 cr)
- Gross NPA: 5.39% vs 5.45% QoQ
- Net NPA: 2.71% vs 2.70% QoQ
SHRIRAM FINANCE is +43% YTD.
Cyient nosedived -9% intraday after reporting awful Q1 result! All verticals, including its core digital, engineering & tech (DET) segment, shrank between 1.6% to 7.6% QoQ Margins saw a drops as customers demanded cuts in a weak demand environment.
The management has blamed the topline decline on project delays, particularly from clients outside its top 10 bucket. While TCV wins came in at $52.4 million, up +7% YoY, it was a sharp -74% QoQ drop.
The cheery on top: Cyient slashed its FY25 revenue guidance for its DET segment, which accounts for over 80% of revenue, from 'high single-digit CC growth' to "flattish".
Here is its Q1 report card:
- Revenue: $212 million, -1% YoY
- EBIT: Rs 220 cr, -15% YoY
- EBIT Margin: 12.4% vs 14.6% YoY
- PAT: Rs 163cr, -11% YoY
CYIENT is -23% YTD.
CHARTBUSTERS
Here's a look at this week's NSE 500 movers. MMTC took the pole position after rallying +24%. Quess Corp (+19%) hit the highest level since may 2022. IRCON international (-13%) closed down for a 2nd straight week. IRFC (-11%) hit a 1-month low. Check out their charts below:
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| MMTC SHARE CHART |
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| QUESS CORP SHARE CHART |
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| IRCON SHARE CHART |
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| IRFC SHARE CHART |
| Nifty | 24835 | +1.8% |
| sensex | 81833 | +1.6% |
| bank nifty | 51296 | +0.8% |
