ICICI Bank’s NII for Q3FY19 came at Rs6,875cr as against Rs5,705cr, which is up by 20.5% yoy. The bank has reported a net profit of Rs1,605cr in Q3FY19, (though the net profit is below consensus estimates by 11%, considering other parameters like asset quality and NII growth, the results are better), as against Rs1,650cr yoy. The overall NIM for the quarter came at 3.4%. Its GNPA for Q3FY19 came at 7.8% against 8.54% qoq, which has decreased by 79bps. NNPA for the quarter came at 2.58% against 3.65% qoq, which has declined by 107bps.
Margins expanded 26bps yoy and 7bps qoq; however, 15-18bps was only on account of income reversal in an overseas NPA account. Adjusted for this, margins declined sequentially driven by lower LDR and lower CASA ratio.
Core operating profit grew by 14% yoy to Rs5,667cr for the quarter.
Fee income grew by 16% yoy from Rs2,639cr in Q3FY18 to Rs3,062cr. Retail fee constituted 73% of total fees.
Total advances increased by 12% yoy to Rs5.64 lakh cr in the quarter.
Domestic loan growth came at 14% yoy as of December 31, 2018 driven by retail loans.
Retail loans grew by 22% yoy and constituted 59% of the loan portfolio as at December 31, 2018.
Provisions were Rs4,244cr in Q3FY19 compared to Rs3,570cr in Q3 FY18. Provisions increased 19% yoy, but would have included a write back on provisions for investment depreciation in the quarter, implying much higher growth in loan loss provisions.
CASA ratio stood at 49.3% as at December 31, 2018
Asset quality improved substantially. Slippage ratio dropped to 1.7% in 3QFY19 (continuing the downward trend from 1QFY19). Slippages stood at Rs2,090cr (lowest in 14 quarters), with Rs950cr coming from the BB & below pool.
Reduction in NPLs was aided by a sale of Rs2150cr to an ARC in the quarter (100% cash basis). Total stressed assets stood at ~Rs79,700cr (13.1% of loans). PCR was significantly strengthened on a sequential basis.
IIFL Technical View:
ICICI Bank Ltd ended at Rs. 365.25, up by 18.35 points or 5.29% from its previous closing of Rs. 346.90 on the BSE.
The scrip opened at Rs. 351 and touched a high and low of Rs. 368.05 and Rs. 351 respectively. A total of 4,27,49,626 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.
Date wise arranged list of Stock tips by Kunal Bothra in Jan 2019.
25 Jan, 2019 – buy call on Page Industries Ltd.NSE -0.70 % with a target price of Rs 24200. The current market price of Page Industries Ltd. is Rs 23183.25. Time period given by the analyst is Intra Day when Page Industries Ltd. price can reach the defined target. Kunal Bothra recommended to keep stoploss at Rs 22600.
25 Jan, 2019 – buy call on Indian BankNSE -2.99 % with a target price of Rs 270. The current market price of Indian Bank is Rs 256.1. Time period given by the analyst is Intra Day when Indian Bank price can reach the defined target. Kunal Bothra recommended to keep stoploss at Rs 249.
24 Jan, 2019 – buy call on Indraprastha Gas Ltd. with a target price of Rs 300. The current market price of Indraprastha Gas Ltd. is Rs 285.35 Time period given by the analyst is Intra Day when Indraprastha Gas Ltd. price can reach the defined target.
23 Jan, 2019 – buy call on Castrol India Ltd. with a target price of Rs 174. The current market price of Castrol India Ltd. is Rs 166. Time period given by the analyst is Intra Day when Castrol India Ltd. price can reach the defined target.
23 Jan, 2019 – buy call on Biocon Ltd. with a target price of Rs 688. The current market price of Biocon Ltd. is Rs 668.3. Time period given by the analyst is Intra Day when Biocon Ltd. price can reach the defined target.
22 Jan, 2019 – buy call on Kaveri Seed Company Ltd. with a target price of Rs 600. The current market price of Kaveri Seed Company Ltd. is Rs 571.4. Time period given by analyst is Intra Day when Kaveri Seed Company Ltd.
22 Jan, 2019 – sell call on Maruti Suzuki India Ltd. with a target price of Rs 7000. The current market price of Maruti Suzuki India Ltd. is Rs 7200.95. Time period given by analyst is Intra Day when Maruti Suzuki India Ltd.
21 Jan, 2019 – buy call on Housing Development Finance Corporation Ltd. with a target price of Rs 2045. The current market price of Housing Development Finance Corporation Ltd. is Rs 2008.05. Time period given by the analyst is Intra Day when Housing Development Finance Corporation Ltd. price can reach defined target.
16 Jan, 2019 – buy call on Sobha Ltd. with a target price of Rs 495. The current market price of Sobha Ltd. is Rs 473.7. Time period given by the analyst is Intra Day when Sobha Ltd. price can reach the defined target.
15 Jan, 2019 – buy call on Axis Bank Ltd. with a target price of Rs 680. The current market price of Axis Bank Ltd. is Rs 659.4. Time period given by the analyst is Intra Day when Axis Bank Ltd. price can reach the defined target.
14 Jan, 2019 – buy call on Biocon Ltd. with a target price of Rs 670. The current market price of Biocon Ltd. is Rs 640.9. Time period given by the analyst is Intra Day when Biocon Ltd. price can reach the defined target.
11 Jan, 2019 – buy call on Bajaj Auto Ltd.NSE -0.68 % with a target price of Rs 2800. The current market price of Bajaj Auto Ltd. is Rs 2718.75. Time period given by the analyst is Intra Day when Bajaj Auto Ltd. price can reach the defined target.
10 Jan, 2019 – buy call on NIIT Technologies Ltd.NSE 2.28 % with a target price of Rs 1200. The current market price of NIIT Technologies Ltd. is Rs 1161.6. Time period given by the analyst is Intra Day when NIIT Technologies Ltd. price can reach the defined target.
A weak set of third quarter numbers from heavyweight ITC unsettled stock investors and triggered all-round selling, pushing benchmarks Sensex and Nifty down on Wednesday.
Sentiment turned more fragile after ITC reported an uninspiring 3.85 per cent year-on-year (YoY) rise in net profit for the quarter to December 2018.
Global markets showed no resolve as they reeled under renewed doubts over US-China trade talks while global economic growth remained a constant element of worry.
The Sensex fell swiftly towards the end and closed down 336 points, or 0.92 per cent, at 36,108. The Nifty suffered a loss of 91 points, or 0.84 per cent, to settle at 10,832.
Midcaps and smallcaps indices closed 0.28 per cent and 0.16 per cent down, respectively. Here are Wednesday’s market highlights.
Rs 1.10 lakh crore gone in two days! The two-day fall in market wiped off over Rs 1.10 lakh crore wealth as the cumulative market capitalisation of BSE-listed firms plunged to Rs 1,42,04,842.87 crore on Wednesday from Rs 1,43,15,583.11 crore on Monday. On Wednesday alone, the market’s loss read nearly Rs 74,199 crore.
ITC plunges post Q3 numbers Shares of ITC closed the day 4.16 per cent down at Rs 277.70 on the BSE after it reported a 3.85 per cent year-on-year (YoY) rise in standalone profit at Rs 3,209.07 crore for the December quarter. Earnings before interest tax depreciation and amortisation (Ebitda) increased 11.23 per cent YoY to Rs 4,326 crore against Rs 3,889 crore in the same period last year. At first glance, Street appeared dissatisfied with the numbers as the stock tanked aft ……
Asian markets mostly rise after reassuring earnings on Wall Street
Asian stocks were mostly higher on Thursday as positive U.S. earnings reports reassured investors that the world’s largest economy was on track. Poor Japanese data for the second straight day weighed on the Nikkei 225 index.
The Shanghai Composite index SHCOMP, +0.44% gained 0.5% and South Korea’s Kospi SEU, +0.66% rose 0.6%. Hong Kong’s Hang Seng HSI, +0.27% picked up 0.1%. Australia’s S&P ASX 200 XJO, +0.38% added 0.2% while Japan’s Nikkei 225 index NIK, -0.09% declined 0.3% after a preliminary survey showed manufacturing slowing in January. Shares rose in Taiwan Y9999, +0.31% and Singapore STI, +0.45% but fell in Malaysia FBMKLCI, +0.16% .
Among individual stocks, camera maker Nikon 7731, +6.71% surged in Tokyo while Fast Retailing 9983, -3.10% and Sony 6758, -1.68% fell. In Hong Kong, tech names such as AAC 2018, +2.88% and Sunny Optical 2382, +2.26% gained, though Tencent 0700, -1.38% dropped. South Korean chip maker SK Hynix 000660, +5.24% jumped despite reporting disappointing earnings.
Earlier, strong quarterly earnings by big companies like IBM IBM, +8.46% , Proctor & Gamble PG, +4.87% and United Technologies UTX, +5.38% helped most U.S. indexes finish Wednesday with slight gains. IBM stocks surged 8.5% to $132.89 after its fourth-quarter results exceeded expectations. But traders were worried about reports that the U.S. had turned down an offer by Chinese trade officials to meet in Washington this week, citing the lack of progress on issues like intellectual property rights. White House economic adviser Larry Kudlow denied it. The S&P 500 index SPX, +0.22% added 0.2% to 2,638.70. The Dow Jones Industrial Average DJIA, +0.70% advanced 0.7% to 24,575.62 and the Nasdaq composite COMP, +0.08% gained 0.1% to 7,025.77.
On Thursday, a private survey suggested that Japanese manufacturing had slowed in January. The Markit/JMMA flash purchasing managers’ index fell to 50.0 from December’s 52.6. Readings above 50 indicate expansion on the index’s 100-point scale. The survey found that key output and new orders contracted while exports slumped further. Just a day ago, Japan released weaker-than-expected trade data for December, with exports registering its largest drop in two years, mostly due slowing demand in China.
Chinese Vice President Wang Qishan took aim at the U.S. in pointed comments at the World Economic Forum in Davos, Switzerland. Wang said that “Shifting blame for one’s own problems onto others will not resolve the problems,” alluding to a trade war with Washington that has both sides imposing heavy taxes on each other’s imports. Wang said China still has “enormous market potential” despite its recent worse-than-anticipated slowdown.
“Major Asia-Pacific indices are fluctuating around the session breakeven point, reflecting the ongoing global debate about growth prospects,” Michael McCarthy, Chief Market Strategist at CMC Markets in Sydney, said in an interview.
U.S. crude oil CLH9, -0.53% dropped 18 cents to $52.44 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 39 cents to $52.62 per barrel on Wednesday. Brent crude LCOH9, -0.54% , used to price international oils, shed 19 cents to $60.95 per barrel. It lost 36 cents to $61.14 in London.
The dollar USDJPY, +0.07% slipped to 109.53 yen from 109.61 yen late Wednesday.
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Both the U.S. and Russia have suspended a crucial nuclear weapons ban on Saturday.
The Intermediate-Range Nuclear Forces, or INF, Treaty, prohibits the production or testing of ground-launched cruise missiles with a range of 300 to 3,400 miles.
The INF treaty has kept nuclear-tipped cruise missiles off the European continent for three decades. Read More..
U.S. stocks shrug off midday selloff to finish mostly higher on Wednesday
U.S. stocks shrugged off a midday selloff to finish mostly higher on Wednesday, as investors weighed a round of solid corporate earnings with ongoing uncertainty surrounding the U.S.-China trade talks. The Dow Jones Industrial Average DJIA, +0.70% was the best-performing major index, closing up around 170 points, or 0.7%, aided by solid earnings from IBM Corp. IBM, +8.46% and Procter & Gamble Co. PG, +4.87% The S&P 500 SPX, +0.22% finished up 0.2% and the Nasdaq Composite Index COMP, +0.08% was up less than 0.1%. In other company news, shares of Tesla Inc. TSLA, -3.79% fell more than 4% after RBC downgraded the stock to underperform and cut its price target to $245 from $290. Elsewhere, citing the government shutdown, House Speaker Nancy Pelosi said she would not authorize President Donald Trump to give his State of the Union speech in the chamber.
U.S. stock futures fall in shortened session as China data reinforces global slowdown fears
U.S. stock futures fell Monday in a shortened session, as the weakest Chinese growth data in three decades weighed on investors, and the International Monetary Fund cut its outlook for global expansion citing trade issues.
Dow Jones Industrial Average futures YMH9, -0.03% fell 150 points, or 0.6%, to 24,538, while S&P 500 futures ESH9, +0.01% dropped 15.10 points, or 0.6%, to 2,656.50. Nasdaq-100 NQH9, +0.20% fell 48.50 points, or 0.7%, to 6,743.
Stocks closed higher for the fourth-straight session on Friday. The Dow Jones Industrial Average DJIA, +0.70% rose 336.25 points, or 1.4%, to end at 24,706.35 for a weekly gain of 3%. The S&P 500 index SPX, +0.22% advanced 1.3% to 2,670.71, up 2.9% for the week. The Nasdaq Composite COMP, +0.08% added 1% to 7,157.23, finishing out the week 2.7% higher.
What’s driving markets?
China’s gross domestic product for 2018 rose 6.6%, the slowest annual pace that the country has recorded since 1990. The downturn deepened in the fourth quarter of last year, with growth rising 6.4% on an annual basis. The trade conflict with the U.S. added to the country’s woes as some exporters were forced to lay off jobs.
The U.S. and China remain at loggerheads over a key issue to do with allegations that the latter has been engaged in the theft of intellectual property for decades. Bloomberg News reported very little progress has been made on the sticky subject even though the two sides have met in January. Meanwhile, President Donald Trump said on Twitter Saturday that stock-rallying reports last week that the U.S. would ease tariffs on China were not correct, even as he said talks were “going very well.”
The International Monetary Fund said Monday that it expects global growth this year of 3.5%, down from 3.7% in 2018 and from the 3.7% it had forecast for 2019 back in October, citing global trade tensions. Unveiling its forecasts at the World Economic Forum in Davos, Switzerland, the fund left its prediction for U.S. growth this year unchanged at 2.5%.
A partial government shutdown stretched into its 30th day on Monday, and there was little sign of the deadlock easing. Democrats rejected Trump’s latest proposal to temporarily extend protections for young immigrants brought to the country illegally in exchange for $5.7 billion for his border wall.
The shutdown has caused a backlog of economic data, with only a smattering of reports due this week, including existing home sales, weekly jobless claims and Markit manufacturing and services purchasing managers index data due later this week.
“That is still a decent expansion by any standards, with the economy growing by 6.4% in Q4, however it reinforces the concerns of a slowdown that has prompted a series of measures by Chinese authorities this month to try to manage the worst effects of some sharp economic weakness that has spooked global investors,” said Michael Hewson, chief market analyst at CMC Markets U.K., in a note to clients. Hewson was referencing the China growth data.
US CHINA TRADE: Stocks close higher on positive earnings, though trade concerns linger
Stocks closed higher in choppy trade Wednesday as upbeat earnings from corporate heavyweights helped to assuage lingering worries over global growth and U.S.-China trade tensions.
The Dow Jones Industrial Average DJIA, +0.70% gained 171.14 points, or 0.7%, to 24,575.62, while the S&P 500 index SPX, +0.22% rose 5.8 points, or 0.2%, to 2,638.70 and the Nasdaq Composite COMP, +0.08% climbed 5.41 points to 7,025.77.
Investors are laser-focused on fourth quarter results and closely monitoring what corporate executives are saying about the outlook for profits and revenue in 2019. Earnings reports have been largely well received by investors, starting with International Business Machines Corp. IBM, +8.46% after the management issued a bullish outlook for profits.
In overseas news, events in Venezuela could have an impact on the markets if the political unrest escalates. Venezuela’s President Nicolás Maduro broke off diplomatic relations with the U.S. after Washington’s decision to recognize Juan Guaido, the head of the opposition-controlled congress, as interim president.
China blocks Microsoft’s Bing search engine: report
Microsoft Corp’s Bing search engine has been blocked in China, the company said on Wednesday, making it the latest foreign technology service to be shut down behind the country’s Great Firewall.
“We’ve confirmed that Bing is currently inaccessible in China and are engaged to determine next steps,” the company said in a statement.
It is the U.S. technology giant’s second setback in China since November 2017 when its Skype internet phone call and messaging service was pulled from Apple and Android app stores.
A search performed on Bing’s China website – cn.bing.com – from within mainland China directs the user to a page that says the server cannot be reached.
The Financial Times, citing a source, reported on Wednesday that China Unicom , a major state-owned telecommunication company, had confirmed the government order to block the search engine.
Cyberspace Administration of China (CAC), a government watchdog, did not respond to faxed questions about Bing’s blocked website.
Bing was the only major foreign search engine accessible from within China’s so-called Great Firewall. Microsoft censored search results on sensitive topics, in accordance with government policy.
Microsoft also has a partnership with Chinese data center provider 21Vianet to offer its products Azure and Office 365 to clients in the country.
Alphabet’s Google search platform has been blocked in China since 2010. Google CEO Sundar Pichai said in December it has “no plans” to relaunch a search engine in China though it is continuing to study the idea amid increased scrutiny of big tech firms.
President Xi Jinping has accelerated control of the internet in China since 2016, as the ruling Communist Party seeks to crack down on dissent in the social media landscape.
In a statement on Wednesday, CAC said it had deleted more than 7 million pieces of online information and 9,382 mobile apps. It also criticized technology company Tencent’s news app for spreading “vulgar information.”
(Reporting by Josh Horwitz in Shanghai and Gaurika Juneja in Bengaluru; additional reporting by Cate Cadell and Stephen Nellis; Editing by Sandra Maler, Grant McCool and Darren Schuettler)
Date wise arranged list of Stock tips by Manas Jaiswal in Jan 2019.
25 Jan, 2019 – buy call on SRF Ltd.NSE 1.27 % with a target price of Rs 2150.0 . The current market price of SRF Ltd. is Rs 2094.4. Time period given by the analyst is Intra Day when SRF Ltd. price can reach defined target.
24 Jan, 2019 – buy call on MphasiS Ltd.NSE 2.29 % with a target price of Rs 950. The current market price of MphasiS Ltd. is Rs 899.2. Time period given by analyst is Intra Day when MphasiS Ltd. price can reach the defined target.
24 Jan, 2019 – Buy Granules India Ltd. with a target price of Rs 100. The current market price of Granules India Ltd. is Rs 93.2 Time period given by the analyst is Intra Day when Granules India Ltd. price can reach defined target.