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Last Updated : Oct 09, 2019 03:39 PM IST | Source: Moneycontrol.com

Nifty Bank gains 1,000 points ahead of IndusInd earnings, short covering

Shares of IndusInd Bank gained more than 6 percent intraday on October 8, a day ahead of the second quarter earnings announcement. Brokerage houses expect a healthy set of results from the private sector lender.

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After falling for six straight sessions, banking and financial stocks rallied sharply on October 9, partly due to short covering and expectations of IndusInd Bank improving earnings in the September quarter.

The Nifty Bank index rallied 1,000 points, or 3.6 percent, while PSU Bank and Private Bank indices gained more than 3 percent each against a fall of 7.5 percent, 10.3 percent and 7.6 percent in the previous six sessions.

ICICI Bank, SBI, Bank of Baroda, Kotak Mahindra Bank, HDFC Bank, Axis Bank, RBL Bank, Federal Bank and PNB gained 1-5 percent. Nifty Financial Service index rose 3 percent.

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Shares of IndusInd Bank gained more than 6 percent intraday on optimism a day ahead of the second quarter earnings announcement. Brokerage houses expect healthy set of results from the private sector lender.

Motilal Oswal expects more than 43 percent growth in profit as well as net interest income, backed by 29 percent loan growth on Bharat Financial merger.

Margin is likely to expand to around 4.1 percent, driven by high-yielding book of Bharat Financial, while non-interest income may grow around 30 percent YoY, but credit cost is expected to remain elevated on the back of higher slippages and increased provision on the stressed groups, the brokerage said.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 

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First Published on Oct 9, 2019 03:39 pm
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