Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

SBI Q2 profit jumps 67% as asset quality improves

by 5paisa Research Team 03/11/2021

State Bank of India (SBI) on Wednesday reported improvement in its asset quality and high earnings growth for the second quarter, powered by lower provisioning as expected by analysts.

India’s largest lender also said its net interest income (NII) rose in double digits while advances grew at a modest pace during the quarter through September.

SBI reported a net profit of Rs 7,627 crore, up 67% from Rs 4,574 crore in the second quarter of last year and an increase of 17% sequentially from Rs 6,504 crore in the preceding quarter ended June 30.

This is more or less in line with expectations even though some brokerage houses were estimating the net profit to rise by as much as 100%.

Net interest income grew 10.65% year-on-year and 12.83% compared with the first quarter to Rs 31,184 crore for the July-September period. The growth was over twice what analysts were anticipating.

The state-controlled lender’s share price shot up after it declared its results before moderating a bit and was trading at Rs 528.55 apiece, up 1.3% at 2.50 PM in a weak Mumbai market on Wednesday.

SBI Q2: Other highlights

1) Operating profit increased by 9.84% YoY to Rs 18,079 crore in Q2 from Rs 16,460 crore a year earlier.

2) Net NPA ratio at 1.52% was down 7 basis points YoY; Gross NPA ratio at 4.90% was down 38 bps YoY.

3) Total deposits grew 9.77% YoY; current account deposits grew 19.20% saving bank deposits grew 10.55%.

4) Domestic gross advances were up 6.17% but corporate loans remained weak with advances down 4%.

5) Retail loans grew 15.17% partly thanks to a 10.74% rise in home loans.

6) Credit cost for Q2 declined 51 basis points YoY to 0.43%.

7) Loan loss provision halved to Rs 2,699 crore during the quarter.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Do you want to get rich? Invest early!

Do you want to get rich? Invest early!
by 5paisa Research Team 03/11/2021

The power of compounding works like magic if you are invested for a longer time. 
At an early stage of life, individuals tend to have a higher risk appetite so even in case they lose their money they can earn it back and won’t affect their lives, as much as a middle-aged individual or retiree may get affected. When individuals embark on their working journey, they tend to splurge more towards fulfilling their desires of buying a new cell phone, car, or bike. During the initial years of their working life, the earning is less, which makes one believe that they have their whole life in front of them to invest and in this process, they often tend to procrastinate investing for later stages of life. However, the real benefit of investing is to start early. Even a small amount can work for you to achieve your required corpus due to the power of compounding. Compounding means interest-on-interest. In this case, interest is reinvested rather than paying it off, which helps your investment to grow at a faster pace. The power of compounding works like magic if you are invested for a longer time.

Benefits of early investing:

Safeguarding the future: Life is all about ups and downs. Every individual faces an emergency at some point in time, which can cause financial as well as mental stress. At such times, individuals can use their investment, which they had invested earlier as this won’t cause any financial tension.

Risk capacity: Young individuals have higher risk capacity as compared to those individuals, who are in mature stages of their life or nearing retirement. Young investors can bear losses as they have more time to recover those losses whereas, investors, who are nearing retirement or at a mature stage cannot bear losses as they don’t have time to recover the same. Investors with higher risk capacity can invest in high-risk instruments to receive optimum returns.

Retirement planning: One of the biggest pitfalls for retirement planning is starting investment late. When people start working, they think that retirement is too far and why should they invest in it now. This mentality makes people commit mistakes; hence, to achieve the expected retirement corpus, one should invest right from the time they start earning as this won’t create a burden in later stages of life.

Let’s look at an example:

Anjali begins her working life journey at the age of 21. She earns Rs 18,000 every month. She is well informed about the fact of early investing; so, she starts investing Rs 3,000 every month at the rate of 10% till her retirement. On the contrary, Rajeshwari, who also started her working career at the age of 21 and earns the same amount as Anjali every month, started investing Rs 3,000 every month from the age of 31 at the rate of 10% as she wasn’t aware of early investing benefits. Then, what will be the retirement corpus of both Anjali and Rajeshwari at the age of 60?

 
 

 

As we can see from the above calculation, 10 years can make a huge difference of Rs 1.11 crore. Anjali was able to make a great corpus because of early investing while Rajeshwari could not meet the same corpus amount as Anjali due to late investing.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Rs 1 lakh to Rs 9.91 lakh: This multibagger midcap IT stock gave 891% returns in five years

Rs 1 lakh to Rs 9.91 lakh: This multibagger midcap IT stock gave 891% returns in five years
by 5paisa Research Team 03/11/2021

Long-term investors have made a huge profit by investing in Tata Elxsi as it has surged by 891% in the last five years.

The stock of multibagger Tata Elxsi rallied from Rs 621 in November-2016 to Rs 6,160 today, surging 9.91x times in the last five years. An amount of Rs 1 lakh invested in 2016 would have become Rs 9.91 lakh in 2021.

From the beginning of the year 2021, the stock has rallied 229%, from Rs 1,867 to Rs 6,160. Rs 1 lakh invested in Jan-2021 would have become Rs 3.29 lakh today in just 10 months.

Unique Business model

Tata Elxsi is a software and product development IT company, unlike traditional IT businesses like Infosys and TCS where their main business is software support and maintenance. Tata Elxsi revenue drivers are Embedded product and design (88% of total revenue) provides technology consulting, new product design, development and testing services for various sectors like automotive, broadcast, consumer electrics, healthcare, telecom and transportation industries.

It works with leading OEMs and suppliers in the automotive and transportation industries for R&D, design, and product engineering. It also addresses the complete product development lifecycle from R&D, new product development and testing for broadcast, consumer electronics and communications.

Double-digit growth

In the last five years from FY16 to FY21, revenue has grown at a CAGR of 11% and profit has grown at a CAGR of 19% which shows the steep growth of the company. There is a decent increase in operating profit margin from 21% in FY16 to 29% in FY21, due to optimization in employee cost.

Valuation and Outlook

Digital engineering continues to grow as companies across the industries are prioritizing their R&D efforts towards building new-age digital products and services, resulting in a strong growth opportunity for ER&D companies. Geojit has recommended Accumulate rating for Tata Elxsi by valuing the stock at 53x FY24E EPS with a target price of Rs.6,513.

Though the stock had a massive rally in the past with strong performance, do you still think the company can utilize the present situation and gain momentum?

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Mahindra and Mahindra Financial on the verge of a trendline breakout!

Mahindra and Mahindra Financial on the verge of a trendline breakout!
by 5paisa Research Team 03/11/2021

Mahindra and Mahindra Financial is near its three-year down trendline. Is it on a verge of giving a breakout? Let’s find out.

Mahindra and Mahindra Financial made an all-time high in the month of April 2018. And ever since then, it is moving downwards forming lower highs and lower lows. In March 2020, it further exceeded its pace of fall and made a low of 76.1 in May 2020. Post this fall, as there was overall optimism in the market, even this stock started rising. However, in February 2021, it faced resistance on its three-year falling trendline. The stock faced further selling pressure leading it towards creating a higher low of 138 in August 2021. From here it again started to inch upwards and as of today, it is again trading near its three-year trendline that is heading downwards. Interestingly, this is near the crucial Fibonacci level of 50% (198 levels).

Moreover, the stock is presently trading above its 50-Day Exponential Moving Average (EMA). Its Relative Strength Index (RSI) is trading at 63.85 which is above its 20-Day EMA of 54.62 on weekly charts. Moving Average Convergence Divergence (MACD) is in the positive territory and is trading above its signal line. MACD also had a positive crossover near the neutral line, supporting the up move.

The stock is currently trading above its Parabolic SAR. In fact, for the past nine weeks, it is trading above its Parabolic SAR. This too supports the recent up move. Speaking about Commodity Channel Index (CCI) it is presently trading below the 100 level at 93.06. This means, as per CCI and also RSI, the stock has not yet entered the overbought situation to witness selling pressure. On the contrary, the stock is presently trading near the upper band of the Bollinger band suggesting a pullback.

All in all, it is recommended that you should take investment decision after the stock breaches the downward sloping trendline on weekly charts. Till then we recommend you keep this stock on your radar and monitor. The day it breaks out from this trendline, the stock is likely to head for a trend reversal. However, even after the stock gives a breakout, it makes sense to validate the same in order to avoid false breakouts.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Closing Bell: Markets extend losses, Sensex and Nifty end marginally lower

Closing Bell: Markets extend losses, Sensex and Nifty end marginally lower
by 5paisa Research Team 03/11/2021

Benchmark indices witness profit booking due to weak global market cues and stretched valuations.

Indian market closed a volatile trading session marginally lower on Wednesday, November 3, extending losses to a second straight day. Selling in financial and oil & gas shares pulled the indices lower, but gains in infrastructure, metal and select IT shares arrested the fall.

At the closing bell on Wednesday, the Sensex was down 257.14 points or 0.43% at 59,771.92, and the Nifty was down 59.80 points or 0.33% at 17,829.20. The market breadth was negative as 1509 shares have advanced, 1662 shares declined, and 143 shares were unchanged.

Among the top Nifty gainers on a choppy trading session were, L&T, Grasim Industries, UPL, UltraTech Cement and Asian Paints. The top losers of the day were Sun Pharma, IndusInd Bank, Bharti Airtel, Kotak Mahindra Bank and ICICI Bank.

On the sectoral front, the auto and bank indices fell by 1%, while realty and capital goods indices went up by 2% each. In the broader markets, the BSE midcap and smallcap indices also closed with marginal losses.

The trending stocks of the day were Larsen and Toubro which gained around 4%, followed by Grasim Industries up almost 2.5%. Other buzzing stocks were Asian Paints, UPL, UltraTech Cement, and Hindalco each surging over 2% today.

Sun Pharma, after the lower-than-expected results, slipped down by 3%, followed by IndusInd bank down 3% and Bharti Airtel closing down over 2% on Wednesday.

Among the sectors Nifty Bank lost over 1%, followed by auto and pharma indices. However, Nifty Realty outperformed the markets by going up by 2% on Wednesday.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Penny Stock Update: These stocks gained up to 9.70% on Wednesday

Penny Stock Update: These stocks gained up to 9.70% on Wednesday
by 5paisa Research Team 03/11/2021

In today’s trade, the equity market closed on a negative note. BSE Capital Goods is the top gainer whereas, BSE Telecom is the top loser on Wednesday.

In today’s trading session, the Indian equity markets closed on a negative note. The Nifty 50 and BSE Sensex Index closed in red, down by 59.75 points i.e., 0.33% and 257.14 points i.e., 0.43%. Stocks pulling the BSE Sensex index up were Larsen & Toubro, Asian Paints, UltraTechCement, Bajaj Finance and SBI. Whereas, stocks that dragged the BSE Sensex down were HDFC Bank, ICICI Bank, Kotak Mahindra, Reliance Industries and Titan Company.

On Wednesday, the S&P BSE CAPITAL GOODS, S&P BSE Realty, S&P BSE Industrials and S&P BSE Metal closed up in green mark. BSE CAPITAL GOODS index consisting of stocks such as SKF India Ltd, Larsen & Toubro Ltd, Adani Green Energy Ltd, Finolex Cables Ltd and Siemens Ltd are top gainers up by 5.89%.

Today, S&P BSE Telecom, S&P BSE BANKEX, S&P BSE Auto and S&P BSE Consumer Durable are top losers and closed down in red mark. BSE Telecom that consists of stocks such as HFCL Ltd, Vindhya Telelinks Ltd, Tejas Networks Ltd and Reliance Communications Ltd are the top losers, shedding up to 3.74%.

Here is the list of penny stock that gained up to 10.00% on a closing basis on Wednesday, 3 November 2021:

Sr No.         

Stock         

LTP          

Price Gain%         

1.         

Soma Textiles and Industries Ltd  

9.05  

9.70  

2.         

Visagar Polytex Ltd  

0.80  

6.67  

3.         

IND Swift Ltd.  

11.55  

5.00  

4.         

Sakuma Exports Ltd  

11.55  

5.00  

5.         

VIP Clothing Ltd  

18.90  

5.00  

6.         

Ducon Infratechnologies Ltd  

10.55  

4.98  

7.         

Servotech Power Systems Ltd  

19.05  

4.96  

8.         

Hindustan Motors Ltd  

12.80  

4.92  

9.         

 Sintex Industries Ltd  

6.40  

4.92  

10.         

Atlanta Ltd  

17.10  

4.91  

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order