Barometers extend gains; banks in demand

The benchmark indices extended gains in morning trade, boosted by banks and financial stocks. The Nifty was near the 17,850 mark. The Bank Nifty extended rally for the fifth consecutive session.

At 10:25 IST, the barometer index, the S&P BSE Sensex, jumped 114.68 points or 0.19% at 59,970.61. The Nifty 50 index rose 36.35 points or 0.20% at 17,841.60.

In the broader market, the S&P BSE Mid-Cap index gained 0.27% while the S&P BSE Small-Cap index added 0.15%.

The market breadth was positive. On the BSE, 1,758 shares rose and 1,382 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,273.86 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 532.97 crore in the Indian equity market on 4 January 2022, provisional data showed.

Economy:

On 4 January 2022, the former State Bank of India chairman Rajnish Kumar, at a virtual event organised by the IMC Chamber of Commerce and Industry, said that India needs to accelerate economic growth to above 8% to achieve its target of becoming a $5-trillion economy by 2025.

Buzzing Index:

The Nifty Bank index rose 1.39% to 37,351.05. The index has added 6.57% in five trading sessions.

AU Small Finance Bank (up 6.76%), Kotak Mahindra Bank (up 1.79%), ICICI Bank (up 1.44%), HDFC Bank (up 1.34%) and Axis Bank (up 1.11%) were the top gainers in the Bank segment.

Bandhan Bank rose 0.67%. The bank said that its advances have increased by 11% to Rs 89,213 crore as on 31 December 2021 as against Rs 80,255 recorded on 31 December 2020. The advances are higher by 9% as compared with Rs 81,661 crore as on 30 September 2021. Total Deposits were at Rs 84,500 crore as on 31 December 2021, up 19% YoY and up 3% Q-o-Q.

Retail to total deposits ratio was 84% as on 31 December 2021 as compared with 81% as on as on 31 December 2020 and 84% as on 30 September 2021. CASA ratio was 45.6% as on 31 December 2021 as compared with 42.9% as on as on 31 December 2020 and 44.6% as on 30 September 2021. The bank`s collection efficiency for the month of December 2021 was approximately 93%. The collection efficiency Emerging Entrepreneurs Business (EEB) (Micro) segment was at 91% while that of Non EEB segment was at 98%.

IndusInd Bank shed 0.09%. The bank`s total deposits increased 19% to Rs 2,84,835 crore as of 31 December 2021 from Rs 2,39,584 crore as on 31 December 2020. On a quarter-on-quarter basis, deposits grew by 3% from Rs 2,75,473 crore posted on 30 September 2021. Retail Deposits and Deposits from Small Business Customers amounted to Rs 1,13,615 crores as of 31 December 2021 as compared to Rs 1,11,754 crores as of 30 September 2021. Net advances of the bank rose by 3% sequentially and 10% year-on-year to Rs 2,28,128 crore as on 31 December 2021. CASA ratio improved to 42.2% as on 31 December 2021 as against 40.5% as on 31 December 2020.

Stocks in Spotlight:

Macrotech Developers advanced 2.35%. The company said its two projects in London�Grosvenor Square and Lincoln Square�had their best ever quarter with sales totalling 191 million pounds (about Rs 1,900 crore) in Q3 FY22.

Lakshmi Machine Works gained 0.61%. Life Insurance Corporation of India (LIC) sold 2,19,866 equity shares or 2.05% stake of Lakshmi Machine Works from 10 December 2019 to 3 January 2022. Post transaction, Life Insurance Corporation of India (LIC) decreased its shareholding to 582,242 equity shares or 5.45% stake from 802,108 equity shares or 7.5% stake held in Lakshmi Machine Works. The deal was executed as market sale.

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