After opening the day on a firm note, Indian share markets continued their momentum throughout the session and ended higher.

Benchmark indices showed strength, after declines in the previous two sessions. Today's gains were supported by IT, auto, and financial stocks.

Investors cheered strong quarterly results declared by the financial powerhouses over the weekend.

At the closing bell, the BSE Sensex gained 320 points (up 0.5%).

Meanwhile, the NSE Nifty closed higher by 90 points (up 0.5%).

HUL, Sun Pharma, and Tech Mahindra were among the top gainers today.

Ultratech Cement, Grasim, and NTPC on the other hand were among the top losers today.

The SGX Nifty was trading at 18,146, up by 102 points, at the time of writing.

Broader markets settled on a mixed note. The BSE Midcap gained 0.4% while the BSE SmallCap index fell 0.3%.

Sectoral indices ended on a mixed note with stocks in the metal sector, realty sector, and power sector witnessing most of the selling.

While stocks in the FMCG sector, IT sector, and banking sector witnessed buying.

Shares of Adani Total Gas, and IDFC hit their 52-week highs today.

Asian stocks ended on a firm note. The Hang Seng inched higher by 1.8%, while the Shanghai Composite gained 0.8%. The Nikkei edged 1.3% higher.

US stock futures are trading on a negative note. Dow futures are trading marginally lower while Nasdaq futures are trading lower by 0.2%.

The rupee is trading at 81.4 against the US$.

Gold prices for the latest contract on MCX are trading higher by 0.2% at Rs 56,769 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading up by 0.2% at Rs 68,688 per kg.
 

Adani Green Energy reports a 47% jump in wind energy sales

In news from the power sector, the share price of Adani Green Energy was tracked closely today.

Adani Green Energy on Monday posted a surge of 9% YoY in the sale of its solar energy portfolio to 2,507 m units for the December 2022 quarter, against 2,300 million units.

The increase in the sale of energy was backed by 150 MW commissioned in Rajasthan in November 2022 and a 1.4% points improvement in capacity.

The improved CUF performance was backed by an 0.4% improvement in plant availability, a 0.3% improvement in grid availability, and improved solar irradiation.

Under the solar portfolio, plant availability was at 99.8% in the reviewed quarter against 99.4% in the year-ago period.

Under the wind portfolio, the company posted a jump of 47% in its sale of energy to 300 m units for the reviewed quarter, against 204 m units in the corresponding quarter of the previous year.

CUF's performance under the wind portfolio was 14% in the reviewed quarter, while it was 18.6% in the year-ago period.

Adani Green Energy share price came under pressure in November 2022, but it continues to be the fastest-growing stock of 2022.
 

Why Yes Bank's share price is falling

In news from the private bank sector, the share price of Yes bank tanked 12% intraday today.

This correction comes after the private bank reported an 80% YoY decline in December 2022 quarter's profit to Rs 520 m. The bank posted a profit of Rs 2.6 bn a year ago.

The provisions of the bank increased 125.5% YoY at Rs 84.5 bn.

The bank's net interest income increased 11.7% to Rs 19.7 bn from rs 17.6 bn a year back.

Net interest margin (NIMs) was down 0.1% QoQ at 2.5%.

Meanwhile, the Bombay High Court set-asides YES Bank's administrator decided to write down AT1 bonds of Rs 80 bn held by bondholders and retail investors.

The bonds were written off as part of a restructuring plan, and of total equity shares, 75% were subject to lock-in for three years.

Note that Yes Bank's share price crashed from its all-time high of Rs 393 in August 2018 to under Rs 11 over the next two years.

The story is a classic example of how a popular stock has turned into a penny stock.

With the latest developments, the downside risk from here seems limited. The upside opportunity to become a multibagger stock for the next 10 years could be substantial.
 

IDBI Bank Q3 Results

Moving on IDBI Bank today posted 60% YoY growth in profit at Rs 9.3 bn for the December 2022 quarter, with improvement in asset quality and a moderate fall in overall provisions. Lower tax expenses also aided the profitability.

Net interest income, the difference between interest earned and interest expended, grew nearly 23% to Rs 29.3 bn, with the net interest margin rising 0.7% to 4.59% for the quarter.

Credit growth was strong for the quarter, with advances rising 17.3% YoY to Rs 1.5 tn.

Asset quality improved for the quarter, with gross non-performing assets as a percentage of gross advances falling 2.6% sequentially to 13.8%, and net NPA dropped by 0.8% QoQ to 1.1%.

Non-interest income for the quarter at Rs 8.5 bn declined nearly 25% from a year-ago period.

The 5-year-average gross NPA ratio of IDBI Bank is 26.2%. This means that of every Rs 100 in the loan given by IDBI Bank, Rs 26.2 is not recovered by the bank. This makes it India's worst-performing bank on this all-important ratio.

More By This Author: