Share markets in India are presently trading on a strong note.

The BSE Sensex is trading up by 1,019 points, up 2.1% at 49,619 levels.

Meanwhile, the NSE Nifty is trading up by 286 points.

Tata Motors and HDFC are among the top gainers today. HDFC Life and Bajaj Finserv are among the top losers today.

The BSE Mid Cap index is trading up by 1.4%.

The BSE Small-Cap index is trading up by 1.2%.

On the sectoral front, stocks from the automobile sector, are witnessing most of the buying interest.

On the other hand, stocks from the energy sector, are witnessing most of the selling pressure.

US stock futures are trading higher today, indicating a positive opening for Wall Street.

Nasdaq Futures are trading up by 80 points (up 0.6%) while Dow Futures are trading up by 144 points (up 0.5%)

The rupee is trading at 72.97 against the US$.

Gold prices are trading down by 0.4% at Rs 48,200 per 10 grams.

Gold prices fell sharply in Indian markets today for the second day in a row. On MCX, gold futures fell 0.6% to Rs 48,438 per 10 grams. Silver futures slumped 2.2% to Rs 72,009 per kg on profit-taking after the recent surge. Gold prices had plunged 1.2% or Rs 627 per 10 gram in the previous session while silver had surged 6% or Rs 4238 per kg.

Note that in Budget 2021, the Indian government has slashed import duties on gold and silver. The government cut import duties on gold and silver to 7.5% from 12.5% but imposed a 2.5% cess on the imports. After the changes, gold imports would effectively attract 10.75% tax against 12.5% earlier. The government also reduced import duty on gold dore and silver dore, non-refined mined gold or silver.

Speaking of stock markets, India's #1 trader, Vijay Bhambwani, talks about why he thinks the big boys in the market are now under threat from retail traders., in his latest video for Fast Profits Daily.

Tune in here to find out more:

Moving on to stock-specific news...

Among the buzzing stocks, today is ICICI Bank.

Private lender ICICI Bank reported a 19% year-on-year (YoY) growth in its net profit to Rs 49.4 billion for the quarter ended December (Q3FY21) against a profit of Rs 41.4 billion in the same period a year ago.

The bank's net interest income (NII) increased by 16% YoY to Rs 99.1 billion in the quarter under review from Rs 85.5 billion in Q3FY20. The net interest margin was at 3.7% in Q3FY21 compared to 3.6% in the quarter ended September 30, Q2FY21, and 3.7% in Q3FY20.

Provisions (excluding provision for tax) were Rs 27.4 billion in Q3FY21 compared to Rs 20.8 billion in Q3FY20. During Q3FY21, the bank made contingency provisions amounting to Rs 30 billion for borrower accounts not classified as non-performing assets (NPAs) according to the interim order of the Supreme Court. The bank utilized Rs 18 billion of Covid-19 related provisions made in the earlier periods.

As of December 31, 2020, the bank held an aggregate Covid-19 related provision of Rs 99.8 billion, including contingency provision for pro-forma NPAs amounting to Rs 35.1 billion for loans not classified as NPAs.During the quarter, the gross additions to NPAs were Rs 4.7 billion. Recoveries and upgrades, excluding write-offs, from nonperforming loans were Rs 17.7 billion (US$ 243 million) in Q3FY21. The net NPA ratio was 0.6% on December 31, 2020.

The retail loan portfolio grew by 15% YoY and 7% sequentially. Retail loans comprised 65.6% of the total loan portfolio. Including non-fund outstanding, retail was 54.1% of the total portfolio. Growth in the performing domestic corporate portfolio was about 10% YoY driven by disbursements to higher-rated corporates to meet their working capital and capital expenditure requirements.

At the time of writing, ICICI Bank's share price was trading up by 1.1% on the BSE.

Speaking of the banking sector, check out the monthly returns of major sectors for the month of March and October 2020 in the chart below.

In the chart above, you can see that banks were among the major losers with a cut of 34% in the month of March.

Cut to October they are the biggest gainers for the month with 11% returns!

Moving on to news from the ipo space...

Indigo Paints Makes Solid Debut; Lists At 75% Premium Over Issue Price

Shares of Indigo Paints made a solid debut on the bourses on Tuesday, listing at Rs 2,607.5, a 75% premium against issue price of Rs 1,490 on the NSE and BSE. The stock surged to Rs 2,756, up 85% against the issue price on the BSE, while on the NSE, it touched a high of Rs 2,747, exchange data shows.

The attractive pricing, relative to its peers, along with its higher growth potential had attracted investors towards the issue. The initial public offering (IPO) of Indigo Paints had garnered 117 times subscription, generating bids worth Rs 962.2 billion. The qualified institutional buyer (QIB) portion of the issue was subscribed 190 times, while the high net worth individual or HNI segment was subscribed 263 times. The retail and employee portions were subscribed 16 times and 2.5 times, respectively.

Pune-based Indigo Paints is the country's fifth-largest decorative paints company. The company generates nearly half its sales from southern India and is ranked third in terms of market share in Kerala. The firm plans to use bulk of the issue proceeds to meet its expansion goals.

Indigo Paints' product innovation (largely differentiated products), increase in dealers reach (especially in the large cities) and support for products with adequate brand investments will be the key growth levers in the coming years. Though Indigo's valuations are at premium to peers, strong financial track record, promoters experience, and confidence to lead the business coupled with industry par return profile make it an emerging play in the domestic decorative paint industry.

Indigo Paints also has a track record of consistent growth in a fast-growing industry with entry barriers. The company has differentiated products leading to greater brand recognition and enabling expansion into a complete range of decorative paint. It has leveraged its brand equity and distribution network to populate tinting machines. Strategically located manufacturing facilities with proximity to raw materials helps to report better gross margins, the brokerage firm said in a note.

Indigo Paints built upon its position in the high entry barrier industry by developing a differentiated products portfolio (29% of sales). Given the early mover advantage in this space, these products yield a relatively higher margin for Indigo which is now at par with peers. It also made it easier for the company to build upon its brand, expand its distribution network pan India (11000 dealers) and install 4,600 tinting machines at dealers which helped push up sales.

We will keep you posted on more updates from this space. Stay tuned.