The News International Team
11:55 am Result: Private sector lender YES Bank surpassed street expectations with the second quarter profit after tax rising a whopping 30 percent to Rs 482.5 crore on lower provisions and higher net interest income. Profit in the year-ago period was Rs 371 crore.
Net interest income, the difference between interest earned and interest expended, grew by 27.4 percent year-on-year to Rs 856.4 crore compared to Rs 672 crore during the same period.
Profit was expected to grow 18 percent and NII 19 percent, according to the average of estimates of analysts polled by CNBC-TV18.
11:30 am Market outlook: With Nifty near its all-time high, Dipan Mehta, member BSE and NSE says a lot of India-centric businesses such as banks and non-banking finance companies (NBFCs) are doing well. He advises investors to go overweight on these sectors. He adds that by and large tech and pharma companies, except Ranbaxy and Infosys , have disappointed this earnings season. Mehta says a lot of new ideas have come up on the back of the quarterly numbers and a complete overhauling of portfolios may be called for.
He says many investors have large exposure to tech and pharma and low exposure to banks and capital goods and consumer-oriented businesses, that needs to change slowly. A lot of midcaps focused on consumer-oriented businesses, not necessarily FMCG, have done well, he adds.
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The Nifty scaled past 8100 after a flat start on expiry day. The 50-share index is up 31.80 points at 8122.25 and the Sensex is up 93.92 points at 27192.09. About 1230 shares have advanced, 1024 shares declined, and 87 shares are unchanged.
Infosys, TCS, GAIL, Dr Reddy’s Labs and Reliance are top gainers while M&M, Tata Power, BHEL, Hindalco and Sesa Sterlite are among the losers.
Globally, Asia is mostly in the green with the Nikkei at a three-week high. The rupee back home depreciates as the dollar surges to a three-week high against the yen and on account of fresh demand from importers.
Oil prices edged lower in Asia today but losses were capped on a surprisingly upbeat assessment of the US economy by the Federal Reserve, analysts said.
The Fed’s policy statement, issued after a two-day meeting, cited improving labour market conditions and expressed little concern about low inflation, elements that led analysts to characterise it as more hawkish than expected. As expected, the central bank announced the wind up of its quantitative easing stimulus programme while keeping in place plans to maintain ultra-low interest rates well into 2015.