Stocks in Focus: Kotak Bank, Reliance Industries, ICICI Bank and Others

The GIFT Nifty was trading in the red in the early hours before the market opening, indicating a negative opening for domestic indices. 

Equity benchmark indices NSE Nifty 50 and S&P BSE Sensex ended their long-running winning streak led by a fall in major stocks like Infosys and Reliance. The Sensex tanked 1.31% or 887.64 points to settle at 66,684.26. Nifty 50 closed at 19,745, down nearly 234 points or 1.18% from the previous close. 

Companies Announcing Quarterly Results Today: Canara Bank, Chennai Petroleum Corporation, HDFC AMC, IDBI Bank, JK Paper, Mahindra Logistics, PNB Housing, Sharda Cropchem, Shoppers Stop, SRF, Tata Steel, TVS Motors

Reliance Industries (RIL): The oil-to-telecom conglomerate reported a 10.8% dip in its consolidated net profit from last year’s corresponding period for the June quarter to Rs 16,011 crore. The company’s revenue from operations for the same period was Rs 2,10,831 crore, down 5.2% year-on-year (YoY). The Mukesh Ambani-led conglomerate also declared a dividend of Rs 9 per equity share.

ICICI Bank: The country’s second-largest private sector lender’s first-quarter standalone net profit grew 39.7% YoY to a record high of Rs 9,648 crore. The bank’s net interest income (NII) increased by 38% to Rs 18,227 crore from Rs 13,210 crore in the year-ago period.

Kotak Mahindra Bank: The third largest bank in India reported a consolidated net profit of Rs 4,150 crore for Q1FY24, a 51% growth over the same period last year. Kotak Mahindra Bank beat expectations with a 67% YoY rise in its standalone net profit for the April-June quarter to Rs 3,452 crore. Its NII increased by 32.7% YoY to Rs 6,233.7 crore, with a net interest margin of 5.57%. 

AU Small Finance Bank: AU Small Finance Bank’s net profit rose 44% YoY to Rs 387 crore in the April-June quarter, with gross advances increasing 29% to Rs 63,635 crore on June 30. The Jaipur-based lender posted growth in total income in the first quarter of the current fiscal to Rs 2,773 crore from Rs 1,979 crore in the same period a year ago.

RBL Bank: On Saturday, the private sector lender reported a 43% jump in its June quarter net profit at Rs 288 crore. RBL Bank posted a 21% jump in the core net interest income at Rs 1,246 crore, driven by a 21% growth in advances and a 0.48% expansion in net interest margin (NIM) to 4.84%.

Power Finance Corporation: The company has inked Rs 2.37 lakh crore worth of MoUs (Memorandum of Understanding) with 20 public and private companies in the clean energy segment, including Adani Group, Greenco, ReNew, Continuum, Avaada, JBM Auto, Megha Engineering & Infrastructure, and Rajasthan Renewable Energy.

Aurobindo Pharma, Biocon, Lupin: The United States Food and Drug Administration (US FDA) has issued a Form 483 with three procedural observations after inspecting Aurobindo Pharma’s Unit III formulation manufacturing facility in Bachupally Village, Telangana.

The US FDA completed two GMP inspections at Biocon’s insulins manufacturing facility in Malaysia and issued a Form 483 with six observations for drug substance, drug product units and quality control laboratories and two observations for the delivery devices unit.

Lupin has received tentative approval from the US FDA under the US President’s Emergency Plan for AIDS Relief (PEPFAR) for its new drug application for Dolutegravir Lamivudine and Tenofovir Alafenamide tablets.