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Mint
20 hours ago
- Business
- Mint
Banking sector Q1 results review: No major surprises so far; ICICI Bank, BoB, IoB among top picks
Banking sector Q1 results review: The Indian banking sector's Q1 results have largely come on expected lines, with net interest margins (NIMs) staying under pressure, which is on the expected lines as rate cuts by the Reserve Bank of India (RBI) impacted banks' lending yields. However, asset quality of major banks remained stable, with contained credit costs providing some cushion to earnings. Most banks have experienced margin compression due to recent rate cuts, and experts believe this trend may persist for another one to two quarters, if no further rate cuts occur. Experts believe the Indian banking sector remains structurally strong, supported by robust credit growth, healthy asset quality, and decent earnings momentum across most major banks. Along with margin pressure, some experts note a slight uptick in credit costs and muted credit growth overall. "There has been a slight uptick in credit costs, as the economic slowdown has begun to impact high-risk segments such as microfinance, unsecured retail, and two-wheelers, leading to some asset quality stress. As a result, overall credit growth has remained somewhat muted, though early signs of improvement are emerging due to enhanced system liquidity," said Ajit Mishra, SVP of research at Religare Broking. Overall, the banking sector's Q1 performance has been mixed, but experts expect a stronger growth trajectory is likely over the next two to three quarters. "In spite of macro uncertainties, banks continue to benefit from sustained loan demand, especially in the retail, MSME, and infrastructure segments," said Prashanth Tapse, Senior VP (Research), Mehta Equities. Sneha Poddar, VP - Research, Wealth Management, Motilal Oswal Financial Services, pointed out that Indian banks posted a mixed Q1FY26, impacted by ongoing margin compression and a moderation in credit growth (nearly 9.6 per cent YoY as of June'25 versus nearly 15 per cent YoY in June 2024). Poddar expects margin pressure to bottom out by Q3FY26, setting the stage for an earnings recovery in the second half. Moreover, deposit growth is stabilising, and loan growth, driven by retail and SME demand, may improve. According to Vinit Bolinjkar, the head of research at Ventura, the banking sector is experiencing a 'recalibration phase', characterised by softening policy rates and a lag in deposit repricing. Bolinjkar highlighted that large private banks demonstrated remarkable resilience, driven by a higher proportion of repo-linked loans that benefited from interest rate movements and robust non-interest income, including treasury gains and IT refunds. Healthy provisioning buffers kept Indian banks' asset quality stable during the quarter. However, mid-sized banks faced greater pressure on NIMs due to higher interest reversals and limited benefits from funding cost reductions, Bolinjkar observed. "A recovery in NIMs is largely anticipated from H2FY26 onwards, as deposit repricing fully materialises and the interest rate cycle stabilises. The sector anticipates overall earnings growth to ease in FY26 before a stronger rebound in FY27, driven by a more favourable rate environment and renewed credit demand," said Bolinjkar. Poddar prefers private banks over PSUs given their stronger loan growth outlook, better pricing power, and higher granularity in loan books. 'Among private banks, ICICI Bank delivered a strong quarter with stable NIMs, healthy loan growth, and robust RoA. HDFC Bank saw margin pressure but is expected to recover from Q3FY26 as the cost of funds normalises," said Poddar. According to Bolinjkar, among large-scale banks, ICICI Bank emerges as a compelling choice. "ICICI Bank's strong capital adequacy and proactive digital investments position it well for sustained long-term growth," said Bolinjkar. "Within the mid-scale banking segment, Indian Overseas Bank (IOB) warrants attention," Bolinjkar said. Mishra said HDFC Bank and Kotak Mahindra Bank are his top picks, as both are showing clear signs of improvement after having faced several challenges over the past few years. "This period of time correction has brought their valuations to more reasonable levels, making them attractive once again. Both banks remain high-quality franchises with the potential to deliver mid-teen growth over the cycle. Given these factors, we maintain a positive outlook on both," said Mishra. Tapse prefers ICICI Bank and Bank of Baroda (BoB) at this point as a long-term investment. Tapse added that while the overall outlook for the sector remains moderately positive, with near-term margin headwinds, investors should be selective in this volatile market. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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Business Standard
2 days ago
- Business
- Business Standard
Acme Solar Holdings shares jump 10% post Q1 earnings; check details
Acme Solar Holdings share price today: Shares of renewable energy firm, Acme Solar Holdings, surged 10 per cent on Monday, July 28, 2025, hitting an intraday high of ₹297.48. At 11:35 AM, Acme Solar Holdings shares were trading at ₹293.90, up by 8.75 per cent on the BSE. In comparison, BSE Sensex was trading largely flat, albeit with a negative bias, down by 92 points or 0.11 per cent, quoting 81,370.50. The total market capitalisation of the company stood at ₹17,772.03 crore. The buying interest on the counter came after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26). Acme Solar Holdings Q1FY26 earnings The renewable energy solutions provider reported a 71 per cent surge in revenue from operations to ₹584 crore in Q1FY26, as against ₹340 crore reported in the corresponding quarter of the previous fiscal year. The company's profit after tax (PAT) experienced a robust rise to ₹131 crore in Q1FY26 from just ₹1 crore recorded in the first quarter of FY25. Earnings before interest, taxes, depreciation and amortisation (Ebitda) also rose by 75.7 per cent to ₹531 crore during the quarter under review from ₹302 crore recorded in Q1FY25. Ebitda margins stood at 90.9 per cent during the June quarter. As per brokerage firm JM Financial, the rise in company profits was mainly due to an increase in other income by ₹42.6 crore annually. Meanwhile, PAT margins for the quarter stood at 22.4 per cent as against 0.4 per cent reported in the same period of the last fiscal year. During the June quarter, the company commissioned 250 megawatt (MW) projects, including a 50 MW wind project in Gujarat. As per the exchange filing, this takes Acme Solar's overall operational portfolio to 2,890 MW, indicating a rise of 115.7 per cent on a year-on-year (Y-o-Y) basis. Check List of Q1 results today Brokerage View- Religare Broking On Monday, the stock started the day with a gap-up opening of nearly 6 per cent and extended the gains to 10 per cent in just a single trading session. "Acme solar holdings has been trading on bullish scenario with positive numbers in Q1FY26 with total revenue growing nearly 72 per cent. ACME did really well this quarter, especially in terms of orderbook," said Ravi Singh, SVP-retail research, Religare Broking. However, Singh advised investors to take a 'Buy' stance within the ₹280-₹285 range, signalling a prospective upside of 14.2 per cent. "On technical charts, stock price has given a bullish breakout from the ₹252 level at the start of July month. With the current outlook, the stock is likely to build bullish momentum in the coming sessions and recommend a 'Buy' position within ₹280-₹285 for the upside targets of ₹320 with risk managed at ₹270," he added.
Time of India
18-07-2025
- Business
- Time of India
India VIX: Dips to 15 month low as markets remain stable; what it means
India's stock market has maintained its calm recently as the Volatility Index or VIX has fallen to a 15 month low. This means that recent market stability, lower volatility in the US, and reduced trading in derivatives have calmed investor nerves and made the overall market feel less risky. The India VIX remained flat on Thursday, closing at 11.2. Meanwhile, the benchmark Nifty 50 index dipped 100.60 points, or 0.40%, to end the session at 25,111. 'Indian markets are currently mirroring the US VIX, which is at a 7-8 month low, offering some relief to traders globally,' Ajit Mishra, senior vice-president, research, Religare Broking told ET. The firm noted that with few domestic triggers and most of the earnings season already factored in, the index continues to stay muted. Since the beginning of July, the Nifty has been trading within a narrow 25,000–25,500 range, failing to break out in the absence of meaningful catalysts. How does India VIX work? India VIX measures the expected volatility in the stock market over the next 30 days, based on Nifty options prices. It rises when markets are predicted to undergo sharp movements and drops during calmer, more stable periods. In the past month, the India VIX has declined by nearly 22%, even as the Nifty 50 has edged up by around 1%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like People Aged 50-85 With No Life Insurance Could Get This Reassured Get Quote Undo Similarly, the CBOE Volatility Index (VIX), which measures market volatility in the US based on S&P 500 index options, dropped 19.7% over the same period. The subdued India VIX may also be partly due to lower participation in the options market. 'At first glance, this may seem like a sign of market confidence, but the reality points to suppressed hedging activity and reduced participation,' Dhupesh Dhameja, derivatives analyst at Samco Securities was quoted as saying. He highlighted that traders have largely avoided buying deep out-of-the-money put options, which has kept premiums low and suppressed implied volatility. Dhameja further added that a dip in activity from major global liquidity providers like Jane Street has resulted in lower trading volumes in derivatives and less depth in the options market, particularly in far out-of-the-money contracts, which usually indicate broader economic risk sentiment. While the India VIX is a useful tool for gauging sentiment, it tracks only the Nifty 50 and its large-cap constituents, and may not capture broader market dynamics. 'The market appears calm on surface, but history suggests that such low-volatility phases are often followed by sharp directional moves,' Dhameja cautioned. He added that while the trend may remain range-bound for now, any sudden spike in the VIX 'signal worth watching closely.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
18-07-2025
- Business
- Mint
Shares to buy for the short term: Ajit Mishra of Religare Broking suggests THESE 3 stocks to buy today
Shares to buy for the short term: The Indian stock market has been lacklustre over the last few sessions. The benchmark Nifty 50, after falling 0.40 per cent in the previous session, dropped almost 1 per cent to hit an intraday low of 24,931.40 during the session on Friday, July 18, looking set to extend losses to the third consecutive week. Ajit Mishra, SVP of research at Religare Broking, pointed out that global uncertainty and a muted start to the Q1 earnings season are weighing on investor sentiment, even though sustained liquidity inflows are helping to cushion the downside. "The current divergent trend, while the benchmark index is under pressure, is mainly due to weakness in heavyweight IT stocks. At the same time, rate-sensitive sectors like auto, realty, and select banking, along with continued interest in defensives like FMCG and pharma, are not only limiting the losses but also offering ample long-side trading opportunities. The resilience in the broader market further adds to this positive undertone," said Mishra. "We recommend aligning positions accordingly, with a focus on stock selection and risk management, as the current market tone is likely to persist," Mishra said. Mishra suggests buying shares of ITC, Hero MotoCorp, and CG Power and Industrial Solutions, for the short term. After a prolonged period of underperformance, the FMCG sector is showing signs of revival, and ITC is trading in sync with the move. The stock has formed a strong base near the ₹ 415 support zone and has recently reclaimed its 200-day EMA, indicating a shift in long-term sentiment. This technical development, along with the stock trading above its key short-term moving averages, suggests a bullish structure. Moreover, ITC has shown relative outperformance against both the broader market and select FMCG peers, signalling increasing interest. 'Volume patterns indicate steady accumulation, adding confidence to the ongoing move. The broader sectoral strength, combined with ITC's favourable technical setup, makes it a compelling candidate for fresh long trades,' said Mishra. ITC technical chart Hero MotoCorp is displaying strong signs of a bullish reversal after a prolonged corrective phase. The stock initially witnessed a sharp decline but has since formed a classic rounded bottom pattern between the ₹ 3,400– ₹ 4,600 zone. "The stock is currently consolidating near the upper end of this reversal range, with the 20-day EMA providing consistent support, and volumes indicating steady accumulation. A decisive breakout above ₹ 4,600 would confirm the reversal and open the path for a sustained rally," said Mishra. From a sectoral perspective, the auto space is gaining momentum as part of the rate-sensitive pack, and Hero MotoCorp is well-positioned to capitalise on this trend. 'The overall chart structure remains constructive, and as long as the ₹ 4,200 support zone is intact, traders may consider initiating fresh long positions for potential upside,' said Mishra. Hero MotoCorp technical chart CG Power has convincingly ended its corrective phase, as evidenced by a breakout above the falling trend line and a shift from a lower-high, lower-low structure to a base formation around the ₹ 665– ₹ 710 zone. This prolonged consolidation phase, supported by price stability and the 20-day EMA acting as dynamic support, signalled strong accumulation. The stock has since resumed its upward momentum, breaking out from this accumulation zone with a surge in volumes, indicating renewed buying interest. Importantly, this move aligns with the neckline of the earlier breakout zone and is supported by a confluence of key moving averages, adding strength to the bullish structure. The recent breakout from the buying pivot confirms the end of consolidation and marks the beginning of a fresh leg of the uptrend. 'Given the technical setup and strong volume action, traders may consider fresh long positions as per the mentioned levels,' said Mishra. CG Power technical chart Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Economic Times
18-07-2025
- Business
- Economic Times
India VIX falls to 15-month low on no sharp market swings
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Volatility Index or India VIX-the fear gauge of the Indian stock market-has dropped to its lowest level in 15 months, as the absence of sharp swings of late, a decline in US volatility, and falling derivatives options volumes have eased risk sentiment. The India VIX remained flat and ended at 11.2 on Thursday. The benchmark Nifty 50 index fell 100.60 points or 0.40% to close at 25,111."Indian markets are currently mirroring the US VIX, which is at a 7-8 month low, offering some relief to traders globally," said Ajit Mishra, senior vice-president, research, Religare Broking. "With limited domestic triggers and much of the earnings season already priced in, the index remains subdued."Since the start of July, Nifty has traded in a narrow 25,000-25,500 range, failing to break out in the absence of triggers. India VIX is a volatility index based on Nifty option prices. It uses the best bid-ask prices of Nifty options to calculate expected market volatility over the next 30 days. The index typically rises when traders expect bigger market swings and falls when markets appear the last month, India VIX is down almost 22%, whereas the benchmark Nifty 50 has edged up 1%. The Chicago Board Options Exchange's CBOE Volatility Index, which measures volatility based on US S&P 500 index options, is also down 19.7% over the past month. The drop in VIX could also be on account of a fall in trader participation in Nifty options."At first glance, this may seem like a sign of market confidence, but the reality points to suppressed hedging activity and reduced participation," said Dhupesh Dhameja, derivatives analyst, Samco Securities. "Traders have largely avoided buying deep out-of-the-money puts, keeping option premiums subdued and implied volatility low." Dhameja said reduced activity of global liquidity providers like Jane Street has led to lower derivative volumes and thinner option market depth, especially in far out-of-the-money contracts, which typically reflect macro risk VIX may not fully reflect what is happening across the market, as it tracks only the benchmark Nifty 50 and its large-cap constituents. "The market appears calm on surface, but history suggests that such low-volatility phases are often followed by sharp directional moves," said Dhameja. He said that for now, the trend may stay range-bound, but any spike in VIX could be a "signal worth watching closely."
