Market this week 12-8-2022
Due to its outstanding June quarter earnings, City Union Bank reaches a 9-month high.
In spite of market turbulence, City Union Bank shares rose 9% intraday on August 10 to reach a 9-month high following strong earnings for the June quarter and improved asset quality.
At the time this article was being written, the stock was up 7.65 percent and trading at Rs 175.25 on the BSE. On the daily charts, it created a sizable bullish candle and reached an intraday high of Rs. 176.95, the highest mark since Oct. 27, 2021. The long, downward-sloping resistance trendline that ran between November 17, 2020 and October 26, 2021 was also decisively broken by the stock.
The private sector lender announced on August 9 that its quarterly profit increased by 30% year over year to Rs 225 crore, helped by strong pre-provision operational profit, other revenue, and reducing provisions for bad loans. In Q1FY23, net interest income, which is the difference between interest received and interest paid, increased by 17% YoY to Rs 525 crore, with credit expanding by 12% and deposits growing by 9%.
Tata Chemicals tops the list of F&O gainers after quarterly results, rising more than 13%.
The share price of Tata Chemicals led the list of F&O gainers on August 10, increasing by more than 13% as a result of strong earnings in the June quarter.
At the time this story was being written, the stock was up 12.75 percent and trading for Rs 1,079 on the NSE. On Wednesday, it had a strong gap-up opening and, with considerably higher volumes, established a sizable bullish candlestick pattern on the daily charts. In reality, it has aggressively broken through the long-down sloping resistance trend line that connects October 18, 2021, and May 5, 2022, and has decisively crossed the prior resistance point of May 5.
Delhivery shares decline by 7% after the June quarter’s dramatic increase in losses.
Delhivery, a technology-driven logistics startup, had its shares fall more than 7% on August 10 as worries about the sustainability of the stock’s lofty valuations grew after the company’s June quarter reporting.
In comparison to the same quarter a year prior, the company reported a net loss of Rs 399 crore for the quarter ending June 2022. Additionally, the company’s earnings increased 32.5 percent year over year to Rs 1,745.7 crore. The company’s topline performance significantly declined on a sequential basis as revenues fell 15.7 percent, mostly as a result of seasonal factors and difficulties integrating recently acquired SpotOn.
The company’s topline showed sequential decline due to a slowdown in e-commerce logistics services; express parcel delivery sales fell by 15% on a quarterly basis even though they increased by 34% on an annual basis
Paytm is making steps toward profitability, but the market is still sceptical.
One 97 Communications, which goes by the brand name Paytm and is the largest financial technology startup in India, hit the mark on August 5 when it revealed its June quarter earnings.
Paytm seemed to convey that it is aware of this desire following the drop in global technology stocks in 2022, which has focused attention on what startups are doing to generate profitability.
The fact that Paytm reached Rs 834.10 at lunchtime, its highest level since February 18, suggests that investors are pleased with the figures. The company posted better-than-expected results practically everywhere, with a rising financial services portion in its overall business mix—up from about 12 percent in the previous quarter to currently 16 percent.
State Bank of India (SBI) reported a reduction in net profit for the June quarter on August 8, which caused shares to drop 2%.
On the BSE, the stock fell 1.95 percent to close at Rs 520.30 per share. It dropped 3.13 percent throughout the day to Rs 514. It decreased by 2% to close at Rs 520.10 per share on the NSE. The stock was the Sensex pack of companies’ greatest laggard. During the day, over 3.25 billion shares were traded on the NSE and over 8.26 lakh shares were exchanged on the BSE in terms of volume.
The benchmark 30-share BSE index increased 465.14 points or 0.80% to close at 58,853.07. The largest lender in the nation, SBI, announced on Saturday that a drop in revenue caused a 7% dip in standalone net profit to Rs 6,068 crore for the first quarter of the current fiscal year. In the April through June quarter of 2021–2022, the bank had posted a net profit of Rs 6,504 crore. In comparison to the same period a year prior, its standalone total income decreased to Rs 74,998.57 crore from Rs 77,347.17 crore.
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