Equity benchmark indices closed lower on Saturday paring initial gains after selling in FMCG and IT stocks. The BSE Sensex fell by 259.58 points or 0.36 per cent to settle at 71,423.65. The NSE Nifty declined 50.60 points or 0.23 per cent to close at 21,571.80.
PSU Banks were biggest gainers rallying almost 2 per cent after solid results from smaller PSU Banks. Significant buying was seen in sectors like railway, power utilities. IT sector witnessed profit booking after strong rally in last few sessions following better than expected results by IT heavyweights.
"Amid rising optimism about AI, US markets surged over the weekend. However, domestic markets exhibited a subdued trend influenced by extended holidays, low volumes, and weekly option expiration. Profit booking was noted in IT and FMCG, while private banks witnessed selective buying post the recent sharp correction and stable Q3 earnings. Next week, the interest rate decisions of the BoJ and ECB, along with US GDP data, are anticipated to drive the market dynamics," said Vinod Nair, Head of Research, Geojit Financial Services.
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The drug major reported a 32 per cent increase in consolidated net profit at Rs 1,056 crore for the December quarter compared to Rs 801 crore in the year-ago period, on the back of robust sales across geographies. Total revenue for the quarter increased to Rs 801 crore in the year-ago period. US business reported highest-ever sales of $230 million with 15th consecutive quarter of growth.
Zee Entertainment Enterprises
The $10 billion Sony-Zee merger, in the works since 2021 stands terminated after Sony Group Corp officially notified that it plans to call off the merger between its India Unit and Zee. Sony said the merger did not close by end date as closing conditions were not satisfied. The Japan-based group has invoked arbitration against Zee and sought a termination fee of $90 million on account of alleged breaches.
The private sector lender reported a 23.6 per cent YoY growth in standalone net profit at Rs 10,271.54 crore for the quarter ended December FY24. Net interest income grew by 13.4 per cent YoY to Rs 18,678.55 crore for the quarter. The net interest margin dropped to 4.43 per cent in Q3 FY24 from 4.65 percent in Q3 FY23. The bank’s gross non-performing asset (GNPA) dropped 18 basis points QoQ to 2.3 per cent and the net NPA rose 1 bps to 0.44 per cent.
IDFC First Bank
The private sector lender reported 18 per cent growth in net profit of Rs 715.68 crore for the third quarter of the fiscal 2023-24 compared to Rs 605 crore in year-ago period, The bank’s gross NPA stood at 2.04 per cent down from 2,96 per cent in December quarter of FY23. The bank’s net NPA for the quarter stood at 0.68 per cent improving from 1.03 per cent on the year-on-year basis.
The FMCG company reported a 34 per cent YoY growth in net profit at Rs 330.11 crore for the October-December quarter of fiscal 2023-24, backed by healthy operating numbers. Revenue from operations grew 9 per cent YoY to Rs 1,396 crore. Domestic net sales increased 8.8 per cent for the quarter.