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Business Standard
14-05-2025
- Business
- Business Standard
Micro, small, midcap indices outrun Nifty 50 in recent market pullback
Micro, small, midcap indices on the National Stock Exchange (NSE) have outperformed the Nifty 50 in recent market pullback triggered by the India – Pakistan truce on the boarders, shows data from ACE Equity. While the Nifty Microcap 250 index has rallied around 6 per cent from its closing level on Friday, May 9 till May 13, the Nifty Smallcap 100 and the Nifty Midcap 150 indices have moved up 5 per cent and 4 per cent respectively during this period, shows ACE Equity data. In comparison, the Nifty 50 index has gained 2.4 per cent. (See graphic below) The outperformance in a lot stocks from the micro, small-and midcaps, said Kranti Bathini, Director-Equity at WealthMills Securities, has been on account of a positive earnings surprise in the March 2025 quarter (Q4-FY25). 'Mid-and smallcaps had been in a consolidation phase since long. Q4FY25 earnings for a lot of companies in these segments surprised positively, which triggered an up move. Though one cannot paint the entire sector with the same brush, it is advisable to take some profit off the table right now. Valuations for some of the stocks in the micro, small-and midcap baskets is still steep and prone to a correction. One has to be stock specific from here on,' he said. Microcap, Midcap, Smallcap indices At the stock level, Tanla Platforms, Syrma SGS Technology, Bharat Dynamics, Olectra Greentech, Nippon Life India Asset Management, The Jammu & Kashmir Bank, Reliance Power and Escorts Kubota gained between 11 per cent and 19 per cent during the recent market pullback, data shows. K.P.R. Mill, Jyothy Labs, United Breweries, Navin Fluorine International, Chambal Fertilisers and Chemicals and UPL Ltd., on the other hand, lost ground. The Nifty 50, according to analysts at IDBI Capital, is trading near one standard deviation above its 10-year average based on one-year forward earnings per share (EPS) estimates. 'In the absence of strong domestic catalysts and amid external policy risks, we expect the market to remain range-bound in the short term. As a result, we anticipate a more stock-specific environment going forward, where select stocks will outperform,' wrote Pravin Bokade and Shreejit Nair of IDBI Capital in a recent note. Technical view on the markets Those at Angel One, too, remain constructive on the markets and suggest investors adopt a 'buy on dips' strategy. Technically, considering the retracement of Monday's rally (from Friday's low), the 61.8 per cent level around 24330, which also marks the start of the bullish gap left, is seen as a crucial support for the Nifty 50 index now. A breach below this level could see the ongoing up-move fizzle out. The 50 per cent retracement at 24,450 levels serves as immediate support for Nifty 50. "On the upside, 24750 and 24900 are the key resistance levels to watch. Traders can continue to focus on mid-and small-caps, but should adopt a selective approach," advises Sameet Chavan, head of research for technical and derivatives at Angel One.
Mint
14-05-2025
- Business
- Mint
City Union Bank share price soars 2% to reach highest level since December 2022, gains 10% in May
City Union Bank's share price extended its winning streak for the third straight day on Wednesday, May 14, gaining another 2% in trade to touch a 28-month high of ₹ 195 apiece. The stock last traded at these levels in December 2022. With the steady rise, shares are now approaching their record high of ₹ 249.35, last seen in January 2020. The stock has maintained a consistent upward trend since the beginning of May, as investor sentiment improved following the lender's return to a growth trajectory in the March quarter. This recovery was driven by its ongoing digital transformation efforts, which also prompted brokerages to raise their target multiples, further fueling the rally. Notably, the stock ended both April and March in the green, with gains of 12.33% and 6.35%, respectively. The rally has extended into the current month, with the stock rising another 10% so far. Following the bank's in-line performance, Axis Securities revised its target price on City Union Bank to ₹ 225 apiece, maintaining its 'Buy' rating. Likewise, IDBI Capital retained its 'Buy' rating with a target price of ₹ 215. Anand Rathi also maintained a 'Buy' with a 12-month target of ₹ 218, while Prabhudas Lilladher raised its target to ₹ 210 from ₹ 200, reiterating its 'Buy' stance. City Union Bank reported a 13% YoY increase in net profit to ₹ 288 crore for the quarter ended March 2025, driven by stronger fee income, particularly from insurance and processing charges. Net Interest Income (NII) rose 10% YoY to ₹ 600 crore, while Net Interest Margins (NIMs) improved marginally by 2 basis points, as the bank shed lower-yielding loans. Pre-provision operating profit surged 25.3% YoY to ₹ 441 crore. Credit costs remained largely stable at 60 basis points, compared to 61 bps in the previous quarter. Non-interest income saw robust growth of 43% YoY to ₹ 251 crore, supported by strong fee-based revenues. On the asset quality front, gross NPA improved to 3.09% from 3.36% QoQ, driven by higher write-offs. Management remains confident of further improvement in asset quality, supported by controlled slippages and healthy recoveries. For FY26, slippages are expected to decline to ₹ 650–700 crore, compared to ₹ 815 crore in FY25. Looking ahead, the bank aims to maintain the business momentum it has gained in FY25 while targeting a sustainable Return on Assets (RoA) of 1.5%. Axis Securities highlighted potential NIM pressures in the coming quarters due to yield compression in the EBLR-linked loan book. However, the brokerage believes that the impact will be cushioned by multiple initiatives undertaken by the bank to offset margin declines. Axis expects City Union Bank to deliver consistent RoA and RoE of 1.5–1.6% and 12–14%, respectively, over FY26–27E, supported by strengthening fee income, steady NIMs, and controlled credit costs despite higher operational expenses. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Economic Times
11-05-2025
- Business
- Economic Times
FPI declined in April to Rs 42 billion from Rs 63 billion in March: IDBI Capital
Foreign portfolio investors (FPIs) recorded a net inflow of Rs 42.2 billion, witnessing a decline from Rs 62.71 billion in March, according to the data compiled by IDBI Capital. The FPIs inflow in financial services also dipped as in April, the sector attracted Rs 184.1 billion, compared to Rs 197 billion inflow in March. Media & Telecommunication maintained its momentum with Rs 47.6 billion in inflows, reflecting sustained optimism around digital expansion and consumption. Meanwhile, the fast-moving consumer goods (FMCG) sector staged a notable recovery, attracting Rs 29.2 billion in April after witnessing outflows in March. Indian stock indices had seen upward movement since Trump's decision to pause the reciprocal tariffs on dozens of countries, including India, for 90 days. The tariffs had initially set off a sell-off in equities globally, and India was no exception. Several reports attribute the trend as there is an easing seen in the input costs, and rural demand has witnessed an improvement. The IDBI Capital data suggests that the Consumer Services and Diversified sectors also received modest inflows of Rs 17.9 billion and Rs 17.6 billion, respectively. However, inflows into Diversified were lower than the previous month, suggesting selective investor interest within that tensions between India and Pakistan following the terrorist attack in Pahalgam on April 22, had weighed on investor of late. The investors will continue to keep an eye on the escalation of tensions between the two nations, as they bet in the financial the downside, the IT & Services sector witnessed pressure due to the uncertainties globally and weakening tech spending by companies. The sector saw steep outflows of Rs 154.1 billion--more than double the Rs 74 billion outflow in March. Healthcare also saw a modest investor sentiment with outflow reaching Rs 7.3 billion. The traditional sectors like Automobiles, Metals & Mining, and Real Estate remained under contrast, the Power & Utilities sector bucked the trend, with Rs 9.2 billion in fresh April's positive FPI inflows were driven by Financial Services, Media & Telecom, and FMCG, despite significant outflows in IT, Automobiles, and Metals & Mining.
India Gazette
11-05-2025
- Business
- India Gazette
FPI declined in April to Rs 42.2 bn from Rs 62.71bn in March: IDBI Capital
Mumbai (Maharashtra) [India], May 11 (ANI): Foreign portfolio investors (FPIs) recorded a net inflow of Rs 42.2 billion, witnessing a decline from Rs 62.71 billion in March, according to the data compiled by IDBI Capital. The FPIs inflow in financial services also dipped as in April, the sector attracted Rs 184.1 billion, compared to Rs 197 billion inflow in March. Media & Telecommunication maintained its momentum with Rs 47.6 billion in inflows, reflecting sustained optimism around digital expansion and consumption. Meanwhile, the fast-moving consumer goods (FMCG) sector staged a notable recovery, attracting Rs 29.2 billion in April after witnessing outflows in March. Indian stock indices had seen upward movement since Trump's decision to pause the reciprocal tariffs on dozens of countries, including India, for 90 days. The tariffs had initially set off a sell-off in equities globally, and India was no exception. Several reports attribute the trend as there is an easing seen in the input costs, and rural demand has witnessed an improvement. The IDBI Capital data suggests that the Consumer Services and Diversified sectors also received modest inflows of Rs 17.9 billion and Rs 17.6 billion, respectively. However, inflows into Diversified were lower than the previous month, suggesting selective investor interest within that segment. Geopolitical tensions between India and Pakistan following the terrorist attack in Pahalgam on April 22, had weighed on investor of late. The investors will continue to keep an eye on the escalation of tensions between the two nations, as they bet in the financial markets. On the downside, the IT & Services sector witnessed pressure due to the uncertainties globally and weakening tech spending by companies. The sector saw steep outflows of Rs 154.1 billion--more than double the Rs 74 billion outflow in March. Healthcare also saw a modest investor sentiment with outflow reaching Rs 7.3 billion. The traditional sectors like Automobiles, Metals & Mining, and Real Estate remained under pressure. In contrast, the Power & Utilities sector bucked the trend, with Rs 9.2 billion in fresh investments. Overall, April's positive FPI inflows were driven by Financial Services, Media & Telecom, and FMCG, despite significant outflows in IT, Automobiles, and Metals & Mining. (ANI)
