Nifty Bank rallies on strong quarterly earnings from top Banks; Axis Bank, Federal Bank, SBI outperform

25 Jan 2022 , 12:36 PM

Nifty Bank rallied to rescue sinking markets on Tuesday. The Index surged 1% on strong quarterly results from top Banks. Axis Bank jumped nearly 6% on strong Q3 show. Federal Bank was also bullish ahead of quarterly earnings announcement. State Bank of India, RBL Bank, PNB, IndusInd Bank, Bandhan Bank, and IDFC First Bank also rallied to take the fast lane.

PSU Bank stocks led by Bank of Baroda, Canara Bank, Jammu & Kashmir Bank led the gains.

Financial Services were under pressure with Bajaj twins, HDFC twins, and Shreeram Transport Finance Company Limited dragging the most.

Sensex recouped losses, tests 57,000; Nifty holds 17K. After a gap-down start to Tuesday's session, the domestic equity markets staged a smart rebound to recoup most losses amid low-level buying in stocks. Sensex had plunged over 1,000 points, while the Nifty50 tested 16,850 level in early trade. Traders keenly eyed the two-day Fed policy review starting later in the day. 

At around 12.05 pm, BSE Sensex was trading at 57,094.84 down 396.67 points or 0.69% and Nifty50 at 17,056.35 down 92.75 points or 0.54%. Nifty Bank was trading at 37,193.65 up 246.10 points or 0.67% and Private Bank at 18,809.05 up 165.45 points or 0.89%. Nifty PSU Bank rose nearly 3% at 2,732.75 points while Nifty Financial Services fell 0.38% at Rs17,567.20 per piece.

Axis Bank surged 5.78% at Rs745.30 per piece. The private sector bank's net profit increased by 224% to Rs3,614cr in Q3FY22 from Rs1,117cr in Q3FY21. Total income in the third quarter rose by 15% yoy to Rs21,101cr.

Federal Bank was also nearly 5% higher at Rs 96.45 per piece ahead of results. 

The State Bank of India (SBI) rose over 2.7% at Rs507.65 per piece.

Meanwhile, after a rise in SBI Life standalone profits in the third quarter by 56%, SBI Card has also recorded a jump in net profits. SBI Card net profits jumped by 81% yoy in the third quarter of FY22 to Rs386cr. 

RBL Bank Bandhan Bank and PNB were over 2.6% while IndusInd Bank gained 2.3%. IDFC First Bank jumped 1.46%. 

Among PSU Bank's Bank of Baroda rose 4.5% and Canara Bank 4.2%. J& K Bank was nearly 3% higher. 

ICICI Bank which resisted the Monday's carnarge on strong Q3 results was relatively steady on Tuesday at Rs794.70 per piece. The Bank had logged a 25% rise in standalone profit of Rs6,194cr in the quarter ending December 2021(Q3FY22), compared to Rs4,940cr in the same quarter last year. Net interest income (NII) increased by 23% yoy to Rs12,236cr (US$ 1.6 billion) in Q3FY22 from Rs9,912cr (US$ 1.3 billion) in Q3FY21.

HDFC Bank and HDFC shed nearly 2% each while Bajaj Finserv and Bajaj Finance was 1.46% and 1.42% down respectively. Shriram Transport Finance shed 1.44%.