Nifty Closes Above 10,000 For The First Time

Indian equity benchmarks closed at record high amid a bevy of better-than-anticipated corporate earnings. A broad-based rally in commodities including iron ore and copper helped an index of metals companies reach its highest level in almost three years.

The S&P BSE Sensex Index rose 0.5 percent to 32,382 while the NSE Nifty climbed over 0.5 percent to 10,020. This was the 51-share index’s first close above the 10,000-mark. Yes Bank Ltd. and IndusInd Bank gave the biggest boost to the broad gauge.

Shares of the country’s fourth largest private sector lender rose as much as 4.1 percent after reporting June quarter profit that beat street estimates, along with a stock split announcement.

• Net income Rs 966 crore versus estimate of Rs 948 crore
• Gross bad loans 0.97 percent of total end-June versus 1.52 percent end-March
• Q1 provisions Rs 286 crore versus Rs 207 crore year earlier
• Interest income Rs 4,650 crore versus Rs 3,800 crore YoY, expense Rs 2,840 crore versus Rs 2,550 crore; net interest income estimate of Rs 1,790 crore
• Other income Rs 1,130 crore versus Rs 961 crore
• Net interest margin 3.7 percent versus 3.6 percent in previous quarter
• Board approves splitting each share into 5; seeks shareholder nod

Shares of the mortgage lender pared their gains after it reported its June quarter earnings.

• Net profit at Rs 1,556 crore versus Bloomberg estimate of Rs 1,793 crore (YoY)
• Net profit down 16.8 percent to Rs 1,556 crore versus Rs 1,871 crore (YoY)
• Income from operations up 9 percent to Rs 8,129 crore versus Rs 7,461 crore
• Gross NPA at 1.24 percent for end-June versus 1.05 percent end-March
• Provisions at Rs 85 crore versus Rs 148 crore (QoQ)

The company’s board approved merger of five of its units with self. The company also proposed to raise up to Rs 35,000 crore via non-convertible debentures on private placement basis.