Indian stock market indices traded strong over the last two hours of trade on the back of heavy buying activity witnessed across index heavyweights. Auto and realty stocks witnessed maximum buying interest.
Banking stocks are trading strong led by Central Bank and Allahabad Bank. State Bank Of India (SBI) has announced results for the quarter ended December 2011. The bank has reported 29% YoY growth in interest income and 15% YoY growth in net profits for the quarter. Net interest income grew by 27% YoY in 3QFY12, on the back of a 17.5% YoY growth in advances. Other income fell by 36% YoY in 3QFY12 on the back of lower fee income, forex income and loss on sale of investments. NIMs (net interest margins) moved up significantly from 3.4% in 9mFY11 to 3.8% in 9mFY12, as the bank was able to improve its yields and control costs. Net NPAs (Non Performing Assets) increased from 1.6% in 9mFY11 to 2.22% in 9mFY12. Capital adequacy ratio stood at 11.6% (Tier-1 ratio at 7.59%) at the end of 3QFY12 as per Basel II.
Auto stocks are trading in the green led by Tata Motors and Ashok Leyland. Tata Motors has declared results for the quarter ended December 2011. The company reported a 40.5% YoY jump in consolidated net profit on the back of better performance by British division Jaguar Land Rover (JLR). Significantly, Tata Motors crossed the Rs 1 trillion revenue target during the quarter under review. The domestic operations' net profits plummeted by 57.6% YoY because of rising input costs, higher marketing spends and competition in the passenger cars segment, coupled with depreciation of the rupee and booking of mark-to-market losses of Rs 1 bn. JLR posted 57.4% YoY jump in net profits.