The Indian equity markets has witnessed a positive session on Monday, April 22nd 2024, with the benchmark Nifty 50 index trading at 22,287.35, up 0.63% from its previous close, recording an intraday low of 22,198.15 and a high of 22,337.10 as of writing. The BSE Sensex also reflected the positive sentiment, gaining 0.52%,381.70 points to trade at 73,470.03 as of writing. Today’s range for the index reads at 73,227.32 – 73,728.18

The markets seem to be trading in relation to the ongoing fourth-quarter earnings season, which began last week and continues this week. Several prominent companies have unveiled their financial earnings. The expectation of strong corporate performance and growth prospects appears to have fuelled the buying sentiment among investors.

HDFC Bank

HDFC Bank, the country’s largest private sector lender, reported its Q4 earnings on April 20th. The bank’s net profit stood at Rs 16,511.9 crore, missing the estimate of Rs 18,361.5 crore. However, the bank’s asset quality remained stable, with gross non-performing assets (NPAs) at 1.24%, slightly lower than the previous quarter’s 1.26%. The net NPA ratio edged up to 0.33% from 0.31% in the preceding quarter.

In a significant move, HDFC Bank made floating provisions of Rs 10,900 crore in Q4FY24, underlining its prudent approach to risk management. The bank’s board recommended a dividend of Rs 19.50 per share, rewarding its shareholders.

Infosys

Infosys, the global IT behemoth, reported its Q4 earnings on April 18th, with revenues missing estimates and providing an underwhelming guidance of 1-3% for FY25. The company’s net profit stood at Rs 7,975 crore, surpassing the CNBC-TV18 poll estimate of Rs 6,180 crore.

Despite the solid profitability, Infosys’s revenue guidance for the current fiscal year fell short of market expectations, raising concerns about the company’s growth prospects amid an increasingly challenging macroeconomic environment.

Tata Communications

Tata Communications, the global digital ecosystem enabler, unveiled its Q4 results on April 17th. The company reported a 1.5% year-on-year drop in its consolidated net profit for the quarter. However, the stock gained on the back of the earnings announcement, rising an impressive 56% in the past year.

Tata Communications’ revenue from operations jumped 25% year-on-year, reflecting the company’s robust performance and growing demand for its digital infrastructure solutions. The board recommended a final dividend of Rs 16.70 per share, rewarding investors for their continued trust.

Reliance Industries

All eyes are on Reliance Industries, the energy-to-telecom conglomerate, as it gears up to report its Q4 earnings later today. Market expectations are high, with analysts estimating a net profit of Rs 19,551 crore, revenue of Rs 2.35 lakh crore, EBITDA of Rs 39,872 crore and an EBITDA margin of 17%.

Reliance’s diversified business portfolio, spanning sectors such as energy, petrochemicals and telecommunications, has positioned the company as a powerhouse in the Indian corporate landscape. Investors eagerly await the company’s financial performance and future growth strategies.

Bajaj Finance

Bajaj Finance, the leading non-banking finance company, is also slated to unveil its Q4 earnings today. The market anticipates a strong performance from the consumer lending giant, given the recovery in consumer demand and the company’s robust business model.

Investors will keenly analyze Bajaj Finance’s asset quality, loan growth and profitability metrics, as these factors significantly influence the company’s overall financial health and future prospects.