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Informist, Tuesday, Sept. 23, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: Nuvama sees Q2 loan growth strong for PSU bks, NIM fall modest

 

MUMBAI--0830 IST--Public sector banks are likely to report healthy loan growth in the September quarter, with a moderate decline in net interest margins and stable asset quality, Nuvama Institutional Equities said in a report. Most PSU banks are likely to report strong loan growth driven by the retail, agriculture, and micro, small, and medium enterprises segments, the brokerage said. It maintained Bank of Baroda, State Bank of India, and Punjab National Bank as its preferred picks in the sector. 

 

Bank of Baroda's loans are expected to grow 4% on quarter in the September quarter, the highest in the sector. State Bank of India is expected to report 3% loan growth compared to the previous quarter. Punjab National Bank, Canara Bank, and Indian Bank are likely to report a quarter-on-quarter loan growth of around 2.5%, the brokerage said. Union Bank of India is likely to grow slower than the sector, it added. "While corporate loan growth has been disintermediated by mutual funds and capital markets, select AAA pockets reported corporate growth," the report said. 

 

In terms of net interest margins, PNB is likely to report unchanged levels on quarter. Bank of Baroda has also guided for stable reported net interest margin, but core margins are likely to decline 7 basis points on quarter, the brokerage said. For Union Bank, net interest margin may fall 6 bps, and for Indian Bank it is likely to decline under 10 bps. SBI's net interest margin is likely to fall 5%. For Canara Bank, net interest margins could decline more than peers due to lower current account and savings account deposits, Nuvama said. "It should be noted that NII for the entire (banking) sector has been under pressure due to lower rates and slower growth," it added. 

 

State-owned banks are likely to report stable asset quality in Jul-Sept with no lumpy slippages, Nuvama said. "Slippage would decrease for SBI, BoB (Bank of Baroda), and Indian Bank and remain flattish for others," it said. The brokerage also said SBI and Bank of Baroda would be able to maintain return on assets of above 1% in the reporting quarter due to higher core income. PNB's return on assets is likely to expand due to a lower tax rate. "The share of written-off recoveries to PBT (profit before tax) is higher for Union Bank and Canara Bank relative to other state banks," the brokerage said.  (Akash Mandal)

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Equity Alert: Indices likely to open lower, move in thin range thereafter

 

MUMBAI--0756 IST--Benchmark equity indices are likely to open lower and move in a relatively narrow range Tuesday, consolidating after declining for two straight sessions. The Nifty 50 has fallen over 220 points during these two sessions. The index is likely to move in a range of 25000-25500 points. Information technology stocks will be in focus yet again as market participants assess impact of visa rule changes by the US on these companies.

 

"On the levels front, the range of 25100-25000 constitutes a significant support zone, as it corresponds with the 20-DEMA (daily exponential moving average) and a bullish gap observed on the daily charts...provided that this zone remains intact, it is advisable to pursue long positions in proximity to these support levels," Osho Krishan, senior analyst of technical and derivatives at Angel One, said in a note.

 

The September contract of the GIFT Nifty also indicated a weak start for the market. At 0749 IST, the contract was at 25252 points, 53 points lower than its previous close. On Monday, the Nifty 50 closed at 25202.35 points, down 124.70 points or 0.5%. The BSE Sensex ended at 82159.97 points, down 466.26 points or 0.6%. 

 

Indices in the US notched record closes for the third straight session overnight but the gains were marginal. Technology stocks led the gains with Nvidia rising 4?ter the company said it will invest up to $100 billion in artificial intelligence firm OpenAI. Asian indices were mixed in early trade Tuesday after a higher opening tracking Wall Street.  (Akash Mandal)

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Equity Alert: US indices at record highs, tech stocks lead charge

 

MUMBAI--0730 IST--Benchmark equity indices in the US posted their third consecutive record closing highs Monday amid sharp gains in information technology stocks. Market participants await personal consumption expenditure price index numbers, due later in the week. This print is considered to be the US Federal Reserve's preferred gauge for inflation.

 

The technology-heavy Nasdaq Composite rose 0.7% as shares of chipmaker Nvidia rose 4?ter the company said it would invest $100 billion in OpenAI to support development of data centres. The new deal could signify that the artificial intelligence trade will continue to "drive earnings per share and share price growth into 2026 and beyond," Sam Stovall, chief investment strategist at CFRA Research, was quoted by CNBC as saying.

 

Shares of Oracle Corp. jumped over 6?ter the company Monday said it had promoted its president of cloud infrastructure, Clay Magouyrk and president of industries Mike Sicilia as co-chief executive officers. Shares of Apple were up over 4?ter brokerage Wedbush Securities raised its target price on the company on strong demand for the latest iPhone 17, according to a Reuters report. Shares of Tesla also rose 2%.

 

Shares of Kenvue Inc. fell 7.5% as traders awaited US President Donald Trump's comments on Tylenol, a painkiller used in the treatment of autism. However, shares of the company gained 4.7% in afterhours trading despite the US president saying the Food and Drug Administration would advise pregnant women against using acetaminophen, an active ingredient in Tylenol, a report by Reuters said.

 

Traders are monitoring the impact of the US raising H-1B fees for foreign workers that may affect US technology companies hiring overseas employees. In separate addresses Monday, newly appointed Fed Governor Stephen Miran argued for sharply lower rates while three other Fed officials said the central bank needed to remain cautious about inflation, according to Reuters.

 

Following are the closing levels of US indices Monday:

 

Index	Level	Change in %
S&P 500	6693.75	0.44
NASDAQ Composite	22788.98	0.7
Dow Jones Industrial Average	46381.54	0.14

 

(Eshitva Prakash)

 

End

 

US$1 = INR 88.31

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

 

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