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Informist, Monday, Oct. 20, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: RBL Bk jumps 7%; earnings recovery, UAE bk stake buy positives

 

MUMBAI--1029 IST--Shares of RBL Bank rose over 8% to an intraday high of INR 302.30, its highest level since back in February 2020, despite the company's net profit and total income falling on year in the September quarter. Many brokerages were, however, positive on the private lender after United Arab Emirates-based Emirates NBD Bank said it will buy a majority stake in the bank. At 1026 IST, the stock traded 7% higher at INR 320.75.

 

Emkay Global Financial Services raised its target price on the bank by 17% to INR 350 due to expectations of a recovery in earnings in the second half of the financial year and positive impact of Emirates NBD Bank's stake buy. "The transaction should boost RBL's networth to INR 450 bln (at ~INR 160 bln now) and capital levels (CET 1 to 39% from 13.5%), also factoring in the amalgamation of ENBD's current India branches," the brokerage said in a report. "Big bang capital should meaningfully improve RBL's LT CoF (long-term cost of funds), while opening up the speed highway for organic growth via secured retail and corporate assets, thus boosting RoA as well as a potential inorganic acquisition," it added. 

 

The brokerage, however, expects a run-up in the stock price only after the deal is executed. "Building in steady improvement in RoA (return on assets) to 1-1.2% over FY27-28 (irrespective of the deal), we raise our target multiple...we believe that given the open offer/preferential placement at INR 280/sh (at discount to current price) and thus possibly some near-term stock consolidation after a sharp run-up, returns hereon could be more back-ended, once the transaction is complete," the brokerage said.

 

The brokerage also expects the bank's earnings to recover going forward. "RBL Bank posted mixed 2Q results with growth rebounding to double digits and margin stabilising before inching up, while higher write-offs led to a sharp earnings miss...the mgmt expects a meaningful recovery in second half," the brokerage said. 

 

Nirmal Bang Equities upgraded the stock to 'hold' from 'sell' and bumped up the target price to INR 291 from INR 255 citing similar reasons. Global brokerage Citi raised its target price on the stock to INR 390 from INR 300 and maintained a 'buy' rating. The deal with the UAE-based bank enhances medium-to-long term growth visibility and risk of inefficient capital deployment is minimal due to the franchise's stabilisation over the recent years, NDTV Profit cited the brokerage as saying. CLSA bumped the target price to INR 310 from INR 260 and maintained a 'hold' rating.  

 

RBL Bank late Saturday said Emirates NBD Bank will buy 26% stake in RBL Bank Ltd. for INR 280 per share through an open offer. This follows the approval from the boards of both banks Saturday to buy up to 60% controlling stake in RBL Bank through preferential issue of shares.  (Akash Mandal)

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Equity Alert: RIL at 3-mo high after co posts on-yr growth in most segments

 

MUMBAI--1026 IST--Shares of Reliance Industries rose over 3% to hit a three-month high of INR 1,465.50 after the company reported an on-year growth in most of its segments for the September quarter. Barring its oil and gas vertical, all other segments reported a growth in their top line for the reporting quarter. Many broking firms retained their 'buy' or equivalent rating on the stock following the company's earnings, primarily on the back of strong growth in its retail and digital services businesses. 

 

For the quarter ended September, the Mumbai-based conglomerate posted a 10% on-year growth in its consolidated net profit to nearly INR 182 billion, but was lower than the Street's expectation of more than INR 189 billion. Its consolidated revenue also rose 10% from the year-ago period to INR 2.59 trillion, slightly higher than analysts' expectation of INR 2.47 trillion. 

 

Brokerage Prabhudas Lilladher has raised the stock's target price to INR 1,668 from INR 1,609 earlier. This is 14% higher than the stock price of INR 1,461.10 at 1012 IST. It retained the 'buy' rating for the stock due to the potential upside in the new energy segment and strong momentum in its digital and retail businesses. The company's revenue from retail business grew 19% on year to INR 905.44 billion in the reporting quarter, accounting for 35% of the conglomerate's overall top line. 

 

Emkay Global Financial Services raised the stock's target price by 5% to INR 1,680 and retained the 'buy' rating. However, the brokerage house reduced the earnings-per-share estimate for 2025-26 (Apr-Mar to FY28 by 3%, building in a lower other income. For the September quarter, the company's other income had fallen over 8% on year to INR 44.82 billion. 

 

All 15 research reports available about the company with Informist have a 'buy' or equivalent rating on the stock with an average target price of INR 1,661. This is almost 14% higher than the current market price.  (Anjana Therese Antony)

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Equity Alert: Nifty 50 crosses 25900 pts as banks, heavyweights lead charge

 

MUMBAI--0932 IST--Benchmark indices opened on a positive note Monday, with heavyweights such as Reliance Industries and HDFC Bank gaining after reporting robust numbers for the September quarter. However, ICICI Bank fell over 2% and limited the gains in the indices. 

 

The Nifty 50 was at 25855.85 points, up 146 points or 0.6%, and the BSE Sensex was at 84424.80 points, up 472.61 points or 0.6 points. The Nifty 50 rose above the 25900 level for the first time since Oct. 1, 2024 and reached a high of 25926.20 points but then retreated slightly. The 50-stock index is now seen facing resistance around the 26000 level. 

 

Reliance Industries rose over 2?ter the company's top line for the September quarter came in above analysts' estimates, post which a host of brokerages raised their target price on the stock. The company's earnings before interest, tax, depreciation and amortisation beat the Street's view and the momentum is likely to sustain in the upcoming quarter, NDTV Profit reported, quoting brokerage firm Jefferies. 

 

Bank and financial services stocks were up with Shriram Finance, Kotak Mahindra Bank, and Axis Bank trading 1-2% higher. HDFC Bank rose over 1?ter bottom line for the quarter beat expectations. On the other hand, ICICI Bank fell over 2% and was the worst hit in the 50-stock index, with many brokerages underwhelmed by the company's performance at the pre-provisioning operating profit level.

 

Broader market indices were in the green. Most sectoral indices were also higher, with Nifty Oil & Gas leading due to the rise in Reliance Industries. 

 

AU Small Finance Bank surged 7?spite its September quarter profits missing estimates. Brokerage Jefferies pointed out that the bank's margins "surprised positively" with improvement in asset quality. On the other hand, UTI Asset Management Co. plunged 9% and was the worst hit in the Nifty 500 after its net profit fell sharply on year and missed analysts' estimates.  (Akash Mandal)

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Equity Alert: Most Asian mkts up as US-China trade worries ease; Nikkei up 3%

MUMBAI--0825 IST--Most indices in Asia were higher in early trade Monday as signs of easing trade tensions between the US and China improved investors' sentiment. US Treasury Secretary Scott Bessent confirmed a meeting with China's Vice Premier He Lifeng in Malaysia later this week after a call with the Chinese official Friday. The two officials "engaged in frank and detailed discussions regarding trade between the United States and China," Bessent said on X. The Japanese equity market reached a record high due to stabilising political situation in the country.

 

Scott Bessent's comments came after US President Donald Trump said his 100% tariff plans on China were unsustainable and expressed optimism that talks with Chinese officials may lead to an agreement to defuse the crisis. "The markets are pricing in that things will de-escalate... however, the markets are likely to remain jittery until such backdowns are explicitly announced" Kyle Rodda, a senior market analyst at Capital.com was quoted as saying by Bloomberg.

 

China's CSI 300 index was 1% higher amid a slew of economic data from the country. China's Jul-Sept GDP grew 4.8%, in line with Reuter's poll. The figure showed a slowdown from the the June quarter's 5.2% growth. The People's Bank of China kept its benchmark lending rates unchanged, in line with expectations, with the one-year loan prime rate at 3%. 

 

Traders await further data from the country to get a broader picture of economic health of the world's second-largest economy. They also wait for reports from the four-day plenary session through Thursday, where top policy makers in China, including President Xi Jinping, will review and approve the drafted suggestions for the upcoming five-year plan till 2030.

 

Japan's Nikkei 225 reached a record intraday high and rose nearly 3%. Sentiment was bullish following the news that the Liberal Democratic Party and the Japan Innovation Party have agreed to form a coalition government. Sanae Takaichi, who would be the country's first female prime ,inister, is expected to be pro-stimulus and against further hikes in interest rates. The broader Topix index was 2% higher.

 

Following were the levels of key Asian indices at 0810 IST: 

 

Index	Level	Change in %
CSI 300 Index	4552.40	0.85
Hang Seng Index	25816.59	2.26
Nikkei 225 Day	48929.38	2.83
TOPIX FIRST SECTION	3233.22	1.98
KOSPI	3789.83	1.09
FTSE Singapore Strait Times	4328.93	(-)0.63
S&P/ASX 200 Index	8995.90	0.01

 

(Eshitva Prakash)

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Equity Alert: Indices seen further up ahead of Diwali; earnings in focus

 

MUMBAI--0809 IST--Benchmark indices are likely to continue their positive momentum Monday and will look to extend their winning run to the fourth session ahead of Diwali, analysts said. Many stocks, including heavyweights Reliance Industries and HDFC Bank, will react to their September quarter earnings announced Friday and Saturday.

 

"Given the current setup of strong price action supported by momentum indicators, Nifty 50 appears well-poised to advance toward the mentioned resistance zones (26000 points) in the near term," Rajesh Bhosale, equity technical analyst at Angel One, said in a note. 

 

The October contract of the GIFT Nifty also indicates a positive start for the market. At 0803 IST, the contract was at 25984.50 points, up 275 points from the Nifty 50's previous close. Friday, the Nifty 50 had closed 0.5% higher at 25709.85 points, a level last seen on Oct. 1, 2024. The BSE Sensex closed at 83952.19 points, up 484.53 points or 0.6%.

 

Friday, indices in the US had ended higher as President Donald Trump said his face-to-face trade talks with Chinese President Xi Jinping were still on. Most indices in Asia were higher in early trade Monday.  (Akash Mandal)

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Equity Alert: US mkt up Fri led by bank stocks; US-China trade concerns ease

 

MUMBAI--0756 IST--Stock indices in the US ended higher Friday after President Donald Trump said his proposed plan of 100% tariff on Chinese goods would not be sustainable. Shares of regional banks, which had led the US market decline on Thursday, gained on Friday as traders bet that any bad credit bets by banks were a one-off event and not part of a bigger crisis. 

 

US Treasury Secretary Scott Bessent Friday said he expects to meet Chinese Vice Premier He Lifeng in Malaysia later this week to try forestalling an increase in US tariffs on Chinese goods, which would be effective Nov. 1. Trump said the 100% tariff on goods from China he had threatened in response to the latter tightening its rare-earth export rules would not be sustainable. The US president, however, blamed Beijing for the impasse in trade talks.

 

"We've seen this movie before... a week ago, US President Trump was talking 100% tariffs and the market had its worst sell-off in months and now today he's clearly putting some water on that fire, saying he and President Xi have a good relationship," Ryan Detrick, chief market strategist, Carson Group, Omaha, was quoted by Reuters as saying.

 

US' regional banking stocks rebounded Friday after a sell-off in the previous session when Zions Bancorporation disclosed unexpected losses tied to two commercial and industrial loans and Western Alliance had said it initiated a lawsuit alleging fraud by Cantor Group. Shares of Zions Bancorp climbed almost 6% Friday after receiving an upgrade from Baird, which said the drop in market value for the regional bank was out of proportion to the size of loan losses it was potentially facing, according to a CNBC report. Investment bank Jefferies, which had also closed lower in Thursday's sell-off, ended 6% higher after Oppenheimer and Co. raised its rating on the stock to 'outperform'. 

 
"We don't think there are systemic credit problems for banks – most of what we're seeing so far is a function of a few specific situations (First Brands and TriColor) while credit quality broadly, if anything is tracking better than anticipated," Adam Crisafulli of Vital Knowledge was quoted by CNBC as saying. Strong earnings reports by JPMorgan and other big banks kickstarted the earnings season on a positive note.

 

Shares of Truist Financial Corp. were up almost 4?ter the bank reported its financial results. Fifth Third Bancorp's stock rose over 1%. On the other hand, shares of State Street dropped more than 1?ter the bank's net interest income for the latest quarter missed estimates. Shares of drugmaker Eli Lilly ended 2% lower after President Trump said he would bring down prices of weight-loss drugs.

 

Following are the closing levels of US indices Friday:

 

Index	Level	Change in %
S&P 500	6664.01	0.53
NASDAQ Composite	22679.98	0.52
Dow Jones Industrial Average	46190.61	0.52

 

(Eshitva Prakash)

 

End

 

US$1 = INR 87.77

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

 

Edited by Tanima Banerjee

 

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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