Indian markets were trading firm on Monday and NSE Nifty is currently above major resistance levels at 24,430. We can expect markets to remain firm today as the strong momentum has been witnessed after a few days of selling pressure. Real estate major DLF was trading 6 percent higher after impressive quarterly results. The stock has been upgraded by many brokerage houses. Public sector banking major Bank of Baroda was also trading 6 percent firm after the bank showcased strong growth in quarterly numbers. Among other stocks in the news were ICICI Bank, Shriram Finance, Mahindra & Mahindra, Wipro and Eicher Motors.

Bank of Baroda Surges 6% Following Strong Q2 Earnings and Improved Asset Quality

Shares of Bank of Baroda rallied up to 6% on October 28, boosted by impressive earnings for the July-September quarter, including the lender’s strongest asset quality in a decade. The robust performance saw a spike in trading volumes as two crore shares changed hands, double the one-month daily average. The bank’s Q2 net profit rose 23.2% YoY, alongside significant improvements in asset quality, positioning Bank of Baroda as a promising contender in the financial sector.

Net Profit and NII Growth: The bank’s Q2 net profit stood at Rs 5,238 crore, up 23.2% from Rs 4,253 crore YoY. Net interest income rose by 7.3%, reaching Rs 11,622 crore from Rs 10,831 crore in Q2FY24.

Asset Quality Improvements: Bank of Baroda’s gross NPA ratio fell to 2.50%, down from 3.32% in the prior period, while the net NPA ratio decreased to 0.60% from 0.76%, highlighting the bank's improved risk profile.

DLF Shares Climb 5% on 121% YoY Profit Surge and Deferred Tax Gains

DLF, India’s largest real estate firm, saw its shares rise by over 5% on October 28 after reporting a 121% YoY increase in consolidated net profit at Rs 1,387 crore for Q2FY25. The profit figures were boosted by a Rs 606 crore reversal of deferred tax liabilities, as part of tax rate changes under the Finance Act, 2024. Revenue also grew by 48% YoY, reinforcing positive sentiment around the stock.

Revenue and Profit Growth: DLF’s revenue for Q2FY25 rose 48% YoY to Rs 2,181 crore, while net profit surged 121%, largely aided by tax reversals.

Market Sentiment and Morgan Stanley’s Outlook: Morgan Stanley assigned an equal-weight rating with a target of Rs 910 per share. Investors are now closely watching the launch of DLF’s LUX5 project in the coming quarter.

Waaree Energies Receives Strong Investor Response Despite Modest Listing

Waaree Energies, India’s largest solar PV module manufacturer, debuted slightly below initial expectations but garnered robust interest from all investor segments. The listing price of Rs 2,550 per share left room for long-term gains, backed by government incentives and sector growth. Analysts advise long-term investors to hold, while suggesting short-term investors book profits around Rs 2,750-2,800.

Investor Strategy: Long-term investors are recommended to hold due to favorable sector demand, while short-term traders may consider profit-taking at Rs 2,750-2,800. Accumulation opportunities are suggested between Rs 2,200-2,300 on market dips.

JSW Energy Outbids Adani Power in Race for KSK Mahanadi Power with Rs 15,985 Crore Offer

JSW Energy secured a lead over Adani Power in the bidding for KSK Mahanadi Power, offering Rs 15,985 crore compared to Adani’s Rs 15,885 crore, according to reports. This bidding concluded on October 26 with six firms in contention. The 1,800 MW plant, facing insolvency since 2019, holds Rs 12,000 crore in cash reserves and Rs 32,000 crore in debt claims, offering significant value to the winning bidder.

Bidding Details and Market Context: The acquisition opportunity for KSK Mahanadi Power attracted multiple bidders, with JSW Energy emerging as the highest bidder amid stiff competition, highlighting the strategic importance of this distressed asset in the energy sector.