Yes Bank Reports Profit; NPA Spoils The Show

Market This Week

The market this week was too volatile compared to last week, but the primary trend was up. Domestic uncertainties were due to global worries like uncertain U.S. foreign policies. As we can see FIIs buying was still on while DIIs were booking short term gains and reinvesting in the market. Investors were eyeing on quarter earnings of the companies. IT earning results have disappointed the market, but somehow midcaps have started well and there are bigger hopes from remaining set of midcap companies to deliver better results.

Movers And Shakers

The earning season kick-started with Infosys last week. It disappointed the street but looking at the global uncertainties going on for IT companies, Infosys is doing well to tackle the situation. Yes Bank has posted better results but like always asset quality and Non-performing assets (NPA) are big roadblocks. The concern for the banks, like it was in the last quarter, is NPAs rose by 1.5% this quarter. On the other hand, as we had anticipated last week, midcaps are again the gainers for the market.

Key Market Drivers

Indiabulls Real Estate was the pick of the month as the stock spiked more than 60% in the short span of 25 days. The stock has given investors a pleasant short-term gain. The restructuring news from the company gave a boost to the investors' sentiments and street went on buying the stock like a hot cake. Later the stock settled nearly 40% up in a single trading session. Edelweiss Financial Services is on a bull run as well. While DHFL is gaining silently.

Event Watch

Post Yes Bank result, eyes are on other giants like SBI, ICICI. But most favourites are still midcaps, as post demonetisation, midcaps were crawling but has gained the momentum and recovered earlier losses. At this point, midcaps are counting profits which are only expected to grow in coming time.

Stocks to Watch

Talwalkar's Better Value Fitness is on the upside while Cipla is on the downside.