For the quarter ended December 2016, the collective NII of the listed 25 PSBs stood at `46,615 crore — its lowest in at least three years.
Open interest (OI) of the stock futures expiring February 23 jumped 25% as the shares tumbled, indicating heavy shorting. On the options front, OI put-call ratio fell to 0.37 from 0.76 on Friday.
After rallying 80% in the past year, the SBI stock may continue to trade near current valuations of 1.25 times its FY18 book value.
There are several favourable announcements for affordable housing in the Budget. Granting of infra status may bring more refinancing opportunities for HFCs.
In the wake of demonetisation, the bank, like many of its public-sector peers, was expected to report underwhelming credit growth.
Net profit fell about 19% to Rs 2,442 crore at the bank, the stock of which now trades about 1.5 times its FY18 book value.
At 5.2 times its FY18 expected book value, the Bajaj Finance stock now trades only a tad lower than the peak valuations it had reached late October.
The SME segment or business banking division, in particular is weighing on total credit growth.
A stronger volume growth till the first week of November helped MMFS compensate for the impact of demonetisation, which kicked off since Nov 8.
BSE's valuation looks cheaper than 23 times forward PE multiple commanded by MCX during its IPO in 2012. But, this reflects BSE's inferior financials.
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