SEBI has instructed SEBI Registered Investment Advisers (RIA) to refrain from dealing in digital gold on any other such unregulated products. RIAs have been ostensibly providing a platform for investors to buy and sell digital gold and also recommending the product. SEBI has pointed out the digital gold units are not issued by any regulated entity. There is no way of checking gold backing of the digital gold units and also it does not classify as a security under SCRA.

Let me talk about the Bank of Maharashtra first. It reported 13.16% growth in revenues for the Sep-21 quarter at Rs.3,700 crore. In terms of specific segments of the bank; revenues from treasury was flat on yoy basis. While revenues from corporate banking where lower it was more than compensated by a rise in retail banking revenues. Treasury gave a profit boost and retail banking saw EBIT turnaround from loss to profit.

Profit after tax for the quarter was up 102.37% at Rs264cr, boosted by higher revenues from interest and investments. However, the interest costs were lower. Gross NPAs fell sharply from 8.86% to 5.56%, and the all-important return on assets or ROA stands at a highly competitive level of 0.55%.

Now we turn to IDBI Bank. The bank reported -9.93% fall in revenues at Rs.5,059 crore for the Sep-21 quarter. While the much smaller treasury income picked up, the revenues from retail banking were 5% lower on lower yields and corporate banking revenues fell 36%. However, operating profits of IDBI Bank increased 14.21% due to lower interest and employee costs. The net interest margins or NIMs expanded from 2.70% to 3.02% yoy.

Profit after tax for Sep-21 quarter was up 77% at Rs.589 crore. In the latest quarter, there was a huge NPA write back of Rs.1,426 crore. Gross NPAs at 20.92% can be considered to be high in absolute terms, but net NPA level of 1.62% hints that most of the bad assets are already provided for. ROA at 0.78% is what stands out about IDBI Bank’s results.

Let me talk about the concern point of Asian Paints first. It reported 33% growth in total revenues for the Sep-21 quarter at Rs.7,096 crore. There was growth across the paints vertical as well as the home improvement vertical. However, operating profits fell -34.5% fall to Rs.702 crore. This was driven by raw material costs in the Sep-21 quarter spiking up sharply by 73%.

Net profits were down -28% yoy at Rs.596 crore largely on account of spike in raw material costs getting transmitted to the bottom line. You must also remember that paints are an oil intensive product and the spike in crude to above $85/bbl in the Brent market also resulted in a big impact on the profits. Net margins at 8.40% compared to 15.52% in Sep-20 quarter.

Now for the good news on JSW Steel. It reported 69% growth in revenues for Sep-21 quarter to Rs.32,503 crore. Incidentally, JSW recorded the highest every quarterly revenues backed by growth in volumes and better price realization. It also reported highest ever EBITDA of Rs.10,417 crore in the quarter. Saleable steel at 3.83 million tonnes grew 10% QOQ. Operating margins improved from 16.95% to 28.24% over last one year.

Net profits of JSW Steel were up a whopping 350% yoy at Rs.7,170 crore with the EBITDA margins at 32%, among the best in the integrated steel industry. JSW also enhanced its exports by 26% on sequential basis. Net margins improved nearly 3-fold at 22.06% compared to just about 8.27% in Sep-20 quarter.

On Thursday the stocks corrected sharply for the third day in succession, although there was some recovery in the last hour of trade. The Nifty actually got pretty close to the 18,050 mark before taking support at that range closing higher. The pressure was most visible across consumer oriented companies, especially the FMCG stocks, on cost concerns.

If it was Hindustan Unilever earlier, this time around Asian Paints dampened the sentiments in the market with its 28% fall in profits. This was on the back of surge in crude and other input costs. This has been visible trend across FMCG and consumer companies, where input costs have gone up sharply, thanks to crude prices. RIL is the big result today.

Foreign investors were net sellers on Thursday of Rs.2,819 crore while local funds bought stocks worth Rs.428 crore. FII selling is getting disconcerting by the day. Global cues were not too decisive. Dow closed flat and the NASDAQ closed 62 bps higher. Europe stayed in the negative through the day while SGX Nifty is positive but that does not really matter.

We could see selling slowing down on Friday, as the Nifty lost nearly 400 points point to point in the last 3 days. It looks for now like the Nifty is taking support around the range of 18,000 to 18,050. While costs are a concern for inputs, profits are not likely to be impacted too much for other sectors. Banking may really hold the key to numbers.

Tata Chemicals plans to hive off its US based soda ash business. Soda ash finds extensive applications in detergents, pharmaceuticals, glass, paper and in water treatment. Tata Chemicals is looking at a valuation of $1 billion or Rs.7,600 crore for the US Soda Ash plant, which is nearly 30% of its overall market at this point of time. Tata Chemicals is talking to private equity investors as well as strategic buyers for the proposed stake sale.

The Bombay High Court has asked Zee Entertainment to summon an EGM of shareholders at the earliest as sought by Invesco Fund. Invesco, which owns 17.88% in Zee, has been asking for the EGM to debate the removal of Punit Goenka from the post of MD and CEO and also have six of its own nominees on the board. Whatever resolution is passed at the EGM, will be put on hold pending the final order by Bombay High Court.

Paytm is likely to scrap its pre-IPO equity placement of Rs.2,000 crore ahead of the proposed Rs.16,600 crore IPO. This is due to differences over pricing and valuation of the company. While Paytm is seeking valuation of $20 billion, the investors are inclined towards something closer to $17-18 billion. Paytm is yet to take a final call on whether to go ahead with the pre-IPO placement at lower valuations or to scrap the idea altogether.

Incidentally, that is absolutely correct. GAIL is planning to build India’s largest green hydrogen plant over the next one year, which is considered to be the most environment friendly form of fuel. GAIL is looking to build a 10 MW electrolyzer, which would be capable of generating 4.50 tonnes of green hydrogen daily.

This is an area where Reliance and Adani are planning huge investments. Hydrogen can be produced through coal gasification (brown Hydrogen), methane (blue hydrogen) or via renewable sources (green hydrogen). The current capacity of GAIL for green hydrogen will be double the capacity that NTPC is planning.