Core Insights - State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become the fourth most valuable listed company by market capitalization, with ICICI Bank climbing to the fifth spot, pushing TCS further down the rankings [1] - ICICI Bank's market cap reached ₹10.18 trillion, while TCS was valued at ₹10.02 trillion [1] - TCS shares fell nearly 5% to ₹2,766, marking the lowest level since December 2020, while ICICI Bank shares rose 1.5% to ₹1,428, the highest since January 16, 2023 [2] Market Dynamics - TCS is experiencing a decline due to panic selling in global tech stocks, driven by concerns over artificial intelligence (AI) impacting software companies and profitability [3] - The Nifty IT index dropped nearly 5%, down 11.7% year-to-date, reaching its lowest level since April 2025 [4] - Major IT firms like Wipro, Coforge, LTIMindtree, and TCS have seen significant declines in their stock prices, with Wipro leading the fall at 16.8% [4] Financial Performance - TCS reported a 13.9% decline in net profit for Q3FY26, amounting to ₹10,657 crore, down from ₹12,380 crore in the previous year [6] - The profit decline was attributed to restructuring expenses, one-time charges from changes in labor codes, and a provision of ₹1,010 crore for a legal claim [6] - Despite the profit miss, TCS's revenue performance exceeded Bloomberg estimates [6] Industry Outlook - Analysts at Motilal Oswal are monitoring AI-native partnerships as a key driver for the next 12-14 months, expecting a pick-up in AI services deals by mid-2026 [4] - Global SaaS companies, including Salesforce, are facing heavy selling as markets anticipate faster AI-led disruptions to legacy models [5] - IT services firms remain critical for large-scale integration, governance, data modernization, and system orchestration despite the shift towards AI workspaces [5]

Core Insights - India's currency market is under significant pressure, with the rupee hitting an all-time low against the U.S. dollar just before Republic Day 2026, raising concerns about the equity market and ETFs holding Indian equities [1][3] - The MSCI India Index has underperformed, rising only 2.2% in U.S. dollar terms in 2025, compared to a 29.9% increase in MSCI Emerging Markets [2] - The rupee's depreciation presents a paradox for ETF investors, as it may attract foreign investment but also increases volatility and risk [4] Economic Context - The decline of the rupee is attributed to massive capital outflows, with nearly $18 billion withdrawn from Indian equities in 2025, and an additional $846 million in early 2026 as investors sought safer assets [7] - Geopolitical tensions, particularly related to U.S.-India trade negotiations and global market uncertainties, have negatively impacted investor sentiment [8] - India's trade deficit has widened to over $25 billion, driven by rising energy and electronics import costs, further pressuring the rupee [9] Market Outlook - Analysts maintain a cautious outlook for the rupee in 2026, warning of potential further declines if geopolitical tensions persist or if the Federal Reserve maintains high interest rates [10] - Despite currency struggles, the IMF has upgraded India's 2026 growth outlook to 6.4%, indicating strong underlying economic productivity [12] ETF Performance - The WisdomTree India Earnings Fund (EPI) has total assets of $2.58 billion and has risen 2.4% over the past year, with top holdings including Reliance Industries and HDFC Bank [14] - The Franklin FTSE India ETF (FLIN), with assets of $2.75 billion, has also gained 2.4% over the past year, focusing on large and mid-cap companies [15] - The First Trust India NIFTY 50 Equal Weight ETF (NFTY) has total assets of $160.9 million and has risen 3.5% over the past year, providing exposure to the largest Indian securities [16]

Market Overview - The combined market valuation of nine of the top-10 most valued firms decreased by ₹2.51 lakh crore last week, with Reliance Industries experiencing the largest decline [1][2] - The BSE benchmark Sensex fell by 2,032.65 points or 2.43 percent during the same period [1] Company-Specific Valuations - Reliance Industries' market valuation dropped by ₹96,960.17 crore to ₹18,75,533.04 crore [3] - ICICI Bank's valuation decreased by ₹48,644.99 crore to ₹9,60,825.29 crore [3] - HDFC Bank's market cap fell by ₹22,923.02 crore to ₹14,09,611.89 crore [3] - Bharti Airtel's valuation diminished by ₹17,533.97 crore to ₹11,32,010.46 crore [3] - Tata Consultancy Services (TCS) saw a decline of ₹16,588.93 crore to ₹11,43,623.19 crore [3] - Larsen & Toubro's market cap decreased by ₹15,248.32 crore to ₹5,15,161.91 crore [3] - Bajaj Finance's valuation fell by ₹14,093.93 crore to ₹5,77,353.23 crore [4] - State Bank of India's market cap edged lower by ₹11,907.5 crore to ₹9,50,199.77 crore [4] - Infosys' valuation dived by ₹7,810.77 crore to ₹6,94,078.82 crore [4] - Hindustan Unilever's market cap increased by ₹12,311.86 crore to ₹5,66,733.16 crore [4] Market Sentiment - The market sell-off was attributed to weak global cues, persistent foreign institutional investor (FII) outflows, a depreciating rupee, and subdued corporate earnings [2][5] - Escalating geopolitical tensions and aggressive FII selling contributed to the market correction [5]

Core Insights - The latest data indicates significant increases in indicative borrow rates for various liquid option names, with Starfighters Space, Inc. (FJET) leading at 105.13% [1] Group 1: Borrow Rate Increases - Starfighters Space, Inc. (FJET) shows a borrow rate increase of 105.13%, up by 2.83 [1] - GraniteShares 1.5x Long COIN Daily ETF (CONL) has a borrow rate of 11.48%, increasing by 0.83 [1] - Icici Bank (IBN) reports a borrow rate of 1.10%, up by 0.80 [1] - EETH ETF (EETH) experiences a borrow rate of 19.93%, increasing by 0.59 [1] - Tradr 2X Long IREN Daily ETF (IREX) shows a borrow rate of 24.34%, up by 0.56 [1] - iShares Investment Grade Corporate Bond ETF (LQD) has a borrow rate of 3.00%, increasing by 0.55 [1] - Beyond Meat (BYND) reports a borrow rate of 12.97%, up by 0.49 [1] - Rani Therapeutics Holdings (RANI) shows a borrow rate of 18.04%, increasing by 0.44 [1] - Direxion Daily 20 plus Year Treasury Bear 3X Shares (TMV) has a borrow rate of 23.47%, up by 0.43 [1] - DeFi Development Corp (DFDV) reports a borrow rate of 10.50%, increasing by 0.39 [1]

Core Insights - Earth Science Tech Inc. has engaged IBN to enhance its corporate communications strategy, aiming to improve investor awareness and outreach [1][4]. Company Overview - Earth Science Tech operates as a strategic holding company focused on a diversified portfolio within regulated healthcare markets, emphasizing execution, compliance, and disciplined scaling [2]. - The company prioritizes hands-on operational oversight to build sustainable revenue streams and long-term shareholder value, rather than passive asset ownership [2]. Business Strategy - The company's diversified operations include licensed pharmaceutical compounding, digital health and telemedicine platforms, specialty healthcare services, and complementary assets [3]. - Earth Science Tech maintains direct control over day-to-day operations through wholly owned and majority-owned subsidiaries, allowing flexibility in capital and resource allocation [3]. Partnership with IBN - IBN will leverage its extensive investor-focused distribution network, which includes over 5,000 syndication outlets and various media channels, to increase awareness for Earth Science Tech [4][5]. - IBN has over 20 years of experience and a large audience, positioning it to effectively reach investors, journalists, and the general public [5]. Additional Information - Earth Science Tech's portfolio includes subsidiaries such as RxCompoundStore.com, Peaks Curative, Avenvi, Mister Meds, and others, focusing on health and wellness [5].

Group 1 - The meeting took place on January 20, where Zhang Hongyu, the consul, accompanied Consul General Qin Jie to visit the headquarters of ICICI Bank in Mumbai [1] - The discussion involved Santosh Pai, the head of the multinational client department, indicating a focus on international banking relationships [1] - The presence of Consul Ji Xuecui suggests a diplomatic interest in strengthening ties between the countries involved and the banking sector [1]

Group 1 - The article discusses the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2] - The recent 3QFY2026 disclosures revealed both positive and negative aspects, with a disappointing net profit that fell below expectations, although credit and leadership-related risks have been mitigated [1] Group 2 - The Value Pendulum is highlighted as a specialist in the Asian equity market, with over a decade of experience on both buy and sell sides, focusing on investment opportunities in the Hong Kong market [2]

Core Insights - ICICI Bank Ltd. reported a profit after tax of INR113.2 billion ($1.3 billion) for Q3 FY26, reflecting a 4% decline year over year due to increased provisions, higher operating expenses, and treasury losses, despite growth in net interest income and solid loan growth [1][9] Financial Performance - Net interest income (NII) increased by 7.7% year over year to INR219.3 billion ($2.4 billion), with a net interest margin of 4.30%, up 5 basis points [2] - Non-interest income (excluding treasury) rose to INR75.3 billion ($837 million), marking a 12.4% year-over-year growth, while fee income grew by 6.3% to INR65.7 billion ($731 million) [2] - Operating expenses reached INR119.4 billion ($1.3 billion), up 13.2% year over year [3] Loan and Deposit Growth - As of December 31, 2025, total advances were INR14,661.5 billion ($163.1 billion), a sequential increase of 4.1%, driven by growth in domestic, retail, rural, business banking, and corporate loans [4] - Total deposits amounted to INR16,596.1 billion ($184.6 billion), reflecting a 3.2% increase from the previous quarter [4] Credit Quality - The net non-performing assets (NPA) ratio improved to 0.37%, down from 0.42% in the prior year, with recoveries and upgrades of NPAs totaling INR32.8 billion ($365 million) [5] - There were net additions of INR20.7 billion ($231 million) to gross NPA, with gross NPA additions at INR53.6 billion ($596 million) and write-offs of INR20.5 billion ($228 million) [5] Provisions and Capital Ratios - Provisions (excluding tax) increased to INR25.6 billion ($285 million) compared to INR12.3 billion ($136.8 million) in the prior-year quarter [6] - ICICI Bank's total capital adequacy ratio was 17.34%, with a Tier-1 capital adequacy of 16.46%, both exceeding minimum requirements set by the Reserve Bank of India [7]

Core Insights - The Reserve Bank of India (RBI) directive relates to a portfolio of agricultural priority sector credit facilities, with no change in asset classification or borrower terms [1] - ICICI Bank reported a profit before tax excluding treasury of INR 149.57 billion, a decrease from INR 152.89 billion year-over-year, and profit after tax of INR 113.18 billion, down from INR 117.92 billion [1] - Core operating profit increased by 6% year-over-year to INR 175.13 billion, with total provisions for the quarter at INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [2][3] Financial Performance - Adjusted profit before tax excluding treasury would have risen approximately 6.2% year-over-year to INR 162.40 billion, and profit after tax would have increased 4.1% year-over-year to INR 122.80 billion [5][6] - Net interest income rose 7.7% year-over-year to INR 219.32 billion, with a net interest margin of 4.3% [13] - Non-interest income excluding treasury increased 12.4% year-over-year to INR 75.25 billion, with fee income rising 6.3% year-over-year to INR 65.72 billion [15] Credit Quality and Provisions - The net NPA ratio was reported at 0.37%, with provisioning coverage at 75.4% and contingency provisions of INR 131 billion [4][17] - Gross NPA additions were INR 53.56 billion, down from INR 60.85 billion a year earlier, with recoveries and upgrades amounting to INR 32.82 billion [18] - Management noted that the outstanding loans to non-banking financial companies (NBFCs) and housing finance companies (HFCs) were INR 791.18 billion, representing about 4.3% of advances [20] Growth Metrics - Average deposits grew 8.7% year-over-year, with total deposits up 9.2% year-over-year [7] - Domestic loan portfolio grew 11.5% year-over-year, with retail loans increasing 7.2% and business banking loans growing 22.8% [9] - The bank's capital ratios remained strong, with a CET1 ratio of 16.46% and total capital adequacy ratio of 17.34% [21]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion in Q3 of last year [3] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][6] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio grew by 7.2% year-on-year and 1.9% sequentially, with the rural portfolio growing by 4.9% year-on-year [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - Credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially due to high festive spends in the previous quarter [8] Market Data and Key Metrics Changes - Average LCR for the quarter was about 126% [4][6] - Net NPA ratio improved to 0.37% from 0.39% in the previous quarter [4] - Gross NPA additions were INR 53.56 billion, down from INR 60.85 billion in Q3 of last year [10] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy capital levels while delivering sustainable returns to shareholders [6] Management Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [6] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [7] - Management expects net interest margins to remain range-bound, with some deposit repricing expected [27] Other Important Information - The capital position remains strong with a CET1 ratio of 16.46% and total capital adequacy ratio of 17.34% [6] - Operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [26] Question: How do you view margins from here on? - Margins are expected to remain steady, with some deposit repricing anticipated [27] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are expected from this regulatory observation [33] Question: What is the outlook for credit card growth? - The decline in the credit card portfolio is attributed to high festive spending in the previous quarter, but growth is expected to improve [35] Question: How is the business banking growth outlook? - Business banking growth is strong, with a year-on-year growth of 22%, and the bank is not holding back on this segment [55] Question: What is the thought process behind the two-year extension for the CEO? - The board decided on a two-year appointment, which is almost three years until the end of the renewed term [71]