"SBI reported strong loan book growth of 15.6%, outpacing AgenciesShares rise over 7% after a robust Q3 Brokerages turned more upbeat on the stock following the results. Nuvama, which called SBI a top buy following its standout December-quarter performance among large lenders, raised its target price to ₹1,250 from ₹1,150. SBI shares have climbed 39.4% over the past six months, compared with a 5.2% rise in the Nifty. Analysts said the stock has been on a steady upswing since September 2025, supported by c ...

Core Insights - Companies are increasingly turning to bank loans due to elevated yields in the corporate-bond market [1] - The State Bank of India (SBI) reported over 13% year-on-year growth in wholesale advances, driven by sectors such as services, petroleum, and petrochemicals [1] - Economic activities have improved in the third quarter, attributed to GST rationalization, with a notable increase in working-capital drawing by companies [2] Company Performance - SBI has a loan pipeline of ₹7.9 trillion, which includes sanctioned but unutilized loans [1] - Bank of Baroda's wholesale books grew 8.1% year-on-year and 4.6% sequentially, aiming for 10% year-on-year growth by year-end [3] - Bank of India reported an 11% year-on-year growth in corporate books, with a corporate-loan pipeline of ₹65,000 crore [5] - Bank of Maharashtra experienced nearly 14.5% year-on-year growth in its corporate books in Q3 [5] Sector Trends - Credit to industry recorded a 13.3% year-on-year growth, with micro and small industries showing a sharp acceleration at 31% year-on-year [7] - Large private banks, including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, reported significant growth in their corporate books [8] - HDFC Bank reported 10.3% year-on-year growth, while Axis Bank showed the strongest growth at 27% year-on-year [9] Lending Dynamics - Much of the corporate lending is occurring at external benchmark-linked rates (EBLR), facilitating faster monetary transmission [10] - A report by SBI Research indicates that a decline in bank lending rates has narrowed the pricing gap with corporate-bond yields, prompting firms to shift back to banks [10]

Market Overview - Benchmark equity indices Sensex and Nifty extended gains for the second consecutive session, driven by optimism over the India-US trade deal and strong buying in public sector banks, consumer durables, and realty stocks [3][10] - The 30-share BSE Sensex increased by 485.35 points, or 0.58%, closing at 84,065.75, while the NSE Nifty rose by 173.60 points, or 0.68%, settling at 25,867.30 [3][7] Sector Performance - Key sectors attracting investor interest included cement, capital goods, textiles, and consumer discretionary, supported by favorable trade deals and union budget proposals [11] - Public sector banks showed stronger-than-expected performance, contributing to the outperformance of the PSU bank index [10] Stock Performance - Notable gainers included State Bank of India, Titan, UltraTech Cement, Tata Steel, and Kotak Mahindra Bank, while laggards comprised PowerGrid, NTPC, and Infosys [4][9] - The benchmark index reached an intraday high of 84,314.68, reflecting a surge of 734.28 points, or 0.87% during the session [6] Foreign Investment - Foreign institutional investors (FIIs) purchased equities worth ₹1,950.77 crore, indicating a return of foreign capital to the market [12]

Core Viewpoint - The BSE benchmark experienced a significant surge of 2,857.46 points, or 3.53%, during the week, driven by strong performances from several major firms, particularly Reliance Industries, while IT stocks faced selling pressure due to global trends and valuation concerns [4][6]. Group 1: Market Valuation Changes - The combined market valuation of eight of the top ten firms increased by Rs 4,55,336.36 crore, with Reliance Industries contributing the most at Rs 1,41,887.97 crore, bringing its total market capitalization to Rs 19,63,358.79 crore [4][6]. - LIC's market valuation rose by Rs 64,926.1 crore to Rs 5,70,198.54 crore, while Bharti Airtel's valuation surged by Rs 52,516.39 crore to Rs 11,62,288.64 crore [4][6]. - ICICI Bank's valuation increased by Rs 52,476.97 crore to Rs 10,06,258.82 crore, and Bajaj Finance added Rs 48,659.83 crore to reach Rs 6,10,830.20 crore [4][6]. - State Bank of India's valuation rose by Rs 45,460.79 crore to Rs 9,84,353.06 crore, and HDFC Bank's valuation increased by Rs 32,350.28 crore to Rs 14,48,249.63 crore [5][6]. - Hindustan Unilever's market valuation grew by Rs 17,058.03 crore to Rs 5,69,482.18 crore [5][6]. Group 2: Declines in Market Valuation - Tata Consultancy Services (TCS) saw a decline in its market valuation by Rs 88,172.8 crore, bringing it down to Rs 10,64,242.35 crore [5][6]. - Infosys' market capitalization fell by Rs 63,462.66 crore to Rs 6,26,067.95 crore, reflecting the broader selling pressure in IT stocks [5][6]. Group 3: Industry Trends - The IT sector faced selling pressure in line with weak global trends in technology stocks, driven by valuation concerns and worries over the rapid advancements in artificial intelligence [5][6]. - Reliance Industries maintained its position as the most valued firm, followed by HDFC Bank, Bharti Airtel, TCS, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, LIC, and Hindustan Unilever [5][6].

Market Valuation Overview - The combined market valuation of eight of the top 10 valued firms increased by ₹4.55 lakh crore last week, with Reliance Industries being the largest beneficiary [1][2] - The BSE benchmark index rose by 2,857.46 points or 3.53 percent during the same period [1] Gainers and Losers - The firms that gained in valuation include Reliance Industries, HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, Bajaj Finance, Life Insurance Corporation of India (LIC), and Hindustan Unilever [2] - Tata Consultancy Services (TCS) and Infosys experienced a decline in their market valuations [2] Individual Firm Valuations - Reliance Industries added ₹1,41,887.97 crore to reach a market valuation of ₹19,63,358.79 crore [2] - LIC's valuation increased by ₹64,926.1 crore to ₹5,70,198.54 crore [3] - Bharti Airtel's market valuation surged by ₹52,516.39 crore to ₹11,62,288.64 crore [3] - ICICI Bank's valuation jumped by ₹52,476.97 crore to ₹10,06,258.82 crore [3] - Bajaj Finance's market capitalization climbed by ₹48,659.83 crore to ₹6,10,830.20 crore [3] - State Bank of India's valuation rose by ₹45,460.79 crore to ₹9,84,353.06 crore [3] - HDFC Bank's valuation advanced by ₹32,350.28 crore to ₹14,48,249.63 crore [4] - Hindustan Unilever appreciated by ₹17,058.03 crore to ₹5,69,482.18 crore [4] Declines in Valuation - TCS saw its market valuation erode by ₹88,172.8 crore, bringing it down to ₹10,64,242.35 crore [4] - Infosys experienced a decline of ₹63,462.66 crore, resulting in a market capitalization of ₹6,26,067.95 crore [4] Sector Trends - IT stocks faced selling pressure last week, influenced by weak trends in global tech firms and concerns regarding valuation and advancements in artificial intelligence [5]

Core Insights - The BSE benchmark experienced a significant increase of 2,857.46 points or 3.53 percent last week, indicating a strong rally in equities [1][6] - The combined market valuation of eight of the top ten valued firms surged by Rs 4,55,336.36 crore, with Reliance Industries being the largest contributor [6] Company Performance - Reliance Industries saw its market valuation rise by Rs 1,41,887.97 crore, reaching Rs 19,63,358.79 crore, making it the most valued firm [2][6] - Life Insurance Corporation of India (LIC) increased its valuation by Rs 64,926.1 crore to Rs 5,70,198.54 crore [4][6] - Bharti Airtel's market valuation surged by Rs 52,516.39 crore to Rs 11,62,288.64 crore [4][6] - ICICI Bank's valuation jumped by Rs 52,476.97 crore to Rs 10,06,258.82 crore [4][6] - Bajaj Finance's market capitalization climbed by Rs 48,659.83 crore to Rs 6,10,830.20 crore [5][6] - State Bank of India's valuation increased by Rs 45,460.79 crore to Rs 9,84,353.06 crore [5][6] - HDFC Bank's valuation advanced by Rs 32,350.28 crore to Rs 14,48,249.63 crore [5][6] - Hindustan Unilever appreciated by Rs 17,058.03 crore to Rs 5,69,482.18 crore [5][6] Declines in Valuation - Tata Consultancy Services (TCS) experienced a decline in market valuation by Rs 88,172.8 crore, bringing it down to Rs 10,64,242.35 crore [5][6] - Infosys saw its market capitalization decrease by Rs 63,462.66 crore to Rs 6,26,067.95 crore [6] - The decline in IT stocks was attributed to global trends in technology firms and concerns regarding rapid advancements in artificial intelligence [6]

Trade Policy and Market Reactions - President Trump announced a significant reduction in U.S. tariffs on Indian goods from 50% to 18%, leading to a surge in Indian equity markets, with the Nifty 50 index rising 4.86% and the BSE Sensex increasing by 4.48% [2] - U.S.-listed Indian companies such as Infosys, Wipro, and HDFC Bank experienced notable stock increases of 4.3%, 6.8%, and 4.4% respectively, while the iShares MSCI India ETF saw a 3% rise [2] - The announcement of new tariffs on U.S. imports from countries trading with Iran could reach as high as 25%, raising concerns about market volatility, particularly for energy producers and sectors like airlines [3] Domestic Initiatives and Market Impact - An executive order was signed to increase the in-quota tariff-rate quota for lean beef trimmings by 80,000 metric tons for 2026, aimed at reducing ground beef prices, which averaged $6.69 per pound in December 2025 [4] - The TrumpRx.gov website was launched to provide discounted drugs, with Pfizer's stock rising 6.8% following its announcement to participate, offering an average 50% discount on certain drugs [5][6] - Analysts expressed skepticism about the effectiveness of TrumpRx, with some labeling it a "glorified coupon book" and suggesting it may not significantly impact consumer behavior [6][7] Market Performance and Economic Indicators - The Dow Jones Industrial Average (DJIA) reached a new all-time high of 50,115.67, following a significant rally of 1,207 points, while the broader market saw a rebound with the S&P 500 and Nasdaq also gaining [8][9] - Despite the rally, the S&P 500 and Nasdaq ended the week slightly down, indicating ongoing concerns about AI spending and aggressive tech selling [9] - Economic studies suggest that Trump's tariffs may slow economic growth, with U.S. consumers expected to bear 67% of the tariff burden by July 2026, translating to an average tax increase of $1,300 per household [10]

Group 1 - State Bank of India (SBI) has raised $1 billion through a five-year loan from Mitsubishi UFG Financial Group (MUFG), marking the first social loan of its kind by a bank in India [1][2][5] - The funds will be allocated to support women's economic empowerment and businesses led by women, aligning with gender equality initiatives [1][2] - The loan was priced at 90 basis points above the three-month SOFR, which is more favorable compared to HDFC Bank's recent loan pricing of 94 basis points above the same benchmark [1][5] Group 2 - The loan includes a green shoe option of $500 million and is expected to close in March 2026, with syndication launched on February 2 [2][5] - With the three-month SOFR at approximately 3.83%, the effective interest rate for SBI is projected to be around 7.73% after accounting for dollar hedging costs [5] - MUFG has set a sustainable finance target of $660 billion by 2030 as part of its medium-term business plan, reflecting a commitment to ESG goals [6]

Market Overview - The GIFT Nifty is trading with losses of around 0.3% at 25,779, indicating a negative open for the benchmark index [1] - The Nifty 50 closed up more than 2.5% at above 25,700, marking its best performance since May 2025 [2] - Sensex increased by 2.54% to end at 83,739.13, with midcap and small-cap indices gaining nearly 3% [2] US Market Recap - A tech-led selloff caused stocks to retreat from near-record highs, with the S&P 500 dropping 0.8% and the Nasdaq 100 falling 1.6% [3][4] - Concerns over software stocks were heightened by Anthropic's automation tool, impacting investor sentiment [4] - Oil prices rose due to geopolitical risks, while gold rebounded after a significant decline [3] Asian Market Update - Most Asian shares fell following the US tech-led selloff, with Japanese and Australian stocks opening lower [5] - Advanced Micro Devices Inc. shares declined after issuing a disappointing sales forecast [5] Commodity Check - Oil prices increased for a second consecutive session, with West Texas Intermediate nearing $64 per barrel after a 1.7% gain [6] - Gold stabilized after recovering some losses, trading near $4,950 an ounce, having jumped over 6% in the previous session [7] Key Events - The Reserve Bank of India's monetary policy committee meeting is set to start, with an interest rate decision to be announced on Friday [8] Earnings Reports - TCI Express reported a revenue increase of 5.9% to Rs 314.1 crore and a net profit rise of 14.8% to Rs 22.0 crore [11] - Mankind Pharma's revenue grew by 11.5% to Rs 3,567 crore, with a net profit increase of 7.6% to Rs 409 crore [11] - Aditya Birla Capital's total income rose by 13.1% to Rs 12,002 crore, with a profit increase of 10.5% to Rs 945 crore [12] Corporate Actions - NBCC (India) received work orders worth Rs 271.32 crore [26] - Tata Communications' CFO resigned, and Satin Creditcare Network appointed a new CFO [26] - JK Lakshmi Cement announced an increase in expansion project costs from Rs 2,500 crore to Rs 3,000 crore [26] Stocks in News - Aditya Birla Capital approved raising funds via NCDs within an overall borrowing limit of Rs 1,65,000 crore [26] - Varroc Engineering secured a strategic contract with a global EV OEM for AC-bi-directional wall chargers [26] - Shipping Corporation of India signed an MOU to acquire and operate vessels and containers [26]

Core Viewpoint - The Reserve Bank of India's Monetary Policy Committee is expected to maintain the policy rate at 5.25%, indicating a pause in rate cuts after previous easing measures [1][3][4]. Monetary Policy Outlook - A Mint poll indicates that nine out of ten economists predict the repo rate will remain unchanged at 5.25%, with only one economist expecting a 25-basis-point cut to 5.00% [1]. - The MPC is anticipated to keep a 'neutral' stance, allowing flexibility in future policy adjustments [2][4]. - The focus is shifting towards liquidity management rather than rate adjustments, as systemic liquidity remains low [2][6]. Liquidity Concerns - As of February 2, liquidity in the banking system was in surplus of ₹1.7 trillion, but pressures persist due to RBI's foreign exchange interventions [7][9]. - Economists suggest that the RBI should prioritize easing liquidity through open market operations (OMOs) and dollar buy-sell swaps [6][7]. - A potential temporary 1% cut in the cash reserve ratio (CRR) may occur if liquidity pressures continue [10][11]. Inflation and Growth Dynamics - Inflation is expected to average around 4% in FY27, aligning with the RBI's target, while growth indicators show improvement [3][4]. - The MPC is likely to wait for the new consumer price index (CPI) series release on February 12 before making significant policy changes [12][13]. - The current CPI inflation forecast for FY26 is expected to remain at 2.0%, with a possible downward adjustment for the January-March quarter [14]. Economic Context - The conclusion of the 125-basis-point easing cycle is attributed to strong domestic growth, with expectations of growth remaining above 7.6% despite global uncertainties [5][14]. - Recent government borrowing programs and the India-US trade deal are not expected to significantly impact the MPC's immediate decisions [4][14].