HDFC Bank Delivers Strong Q4
- 21st April 2025
Aaj Ka Bazaar
Wall Street indices posted losses for the third consecutive session on Thursday and remained closed on Friday in observance of Good Friday. The US index futures declined by 0.5% each after President Donald Trump made comments about terminating Jerome Powell, following Powell’s criticism of Trump’s trade policies. Tracking cues from Wall Street, Japan’s Nikkei slipped 0.74%, while the Hong Kong market remained shut for Easter holiday. Indian benchmark indices are expected to open on a slightly positive note, as indicated by GIFT Nifty trading in the green. However, markets may trend lower during the day, mirroring global sentiment. On the stock-specific front, TCS announced a partnership with Vianai Systems (a leading provider of enterprise-grade, domain-specific generative AI applications) to equip business leaders with advanced GenAI tools for decision intelligence.
Markets Around Us
BSE Sensex – 78,897.41 (0.44%)
Nifty 50 – 23,935.75 (0.35%)
Bank Nifty – 55,048.10 (1.40%)
Dow Jones – 38,856.87 (-0.76%)
Nasdaq – 16,286.45 (-0.13%)
FTSE – 8,275.66 (0.00%)
Nikkei 225 – 34,322.08 (-1.18%)
Hang Seng – 21,395.14 (0.00%)
Sector: Banking
HDFC Bank gains on strong growth
HDFC Bank, India’s largest private lender, reported strong Q4 results for FY25, with a 6.7% year-on-year rise in net profit to ₹17,616 crore and a 10.3% growth in net interest income (NII). The improvement was supported by solid loan growth and better asset quality—its gross NPA ratio dropped to 1.33% from 1.42% last quarter. The bank’s net interest margin remained healthy, reflecting efficient lending and deposit management. Analysts said the performance shows a turnaround from the past few weak quarters. Brokerages remained bullish, noting gains in deposit market share, stable slippages, and potential for better returns going forward. As a result, HDFC Bank’s stock rose nearly 2% in early trade. Overall, the bank appears well-positioned for steady growth in FY26 with a strong balance sheet and improving profitability.
Why it Matters:
HDFC Bank’s strong Q4 results show it’s bouncing back after a few weak quarters, driven by solid loan growth and stable asset quality. This performance boosts investor confidence and highlights the bank’s ability to manage costs and expand profitably. With brokerages staying bullish, it signals potential upside for the stock in the coming quarters.
NIFTY 50 GAINERS
TECHM – 1362.00 (4.82%)
INDUSINDBK – 820.00 (3.18%)
SBIN– 820.50 (2.89%)
NIFTY 50 LOSERS
ADANIPORTS – 1228.90 (-2.42%)
HDFCLIFE – 705.45 (-2.03%)
ITC- 422.00 (-1.23)
Sector : Computers- Software & Consulting
Tata Elxsi Q4 Disappoints
Tata Elxsi’s Q4 results were below market expectations, with net profit falling 13% YoY to ₹172 crore and revenue rising slightly to ₹908 crore—both missing estimates. The biggest drag was its transportation segment, which saw a nearly 10% drop in revenue due to global uncertainties and paused projects from major auto clients, especially in the US and Europe. These issues are linked to ongoing tariff and geopolitical challenges. As a result, Morgan Stanley downgraded the stock, cutting the target price to ₹4,660 and maintaining an ‘Underweight’ rating. The brokerage believes high valuations, weak earnings momentum, and a soft media segment could put more pressure on the stock. While the company is hopeful for improvement in the next quarter, near-term visibility remains uncertain. Traders and investors should watch the stock closely as further corrections are possible if macro challenges persist.
Why it Matters:
Tata Elxsi’s underwhelming Q4 performance signals trouble in its core automotive segment, hit by global uncertainties and project delays. With Morgan Stanley downgrading the stock and cutting its target price, investor sentiment may turn cautious. Given the company’s high valuation and weak near-term outlook, further downside in the stock is possible.
Around the World
Asian markets had a mixed start to the week in a low-volume session due to Easter holidays in Australia, New Zealand, and Hong Kong. Chinese stocks edged up after the People’s Bank of China kept its key loan rates unchanged, signaling a shift toward using fiscal measures to support growth. Meanwhile, Japan’s markets fell over 1% as higher-than-expected inflation raised uncertainty around future rate hikes by the Bank of Japan, pushing forecasts from May to July. The Nikkei dropped 1.2%. Trade tensions also kept investors cautious, with ongoing concerns about tariffs under U.S. President Trump, especially with China and Japan. While China is open to talks, it wants more respect from the U.S. South Korea’s KOSPI was flat, Thailand’s index slipped, and Singapore gained. India’s Nifty 50 futures showed a positive start, up 0.4%. Overall, markets remained cautious, influenced by inflation, central bank decisions, and global trade uncertainty.
Option Traders Corner
Max Pain
Nifty 50 – 23800
Bank Nifty – 53000
Nifty 50 – 23674 (Pivot)
Support – 23,476, 23,100, 22,902
Resistance – 24,049, 24,247, 24,623
Bank Nifty – 53927 (Pivot)
Support – 53,447, 52,605, 52,125
Resistance – 54,769, 55,249, 56,092
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