A day like today shows that ultimately the market is perhaps the only omniscient entity on the planet.
State Bank of India’s June quarter earnings is a case in point, in investors putting their faith behind a stock and the company delivering on them and more.
The country’s largest lender trounced earnings expectations and continued to deliver internals that was better than even the bluest of blue-chip private-sector lenders.
The stellar earnings deserved a stellar reward. Shares of the state-owned bank closed over 2 per cent higher today after struggling in the red through most part of the session.
is struggling
After the over 10 per cent crash on Tuesday, Vodafone Idea’s stock tanked another 19 per cent today as concerns grow every day that the telecom operator is headed to the bankruptcy court.
Even an Economic Times report stating that the government may soon bring in a relief package for the sector was not enough to placate the fear that has gripped investors.
Some of the company’s lenders have had to come on business news channels to deny rumours of default, but as days and weeks pass by investors are likely to wash their hands off what was once considered to be a turnaround story waiting to happen.
Midcap meekness?
For those who observe markets, the curious weakness in midcap and smallcap stocks today and on Tuesday is confounding. Both midcaps and smallcaps had risen sharply over the past few months as they sidestepped concerns over the second wave and inflation while their largecap peers oscillated in a tight range.
There are two possible explanations for this curious underperformance by the broad market. First, concerns around the impending third wave and its impact on earnings are starting to catch up with investors as some parts of the country see a spike in cases again.
Second, that the biggest drivers of gains in the segment, retail investors, are booking profits in their biggest winners to invest in the tsunami of IPOs that are flooding the primary market this month starting with four IPOs launched today itself.
