In today’s briefing:
- India Channel Insight | Bandhan Bank (BANDHAN IN) | The Other Shoe to Drop
- Nuvama: Continues to Deliver Strong
- EQD / NSE Vol Update / IVs Rise in Conjunction with Equities Counter to Regular Spot-Vol Correlation
India Channel Insight | Bandhan Bank (BANDHAN IN) | The Other Shoe to Drop
- While the street is getting excited about Bandhan Bank (assuming a change in management, end of a bad asset cycle, and lower valuations), we are not.
- We believe the next set of problems for the bank are yet to be unleashed, and a change in management will only intensify the challenges ahead.
- We believe the worst is yet to come for the bank.
Nuvama: Continues to Deliver Strong
- Nuvama Wealth Management (“Nuvama”) continues to report strong growth with Q4FY24 revenue at INR 596cr, a growth of 35% YoY. Q4FY24 PAT grew 57% YoY to reach INR 181cr.
- Overall, FY24 revenue and PAT ended strong at INR 2063cr (YoY growth of 31%) and INR 597cr (YoY growth of 62%), respectively.
- FY24 growth was led by the capital markets (revenue grew 64% YoY) segment, aided by favorable cycle and market-share gains. Wealth and asset management segments are also scaling up well.
EQD / NSE Vol Update / IVs Rise in Conjunction with Equities Counter to Regular Spot-Vol Correlation
- Implied Volatilities (IVs) continued to rise as the underlying index tried to break above critical resistance – marking a break-down of usual spot-vol correlations.
- Vol surface smile & skew characteristics held steady at the 25-Delta point of curve, while dynamics at the 10-Delta zone extended further.
- Nifty50 Back-end Term Structure is in Backwardation as Monthly options enjoy markups based on July-end Indian Budget release.
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