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The stock is currently trading at 16.7x / 10.1x FY23E/24E earnings. However, on account of steep correction in the stock price (down 28% in 3 months), it has upgraded rating to BUY with a revised TP of Rs 520 (earlier TP of Rs 541) valuing it at 14x (its 5-year average PE) on FY24E earnings.

“We feel very confident of growing from here in terms of building our lending book. At the same time, the bulk of our lending book is floating rate and therefore it is able to transmit the prices and lastly, as a converter between savers and borrowers I am glad that savers will now get a better deal than they did in the last few years with negative real interest rates.”

A total of 18,406 shares changed hands on the counter till 10:35AM (IST)

Investor wealth, as suggested by the BSE market capitalisation, jumped Rs 3.19 lakh crore to Rs 262.80 lakh crore from Rs 259.60 lakh crore. About three stocks rose on BSE for every one that declined. Some 63 stocks hit their 52-week highs; 135 in total hit their upper circuit limits.

Revenue rose 9.7% to $4.83 billion from a year ago; analysts expected $4.83 billion.

The US dollar index, which measures the currency against six major rival currencies, nursed its sharpest monthly fall on Thursday after the policy statement. The index was last at 102.64 as against 102.55 at previous close.

The valuation of the broader markets are at the marginally higher end of the long-term ranges. The Nifty 50, post the recent correction, is trading at close to 18-19x Fwd. PEs are still higher than long-term averages on the positive side; earnings growth has revived and is expected to be 18%+ in FY23. A small correction in the markets post the sharp rally over the last 24 months is part and parcel of the cycle.

While the Fed hiked rates by 50 basis points, the most since 2000, and flagged similar moves in coming months, Powell said 75 basis points was “not something that the committee is actively considering,” spurring a rally in stocks and bonds.

“Apart from one or two companies, across all sectors, we are going to see large scale downgrades because one cannot keep passing on input prices because consumers start to trade down and do not buy. That is what the problem is going to be. Margin pressure will be there and if that is accompanied by any kind of reduction in sales.”

JM Financial Institutional Securities’ MD & Chief Strategist Dhananjay Sinha suggests a few key themes for portfolio management.