Major Moves in the Banking and Power Sectors
The domestic stock market is set for a strong opening on May 12 market buzz, with GIFT NIFTY futures indicating a 478-point rise in the NIFTY50 index. Among the most-watched stocks is YES Bank, which has drawn investor focus following a major deal involving State Bank of India (SBI) and seven other lenders. These institutions collectively announced the sale of 20% of their stake in YES Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for ₹13,483 crore. SBI alone will offload 13.19% for ₹8,889 crore, while Axis Bank, HDFC Bank, ICICI Bank, and others will divest 6.81% for ₹4,594 crore. This transaction marks the largest cross-border investment in India’s banking history, positioning SMBC as YES Bank’s largest shareholder.
In other May 12 market buzz, Adani Power secured a ₹2 billion project to supply 1,500 MW of electricity to Uttar Pradesh, following state cabinet approval. A long-term supply agreement with the Uttar Pradesh Power Corporation Ltd is expected.
Pharma, Manufacturing, and Real Estate Earnings Drive Optimism
Dr. Reddy’s Laboratories reported a 21% increase in net profit for the March quarter at ₹1,587 crore, driven by robust sales in both the US and Indian markets. The pharma sector may remain in focus, especially after former U.S. President Donald Trump’s announcement regarding a significant executive order aimed at slashing drug prices by up to 80%.
Meanwhile, Triveni Turbine posted a 60.44% jump in quarterly profit to ₹93.7 crore due to increased income, and Shakti Pumps reported 23% profit growth with record revenue of ₹2,516 crore in FY25. Thermax also reported a 10% increase in net profit, backed by rising revenues, while ABB India registered a 3% growth in Q1 profit at ₹474 crore.
In the real estate space, Godrej Properties announced plans to launch housing projects worth ₹40,000 crore, aiming to strengthen its market leadership. Fenesta, part of DCM Shriram, acquired a 53% stake in DNV Global for ₹44 crore to enhance its product line through backward integration.
Broad-Based Financial Strength and Key Regulatory Developments
Public Sector Banks (PSBs) delivered a record profit of ₹1.78 lakh crore in FY25, marking a 26% year-on-year growth. SBI alone contributed over 40% of this figure. Bank of India saw an 82% rise in Q4 profit to ₹2,626 crore, fueled by treasury gains and strong recoveries. The May 12 market buzz also highlights the overall strength of the financial sector.
However, regulatory action was taken as the RBI imposed penalties on SBI (₹1.72 crore) and Jana Small Finance Bank (₹1 crore) for compliance violations.
Additional corporate updates include Reliance Power turning profitable with ₹126 crore net profit in Q4, Birla Corporation reporting a 32.7% rise in quarterly profit to ₹256.6 crore, and SpiceJet re-inducting a grounded aircraft as part of its operational revival. M&M has also sought CCI approval for acquiring a 58.96% stake in SML Isuzu.
As 80 companies, including Tata Steel, Happiest Minds, and SRF, gear up to release Q4 results, market activity remains high, supported by strong fundamentals and strategic investments across sectors.
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