On the CEO's approval, the Kotak Mahindra Bank stock price might rise

 On the CEO's approval, the Kotak Mahindra Bank stock price might rise

MUMBAI: Based on the banking regulator's clearance of the managing director as well as chief executive candidate and quarterly profits that surpassed analysts' expectations, analysts anticipate that the shares of Kotak Mahindra Bank Ltd. would start higher on Monday, perhaps exceeding benchmark indexes.

The delivery-to-traded volume on Friday, which was 72.13%, was the biggest since July 14 (83.59%). The number of open positions in the active futures contract decreased by 17% in tandem with this, a hint that bears were closing off short bets in preparation for a substantial event.

Siddhartha Khemka, research head (retail), Kotak Mahindra Bank, stated that the possibility of a gap-up opening Monday even though markets are likely to pull back given increasing bond yields in the US and uncertainty due to the Israel war is raised by the action on the stock counter in anticipation of the Reserve Bank of India's approval to appoint Ashok Vaswani as the MD and CEO of the bank.

The bank outperformed Motilal Oswal's projections with a 24% increase in standalone net profit of 3,191 crore. According to brokerage estimates, the net interest income, which is the difference between interest collected and paid, increased 23% to 6,300 crore.

Quarter-over-quarter, the gross non-performing asset (GNPA) ratio increased by 5 basis points (bps), while the net NPA ratio increased by 3 bps, to 1.72% and 0.37%, respectively.

Against the 4.07 million shares that were traded, 2.94 million shares in total were exchanged on Friday. The number of open positions for the futures contract that expires on October 26 decreased significantly by 11,560 contracts, or 17.03 percent, to 56,325 contracts.

Rising prices and a decrease in open positions indicate that bears may be covering their short bets, which has caused the price to rise higher.

Since the markets reached a record high on September 15th, the stock has outperformed the Bank Nifty index, declining by 2.44% as opposed to the latter's 5.4% decline.

From a record high of 20,222.45 on September 15 to 19,542.65 on the 20th of October the Nifty 50 has decreased by 3.4%. On Friday, the US 10-year treasury yield was trading at 4.928%, which is almost a 16-year high.