Crude oil prices fell today after industry data showed crude oil stockpiles rose more than expected and fuel inventories unexpectedly increased last week in the United States.
Gold prices are trading down by 0.1% at ₹47,775 per 10 grams.
In global markets, gold snapped five straight sessions of gains, shedding nearly 1% as the dollar firmed and strong earnings lowered investor appetite for the safe-haven asset.
Spot gold was down 0.9% at US$1,792.4 per ounce.
Speaking of the precious yellow metal, how lucrative has gold been as a long-term investment in India?
The chart below shows the annual returns on gold over the last 15 years...
As you can see, barring just two years - 2013 and 2015, gold has delivered positive returns in 13 of the last 15 years.
The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best performing commodities this year to combat the fallout from the coronavirus pandemic.
In news from the banking sector, Axis Bank shares will be in focus today.
Private lender Axis Bank on Tuesday posted an 86% year-on-year (YoY) jump in its net profit to post its highest quarterly profit of ₹31.3 bn for the second quarter ended September 2021.
In the same period a year ago, the bank had posted a net profit of ₹16.8 bn.
Street was expecting the lender to post a profit of ₹29.1 bn for the quarter under review.
Axis Bank’s operating profit for the quarter was ₹59.3 bn while the core operating profit was ₹54.6 bn.
The bank's net interest income (NII) grew 8% YoY to ₹79 bn from ₹73.3 bn in September 2020.
Fee income for the quarter grew 17% YoY and 21% sequentially to ₹32.3 bn. Retail fees grew 19% and constituted 63% of the bank's total fee income.
Specific loan loss provisions for the quarter under review were ₹9.3 bn compared to ₹28.7 bn in June 2021.
The bank has not utilised Covid-19 provisions during the quarter. It holds cumulative provisions of ₹129.5 bn at the end of September 2021.
Gross slippages for the said quarter came in at ₹54.6 bn, lower than ₹65.2 bn in the June 2021 quarter but higher than ₹17.5 bn in the same quarter last year.
In a regulatory filing, the private lender said,
Slippages in Q2FY21 moderated due to regulatory forbearances that do not exist in the current quarter. Recoveries and upgrades from NPAs during the quarter were ₹47.6 bn while write-offs were ₹25.1 bn.
Axis Bank share price is currently trading lower by 3.9%.
Moving on to news from the IPO space, the initial public offer (IPO) of PB Fintech, the operator of online insurance aggregator Policybazaar, will open on 1 November.
The IPO will close on 3 November and the date for finalisation of basis of allotment with the stock exchange has been stated as 10 November.
The company has fixed the price band at Rs 940-980 per share.
The issue size is 6,07,30,265 shares, with a face value of ₹2 each.
Through this issue, PB Fintech will raise an amount of around ₹57.1 bn.
The IPO comprises a fresh issue of ₹37.5 bn, along with an offer for sale (OFS) of ₹19.6 bn by existing promoters and shareholders.
Last week, the markets regulator had given the go ahead to PB Fintech to float its maiden public issue.
As of March 2021, over 48 m consumers have registered on Policybazaar platform and purchased over 19 m policies from insurer partners.
In fiscal 2021, the annual number of visits on Policybazaar website was 126.5 m.