Shares of Reliance Industries Limited (RIL) and HDFC Bank gained on Tuesday, the trading day following the announcement of their results for the second quarter of 2019-20.
Last Friday, RIL reported its highest-ever quarterly net profit at Rs 11,262 crore for the July-September 2019 period. It was 18.3 percent higher than Rs 9,516 crore reported in the same period a year ago.
Shares of RIL rose as much as 1.5 percent on Tuesday to Rs 1,436.85 apiece, its new 52-week high. It is the sixth consecutive trading session of gains for the stock.
On Friday, ahead of the results, the conglomerate became the first Indian company to cross the market cap of Rs 9 trillion.
On Saturday, HDFC Bank posted a 26.8 percent increase in its standalone net profit at Rs 6,345 crore for the September-ended quarter when compared to Rs 5,005.73 crore for the same period of the previous year.
Shares of HDFC Bank gained as much as 2.3 percent to Rs 1,257 on Tuesday.
Markets were closed on Monday on account of Maharashtra state elections.
Brokerages remain positive on the stock
Brokerage houses are positive on these two stocks post the results. Nomura has maintained a "Buy" rating and increased is price target on the stock from Rs 1,300 to Rs 1,425.
Morgan Stanley said that HDFC Bank's EPS (earnings per share) was 5 percent ahead of its estimate at 24 percent on a year-on-year basis, the strongest in 6 years. Asset quality remains strong and CET-1 ratio has improved sharply, it said. The brokerage has maintained an "Overweight" rating on the stock with a target of Rs 1,700.
On RIL, Nomura has maintained a "Buy" rating and increased price target from Rs 1,575 to Rs 1,785. UBS also maintained its "Buy" rating on the stock at a price target of Rs 1,500. It said that the company has delivered another strong quarter despite commodity headwinds.