After opening the day on a positive note, share markets in India have continued the momentum and are trading comfortably above the dotted line. All sectoral indices are trading on a positive note. Stocks in the power sector and stocks in the PSU sector are leading the gains.

The BSE Sensex is trading up by 222 points (up 0.8%), and the NSE Nifty is trading up by 75 points (up 0.8%). Meanwhile, the BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.9%. The rupee is trading at 64.47 to the US$.

In news from stocks in the banking sector. HDFC Bank share price continued its upward march as the stock hit a new all-time high in today’s trade.

Shares rose as much as much as 2.4% to a record high of Rs. 1,538. HDFC Bank has gained for a fifth straight session on account of strong results in the March quarter.

The country’s second-biggest lender by assets on Friday reported a higher-than-expected profit of Rs. 39.9 billion (US$ 618.5 million) for the March quarter, up from Rs 33.7 billion a year ago.

Provisions soared 76% to Rs 12.6 billion from Rs 7.2 billion a quarter ago, though net bad loans remained meagre at 0.33%, up from 0.28% a year ago.

The bank posted an 18% rise in March quarter earnings boosted by fee income even as it cut staff for the second straight quarter and slowed branch expansion as it exploits digital technology to reach out to customers.

Its staff strength has fallen by 6,096, or 7%, to 84,325 in the quarter ended March 2017 from 90,421 in December 2016. This reduction is the highest in a quarter and at least 33% more than the 4,581 people the bank lost in the quarter ended December 2016.

HDFC Bank is trying to improve productivity by cutting costs and optimizing its processes through automation. These benefits will come to the bank in the next two quarters but after that the base effect will kick in. Meaning that the benefits will remain only for the short term. Ultimately the bank will have to invest to grow for which it will have to incur costs.