Stocks Radar: Infosys, Bharat Petroleum, Kotak Mahindra and More
The top IT companies sulked on the U.S. working visa fee hike.
Indian shares extended gains for a third day led by gains in bank and pharma companies. Telecom and realty stocks advanced, pushing the Sensex close to record highs, while information technology counters saw some profit booking after yesterday’s run up.
Here are the stocks in news for the day:
UltraTech: Hits 52-Week High
Shares of the cement maker gained 3.5 percent to Rs 4,029 after the Reserve Bank of India raised the foreign investment limit in the firm to 30 percent.
IT Majors : Profit Booking
Shares of software services providers slumped as investors booked gains after yesterday’s rally. This despite America’s assurance to review the hike in H-1B and L-1 visa fee.
“The United States recognizes the enormous contribution of foreign workers to our economy, including workers from India, and increasing U.S.-India business-to-business ties has been one of our highest priorities.”, said U.S. Commerce Secretary Penny Pritzker at the annual Strategic and Commercial Dialogue in New Delhi, as reported by Bloomberg.
- Infosys (-0.8 percent to Rs 1,031)
- Tata Consultancy Services (-1.1 percent to Rs 2,517)
- Wipro (-0.7 percent to Rs 486)
HPCL: Competitive Spending
Shares of Hindustan Petroleum rose 0.5 percent to Rs 1,195 after the company revealed plans to sell $8 billion over the next five years to give a boost to its old refineries.
You can definitely expect $2 to $3 addition to the refining margin. These projects will improve distillate yields and improve our margins. This will bring our margin much closer to other complex refiners.Mukesh Kumar Surana, chairman and MD at HPCL, to Bloomberg
Kotak Mahindra Bank: RBI’s Stamp of Approval
The stock increased 2.7 percent to Rs 807 after the Reserve Bank of India allowed the Canada Pension Plan Investment Board to invest more than 5 percent and more than 10 percent in the bank’s paid up capital.
In March 2016, Kotak Mahindra Bank and CPPIB entered into an agreement under which the latter would invest $450 million into the bank’s stressed assets.
Earnings Watch
- Bharat Petroleum Corporation (-1 percent to Rs 602)
- Hathway Cable & Datacom (+4.3 percent to Rs 31)
- GVK Power & Infrastructure (+3.2 percent to Rs 6)
- Sadbhav Engineering (+1.6 percent to Rs 300)
Earnings Reaction
Shares of Cox & King fell as much as 3.2 percent to Rs 187 after the company’s operating profit margins contracted by 50 basis points in the June quarter. Despite falling margins, the company recorded a 13.6 percent increase in profit, according to the company’s filing on the BSE.