Stocks Radar: Hindustan Petroleum, Coal India, Reliance Industries And More
PSU Banks rose more than a percent on capital infusion plans.
Indian shares declined on the first day of the week tracking weak trade in Asian equities on concerns that the U.K. is preparing for a hard exit from the European Union.
The S&P BSE Sensex dropped 0.2 percent to 27,172 while the NSE Nifty lost 0.3 percent to 8,374.
Here are the stocks moving the market this morning:
Coal India: Revenue Boost
Shares of the world’s largest coal producer rose 1.6 percent to Rs 320 before falling 1.5 percent to Rs 310.
Coal India’s unit Bharat Coking Coal hiked prices by 20 percent, leading to a Rs 702 crore increase in the expected revenue for the remaining portion of financial year 2016-17 . Central Coalfields also hiked the price of coking coal by an unspecified rate and is expecting an additional revenue of Rs 90 crore, the company said in an exchange notification.
This comes at a time when steel companies are already under pressure due to global increase in coking coal prices, according to PTI.
Axis Bank: MCLR Cut
Shares of the private lender fell 0.6 percent to Rs 470 after it slashed its marginal cost of lending rate by 65 to 70 basis points. Axis Bank’s one year MCLR now stands at 8.25 percent, it said in a statement to the exchanges.
The change in lending rate, effective from January 18, 2017, has been brought about by the surge in deposits into bank accounts after demonetisation of higher currency notes in India.
Most of the banks including market leader State Bank of India and its private sector peer ICICI Bank reduced rates earlier in January.
Reliance Industries: Falls With Market
The company fell 0.2 percent to Rs 1,088 after its unit Reliance Jio said it is planning to invest Rs 30,000 crore to enhance network coverage.
"In view of the unprecedented customer response to Reliance Jio’s services as well as address the anticipated growth in demand for digital services, additional investments are proposed to be made into the network to enhance its coverage and capacity," Reliance Jio said in a rights issue notice for existing shareholders on Friday.
These investments are proposed to be financed largely through an equity offering to strengthen its balance sheet for growth, it added.
The Mukesh Ambani led company will also announce its third quarter results today. Its revenue is expected to grow 2.2 percent on a sequential basis, reporting the highest third quarterly sequential revenue growth in four years, according to 11 analysts tracked by Bloomberg.
Oil Stocks: Fuel Price Hike
Shares of oil companies swung between gains and losses on Monday morning.
Petrol price was hiked by 42 paise a litre, while diesel rate was raised by Rs 1.03 a liter, reported PTI on Sunday evening. This is the fourth increase in petrol price in six weeks and the third in case of diesel in one month.
The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision.Indian Oil’s Statement
The government-run oil company said that it will continue to monitor global crude and prices closely.
- Indian Oil (+1 percent to Rs 354)
- Hindustan Petroleum (-0.6 percent to Rs 486)
- Bharat Petroleum (-0.4 percent to Rs 655)
DCB Bank: Earnings Reaction
Shares of the private sector lender rose as much as 2.9 percent to Rs 127 before falling 1.5 percent to Rs 122.
The bank reported a 25 percent jump in December-quarter net profit, helped by a growth in net interest income. Net interest income rose 31 percent to Rs 209 crore, while the non-interest income was up Rs 36 crore to Rs 64 crore during the quarter.
It’s total capital adequacy ratio for the bank stood at 13.33 percent.
PSU Banks: Gain On Capital Infusion Plans
Shares in State Bank of India, Punjab National Bank and Bank of Baroda gained on media reports that the finance ministry is likely to finalise capital infusion plan for public sector banks this week.
Final touches are being given based on the feedback from all banks and the plan should be ready by this week, news wire PTI reported citing people familiar with the development.
The capital infusion would be more than Rs 25,000 crore announced in the earlier Budget, the report added.
- State Bank of India (+0.9 percent to Rs 253)
- Punjab National Bank (+1.3 percent to Rs 126)
- Bank of Baroda (+0.8 percent to Rs 159)
Sensex, Nifty: Movers & Shakers
