Stocks Radar: Reliance Industries, Dalmia Bharat, ICICI Bank And More
Indian stocks gain as FBI clears Clinton of any criminal wrongdoing in e-mail scandal.
Indian shares snapped a five-day losing streak amid a rebound in Asian equities after the FBI absolved U.S. presidential hopeful Hillary Clinton of any criminal wrongdoing in her handling of e-mails as secretary of state.
Here are the stocks in focus for the day:
Earnings Reaction: Punjab National Bank
Shares of the state-owned lender jumped as much as 6.2 percent to Rs 139.8 after its second quarter earnings beat street estimates on better operational performance and asset quality. The company, however, posted a 11.5 percent drop in profit during the July to September quarter.
Reliance Industries
The Mukesh Ambani controlled firm rose 1.1 percent to Rs 1,016 after it said that it will challenge the $1.55 billion penalty imposed by the Ministry of Petroleum and Natural Gas.
The company was given a notice for extracting gas which had "migrated from neighboring blocks", the company said in a clarification to the Bombay Stock Exchange.
The claim of the government is based on misreading and misinterpretation of key elements of the PSC (production sharing contract) and is without precedent in the oil & gas industry, anywhere in the world...RIL proposes to invoke the dispute resolution mechanism in the PSC and issue a Notice of Arbitration to the government. RIL remains convinced of being able to fully justify and vindicate its position that the government’s claim is not sustainable.Reliance Industries statement
Dalmia Bharat
Shares of Dalmia Bharat Group rose 3 percent to Rs 2,049 after its third restructuring in a year. The company will attempt to consolidate all its cement business under one listed entity - Odisha Cement - which will be renamed as Dalmia Bharat post restructuring.
Lupin
Shares of the pharmaceutical major jumped 8 percent to Rs 1,534 after its Goa facility received an Establishment Inspection Report from the U.S. Food and Drug Administration, closing all outstanding US FDA inspections at the site.
We are committed to ensuring that all systems and processes followed by Lupin are compliant with cGMP and are committed to bringing quality products to market.Vinita Gupta, Chief Executive Officer and Nilesh Gupta, Managing Director, Lupin
Oil Companies
Shares of oil companies rose after Indian Oil announced a hike in fuel prices. A liter of petrol will now cost Rs 0.89 more while diesel price has also been hiked by 0.86 per liter.
Price of petrol has increased Rs 7.53 per liter since September, while the Diesel rate rose Rs 3.9 per liter in total, after its third hike this month.
The current level of international product prices of Petrol & Diesel and Rupee-Dollar exchange rate warrant decrease in price of Petrol and increase in price of Diesel, the impact of which is being passed on to the consumers with this price revision.Indian Oil Statement
- Bharat petroleum (+1.4 percent to Rs 652)
- Castrol India (+2.1 percent to Rs 438)
- Hindustan Petroleum (+3.1 percent to Rs 448)
- Indian Oil (+2.5 percent to Rs 313)
Hindustan Construction Company
Shares of the construction company gained as much as 7.1 percent to Rs 36.9 after the Reserve Bank of India-mandated Overseeing Company approved the Scheme for Sustainable Structuring of Stressed Assets for the company.
With this, HCC becomes the first company to secure an approval by the committee under the RBI’s S4A scheme.
The S4A scheme will help the company bridge the gap of ‘cash flow timing mismatch’ between claims realisation (including its interest) and debt servicing. The move comes at an opportune time as HCC is already on recovery path with order book growth of over 30 percent in last one year.Praveen Sood, CFO, HCC
Earnings Watch
- ICICI Bank (+2.7 percent to Rs 277)
- Britannia Industries (+1.4 percent to Rs 3,348)
- Godrej Consumer Products (-1.7 percent to Rs 1,501)
- Shree Cements (+2.5 percent to Rs 17,250)
