Indian stocks rebounded from a five-day losing streak as a slew of data boosted optimism in global economy. Investors bought shares of beaten down information technology companies while offloaded lenders after Yes Bank disappointed the street with its fourth quarter earnings.
Here are some stocks that are moving the market:
Yes Bank: Bad Loans Double
Shares of the private lender fell as much as 6.5 percent to Rs 1,501 after its bad loans doubled during quarter-ended March because of a single account. The stock was the worst performer on the S&P BSE Sensex index, but soon pared around half of its losses.
A Reserve Bank of India notification prompted the bank to recognise the account as a non-performing asset, which increased its bad loans’ book to Rs 2,018,6 crore from Rs 1,005.9 crore.
Provisions for the quarter jumped nearly three-fold to Rs 309.73 crore from Rs 115.4 crore in the previous quarter. Out of this, Rs 228 crore was on account of the above mentioned account.
Despite the surprise jump in bad loans, the bank reported strong profit growth.
Net profit for the private lender was at Rs 914.1 crore, a jump of 30.2 percent compared to Rs 702.1 crore in the corresponding quarter last year.
NALCO: Offer For Sale Over-Subscribed
The state-owned aluminium maker fell 1.6 percent despite its offer for sale share getting strong demand from high networth individuals and institutional buyers on Wednesday.
The share sale attracted bids for over 14.24 crore shares as against 7.73 crore offered to institutional investors, an over-subscription of 1.84 times, according to the stock exchange data.
Most of the bids came at Rs 67.03 per share, slightly higher than the floor price of Rs 67. "The government will retain full over-subscription under the greenshoe option," a finance ministry official said.
Over 1.93 crore have been reserved for retail investors (offer opens today) who will also be offered 5 per cent discount over the issue price.
With inputs from PTI
ONGC, GAIL: JV Looks To Strike Deal With Aramco
Shares of these government-owned oil companies rose after a Bloomberg News report which said that ONGC Petro additions is looking to sell 50 percent of its facility to the world's largest oil exporter Saudi Aramco.
Formal talks between the two companies will begin soon, people familiar with the matter told Bloomberg.
OPaL, the news addition to the petrochemical sector, is a joint venture between Oil and Natural Gas, GAIL and GSPC.
- ONGC (+0.9 percent to Rs 181)
- GAIL (+0.6 percent to Rs 396)
Reliance Industries: Commissions Project
The company rose 1.3 percent to Rs 1,386 after it commissioned an ethane project at the Dahej facility in Gujarat. The company claimed in its filing to have done so in a "record time of less than three years".
Network 18 Media Investments: To Sell BURRP
Shares of the media house rose 3.2 percent to Rs 41 after it announced its plan to sell the BURRP unit to its investors. BURRP is a food and restaurant search engine which has “insignificant contribution to the company's revenue", it said in an exchange filing.
Shalimar Paints: Bulk Deal
The company jumped 9.8 percent to Rs 232 after Equity Intelligence India bought 0.5 percent stake in it at Rs 197.8 per share. The transaction was made as a bulk deal, according to data on the BSE.
Sun TV Networks
Shares of the media firm jumped as much as 6.2 percent to its highest intraday level since at least April 2006 after two brokerage firms upgraded their rating on the stock.
Credit Suisse raised its rating on Sun TV to ‘Outperform’ versus ‘Neutral’ earlier anticipating a period of strong earnings growth on multiple drivers. The brokerage firm expects the South-based company to double its subscription income over the next 3 to 4 years.
It has also raised its target price to Rs 1,000 from Rs 790.
The second brokerage house to upgrade the stock is CLSA, citing the digitisation roll out in Tamil Nadu. Besides that, it says the recent end of legal and political risks of Sun TV is another positive for the stock.
CLSA has upgraded the stock to ‘Buy’ compared to their earlier ‘Sell’ rating. They too have upgraded their price target to Rs 1,015 from Rs 661 earlier.