Stocks Radar: GVK Power, Reliance Communications, Titan
Indian equity benchmarks swung between gains and losses as weak global cues kept traders’ from taking any big bets.
Jewellery and apparel stocks were the top gainers after the final set of GST rates were announce during the weekend while FMCG and metal stocks lost some shine.
Here are the stocks moving the market this morning:
Titan: Rating Upgrade Boost
Shares of the jewellery and watches maker rose as much as 15 percent intraday, the most since April 2012, to Rs 542.5 after broking firm CLSA upgraded its rating on the stock to ‘Buy’. It also raised its the target price to Rs 620 from Rs 555 earlier.
Trading volume was 15.1 times the 20-day average at around 10:39 a.m. The stock returned 60 percent so far this year and a gain of 47 percent in the past 52 weeks.
Most of the jewellery maker stocks jumped anywhere between 15 percent and 2 percent on the back of the GST rates announced on Saturday.
Other Jewellery Stocks
- PC Jeweller (+8%)
- Gitanjali Gems (+5%)
- TBZ Jewellers (+4%)
- Tara Jewels (+6%)
Shoe And Apparel Makers: GST Rate Effect
Shares of apparel and footwear makers gained after the GST Council finalised tax rates on the commodities.
Readymade garments will be taxed at 12 percent, with apparel priced at less than Rs 1,000 being taxed at 5 percent.
- Indocount Industries Ltd rose 2.34 percent to Rs 183.95
- Rupa & Company rose 3.9 percent to Rs 410
- Arvind Ltd rose 4.66 percent to Rs 396.7
Footwear priced below Rs 500 will be taxed at a 5 percent rate, while all other footwear will have a rate of 18 percent.
- Relaxo Footwears Ltd. rose 3.17 percent to Rs 487.95
- Bata India Ltd. rose 3.03 percent to Rs 566.75
- Liberty Shoes Ltd. rose 4.04 percent to Rs 186.6
Reliance Communications: Gets A Lifeline
Shares of the Anil Ambani-led company rose as much as 5.33 percent to Rs 21.75 after the telecom operator said that the company was given seven months to repay loans to its lenders.
The telecom operator plans to sell 51 percent of its towers to Brookfield Asset management.
The stock returned a negative 37 percent so far this year and a loss of 56 percent in the past 52 weeks. The Relative Strength Index (RSI) is 21, indicating that the stock may be oversold.
GVK Power: Exits Airport Project
Shares of the airport operator rose 5.88 percent to Rs 6.3 after the company sold its remaining 10 percent stake in Bengaluru International Airport Ltd. (BIAL) to Fairfax India Holdings Corporation for Rs 1,290 crore.
The group said the proceeds will be used to retire some of the company’s high interest debt. GVK Power has a total debt of Rs 17,742 crore as of March 31, 2017.
The stock returned 13 percent so far this year and a gain of 44 percent in the past 52 weeks.
Can Fin Homes: Mulls Stock Split
Shares of the housing finance firm rose 1.22 percent to Rs 2,760 after the company said it will consider a stock split on 23 June. The stock returned 74 percent so far this year and a gain of 128 percent in the past 52 weeks.
Raymond: Shareholders To Vote
Shares of the fashion retailer rose 3.10 percent to Rs 724.4 ahead of a vote to decide on a proposal to sell its real estate asset in Mumbai. The stock is up 2 percent on moderate trading volume with 1.1 times average volume at time.
The stock returned 47 percent so far this year and a gain of 49 percent in the past 52 weeks.
Dena Bank: RBI Initiates Prompt Corrective Action
Shares of the state-owned lender fell as low as 2.48 percent to Rs 33.4 after the central bank initiated prompt corrective action (PCA).
The central bank move was on account of Dena Bank’s high net non-performing assets, and negative return on assets.
Dena Bank is the third lender after IDBI Bank and UCO Bank to be put under the RBI’s so-called prompt corrective action, after it revised the framework for this action in April.
Uflex: Aims 15% Volume Growth In FY18
Shares of the flexible packing firm rose 0.61 percent to Rs 368.8 after it forayed into the aseptic liquid packaging segment.
The company told PTI that it has pegged an overall volume growth target of 15 percent this fiscal for the segment. It also hopes to bring in additional products. The stock returned 34 percent so far this year and a gain of 80 percent in the past 52 weeks.
Bank of India: Plans To Raise Capital
Shares of the Mumbai-based lender rose 1.44 percent to Rs 147.95 on its plans to sell stake in some of its subsidiaries with an aim to unlock value, according to a PTI report.
The bank's gross non-performing assets (NPAs) or bad loans were restricted to 13.22 percent of the gross advances at the end of March, marginally higher than 13.07 percent a year ago.
About 33 percent of analysts covering the company have changed their price targets over the past month, according to Bloomberg data. The stock returned 37 percent so far this year and a gain of 75 percent in the past 52 weeks.
Karnataka Bank: Slashes Housing Loan Interest Rates
Shares of the private sector bank rose 0.93 percent to Rs 178.45 after it slashed housing loan interest rates by up to 40 basis points from June 1.
“The reduction in interest rate coupled with the expected reduction in prices of houses upon implementation of GST will benefit he customers and boost the demand for housing sector,” said Mahabaleshwara M S, Managing Director & CEO at Karnataka Bank said in a media release.
The indicated dividend yield is 2.3 percent, compared to 3.8 percent for two year historical average, Bloomberg data showed. The stock returned 58 percent so far this year and a gain of 79 percent in the past 52 weeks.
Tata Communications : Signs Agreement With Batelco
Shares of telecom operator rose 1.51 percent to Rs 746.05 after the company signed an agreement with Batelco, Bahrain’s leading digital communications solutions provider, to extend the reach of their global data centre, cloud and connectivity solutions to their customers, the company said in its exchange filing.
The stock is up 0.9 percent on high volume trading with 2 times average volume at time. The stock returned 18 percent so far this year and a gain of 70 percent in the past 52 weeks.
Suzlon Energy: Equity Shares Allocation
Shares of the company rose 1.27 percent to Rs 20 after it allotted 5.62 crore equity shares on conversion of bonds at a conversion rate of Rs 15.46 per share, according to its exchange filing.
the stock trades at 14.7 times estimated forward earnings per share compared to 42.8 times for two year historical average. The stock returned 44 percent so far this year and a gain of 30 percent in the past 52 weeks.
Puravankara: Plans To Invest Rs 750 Crore
Shares of the Bengaluru-based firm rose 2.15 percent to Rs 66.5 after it said that it plans to invest Rs 750 crore on construction of ongoing projects in the current fiscal. It is looking for joint venture partners to expand business.
The real estate developer also plans to launch 7-8 million square feet area in 5 projects in 2017-18, Ashish R Puravankara, managing director at Puravankara told PTI.
The indicated dividend yield is 3.4 percent, compared to 2.01 percent for two year historical average. The company has a positive year-till -date return of 51.4 percent, compared to 17.9 percent for S&P BSE Senses index.
Reliance Industries: Jio Tops Chart in April
Shares of Mukesh Ambani-led firm rose 0.19 percent to Rs 1,327.25 after its telecom unit topped the chart in 4G network speed for the month of April, according to PTI reports.
April was the fourth consecutive month for Reliance Jio leading the speed chart. The stock returned 22 percent so far this year and a gain of 38 percent in the past 52 weeks.
SpiceJet: Q4 Net Profit Declines
Shares of the airlines company fell 0.4 percent to Rs 103.4 after the company’s net profit declined by 61 percent during the March ended quarter due to the increase in fuel costs, which eroded approximately Rs 160 crore of profit.
The stock returned 77 percent so far this year and a gain of 58 percent in the past 52 weeks.