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Stocks Radar: Adani Green Energy, Central Bank, Reliance Capital, Tata Steel

Here are the stocks moving the market today.

A downward stock index curve sits displayed on an electronic ticker screen at the Madrid stock exchange, also known as Bolsas y Mercados Espanoles, in Madrid, Spain. (Photographer: Angel Navarrete/Bloomberg)
A downward stock index curve sits displayed on an electronic ticker screen at the Madrid stock exchange, also known as Bolsas y Mercados Espanoles, in Madrid, Spain. (Photographer: Angel Navarrete/Bloomberg)

Indian equity benchmarks opened lower after gaining for three consecutive trading sessions.

The Sensex traded 0.40 percent lower at 39,797.70 and Nifty traded at 11,921.60, down 0.36 percent, as of 10:00 am. The market breadth was tilted in favour of sellers.

Nine of the 11 sectoral gauges compiled by National Stock Exchange fell, led by a 0.9 percent decline in the NSE Nifty Realty Index. The NSE Nifty Metal Index was the top sectoral gainer, up 1 percent.

Reliance Home Finance, Reliance Capital Fall After PwC Quits As Auditors

Shares of the Anil Ambani-led Reliance Group declined in today’s session.

  • Reliance Home Finance fell 6.7 percent intraday to Rs 87.40 apiece.
  • Reliance Capital fell close to 10 percent to Rs 16 apiece.

Price Waterhouse & Co resigned as the statutory auditor Reliance Capital and Reliance Home Finance, according to an exchange filing. PwC noted certain observations/transactions in its assessment which if not resolved satisfactorily might be significant or material to the financial statements. PwC also said the companies didn't convene an audit committee meeting within the expected time. The companies don't agree with the reasons given by PwC for the resignation, the filing said.

Stocks Radar: Adani Green Energy, Central Bank, Reliance Capital, Tata Steel
Opinion
Reliance Group Committed To Meet Debt Obligations, Says Anil Ambani

Adani Green Energy Rises After Promoter To Cut Stake

Shares of the renewable energy producer snapped its four-day losing streak and rose 2.4 percent intraday to Rs 43.55 each.

The company’s promoter group plans to sell 5.98 percent stake at a floor price of Rs 43 per share, according to an exchange filing. This is the second share offering to the public in three weeks. The overall stake of promoters will fall from 86.5 percent to 74.93 percent, to comply with SEBI norms on minimum shareholding.

The stock has advanced 35 percent in the past 12 months compared with the Sensex’s 13 percent gain.

Stocks Radar: Adani Green Energy, Central Bank, Reliance Capital, Tata Steel

DHFL Surges After Repaying Rs 962 Crore In Dues

Shares of the non-banking lender gained for the third straight session and rose 6.5 percent to Rs 96.

Dewan Housing Finance, in an exchange filing, said it has cleared all its overdue payments on non-convertible debentures at Rs 961.9 crore due on June 6. The company said in a statement that it confirms full payment and will seek rating upgrades from agencies, coupled with more asset monetisation by on boarding a strategic partner.

Also, Aadhar Housing said Blackstone has acquired a 97.7 percent stake in company for including the entire stake held by the existing controlling shareholders, Wadhawan Global Capital Ltd. and DHFL.

Trading volume was nearly thrice the 20-day average for this time of the day, Bloomberg data showed.

Stocks Radar: Adani Green Energy, Central Bank, Reliance Capital, Tata Steel
Opinion
DHFL Honours Overdue Debenture Payments Worth Rs 962 Crore

Tata Steel Advances Even As EU Blocks Thyssenkrupp Merger

Shares of the steel pared opening losses and gained nearly 1.3 percent to Rs 498.90 apiece.

Thyssenkrupp AG and Tata Steel’s collapsed joint venture was formally blocked by the European Union, the sixth deal vetoed by antitrust chief Margrethe Vestager. Allowing the deal to proceed would have reduced the number of suppliers and increased prices for steel used in packaging and in the car industry, the EU said in an emailed statement to Bloomberg.

The stock traded 20 percent below the Bloomberg consensus one-year target price.

Opinion
Thyssenkrupp-Tata Venture Becomes Vestager’s Sixth Deal Veto

Indiabulls Housing Top Loser On Nifty

Shares of Indiabulls Housing Finance extended decline for the second consecutive trading session and fell as much as 7 percent to Rs 627.10, the lowest in nearly four months.

On Monday, Indiabulls Housing refuted the allegation of siphoning Rs 98,000-crore, terming it as “bizarre” and made by a “racket of blackmailers”, in an exchange filing. The original complaint (of Rs 55,000-crore alleged fraud -crore alleged fraud) by the blackmailers was dated May 6, 2019, the statement said. After that the company filed a first information report on June 4.

The stock was the worst performer on Nifty. Trading volume was 3.6 times its 30-day average, Bloomberg data showed. The scrip traded at 5.5 times its estimated forward earnings per share compared to a 10.1 times for the two-year historical average.

Opinion
Indiabulls Housing Finance Accused Of Misappropriating Rs 98,000 Crore Of Public Money

Central Bank Of India Hits Lifetime Low

Shares of the state-run lender declined for the sixth straight session as it fell 1.7 percent intraday to an all-time low of Rs 23.50.

The stock has fallen 71 percent in the past 12 months compared with a 11 percent gain in the Sensex. The relative strength index on the stock was below 30, indicating it may be oversold.

Stocks Radar: Adani Green Energy, Central Bank, Reliance Capital, Tata Steel

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