Stocks Radar: PSU Banks, Punj Lloyd, Bandhan Bank
Indian equity benchmarks rose for a second day as the government’s surprise decision to reduce its first half market borrowings added to the regional cheer on the easing of U.S.-China trade tensions.
The S&P BSE Sensex rose 0.7 percent to 33,311 while the NSE Nifty 50 Index gained 0.7 percent as well to 10,205 led by Axis Bank Ltd. and Tata Steel Ltd.
All 19 sector gauges on the BSE, except the S&P BSE Telecom Index (down 0.6 percent), were trading higher. The S&P BSE Metal Index was the top sectoral gainer, up 1.5 percent.
Here Are The Stocks Moving This Morning:
Indian Bonds Rally On Lower-Than-Expected Fiscal Borrowing; Banks Gain
The yield on benchmark 7.12 percent government bond due 2028 drops 25 basis points to 7.37 percent, the lowest since Nov. 13, after the government’s borrowing calendar for the first half of the next financial year pointed to lower market borrowing than the same period last year.
The Indian government will borrow around 20 percent less from the market in the first half of next financial year than it did in the first half this year and will issue a larger number of shorter duration bonds, in order to ease the pressure on the local debt markets. (For more on this story, click here)
Shares of the state run banks extended gains following the government’s decision. IDBI Bank Ltd. and Oriental Bank of Commerce were among top gainers.
Bandhan Bank: Listed At 33% Premium
Bandhan Bank listed at a premium of 29 percent to its issue price at Rs 485 per share on the BSE Ltd. The stock rose as much as 33.1 percent to Rs 499 thereafter.
Bandhan Bank’s Rs 4,473-crore initial public offering was subscribed 14.6 times on the final day of bidding. In the three-day offer, the company issued up to to 11.93 crore equity shares at a price band of Rs 370-375 apiece.
Also Read: GIC-Backed Bandhan Bank’s IPO Fully Subscribed On The Final Day
Punj Lloyd: Rises On EPC Order Win
Shares of the New Delhi-based infrastructure firm rose as much as 14.6 percent, the most in around three months, to Rs 18.4.
Punj Lloyd Ltd. has been awarded an engineering, procurement, and construction project, worth Rs 505.22 crore, by National Highways Authority of India. The order involves the construction of a highway between Puintola and Tangi in the state of Odisha.
The stock has risen after seven consecutive sessions of declines. Trading volume was nearly 23 times the 20-day average.
V-Mart Retail: Block Deal Boost
Shares of the New Delhi-based departmental store chain operator, rose to a lifetime high of Rs 2,103, up as much as 11.3 percent in early trade.
Batlivala and Karani Securities initiated coverage on the stock with a price target of Rs 2,100, implying an upside of 11 percent from yesterday’s close. All nine analysts that cover the stock and are tracked by Bloomberg have a ‘buy’ recommendation on it.
As many as 75 lakh shares of V-Mart Retail Ltd. changed hands in a single block deal in pre- market open trading. The buyer and seller were not immediately known.
The stock has given positive returns of nearly 31 percent so far this year as compared to a negative return of 2.2 percent on the Sensex.
IDFC Bank-Capital First Merger Gets NSE Approval
Shares of the Mumbai-based bank rose as much as 3.2 percent to Rs 49 and those of consumer finance firm Capital First gained 2.9 percent, the most in almost two months, to Rs 637.
In January, IDFC Bank Ltd. and Capital First Ltd. had announced a plan to merge, creating a bank with an asset base of roughly Rs 90,000 crore. (More details here)
IDFC Bank snapped a three-day decline with trading volume four times higher than the 20-day average. Capital First rose after four consecutive sessions of declines.
KNR Constructions: Rises On New Order
Shares of the Hyderabad-based infrastructure construction firm rose as much as 7.3 percent to Rs 302.
KNR Constructions Ltd. bagged two Hybrid Annuity Projects with a bid project cost of Rs 2,964.1 crore from NHAI for a six lane-project in Andhra Pradesh and four-lane project in Telangana. Both these projects fall under the central government’s ‘Bharatmala Paryojana’ scheme.
The stock has lost 12.24 percent so far this year. Volume in early trade was 36.2 times the 20-day average.