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The week that was: Rally in CGD stocks, LVB suspension & more

NEW DELHI: Nifty50 and Sensex scaled fresh records last week but the gains were capped for the two indices amid selling pressure at higher levels. Nonetheless, a host of stocks from the broader market saw strong price movements for the week on news-based developments. Some of them are mentioned below:

Equitas Holdings, IDFC: Equitas Holdings led BSE500 gainers last week with a 32.45 per cent surge after RBI’s working group favourably looked at allowing industrial houses as bank promoters after making legislative changes to the Banking Regulation Act. ICICI Securities said that allowing banks to exit NOFHC structure if they do not have any other entities in their fold will be positive for some of the holding companies such as IDFC and Equitas Holdings.

Vakrangee: Shares of this company soared 28 per cent for the week to Rs 38.40 apiece after the company approved the withdrawal of scheme of amalgamation of Vakrangee Logistics (VLPL) and Vakrangee Finserve (VFL), the two wholly-owned subsidiaries. The company had filed the scheme application in March but now felt that there has been substantial changes in the business environment in the last few months and it would not be prudent to proceed with the proposed merger.

Lakshmi Vilas Bank: Trading on this counter got suspended from Thursday after the cabinet approved the final scheme of merger of the bank with DSB Bank. The scrip had fallen 15 per cent in the preceding three sessions. The Bombay high court, meanwhile, rejected a plea for a stay sought by equity shareholders of LVB on its merger with DBS Bank India.

Mahanagar Gas: Shares of the city gas distributor rallied 14 per cent for the week after regulator PNGRB simplified the country’s gas pipeline tariff structure to make the fuel more affordable for distant users and to attract investment for building gas infrastructure. During the week, PNGRB notified the access code for City or Local Natural Gas Distribution Networks, which Antique Stock Broking said was comparatively less draconian vis-à-vis the proposed draft that was released in October.

Siemens: This stock gained 6.32 per cent for the week to Rs 1,513.90 after the company said its September quarter new orders from continuing operations grew 8.7 per cent YoY to Rs 3,220 crore. The company reported a 4.7 per cent fall in net profit at Rs 333 crore for the September quarter, mainly on higher expenses due to lockdown. Revenue from continuing operations fell 9.2 per cent to Rs 3,422 crore over the corresponding quarter of the previous year, the company said.

IIFL Finance: The stock fell 13.39 per cent to Rs 100.25 on BSE after Moody’s said asset quality at non-bank lender is “vulnerable” due to the economic contraction. “We expect delinquencies will eventually increase at IIFL Finance once the support programs end given the severity of the pandemic’s impact on India’s economy,” the rating agency said.

InterGlobe Aviation: Shares of InterGlobe Aviation declined 9.82 per cent for the week to Rs 1,514.50. Foreign brokerage Citi downgraded the stock to ‘sell’ from ‘neutral’ with a target of Rs 1,400. The brokerage said the market share of the aviation company might have peaked. It believed that there are many imponderables regarding sustainability of the September quarter drivers.

AU SFB, Aavas Financiers: Shares of AU Small Finance Bank declined 4.85 per cent to Rs 837.25 while those of Aavas Financiers jumped 8.73 per cent to Rs 1,623 last week. During the week, AU Small Finance Bank sold 35 lakh shares of Aavas Financiers Ltd worth Rs 530 crore through an open market transaction. Data showed as many as 15,60,000 Aavas shares were purchased by Nomura India Investment Fund Mother Fund and SBI Life Insurance Company at a price of Rs 1,515 apiece.




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