A close above Nifty’s previous high of 9,709 will trigger the next leg of the up move, Mazhar Mohammad, chief market strategist, Chartview India told BloombergQuint in a phone interview. “The index should head towards 9,900-10,000.” From there, he said, the index is likely to enter into a corrective phase which could see it fall 7-8 percent. “For now, 9,440 is a strong support level for the Nifty.”
In this backdrop, he advised investors to take a contrarian bet on this year’s underperformers like pharma and technology shares. He also said they should shift from private sector banks to the state-owned ones. “There is more room on the upside in those pockets, but one should stick to the frontliners.”
Mohammad picks State Bank of India and Infosys as his top bets.
#BQSpotted by @iYashUpadhyaya | Gujarat Fluorochemicals hits record high. https://t.co/Vj8xeuuXXX pic.twitter.com/ukOiBHd2vn
— BloombergQuint (@BloombergQuint) July 7, 2017
#BQStocks | Sugar stocks gain as favourable onset to monsoon season stoke investor interest.https://t.co/w2ISgzPkb6 pic.twitter.com/AQ49ANyxcF
— BloombergQuint (@BloombergQuint) July 7, 2017
Board of Directors of RBL Bank Ltd. approved the proposal to issue 32,621,354 equity shares of face value of Rs 10 each on preferential basis at a price of Rs 515 per equity share. The bank plans to raise Rs 1,680 crore through the issuance.
The issue is subject to regulatory and shareholder approval. The bank plans to augment its tier-I capital for supporting the future organic growth of the business, scout for inorganic opportunities and for other general corporate purposes, it said in an exchange filing.
The prospective investors include:
- ABG Capital
- CDC Group PLC
- Global IVY Ventures LLP
- HDFC Standard Life Insurance Company
- ICICI Lombard General Insurance Company
- LTR Focus Fund
- Multiples Private Equity Fund II LLP
- Plenty CI Fund I
- Plenty Private Equity Fund I
- Steadview Capital Mauritius
The National Company Law Tribunal approved the Scheme of Amalgamation between Maruti Suzuki India Ltd. and seven of its wholly-owned subsidiaries. The seven subsidiaries are
- Maruti Insurance Business Agency Ltd.
- Maruti Insurance Distribution Services Ltd.
- Maruti Insurance Agency Network Ltd.
- Maruti Insurance Agency Solutions Ltd.
- Maruti Insurance Agency Services Ltd.
- Maruti Insurance Agency Logistics Ltd. and
- Maruti Insurance Broker Ltd.
along with their respective shareholders and creditors.
The Central Pollution Control Board has asked Tata Chemicals Ltd. to resume commercial operations at Haldia plant.
The board had in March asked the company to shut plant operations at the said plant under section 5 of the Environment Protection Act, 1986.
The company has resumed operations at the plant today.
Shares gained as much as 1.29 percent to Rs 653.50 on the National Stock Exchange.
This augments the group’s effort in developing and manufacturing state-of-the-art indigenous systems in niche technology areas of defence sector in India.Baba Kalyani, Chairman & Managing Director, Bharat Forge
Shares of Unitech gained as much as 13.85 percent to Rs 7.40 after investor Manish Lakhi purchased 1.54 crore shares of the company or a 0.6 percent stake for Rs 6.46 each.
The stock has outperformed the benchmark indices in 2017, gaining 91.07 percent while the S&P BSE Sensex index gained 17.68 percent during the year so far,
Buzzing Tea Stocks:
- Tata Global Beverages (up 1.2 percent)
- McLeod Russel (up 5.4 percent)
- Rossel India (up 3.2 percent)
- Harrisons Malyalam (up 6 percent)
- Jayshree Tea (up 6.3 percent)
- Assam Company (India) (up 8 percent)
Shares of the private lender fell as much as 3.13 percent, the most in almost two months after it reported a divergence of Rs 339 crore in its gross bad loans at the end of financial year 2015-16.
The bank in its annual report said that the gross non-performing assets as assessed by the Reserve Bank of India stood at Rs 547 crore as of March 31, 2016 while it had announced a figure of Rs 208.05 crore during the January-March quarter.
Larger private sector lenders such as ICICI Bank Ltd., Axis Bank Ltd. and Yes Bank Ltd. have all reported divergences in their respective annual reports over the last few weeks.
#BQMoney | K Harihar of First Rand Bank sees a weaker rupee trading between 64.50-65 against the dollar.https://t.co/w2ISgzPkb6 pic.twitter.com/PpcLWumSFT
— BloombergQuint (@BloombergQuint) July 7, 2017
- Minda Industries: Maybank initiates coverage with 'Buy' rating and price target of Rs 850
- NMDC: Raised to 'Add' at ICICI securities with price target of Rs 122
- Sanghi Industries: Batlivala and Karani initiates coverage with 'Buy' rating and price target of Rs 123
- Timken India: Raised to 'Buy' at ICICIdirect with price target of Rs 867
Source: Bloomberg
- InterGlobe Aviation: Says will go for Air India acquisition if its earnings per share (EPS) accretive
- Bharat Forge: Subsidiary Kalyani Strategic Systems signs pact with Israel's Aerospace Industries to build new maintenance centre in India for selected advanced air defense systems
- IDFC Bank: Refused to comment or deny reports of merger with Shriram group companies
- Emkay Global: To raise Rs 150 crore through issuance of equity shares via QIP or ADRs or GDRs or FCCBs or a combination thereof
- Navin Fluorine: Shareholders approve sale of unit located at Dahej in Gujarat
- RBL Bank: Annual report points to divergence in NPAs
For a complete list of stocks to watch, click HERE!
- RBL Bank reports Rs 339 crore divergence in gross bad loans
- Net income tax collection rises nearly 15% in the first quarter
- Maruti, Honda cars to compensate dealers for losses on transition stock due to GST
- IndiGo plans low-cost, long-haul international flights with or without Air India
- What Reliance Jio needs to break even
- PM’s Israel visit: High on hype but low on deliverables
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, fell 0.3 percent to 9,640
A selloff in bonds across the globe kept investors on the edge as central banks set up talk of tighter policy conditions.
The focus has now shifted to the upcoming U.S. jobs report where a stronger-than-expected number may prompt further selloff in bonds and turn the U.S. Federal Reserve further hawkish. Economists project an addition of 1,75,000 workers in June and strengthening of wage growth.
Uncertainty surrounding U.S. government policy may be holding back economic growth because of its negative impact on business investment, Federal Reserve Vice Chairman Stanley Fischer said.
Focus is also on the upcoming G-20 summit scheduled to begin in Hamburg today with U.S. President Donald Trump expected to hold talks with his Russian counterpart Vladimir Putin and Xi Jinping.
West Texas Intermediate tumbled 1.4 percent to $44.89 a barrel, more than erasing Thursday’s 0.9 percent gain. Oil is down 2.6 percent for the week, after jumping 7 percent last week to stem a rout that sent crude into a bear market..
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