Indian shares swung between gains and losses as investors looked ahead to domestic corporate earnings reports while they continued to gauge the likelihood of a Federal Reserve rate hike.
Here are the stocks in focus for the day:
Bank Stocks: Benefit From Essar Deal
Shares of the select private lenders reacted to the news that the Essar Oil deal will lead to payout for three major banks in the coming week.
Essar Group is said to be preparing for a $2.1 billion repayment to Standard Chartered, according to Bloomberg.
ICICI Bank and Axis Bank will also receive $300 million of combined repayment from the oil and gas exploration company. However, the banks still continue to be exposed to $450 million worth of risk in the form of debt unpaid by Essar Group.
A group led by Russian energy giant Rosneft has agreed to buy 98 percent stake in the Ruia-controlled Essar Oil, the companies said in a statement on Saturday. The deal, which has been in the works since July 2015, is expected to help the Essar group reduce its debt by half.
- Standard Chartered Indian Depository Receipt (+1.9 percent to Rs 53)
- ICICI Bank (-1.5 percent to Rs 266)
- Axis Bank (+0.8 percent to Rs 536)
ICICI Bank, which was the second worst performer on the Sensex, rallied over 12 percent in the last three trading sessions.
Essar Oil deal significant for Indian banking sector: Kotak Institutional Equities https://t.co/rCvB5RfMKb pic.twitter.com/8pICeWBzE1
Mahindra & Mahindra: To Launch New Electric Car
Shares of the car maker fell 0.7 percent to Rs 1,323 on Wednesday morning. Mahindra will launch its new electric car, the E20 Plus, on Friday, according to Bloomberg.
Additionally, Mahindra & Mahindra subscribed and received 60 lakh equity shares of Rs 10 each, in Classic Legends. This constitutes 60 percent of the total post issue capital according to an exchange filing.
Endurance Technologies
The stock debuted at a premium of 21.2 percent at Rs 572 on the National Stock Exchange.
The firm's initial public offer was over-subscribed 43.8 times on the final day of the Rs 1,155 crore initial public offering. The price band of the IPO had been fixed at Rs 467-472 per equity share of face value of Rs 10.
Earnings Reaction
Shares of Havells India fell 1.6 percent to Rs 435 on Wednesday morning.
The company reported a 22 percent jump in profit to Rs 145.8 crore in the second quarter, on a year-on-year basis, according to the company's filing on the BSE.
Revenue jumped 9 percent to Rs 1,547.7 crore in the September quarter with its profitability margin expanding by 41 basis points to 13.5 percent.
Earnings Watch
RBL Bank and Tata Coffee are some of the companies coming out with their second quarter earnings for the financial year 2016-17. Other stocks include Quess Corp, Aptech, Kirloskar Industries etc. Take a look at how these stocks are performing before announcing their July-September quarter results.
- RBL Bank (+2.8 percent to Rs 315)
- Quess Corp (+1.2 percent to Rs 612)
- Tata Coffee (+2 percent to Rs 147)
- Aptech (+1.6 percent to Rs 176)
- Hindustan Zinc (+2.9 percent to Rs 252)
- Mangalore Chemicals & Fertilizers (+3.9 percent to Rs 55)
- Kirloskar Industries (+1.5 percent to Rs 961)
- NIIT (+2.2 percent to Rs 424)
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