BackStocks to Watch: IndusInd, Sona BLW, LIC, Adani Power, Paytm
Gujarat Narmada Valley Fertilizers & Chemicals Ltd continues to remain in the F&O ban list for the Tuesday trading.FIIs are net sellers for three days in a row. As per NSE data, FIIs buying value stood at ₹10,135.27 crore on Monday, while the selling value came in at ₹11,682.13 crore.
PremiumHere is the list of the top 10 stocks that will be in focus today:
IndusInd Bank: The Reserve Bank of India (RBI)’s decision to give a two-year extension to IndusInd Bank’s chief executive officer Sumanth Kathpalia, instead of three years, has surprised analysts and investors. Brokerage JP Morgan has downgraded the private sector bank to neutral and reduced its target to ₹1,060 per share. “We note over past five trading sessions, IIB (IndusInd Bank) has outperformed on expectations of RBI granting a three-year extension, and we expect the stock to react negatively," said JP Morgan in its report on Monday.
Sona BLW Precision Holding: Singapore’s sovereign wealth fund GIC, Abu Dhabi Investment Authority (ADIA), and a clutch of other investors purchased shares of Sona BLW Precision Holding (Sona Comstar), as private equity Blackstone Inc. sold its 20.5% stake in the auto components firm. GIC acquired shares worth about ₹993 crore ($120 million), according to data from the BSE. The Monetary Authority of Singapore purchased shares worth ₹237 crore. Blackstone sold around 120 million shares for ₹410 apiece.
LIC: Life Insurance Corp.’s (LIC) outstanding debt exposure to Adani Group companies declined from ₹6,347 crore at the end of 2022 to ₹6,183 crore on 5 March 2023, finance minister Nirmala Sitharaman told Parliament on Monday. State-run banks have informed that loans are sanctioned after assessing the viability of projects, prospective cash flows, risk factors and availability of adequate security and repayment of loans is ensured by the revenue generated by the project, Sitharaman said.
Adani Power: Fitch Ratings on Monday affirmed the ‘BBB-’ rating on Adani Electricity Mumbai Ltd’s (AEML) dollar-denominated senior secured notes, due in 2030. The rating agency also affirmed AEML’s $2 billion global medium-term note (GMTN) programme at ‘BBB-’, along with notes issued under the programme. “The affirmation reflects the view that the Hindenburg report alleging governance issues at the Adani group has a limited near-term impact on AEML’s cost of funding and access thereof, at the current rating level," it said.
One 97 Communications: Paytm sustained its growth in payments and loan distribution business in the first two months of the fourth quarter of FY23. The fintech giant recorded a total merchant GMV of ₹2.34 lakh crore from January to February of 2023, rising by 41% year-on-year. Also, the company posted loan disbursements of ₹8,086 crore on its platform in the two months, increasing by a whopping 286% YoY. In regards to Gross Merchandise Value (GMV), Paytm said, "our focus over the past few quarters continues to be on payment volumes that generate profitability for us, either through net payments margin or from direct upsell potential."
Mahindra CIE Automotive: Mahindra & Mahindra on Monday said it has sold over 6 per cent stake in Mahindra CIE Automotive. The company has sold 2,29,80,000 equity shares representing 6.05 per cent of the paid-up share capital of Mahindra CIE Automotive Ltd, a listed unit of the company, the auto major said in a regulatory filing. The sale has been executed on the stock exchanges at a gross price of ₹357.39 per share, it added.
Dr Reddy's Laboratories: Life Insurance Corporation of India (LIC) on Monday said that it has increased its shareholding in Dr Reddy's Laboratories by 2 percentage points. The holding has increased from 5.005% to 7.278%. The purchase of shares took place from 20 September 2022 to 10 March 2023 at an average price of ₹4403.02, LIC said in its corporate filing. LIC said that its shareholding in Dr Reddy's Laboratories has increased from 1,27,83,287 to 1,61,44,983 equity shares.
GAIL: GAIL (India) Limited, a Maharatna CPSE under the Ministry of Petroleum & Natural Gas has approved an interim dividend of ₹4 per equity share for the financial year 2022-23. “The Board of Directors of the Company in its 454th meeting held today i.e.13th March 2023 has, inter-alia, approved the payment of Interim Dividend for the FY 2022-23 @ 40% (Rs. 4.00/- per equity share) on the paid-up equity share capital of the Company," the filing said.
PNB Housing Finance: PNB Housing Finance, an arm of state-owned Punjab National Bank, has received capital markets regulator Sebi's go-ahead to raise up to ₹2,500 crore through the rights issue of shares. The housing finance firm, which had filed draft papers with Sebi in December 2022 regarding the rights issue, obtained its 'observations' on March 6, which is necessary for any company to launch the issue, an update the markets regulator showed on Monday. PNB Housing will issue fully paid-up equity shares of the company by way of a rights issue to its existing shareholders for an amount not exceeding ₹2,500 crore.
NLC India: State-run NLC India Ltd (formerly Neyveli Lignite Corp. Ltd) plans to invest ₹1,000 crore for a 51% stake in a green energy joint venture it is setting up with Assam Power Development Co. Ltd (APDCL), two people aware of the development said. The proposal for the investment has already been moved for the Union government’s consideration, with the JV to set up a 1 gigawatt (GW) initial solar power capacity in Assam at an investment of around ₹5,500 crore.
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