Nifty failed to extend gains for the fifth consecutive session on July 5 and closed sharply lower as traders preferred profit booking after presentation of the Budget. Benchmark indices fell sharply for first time in last five straight sessions after Budget failed to boost sentiment.
The index ended way below 11,900 and formed large bearish candle on daily charts while for the week it gained 0.2 percent and as it saw a formation of Shooting Star, which implies that selling pressure was seen at higher levels.
The BSE Sensex fell 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20. About two shares declined for every share rising on the BSE.
Adani Power, up 24%Share price of Adani Power gained as much as 24 percent for the week. The company said it will acquire GMR Chhattisgarh Energy Ltd
(GCEL) as the consortium of lenders has approved its resolution plan.
The consortium of lenders, led by Axis Bank, to GMR Chhattisgarh Energy Ltd (GCEL), has issued a Letter of Intent dated June 24, 2019, approving Adani Power’s (APL) resolution plan to acquire controlling equity stake and restructure debt in GCEL, Adani Power said in a regulatory filing.
Indiabulls Housing Finance, up 20%
Indiabulls Housing Finance jumped 20 percent in the week with the scrip jumping over 4 percent on July 3 after early redemption of non-convertible debentures. Company informed exchanges that it has redeemed (bought back) secured, redeemable, non-convertible debentures of face value Rs 10,00,000 each. The above redemption did not include one NCD of face value Rs 3,33,333.34 each.Also, Indiabulls Housing Finance said CCI has approved the proposed merger of the company with Lakshmi Vilas Bank. “The Competition
Commission of India… at its meeting held on June 20, 2019, considered the proposed combination and approved the same,” Indiabulls Housing
Finance said in a BSE filing.
Dewan Housing Finance, up 11.31%Dewan Housing Finance (DHFL) added over 11 percent for the week. It decided to sign the inter-creditor agreement to implement the resolution
plan, reported CNBC-TV18. In a meeting held on July 1, the consortium of lenders led by Union Bank of India agreed to set the reference date for DHFL as June 29, which marks the start of the 30-day review period as per regulatory norms.The resolution plan will likely constitute of securitisation of assets and conversion of debt into equity as an interim measure until a new investor
IndusInd Bank, up 8.65%Private banking major IndusInd Bank was up over 8 percent after brokerages maintained buy on the stock. Global brokerage Deutsche Bank
said it expects 32 percent upside in the stock given benefits from Bharat Financial merger and improving asset quality. “We have a buy rating
on the stock with a price target at Rs 1,900 per share as we believe merger benefits from Bharat Financial will play out and fears on non-performing loans (NPLs) are misplaced,” the research firm said.Nomura said it expects the stock to return 26 percent on growth in Bharat Financial Inclusion. “We maintain buy rating on the stock with a target price at Rs 1,775 per share,” the brokerage said, adding past high multiples are unlikely to return soon but current multiples are
reasonable for 19 percent return on equity.
Bank of Baroda, up 7.28%
PSU banking major Bank of Baroda gained over 7 percent for the week. It cut MCLR on various tenors by up to 10 basis points (bps), effective on Sunday. The public sector bank has revised the marginal cost of funds-based lending rate (MCLR) with effect from July 7, 2019, it said in a regulatory filing.
Also, the government’s 70,000 crore booster shot announced on July 5 pulled up PSU bank share price including that of Bank of Baroda.
UPL, up 6.53%
Agrochemical company UPL added 6 percent in the week gone by hitting 52-week high in the process on July 5. Deutsche Bank maintained a buy call on the stock.The brokerage house set the target price at Rs 1,050, implying a 21 percent potential upside from current levels.
YES Bank, down 19%Share price of YES Bank tanked 19 percent. Its shares plunged nearly 7 percent on July 2 after a media report indicated that Mumbai-based
borrower defaulted on interest payment to private sector lender. The stock plunged 63 percent in last three months.
“Mumbai-based Radius Developers has defaulted on scheduled interest payment of Rs 30 crore, on a Rs 1,200-crore loan to the private lender,” The Economic Times said.
Jet Airways, down 8.25%
The share price of Jet Airways continued to slide further down for over 8 percent for the week. Jet Airways founder Naresh Goyal has been summoned by the Serious Fraud Investigation Office (SFIO) to appear before it for questioning. The MCA earlier asked the SFIO to investigate Jet Airways for alleged syphoning of funds, misappropriation of accounts and file its report within six months.
Godrej Properties, down 7.71%
Real Estate major Godrej Properties was down over 7 percent in the week gone by. Global investment firm Morgan Stanley downgraded the stock on valuation concerns. It further said the downgrade reflected its relative preference within its coverage universe.
Adi Godrej and Jamshyd Godrej, in a joint statement to media, stated that they had been working on a long-term strategic plan for the group for several years. They also admitted that they sought advice from external partners to think through their options.
“We have been working on a long term strategy plan for the Group for several years. As part of this exercise, we have sought advice from external partners to help us think through options,” said a release that quoted Adi and Jamshyd Godrej.
Sun Pharma, down 6.41%
The share price of pharmaceutical major Sun Pharma was down over 6 percent, with the firm receiving four observations from the US health regulator for its Halol facility in Gujarat. The United States Food and Drug Administration (USFDA) conducted a pre-approval inspection (PAl) of company’s Halol facility from June 3 to June 11, Sun Pharma said in a filing to the BSE.However, CLSA said it would expect the stock to return 35 percent on its strong India positioning. “We maintain buy rating on the stock with a price target at Rs 520 as the stock remains attractive due to its strong India positioning and improving US outlook that will aid profitability,” the research firm said, adding India profitability improved over FY15-18.