HDFC Bank, Reliance Capital and Usha Martin among stocks in focus

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NEW DELHI: The domestic equity market is likely to see a flat to negative start on Thursday, tracking Nifty futures on the Singapore Stock Exchange (SGX).

Here is a list of stocks that are likely to be in focus in today’s trading session:

HDFC Bank: The lender has approval to sell fresh shares in India and abroad in what could result in the country’s largest qualified institutional placement (QIP).The approval includes an Rs 8,500-crore infusion from parent HDFC, which will allow it to maintain its 25.6 per cent current shareholding, potentially leaving about Rs 15,500 crore to be raised from the market.

Reliance Capital, Zee Entertainment: Media baron Subhash Chandra-promoted Zee Group and Anil Ambani-owned Reliance Broadcast Network (RBN) are renegotiating the acquisition deal announced in November 2016 as the former wants to reduce the price, said people in the know.

TCS: Tata Consultancy Services (TCS) said its board will consider a proposal to buy back shares on Friday, with analysts expecting it to be at that same level as the one in 2017. The company’s board had announced a Rs 16,000-crore share repurchase programme last year. In April, the company followed up with an issue of bonus shares.

Usha Martin: The comapny’s decision to put its 1-million-tonne steel unit on the block has attracted at least four large suitor. Usha Martin is looking to sell the unit to clear debt of ₹3,700 crore. It hopes to get non-binding offers in the next 2-3 weeks, managing director Rajeev Jhawar told ET.

Monnet Ispat
& Energy:
The company’s subsidiary Monnet Power is headed for liquidation with no bidder turning up on the final day to submit bids, which also raises questions about faith in the administration’s ability to resolve the stress in the sector, said two people familiar with the matter.

ICICI Bank, ICICI Pru: ICICI Bank will reduce its stake in ICICI Prudential Life Insurance by 2 per cent to 52.89 per cent as it seeks to raise money to overcome a likely jump in provisions in the quarter ended June 2018.

RCom: Reliance Communications (RCom) said it is no longer impacted by the turmoil in the telecom industry, since it has exited the wireless segment and slashed 94 per cent of its workforce.

Ruchi Soya: enders are giving Adani Wilmar, the highest bidder for bankrupt Ruchi Soya, the option to improve its offer. Following this, second-highest bidder Patanjali Ayurved will be allowed to better that.

Mindtree: Citi has downgraded the stock to ‘Sell’ from ‘Neutral’ with a target of Rs 970 per share. It says that the business recovery has been priced in and that the consensus EPS is probably building in a turnaround.

OMCs: State oil companies kept prices of petrol and diesel unchanged on Wednesday after cutting it for 14 days in a row. Prices of petrol are down Rs 2 per litre and diesel Rs 1.46 per litre since May 30 when companies first cut rates that had risen to record levels.

Mold-Tek Packaging: Kotak Securities has upgraded Mold-Tek Packaging to buy from accumulate with a target price of Rs 351. Stock stands to gain in the coming years from the increasing share of IML products, expansion into food and FMCG industry, capacity addition at Vizag and Mysuru, and ramp-up at RAK would aid the profitability.

Hero MotoCorp: The country’s largest two-wheeler maker Hero MotoCorp has increased its lead over rival Honda Motorcycles and Scooters India (HMSI) to over 2.2 lakh units in the first two months of the current fiscal.

ICICI Lombard General Insurance Company: HSBC has maintained reduce rating on ICICI Lombard General Insurance Company with a target price of Rs 620. ICICI Lombard and its industry peers could soon start selling multi-year third-party motor insurance for cars if the insurance regulator has its way, said HSBC.

Axis Bank: CLSA has maintained buy rating on Axis Bank and revised target price to Rs 650 from Rs 610. The Axis Bank annual report highlights further erosion in the franchise across the board, said CLSA. The firm has raised earnings estimates on normalisation of slippages or credit costs and better net interest margin.

Source: Economic Times