Category: Stocks

Market at close | ICICI Bank, Bharti, Infosys lead Nifty rebound

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian stock market staged a robust comeback on Friday (January 19), breaking from a three-day losing streak, thanks to strong support from key players such as ICICI Bank, Bharti Airtel, and Infosys. The Sensex surged by an impressive 496 points to close at 71,683, while the Nifty gained 160 points, reaching 21,622.

However, the performance of the banking sector remained a cause for concern, with the Nifty Bank closing 550 points off its highs. ICICI Bank, in anticipation of its Q3 earnings, closed with a gain of over 1%, contributing to the market’s positive sentiment. Hindustan Unilever (HUL) also saw an upward trend during the session.

On the flip side, IndusInd Bank experienced a decline of over 3%, despite reporting earnings largely in line with expectations. HDFC Bank struggled to maintain its opening gains, ending 3% off its highs by the close of the session.

UltraTech reported in-line Q2 results, with the stock ending the session at the day’s high. However, Atul couldn’t sustain gains observed post-earnings, closing 3% lower than its peak.

Positive brokerage notes fueled Aarti Industries, pushing the stock to a record high and marking an 11% increase. Additionally, REC and PFC witnessed an uptick following a brokerage upgrade, gaining up to 7%.

IRCTC experienced healthy volume-driven gains after an update in its app, closing the day with a 6% increase. Oracle Financial Services extended its winning streak, rising another 5% on Friday. Market breadth favoured advances, with an advance-decline ratio of 2:1.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oracle Financial shares rally over 40% in just two days; time to book profit?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Oracle Financial Services Software (OFSS) continued its sharp upward move for the second straight session in Friday’s trade. The stock surged another 10% to hit a record high of ₹7,173.40. At this price, it has gained nearly 42% in the last two trading sessions. The recent spike in the share price came after the company posted robust earnings for the quarter ended December 2023.

Oracle Financial reported a 69% year-on-year (YoY) jump in net profit at ₹741 crore for the third quarter. In the corresponding quarter of last year, Oracle Financial posted a net profit of ₹437 crore. Its revenue from operations rose 26% to ₹1,824 crore as against ₹1,449 crore in the corresponding period of the preceding fiscal.

Margins were strong for the December quarter with the operating margin at 46.1% and net margin at 40.6%.

For the nine months ended December 2023, license signings were $117.4 million, a growth of 76% over the corresponding period last fiscal, the company’s management said.

“Our license fee signings were $49.5 million across our product lines for both Cloud/SaaS and on-premises deployment modes. For the nine months ended December 2023, our license signings were $117.4 million, 76% higher than the corresponding period last fiscal,” said Managing Director and CEO Makarand Padalkar.

“We signed a landmark cloud deal with Navy Federal Credit Union, USA during the previous quarter, and we continue to see a robust deal pipeline across all the regions as we continue to serve the market with our product portfolio,” Makarand said.

Here are the biggest beneficiary from Oracle’s sharp upmove—

“The problem with this kind of company is that it has product pipeline which rolls over slowly. If you look at the long term growth that the company has done, it is consistent but not eye-popping. There is a gradual increase in bottomline and topline but it is not something which is even keeping up with the rather tepid IT businesses that we are seeing even today,” said market expert Anand Tandon.

At 11.48 am, the scrip was trading 4.90% higher at ₹6,866 on the NSE. Meanwhile, the stock surged nearly 60% so far this year and 120% in the past one year.

The average target price of the stock is ₹6,260, which shows a downside of 9% from the current market prices, according to data from Trendlyne. The consensus recommendation from one analyst for the stock is a ‘Buy’.

Tech view

In terms of technicals, the stock is in the overbought zone as the day RSI (14) is at 87. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. MACD is at 155.2, which is above its center and signal line, this is a bullish indicator.

Oracle Financial is currently trading above its 20-day, 50-day, 100-day and 200-day simple moving averages (SMAs). The stock has been relatively low on the volatility front, with a 1-year beta of 0.1, according to Trendlyne.

“On the indicator front, daily stochastics has entered the overbuy zone once again, which is a sign of strength. Thus, one can buy in the zone of ₹4,900-5,100 for a target of ₹5,400, and the stop-loss would be ₹4,800 on a daily close basis,” said Jigar S Patel of Anand Rathi Shares & Stock Brokers.

Oracle Financial provides products and services to the financial services industry and is a majority-owned subsidiary of Oracle Corporation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This analyst interacts with 20 clients post HDFC Bank results; Here’s what they said

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global broking firm CLSA interacted with over 20 clients since HDFC Bank’s December quarter results (Q3FY24) on Tuesday. While most domestic clients were unhappy with the third quarter results, CLSA said that it was slightly different for the foreign investors who believe that we are near the end of the ‘EPS cuts’ cycle.

Among the foreign investors, CLSA said that the ratio of “bears” to “bulls” seemed much lower than the domestic investors. “Many of them believe that the worst is almost over, and we should see an improving trend across all important parameters.”

Moreover, some even pointed out that the Street is missing out on the merger synergy benefits that are yet to play out.

Key concerns, CLSA believes, were on deposits and net interest margin (NIM). On deposits, some clients believed that it was a macro problem and not intrinsic to HDFC Bank alone, the brokerage said in its latest note to clients.

What are clients saying?

Most domestic clients believe that EPS cuts are likely to continue as it would be nearly impossible for the private sector lender to maintain 15-17% loan growth and also expand margins. This, as per the brokerage, is because the ask rate on deposit accretion to deliver 15-17% loan growth is quite high (₹4.5-5 lakh crore annually).

CLSA further said that the clients believe the bank would need to play the deposit pricing game to garner such a high volume of deposits, thus shrinking its NIM.

“One client also argued that the impact of the increase in retail loans on NIMs will take longer-than-expected,” the foreign brokerage said.

Can RBI help with the deposit accretion problem?

The HDFC Bank management has attributed weaker deposit growth to an overall liquidity deficit in the banking system. The Reserve Bank of India (RBI) has infused $17 billion through forex intervention as against CLSA’s estimate of $42 billion; the balance is showing up as money market liquidity deficit, the brokerage said.

It expects the central bank to reduce the $20 billion liquidity deficit by a mix of forex purchases, possible 50 basis points cash reserve ratio (CRR) cut and Open Market Operations.

“We believe that RBI would take a slew of measures to bring down the deficit — forex intervention, possible CRR cut and OMO,” CLSA said, adding that forex intervention of $10 billion in the fourth quarter of this fiscal is the easiest way for the RBI to bring down the liquidity deficit.

CLSA noted that ₹1 of durable liquidity injection tends to create ₹4.6 in deposits over six to 12 months.

The brokerage maintains a ‘Buy’ call on the HDFC Bank stock, with a target price of ₹2,025 per share.

On Friday, HDFC Bank shares opened higher after remaining under pressure for two consecutive trading sessions. In the last two days, the US-listed shares of HDFC Bank have suffered a plunge of over 15%, while HDFC Bank stock has tanked over 11%, wiping out ₹1.44 lakh crore of investor wealth.

The fall in the stock price has been the steepest two-day tumble since March 2020. If one excludes fluctuations seen during the Covid-19 time, HDFC Bank shares had experienced a similar magnitude of fall in only six instances since its listing in May 1995.

The fall in the lender’s shares began after HDFC Bank disappointed the Street in deposit and liquidity metrics, even though the net profit for the quarter was above consensus estimates, partly due to one-off items. The NIM for the private lender came in at 3.4% in the quarter under review against Street estimates of 3.6%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Technical stock picks | Cipla, Indusind Bank, BHEL, and Bank of India on the radar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technical analysts Mitessh Thakkar, and Shrikant Chouhan of Kotak Securities share their top stock picks for the day.

From Mitessh Thakkar

Mitessh Thakkar’s first buy call of the day is on Cipla. He recommends this with a stop loss of ₹1,300 for an upside target of ₹1,365. The stock has gained more than 6% in the last month.

He recommends a buy call on Indusind Bank with a stop loss of ₹1,595 for an upside target ₹1,660-1,665. The stock is up more than 3% over the last month.

Thakkar’s only sell recommendation is Tata Steel, if the stock starts breaking below ₹129.50 sell with a stop loss of ₹132.50 and target of ₹123. Shares have declined more than 2% over the last month.

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From Shrikant Chouhan

Chouhan finds a buying opportunity in BHEL. He advises traders to keep a stop loss of ₹208 for a target of ₹225-230. Shares have gained more than 16% over the last month.

Bank of India is another buy call from Shrikant Chouhan. Stop loss is to be placed at ₹129 for a target of ₹143-144. The stock has gained more than 19% in the last month.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shalby to acquire 87% stake in Sanar International Hospitals for ₹102 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Multi-speciality hospital chain Shalby Ltd on Thursday (January 18) said it will acquire an 87.26% stake in Sanar International Hospitals, Gurugram (PK Healthcare Private Ltd), for approximately ₹102 crore in equity stake.

Shalby said the investment is in line with its strategy to accelerate its presence in the Delhi/NCR region and also consolidate its presence in the Northern part of India.

The hospital is located at Golf Course Road, Gurugram on a 1.27-acre plot taken on a long‐term lease. The current capacity of 130 beds facility can be expanded to the level of 180 beds with additional capex.

Sanar International Hospitals offers care in specialities such as cancer, heart, blood and marrow transplant, kidney & liver transplant, bone & joint and neurosciences among other specialities.

At present the hospital generates around 70% of its business from international markets catering to more than 60 countries, Shalby said.

Sanar International Hospitals has multiple tie-ups with various healthcare facilities across the globe and caters to the requirements of its patients through seven representative offices in the Middle East, Africa, CIS, SAARC and other international locations, the company added.

Shares of Shalby Ltd ended at ₹304.20, up by ₹11.15, or 3.80%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market at close | HDFC Bank’s plunge drags Sensex, Nifty amid sectoral rollercoaster

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a volatile trading session, the Indian stock market on Thursday (January 18) faced its third consecutive day of losses, grappling with divergent performances across sectors.

The Sensex closed the day 314 points lower at 71,187, while the Nifty slipped 110 points to 21,462. Banking stocks remained a significant drag on the market, with HDFC Bank contributing substantially to the losses.

The banking sector’s woes were evident as the Nifty Bank index fell by 351 points to 45,714. HDFC Bank, in particular, dragged down the indices, overshadowing positive performances from other heavyweight stocks.

However, Reliance Industries Ltd provided some support to the Nifty, ending the day with gains ahead of its Q3 earnings report scheduled for Friday (January 19).

Tata Communications emerged as a bright spot, surging after reporting in-line earnings and showcasing a robust 28% year-on-year growth in its data business revenue.

On the other hand, disappointment loomed over the market as IndiMART witnessed a sharp fall due to net additions falling below estimates, causing a 4% decline.

Oracle Financial Services Software (OFSS) stole the spotlight by recording a remarkable gain of 30%, reaching a record high after beating earnings expectations. The positive commentary from Apollo Management boosted its stock, which gained up to 7%.

Indian Energy Exchange (IEX), however, continued its downward spiral, extending losses by 17% over two days, fueled by negative sentiments following Union Power Minister RK Singh’s market coupling comment.

Additionally, the earnings report from LTIMindtree weighed on the IT sector, resulting in most stocks closing lower. LTIMindtree suffered a significant 10% fall due to muted earnings and a cut in guidance.

Amidst the mixed performances, ICICI Prudential saw a partial recovery but closed the day with a 5% cut, reflecting weak Q3 results. On a positive note, Aarti Industries surged 6% following a substantial order win worth ₹6,000 crore for its specialty chemical products.

The market breadth remained neutral, with an advance-decline ratio of 1:1.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Should you increase your mutual fund SIP amid the recent market slump?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mutual fund investors are in a quandary over whether to raise their Systematic Investment Plan (SIP) allocations or wait more amid the market sell-off. Indian shares have corrected over 3% in the last two sessions, receding from their recent highs.

The sharp decline in benchmark indices can be attributed to various factors, including HDFC Bank’s December quarter results failing to cheer the Street, a subdued global environment, and the impact of five-week high US Treasury yields.

Experts see the current fall in the stock markets as a good opportunity to pick blue-chips for long-term wealth creation. They also caution investors to not fall into the trap of pump-and-dump penny stocks.

Maintaining a long-term view amid short-term noise

Mukesh Kochar, National Head of Wealth at AUM Capital, advises investors to maintain a long-term perspective and ignore short-term market noise.

“The only thing that is important is to maintain proper asset allocation and avoid penny stock ideas. The idea of making quick money should be avoided,” he emphasised.

Penny stocks are low-priced stocks that typically have a small market capitalisation and are considered highly speculative.

Benefits of SIPs in a falling market

Nitin Shahi, Executive Director at Findoc, suggests that increasing SIP investments during market falls could be a healthy strategy.

SIPs enable individuals to keep pace with inflation and maintain their purchasing power.

Rupee cost averaging comes into play, lowering the average cost and fetching more units with the same investment amount. This averaging-down strategy can result in better returns when the markets recover.

Shahi also highlighted the role of diversification in reducing risks in highly volatile markets.

Divam Sharma, Founder and Fund Manager at Green Portfolio sees the current market fall as a short-term opportunity for investors.

He believes 2024 will provide more periods of volatility, offering investors opportunities for long-term wealth creation.

“Investors can increase SIPs over the coming days,” Sharma told CNBC-TV18.com.

Aditya Gaggar, Director of Progressive Shares, noted that the ongoing market correction provides an excellent opportunity for investors to add good-quality stocks.

He acknowledged the sharp correction in almost all sectors and anticipated further opportunities for investors.

SIP versus lumpsum: A strategic approach

As the debate continues between SIPs and lump-sum investments, experts weigh in on the benefits of SIPs.

Mukesh Kochar of AUM Capital highlighted the consistent upward journey of SIPs throughout 2023, with numbers surpassing 17,600 crore by the end of December. Concurrently, substantial lump-sum investments gained traction, particularly when the market was rising.

“That rally was broad-based one and in such a type of conviction rally, people tend to invest as fast as possible as the market is continuously on an upward journey and no one wants to do a higher average. However, retail investors tend to favor SIPs for their steady and synchronised approach to wealth creation,” Kochar said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Banking sector ripe with opportunities, Dean Kim advises patience with HDFC Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dean Kim, Head-Global Research at investment firm William O’Neil + Co says the charts currently look good for the banking sector with a lot of good opportunities. However, given the current weakness in HDFC Bank, he advises being patient with it and keeping it on the sideline “until it recovers to the 200-day moving average.”

Among other banks, Kim highlighted state banks like the Bank of Maharashtra and the State Bank of India (SBI) that look good in terms of their technical setup.

He also listed consumer finance company Cholamandalam Investment and Finance that is looking strong on the technical charts.

Discussing the broader Indian equity markets, Kim said, “If we can find some support, should we break the 21-day moving average price support, it’s around 70,000 in terms of Sensex, below that it’s a 50-day moving average. If we do see a bounce off the 50-day, that will be a great buying opportunity.”

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow