Federal Bank: There has been a buzz around the Kerala-based Federal Bank, after reports that billionaire investor Rakesh Jhunjhunwala bought a 1.6 per cent stake in the private lender during the March quarter, while Kochi-based investor Porinju Veliyath, better-known for picking small-cap winners, is said to be accumulating the stock of late. Analysts said the stock’s underperformance vis-a-vis its peers has left the stock trading at a discount, which has prompted investors to buy the stock despite disappointing fourth quarter results.
Bajaj Auto: After a two-year gap, Pune-based two- and three-wheeler maker Bajaj Auto has regained its third rank, in terms of number of units sold, displacing Chennai-based TVS Motor.Powered by new model launches such as Avenger and V15 (promoted by INS Vikrant), Bajaj Auto clocked two-wheeler sales of 200,433 units in domestic sales against 197,692 units sold by TVS Motor — which sells motorcycles, scooters and mopeds — in April 2016, according to the sales figures disclosed by the two companies..
Vedanta: The mining conglomerate has shown a sharp turnaround in the March 2016 quarter. Till some time ago, Dalal Street was concerned about the company’s high debt and low profitability in the falling commodity environment. Its fortunes were also linked to the merger of its two cash-rich subsidiaries — Cairn India and Hindustan Zinc. However, with the recent rise in the commodity prices and commissioning of the company’s power plants, the stock is expected to see an upward rating revision.
RIL: Reliance Industries (RIL) is perusing whether to withdraw a pending arbitration with the government on the gas price issue so that it can benefit from the higher prices. The company’s top management is understood to be looking into two divergent views of whether to drop the arbitration to gain from the near doubling of gas prices or carry on with the two-year-old case.
Adani Ports: Adani Ports & SEZ on Tuesday posted second-worst sales performance this year. In Q4, the company’s net sales were Rs 1,860 crore, 12.5 per cent more than the year-ago quarter, with the growth rate being better than that in the previous quarter (Q3) but lower than the five quarters preceding Q3. The full-year sales growth of 19.4 per cent to Rs 6,969 crore was the lowest in the last six financial years.
Cairn India: Cairn India is drawing a lot of interest from traders who see a probable 20-30 per cent upside in the stock owing to the ambiguity related to the rollover of $1.25 billion loans given to Vedanta Resources two years ago. The open interest in Cairn India futures increased 47 per cent to 1.22 crore shares on May 2 compared with 0.83 crore on April 27.
TVS Motor: Shares of TVS Motor nosedived some 9 per cent in Tuesday’s trade after the company announced its March quarter results, which failed to meet operating margin expectations. Analysts polled on Bloomberg expected TVS Motor to post 7.14 per cent operating margin, while it only managed 6.34 per cent. This was the third successive quarter of disappointing margins, which prompted the Street to give the stock a thumbs-down, even when the company exceeded expectations the revenues, which grew 16 per cent to Rs 2,776 crore from Rs 2,756 crore.
ONGC, GSPC: India’s Oil Minister Dharmendra Pradhan on Tuesday said ONGC and Gujarat State Petroleum Corp were holding commercial talks to use common facilities in the KG Basin, the region where the two companies, apart from Reliance Industries, have discovered gas in challenging fields. He also said Indian energy firms will hold stakes in oil and gas fields in the Middle East while companies from the Gulf will invest in oil and gas infrastructure, refineries and petrochemicals at home, as commercial ties with the world’s biggest oil-exporting region evolve into a strategic relationship.
JSPL: Sajjan Jindal’s JSW Energy has all but agreed to buy a 1,000 mw power plant from his brother’s heavily-indebted Jindal Steel and Power in a deal valued at over $900 million, said a Reuters report. An announcement could come as early as Wednesday, though one of the sources with direct knowledge of the matter said further talks were scheduled for Tuesdaynight to “discuss a few more things to conclude a deal”. JSW and Jindal Steel officials have been meeting in New Delhi and Mumbai over the past weeks. A last-minute disagreement over valuation forced JSW to cancel a scheduled news conference last week, according to one of the sources
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