Tag: Stock market

DHFL closed higher by 14.84% on NSE after Mehta’s clarification on resignation

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

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Dewan Housing Finance Limited (DHFL) shares on Thursday erased losses and surged over 14.84 percent  to Rs 127.70 per share as the closing price on NSE after the fresh development that the resignation was in-line to get a new strategic partner within the given time frame.

Harshil Mehta had also made an announcement that the new retail model would be around ‘Originate and sell’ model and that needed a sharp focus to build the retail business around that model. So, the resignation was basically to bring a sharper focus around the ‘originate & sell’ model and as well to get a strategic partner.

In the opening trade, the stock fell nearly 6% after the company’s chief executive officer and joint managing director Harshil Mehta resigned with immediate effect.

“However, he would continue to be associated with the company and shall hold the designation of Executive President -Retail Business with effect from February 14, 2019,” DHFL informed the stock exchanges on Wednesday.

Besides, the board has recommended the appointment of Sunjoy Joshi as an Independent Director and Srinath Sridharan as a Non-Executive Director.

Earlier, investigative news portal Cobrapost accused DHFL of siphoning off Rs 31,000 crore of loans to ‘dubious’ companies.

The allegations by Cobrapost, founded in 2003 by Aniruddha Bahal of Tehelka, are based on Vikas Shekhar’s complaint who is not a shareholder nor a borrower. DHFL’s management denied Cobrapost’s allegations, calling them ‘frivolous.’

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

OMC stocks fall around 2% as oil prices jump

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

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Shares of oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum fell on Wednesday after crude oil prices rose over 1 percent to near $63 per barrel in the previous session. Oil prices rose after OPEC data showed it cut production sharply in January, and as lead member Saudi Arabia said it would reduce its output in March by an additional 500,000 barrels, reported Reuters.

Indian Oil shares fell nearly 1 percent, BPCL shares fell 2.4 percent and HPCL shares were down 2.5 percent in the morning trade on the BSE. The benchmark Sensex traded 0.26 percent higher at 36,246.36 points.

Brent crude futures rose 91 cents, or 1.5 percent, to settle at $62.42 a barrel on Tuesday. US WTI crude oil futures rose 69 cents, or 1.3 percent, to settle at $53.10 a barrel.

Analysts said markets are tightening amid voluntary production cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) and because of US sanctions on Venezuela and Iran, noted Reuters. But some said supply-side risks were not receiving enough focus.

With OPEC engaged in supply management and the Middle East entangled in political conflicts while production outside the group surges, Bank of America Merrill Lynch said OPEC’s global market share would fall as its outright output drops to 29 million barrels per day (bpd) in 2024 from 31.9 million bpd in 2018, according to Reuters.

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

Sun Pharma shares rise 4% on strong Q3 results

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

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Sun Pharma shares rose over 4 percent after the pharma major posted a nearly 300 percent jump in its consolidated net profit for the December 2018 quarter. Sun Pharma shares rose as much as 4.04 percent to Rs 454.40 per share in the opening trade on the BSE. At 9.25 AM, the stock was trading 2.95 percent up at Rs 449.65, while the Sensex was up 0.44 percent at 36,311.04 points.

Sun Pharmaceutical Industries Ltd on Tuesday reported a 286.1 percent year-on-year (YoY) jump in its consolidated net profit at Rs 1,241.8 crore for the December 2018 quarter, compared to a net profit of Rs 321 crore a year ago. CNBC-TV18 Polls had predicted a profit of Rs 1,064 crore for the quarter under review.

Motilal Oswal said it has cut FY19/20/21 EPS estimates by 4.5%/5.4%/4% to factor in subdued growth in the domestic formulation business and the delayed pick-up in the US business. “We remain positive on the company’s business model, which focuses on building a specialty portfolio in the regulated market and increasing traction in US generics, among others. We maintain Buy on the stock. Resolution of corporate governance issues is a key monitorable.” The brokerage maintained a “buy” rating on the stock, with the revised TP of Rs 540.

Jefferies said it is positive on Sun as it expects acyclical recovery in business and valuations are supportive. “While mgmt. has made steps to address investor concerns, delays in disclosures and clarity raise concerns and we think the overhang could continue in the near term,” it added. The brokerage rated the stock as “buy” and has the price target of Rs 535 per share

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

Closing Bell: Nifty ends below 10,900, Sensex sheds 150 points, sharp sell-off in midcaps, pharma, auto, metals

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

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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

These four stocks had their ‘Black Friday’ moments on Dalal Street over the past 4 weeks

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

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Every Friday for the last four weeks turned out to be a ‘Black Friday’ for one stock. After Sun Pharma, Zee Entertainment and Vedanta, Tata Motors today became the latest stock to witness heavy losses on a Friday.

Here are the ‘Black Fridays’ for each of these four stocks: 

Friday, January 18: Sun Pharmaceutical Industries Ltd

Sun Pharma shares fell 8.4 percent to Rs 390.75 per share, eroding its market cap of Rs 13,000 crore, following a media report that a whistle-blower complaint to Sebi alleged corporate governance irregularities at the company. The company challenged the report and asked for a Sebi probe into the role of some media houses and other stakeholders. Intraday, the stock slumped as much as 13.21 percent to Rs 370.20 per share.

Friday, January 25: Zee Entertainment Ltd

Shares of Zee Entertainment plunged 26.6 percent to Rs 318.40 per share, erasing Rs 14,000 crore in the company’s market cap. A news report said that Zee promoter Essel Group’s name may appear in a probe by the SFIO into Nityank lnfrapower and Multiventures Ltd for suspicious demonetisation deposits. Intraday, the stock dived as much as 33.54 percent to Rs 288.30 per share.

Friday, February 1; Vedanta Ltd

Vedanta shares declined 17.8 percent to Rs 162.15 per share and wiped Rs 8,000 crore in the market cap, after the company disclosed that it will make an investment of $500 million to purchase an economic interest in a structured investment in Anglo American Plc from its parent, Volcan Investments Ltd. Intraday, the Vedanta stock fell as much as 19.8 percent to Rs 158.15 per share.

Friday, February 8: Tata Motors Ltd

Tata Motors shares fell as much as 29.4 percent to Rs 129 per share, erasing Rs 10,000 crore in the market cap, after the company reported a consolidated net loss of Rs 26,961 crore for the December 2018 quarter on Jaguar Land Rover (JLR) asset impairment. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review. At 12.58 PM, the stock traded 18.43 percent down at Rs 149.15 per share on the NSE.

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

NBFCs sold Rs 400 crore of Anil Ambani’s Reliance Group shares

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

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Several non-banking financial companies, including L&T Finance and certain entities of Edelweiss Group, have invoked pledge of listed shares of Anil Ambani-led Reliance group and sold shares worth approximately Rs 400 crore in the open market from February 4 to February 7.

Calling the move an “illegal, motivated and wholly unjustified”, Anil Ambani’s company said the sales have resulted into an erosion of Rs 13,000 crore, an unprecedented nearly 55%, in market capitalisation of Reliance Group over last four days.

Reliance Group said these open market sales, without any attempts at orderly market disposal through a bid or structured process, is illegal on several counts, including amongst others, price manipulation, insider trading, front running and market abuse. The move is also in violation of various regulatory provisions, the press release said.

“Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd. (and their various subsidiaries) are performing satisfactorily on all operating parameters, and there is no change whatsoever on any aspect as compared to the position prevailing prior to these sales,” the company stated.

Refuting the allegations, L&T Finance said it had granted loans against pledge of shares to Reliance ADAG Group companies.

“As per loan and pledge agreements, borrower did not cure various events of defaults including providing margin for shortfall in the stipulated security cover. Despite various notices in the past few months, events of defaults continued. Consequently, L&T Finance enforced its rights of invocation and sold pledged shares to the extent of its outstanding dues by following the due process of contract and law,” it said in a statement.

While noting that the allegations as “unfounded, baseless and false”, Edelweiss Group said it had granted credit facilities against pledge of shares to Reliance ADAG Group.

Edelweiss Group said it has reached out numerous times to Reliance ADAG Group to address concerns on shortfall in margins and resultant fall in collateral valuation.

“Despite our best efforts, not only did Reliance ADAG Group fail to address any of the concerns raised by Edelweiss Group, but also continued to breach contractual obligations,” it said in a separate statement.

On February 4, there was a sharp drop in the prices of Reliance ADAG group shares, which led to further erosion in the collateral value, Edelweiss said, adding that it also gave due opportunity for remediation.

“Since there was no response from Reliance ADAG Group, it necessitated liquidation of the collateral as per the agreed contractual terms. Throughout this process, Edelweiss has acted in a lawful and responsible manner,” it added.

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

Tata Motors shares: Here’s what analysts say

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

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After Tata Motors’ disappointing December-quarter results, analysts slashed the target share price for the automotive major and cut earnings forecasts. The company reported a third-quarter consolidated net loss of Rs 26,961 crore, compared to a net profit of Rs 1,215 crore in the same period last year. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review. The auto major said profit was impacted by an exceptional item of asset impairment in its British arm JLR of Rs 27,838 crore.

Tata Motors shares fell as much as slumped as much as 29.4 percent to Rs 129 per share on the NSE, and fell 22.41 percent to Rs 141.90 per share on the BSE.

Tata Motors Q3: HDFC Sec’s Dipen Sheth on how should you trade the stock after results

Here’s what the brokerages say:

Deutsche Bank

The brokerage held the rating of the company, but cut the target share price of the company to Rs 175 from the earlier Rs 195 apiece. Deutsche Bank reasoned that the operating environment of the company is most likely to “remain challenged” in the near time, adding that the only positive aspect in the results was the performance of the company’s Indian business. The brokerage house cut the FY19 earnings per share (EPS) forecast by 38 percent.

Axis Capital 

Axis Capital has downgraded the stock to ‘Hold’ and cut the target price to Rs 187 per share from Rs 217 per share. “We would get constructive on JLR only when volumes stabilize in China and Brexit concerns are behind us,” it said.

CLSA 

The brokerage retained its ‘Sell’ call and kept the target share price at Rs 150 per share. CLSA said the demand outlook worsened in the recent quarters for the company in both India and China and said the stock will remain weak taking into consideration the insufficient near-term product triggers. The brokerage cut the earnings per share (EPS) estimate for FY19-21 by 2-66 percent.

Motilal Oswal

The brokerage downgraded the stock to ‘Neutral’, with a target price of Rs 166. “Further, uncertainties surrounding Brexit as well as the muted outlook for global luxury car industry coupled with faster than expected adoption of EVs in luxury segment poses threat to our FY20-21 estimates,” it said in a note. It has cut FY20/21 consolidated EPS estimate by 21 percent/13 percent and, almost doubled net debt estimate.

Phillip Capital

The brokerage maintained the stock at ‘Buy’, with a target price of Rs 200 apiece from the earlier Rs 290 apiece. “We sharply cut our estimates post disappointing Q3 results and maintain BUY as we see steps by the company bearing fruit (although late) and favourable valuations. Stock performance would certainly need favourable volume momentum,” it said in a note.

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

Tata Motors shares sink 29 percent after shocking Q3 results

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

Listen to the Article (6 Minutes)

Tata Motors shares fell over 29 percent on Friday after the company reported a consolidated net loss of Rs 26,961 crore for the December 2018 quarter on Jaguar Land Rover (JLR) asset impairment. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review.

Tata Motors shares fell as much as 22.41 percent to Rs 141.90 per share on the BSE in the opening trade. On the NSE, the stock slumped 29.4 percent to Rs 129 per share.

Shares of the Tata Motors settled at Rs 151.30 on the BSE. down 17.28 percent from its previous close. On NSE, the shares settled at Rs 150.15, down 17.88 percent.

The auto major said its Q3 profit was impacted by an exceptional item of asset impairment in its British arm JLR of Rs 27,838 crore. The consolidated revenue of the company stood at Rs 77,001 crore, up by five percent from Rs 74,337.7 crore in the year-ago period, Tata Motors said in a regulatory filing.

Motilal Oswal cut FY20/21 consolidated EPS estimate by 21%/13%, and, consequently, almost doubled net debt estimate. “Further, uncertainties surrounding Brexit as well as muted outlook for global luxury car industry coupled with faster than expected adoption of EVs in luxury segment poses threat to our FY20-21 estimates,” it said in a note. The brokerage downgraded the stock to ‘Neutral’, with a target price of Rs 166.

Axis Capital downgraded the stock to ‘Hold’ and lowered the TP to Rs 187 per share from Rs 217 per share. “We would get constructive on JLR only when volumes stabilize in China and Brexit concerns are behind us,” it said.

On a standalone basis, Tata Motors posted PAT of Rs 617.62 crore as against Rs 211.59 crore in the year-ago quarter. Total standalone income rose to Rs 16,477.07 crore as against Rs 16,186.15 crore in the same period of previous fiscal.

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