Stocks in Focus on June 10: Banking & Power Stocks to Kotak Mahindra Bank; here are the 5 newsmakers of the day
Friday gains were capped by fall in index heavyweight Reliance Industries. But there were certain stocks that came in news after the market was closed for trading purposes.
The domestic stocks on Friday, June 7, 2019, ended with modest gains after a volatile session of trade. Gains were led by IndusInd Bank, Bharti Infratel, Bajaj Finance and SBI. However, gains were capped by fall in index heavyweight Reliance Industries. But there were certain stocks that came in news after the market was closed for trading purposes and can impact the indices after it reopens today on June 10, 2019. Here is a list of five such stocks:
Banking stocks in focus/Power companies in focus: The Reserve Bank of India (RBI) in Friday released fresh circular to deal with stressed assets. Under the new norms, lenders can now review borrowers’ accounts within 30 days of default compared with the one-day rule of February 12, 2018, circular. The fresh guidelines were released after the Supreme Court quashed its February 12, 2018, circular, which mandated lenders to start resolution even if there was a one-day default. Lenders now must have to resolve over Rs2,000 crore NPA account within 180 days. In addition, the central bank also proposes that lenders will have to go for additional provisioning if they miss the 180-day deadline on the resolution. The central bank will issue directions to banks for the initiation of insolvency.
Dewan Housing Finance Corporation (DHFL): After defaulting on its debt obligations, the crisis-hit DHFL has said that it will pay the dues on non-convertible debentures (NCD) by June 13, 2019. The company has already paid Rs276.05 crore of its obligations of Rs961.95 crore due on June 11, 2019. In addition, it is confident that it will be repaying the complete obligations by June 13, 2019.
Mindtree: L&T has announced an open offer for 5.13crore shares or 31 per cent stake of Mindtree at Rs980/shares. The company has said that the tendering for the open offer will happen between June 17 - 28, 2019. In the process, L&T will shell out about Rs5030 crore for the planned open offer for Mindtree.
Reliance Anil Dhirubhai Ambani Group (ADAG): Anil Ambani-promoted Reliance Group (ADAG) will remain in focus today as Reliance Infrastructure (RInfra) has postponed its fourth quarter (January-March 2019) results while Reliance Power (RPower) has posted its results with a loss. RInfra has deferred its fourth quarter (January-March) results of the fiscal year 2018-19 (Q4FY19) for the second time. RInfra's quarterly result announcement was scheduled for May 30 but the company deferred it to June 7. However, it failed to meet the revised date and has now postponed it to June 14.
On the other hand, Reliance Power (RPower), another company of the group, has announced the earnings of the quarter, after missing its initial deadline, on Saturday. RPower has reported a net loss of Rs2,951.82 crore for the financial year 2018-19 as against a net profit of Rs840.46 crore in FY18. During Q4FY19, the company posted a net loss of Rs3,559 crore versus a net profit of Rs180 crore in the same quarter last year.
Kotak Mahindra Bank: The Reserve Bank of India (RBI) has slapped a penalty of Rs2 crore on Kotak Mahindra bank after it failed to comply with the central bank’s diktat on diluting shareholding norms.