Stocks to watch: The Indian share market bounced back in the last hour to end higher after remaining in the red for most of the session on Wednesday (August 16), continuing to edge higher for the second successive session. Buyers showed much interest in FMCG, auto, pharma, IT, and real estate stocks.

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While the S&P BSE Sensex ended 137.5 points, or 0.21 per cent higher at 65,539.42, the NSE Nifty ended 30.45 points, or 0.16 per cent higher at 19,465 points, on Wednesday. 

At around 8:06 am on Thursday, August 17, the GIFT Nifty futures traded 69.5 points lower, or 0.36 per cent at 19,396, suggesting a negative opening of the market. 

Among the major news of the day, non-naking finance company SBFC Finance's share soared 61.75 per cent to Rs 92.20 on its opening day on the BSE. With such a strong opening, non-baking financial company (NBFC) shares can garner attention on Thursday as well. 

An ICRA report said that the telecom services industry's revenue will see a modest growth of 7-9% in FY24 and capex will touch Rs 70,000 crore.

The estimation is most likely to put a spotlight on telecom shares like Bharti Airtel and Vodafone Idea on Thursday.

Companies like Embassy Office REIT, IOB, Suven Pharma, and SAIL were involved in large deals on Wednesday, and their shares may react to the developments on Thursday.

Later in the day, Railway Minister Ashwini Vaishnaw said that the central government had approved seven multi-tracking projects for Indian Railways with an outlay of Rs 32,500 crore.

The news is most likely to impact the shares of railway companies like Rail Vikas Nigam Limited, IRCTC, and Railtel Corporation of India.

ZeeBiz takes you through the shares that are expected to be in the limelight on Thursday, August 17, 2023.

NBFC stocks in focus

SBFC Finance's share had a blockbuster opening on Wednesday as it soared 62 per cent in its debut trade against the issue price of Rs 57.

Analysts say that the bumper listing for the company is a positive sign for the entire NBFC space on Dalal Street.

A report said on Wednesday that the banks' lending to NBFCs rose by 35.1 per cent to Rs 14.2 lakh crore in June.

It further said that the credit exposure of banks to NBFCs also jumped by a robust 35.1 per cent year-on-year to Rs 14.2 lakh crore in June. 

With a positive mood for NBFC stocks in the market, stocks from leading NBFC firms like Bajaj Finance, Bajaj Holdings, Cholamandalam Investment, and Sriram Finance can be in focus on Thursday.

Telecom stocks in focus

An ICRA report on Wednesday projected moderate growth for telecom companies in this financial year.

The report said that the industry is expected to post moderate revenue growth of 7-9 per cent in the financial year 24, because of muted average revenue per user (ARPU) expansion in the absence of tariff hikes in the near future.

The report further said that the industry has been "upfronting" 5G capex (capital expenditure), and the agency foresees sectoral capex at around Rs 70,000 crore for FY2024.

After the report, shares of telecom firms such as Airtel, Vodafone Idea, and Tata Communications may take a hit on Thursday.

Railways stocks in focus 

In major developments related to Indian Railways, the government is planning to sell a part of its holding in Indian Railway Finance Corp (IRFC) through an offer for sale (OFS) in the current fiscal, an official said on Wednesday.

The government, at present, holds an 86.36 per cent stake in the financing arm of the Indian Railways.

Vaishnaw also said on Wednesday that the Centre had approved seven multi-track projects for Indian Railways with an outlay of Rs 32,500 crore.

With these developments, shares of major Railway companies such as IRCTC, Rail Vikas Nigam, Railtel and Ircon International can be in focus on Thursday.

Lupin

The company launched tiotropium dry powder (18 mcg/capsule) used for the treatment of chronic obstructive pulmonary disease (COPD) in the US. Tiotropium Bromide Inhalation Powder had estimated annual sales of $126.4 crore (Rs 10,364 crore) in the US (IQVIA MAT Mar 2023). 

Aurobindo Pharma

The company will launch HIV triple combination products for children suffering from HIV in low- and middle-income countries. The company has received tentative approval for the drug under the PEPFAR programme from the US Food and Drugs Administration. This is the first generic dispersible tablet formulation of the fixed-dose combination. The company got a voluntary licence from ViiV Healthcare. The company will supply products to 123 low- and middle-income countries, including India. The commercial production of the product will start in Q3 FY24.

Cipla

FDA Konkan Division orders suspension of license issued to Patalganga manufacturing unit for 10 days in December 2023 for not following good manufacturing practices under the Drugs and Cosmetics Act, 1940.

Bank stocks 

Fitch said Indian banks have an adequate capital buffer against potential risks. The operating environment for Indian banks has improved since the risk of COVID has been reduced.

Vodafone Idea 

The company hopes to complete external equity funding by the December quarter. The company is considering equity and equity-linked instruments to bring in funds. 

Religare Enterprises 

Investment Opportunities V PTE. Ltd. sold 2.45 crore shares at Rs 217.95 per share. The total selling size is worth Rs 533.9 crore. The Burman family bought a 7.56 per cent stake in the company. After the stake purchase, the Burman family's stake in Religare will increase to 21.53 per cent. M.B. Finmart Private Limited bought 81.6 lakh shares at Rs 217.95 per share, VIC Enterprises Private Limited bought 81.6 lakh shares; and Puran Associates Pvt Ltd bought 81.67 lakh shares.

Adani Power 

Afro Asia Trade and Investments sold 26.5 crore shares, and Worldwide Emerging Market Holding sold 4.6 crore shares. Both promoter groups sold the shares at Rs 279.18 per share.
 
Conversely, GQG Partners Emerging Markets Equity Fund bought 4.9 crore shares, and Goldman Sachs Trust II-Goldman Sachs GQG Partners bought 10.3 crore shares. Both the buy transactions are done at Rs 279.15 per share.

JSW Energy 

Promoter JSW Investments sold a 1.28 per cent stake in the company, which translates to 2.1 crore shares. On the other hand, GQG bought a 1.02 per cent stake, which is 1.67 crore shares. The rest of the shares were bought by other funds for Rs 341.7 per deal. 

NTPC

Bernstein has initiated an 'outperform' rating on the stock for a target of Rs 274 apiece.

Shriram Finance

USB has initiated a 'buy' for a target of Rs 2,185 apiece. 

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