Stocks in focus: Reliance Industries, State Bank of India, Ruchi Soya, Muhtoot Finance

With equity markets now trading at their highest ever levels, some analysts suggest treading cautiously from here on. Although with the broader markets participating in the rally, corrections are being bought into, however, taking a stock specific approach is being advised. SGX Nifty was trading over 55 points higher on Wednesday morning hinting at a positive start for domestic markets. Global Cues too were positive with Wall Street closing at fresh highs and Asian peers mirroring the upmove. Hang Seng, Topix and Nikkei 225 were up over 1% each.

Reliance Industries – Mukesh Ambani’s Reliance Industries has received Rs 33,737 crore from technology major Google. Google now holds 7.73% share in RIL’s subsidiary Jio Platforms. Google paid the amount after the Competition Commission of India (CCI), earlier this month, approved the proposed purchase.

State Bank of India – India’s largest public sector lender SBI informed the bourses yesterday that it has raised Rs 2,500 crore from bonds to fund business growth. The bank’s Committee of Directors for Fund Raising approved allocation of 25,000 Basel-III compliant AT-1 bonds.

Bank stocks – Global rating agency S&P Global on Tuesday said that the NPLs in the banking sector are likely to see a 10-11% growth in the next 12-18 months. It also added that credit costa for banks are likely to remain elevated at 2.2-2.9%.

Ruchi Soya – Baba Ramdev’s Ruchi Soya said that it has disposed off and transferred the shares of Ruchi Worldwide Limited, a subsidiary Company in favour of Sanatan Multi Skill Development and Education Private Limited. The shares were sold for a consideration of Rs 100 only.

Auto Stocks – To meet the government’s vision of EVs making up 30% of the vehicles on India roads by 2030, original equipment manufacturers will have to incur capex to the tune of Rs 3.5 lakh crore, exclusively for electric vehicles (EVs), in the next five to seven years, said Brickworks Analytics research.

Muthoot Finance – The Reserve Bank of India (RBI) has rejected the proposal by Muthoot Finance to acquire IDBI Asset Management on the grounds that “the activity of sponsoring a mutual fund or owning an asset management company is not in consonance with the activity of an operating NBFC”.

Union Bank of India – The Bank said that it is issuing Base1 Ill Compliant Tier II Bonds in the nature of Debentures (Series XXVI) aggregate issue size not exceeding Rs 1,000 Crore, with a base issue size of up to Rs  500 Crore and a Green Shoe option to retain oversubscription up to Rs. 500 Crore.