PSU banks see high investor interest
- As per RBI’s Financial Stability Report, PSU banks are seeing a steady uptick in credit growth. Loans grew 4.6% YoY in September 2020, as compared to 3% in March 2020.
- Further, the rebound in the overall economic scenario not only augurs well for new loans but also increases the likelihood of an improvement in asset quality. Shares of PSU banks such as SBI (+3.7%), PNB (+4.3%), Bank of Baroda (+10.6%), Canara Bank (+6.8%) and Union Bank (+5.7%) saw strong investor interest today.
Fundraising plans boost Indiamart
- Indiamart, the online B2B marketplace, aims to raise around ₹1,000 crore possibly via the qualified institutional placement (QIP) route. The exact quantum of funds raised will be revealed on 18 January, during the company’s board meeting.
- The company is likely to use the raised funds for potential acquisitions. The stock rose 2.7% today. The stock has been steadily rising of late, gaining nearly 26% in December and 28% in January, so far.
Tata Chemicals to buy Archean’s salt unit
- According to reports, Tata Chemicals is in talks to acquire Archean Group’s industrial salt division valued at ₹450 crore. The Chennai-based group is a manufacturer of industrial salt, industrial chemicals and fertilisers.
- Media reports suggest that the deal could materialise this month. Shares of Tata Chemicals rose 4.9% today. It has seen a strong run-up in Q3, gaining nearly 60%.
Sunteck gains as new bookings rise
- Mumbai-based Sunteck Realty saw a sharp recovery in new bookings to ₹349 crore, up 75% QoQ and 7% YoY. The company believes that the reduction in stamp duty and low interest rates are expediting home-purchase decisions.
- As construction activity returns to pre-COVID levels, the company is accelerating its work on projects to make up for lost time. The stock gained 1.7% today.