Market Update for 20 Sept. 2021 – Hotel stocks see strong investor interest

RVNL rises on merger reports

According to reports, a proposal has been mooted to merge the state-owned Rail Vikas Nigam (RVNL) with IRCON. This proposal of merger is a part of a report relating to rationalisation of government bodies. 

Besides this, RVNL bagged a contract worth ₹1,034 crore for design and construction of elevated viaducts of metro stations project in Indore. In the wake of these developments, shares of the company rose 1.3% today.

Hotel stocks see strong investor interest

Shares of Indian Hotels (+7.8%), EIH (+3.0%), Taj GVK (+5.5%) jumped sharply in an otherwise weak market. The rise in the stock price was coupled with high volumes, indicating strong buying interest. 

Experts believe that the hospitality business could be back to pre-Covid level toward the end of this fiscal, provided there is no third wave. Further, easing restrictions and pick-up in travel could aid recovery in the sector.

Kotak Bank buys stake in KFin

The private lender has acquired around 10% stake in KFin Technologies for ₹310 crore. Kotak Bank’s management reportedly said that the KFin is well-positioned to continue growing its market as it is a platform of choice for asset managers, investors and corporates. 

KFin, mainly provides registrar and transfer agency services, had a turnover of ₹481 crore in FY21. Meanwhile, shares of Kotak Bank were down 0.5% today, but have gained nearly 14% so far this month.