NEW DELHI: The surprise package of Thursday’s trade on Dalal Street was over 5 per cent jump in NSE PSU Bank index. The index, comprising 13 public sector banks, rallied despite selling seen in the market.
Many saw it as the impact of a strong set of quarterly numbers reported by Canara Bank, which enthused investors, who are always ready to lap up any good news on PSU banks. The numbers gave hope to the market that others in the block may emulate its performance.
The lender, in which ace investor Rakesh Jhunjhunwala is an investor, said a fall in total provision and recovery from bad loans helped to log a more than two-fold rise in net profit at Rs 2,203 crore for the December quarter.
The announcement sparked a frenzy in the counter, and the shares closed up 9 per cent. Union Bank of India was up over 9 per cent, followed by Indian Bank and Bank of India that rose 6-8 per cent.
Bad news keeps piling on for Auro Pharma
There is no end of bad news for Aurobindo Pharma. After numerous violations found during inspection reported by the company, Press Trust of India on Thursday reported that the US Food and Drug Administration (USFDA) has issued a warning letter to the company for violating current good manufacturing practice norms at its Telangana-based plant.
In a letter to the company’s Managing Director Narayanan Govindarajan, the US health regulator noted that its inspectors during an inspection between August 2-12, 2021, found significant deviations from standard manufacturing practices for active pharmaceutical ingredients (API) at the company’s Doultabad-based plant.
The stock ended down about a per cent after the news came out. The stock is down 37 per cent in the last year. In the last month, it has fallen 16 per cent.
Glassmaker shows its class
Shares of glassmaker La Opala RG bounced nearly 11 per cent after the company reported a 28 per cent jump in net profits for the December quarter. The company also announced a dividend of Rs 1.5 per share.
The firm also announced the appointment of Suparna Chakrabortti as an independent director on the Board. She is an Associate Member of ICAI and also holds a Master’s degree in Business Administration (Finance) from the US.
Analysts have been super bullish on the counter for a while now. A consensus of four analysts rate the stock as a ‘strong buy’. The most bullish target pegs the stock at Rs 520, against Thursday’s close of Rs 415.
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