Stocks To Focus: HDFC Bank, LIC, Arvind SmartSpaces, Persistent Systems, Mahindra

Stocks to Watch on Friday, July 5, 2024: Indian stock market indices are likely to consolidate on Friday due to a lack of significant market-moving triggers. At 7:50 AM, the GIFT Nifty was down 26 points at 24,352 levels. Globally, the Nikkei surpassed the 41,000 mark, reaching an all-time high of 41,100 during intraday trading, representing a 0.13% increase. The Kospi, on the other hand, experienced a 0.9% increase. However, Chinese and Australian markets were in the red zone.

HDFC Bank: In the first quarter, HDFC Bank reported a 53% year-on-year increase in its gross advances, reaching Rs 24.87 lakh crore. This is up from Rs 16.3 lakh crore in the same quarter last year. Excluding the impact of the merger of erstwhile HDFC with the bank on July 1, 2023, the bank’s gross advances grew by 15% over the same period last year. During the quarter, retail loans increased by around Rs 18,600 crore, commercial and rural banking loans grew by around Rs 7,200 crore, and corporate and other wholesale loans decreased by Rs 26,600 crore compared to the preceding March quarter.

Life Insurance Corporation: Life Insurance Corporation of India announced on Thursday that it has raised its shareholding in IDFC First Bank by 0.2% to 2.68% of the bank's post-issue paid-up capital. IDFC First Bank currently has a market capitalisation of Rs 57,058.68 crore.

Arvind SmartSpaces: Arvind SmartSpaces, the real estate development company of the Lalbhai Group of companies, plans to concentrate on residential real estate projects in Ahmedabad, Surat, Pune, Mumbai, and Bangalore for FY25. With strong cash flow, no debt, and a Rs 900 crore investment platform in partnership with HDFC Capital, the company aims to add new inventory worth Rs 4,500 – 5,000 crore to its portfolio.

Persistent Systems: Persistent Systems Inc., a wholly-owned subsidiary of Persistent Systems, based in the USA, has entered into a stock purchase agreement to acquire Starfish Associates, LLC, which is also based in the USA. Starfish Associates, headquartered in New Jersey, specializes in unified communication and contact center technology, offering enterprise communication solutions to large businesses, including Fortune 500 companies.

Mahindra Lifespace Developers: Mahindra Lifespace Developers has acquired land in Bengaluru and secured a redevelopment project in Mumbai, with a combined revenue potential of Rs 2,050 crore. In an exchange filing, the company announced the "closure of two deals, aggregating to Rs 2,050 crore in Gross Development Value (GDV)".

Punjab National Bank: In its Q1 business update for the fiscal year, Punjab National Bank reported a strong performance. The bank's global business saw a 3.8% quarter-on-quarter growth and a 10.3% year-on-year increase. Global deposits increased by 2.8% QoQ and 8.5% year-on-year, indicating the bank's ability to attract and retain customer funds. Domestically, deposits experienced a 2.7% quarter-on-quarter growth and an 8.1% year-on-year increase. PNB's global advances showed a significant 5.1% quarter-on-quarter and 12.7% year-on-year growth. On the domestic front, advances grew by 5% quarter-on-quarter and 12.1% year-on-year.

Raymond: Raymond has approved the demerger of its real estate arm, Raymond Realty, with the aim of benefiting from the growing real estate market. The company will issue 6.65 crore shares of Raymond Realty, each with a face value of Rs 10, upon the demerger. This decision is subject to the approval of shareholders and regulators. As per an exchange filing, existing shareholders will receive one share of Raymond Realty for each share held in the parent firm. Additionally, it is important to note that the current promoter ownership in the Mumbai-based garment maker stands at 49.01%.

Bajaj Auto: Bajaj Auto is set to introduce its first-ever motorcycle that runs on both CNG and petrol, and it will be called the 'Freedom 125'. The launch is scheduled for July 5. This motorcycle, initially known as the 'Bruzer', is designed to be highly fuel-efficient and practical. The name 'Freedom 125' briefly appeared on the Bajaj Auto website before the official announcement. The company plans to offer two variants of the motorcycle - a standard model and a premium model, which will come with additional color options and features.