The banking industry is rerated by Morgan Stanley, and some stocks might rise by 41%.
The bank stock rise doesn’t seem to be coming to an end anytime soon. That much can be deduced, at least, from the way analysts are upgrading some bank stocks, increasing their price targets and profit projections.
The second leg of the rerating cycle has now begun, according to Morgan Stanley, after it rerated the entire banking industry. Indian banks look to be in a transitional phase between the two legs of the bank stock rerating cycle, the brokerage company noted in a report dated September 6.
The stock prices have already reflected the effects of the first leg. The Nifty Bank index, a gauge of the banking industry, has increased by over 11% so far this year, outpacing the 1.56 percent increase in the much larger Nifty.
Cipla approaches 52-week high after receiving USFDA approval for cancer medication
On September 7, shares of Cipla rose when the pharmaceutical company said that the US drug authority had given its final permission for the introduction of the generic version of a rare blood cancer treatment.
Lenalidomide capsules of 5 mg, 10 mg, 15 mg, and 25 mg got their Abbreviated New Drug Application (ANDA) approved by the US Food and Drug Administration (US FDA).
The generic versions of Bristol Myers Squibb’s (Celgene) Revlimid (Lenalidomide) Capsules are AB-rated therapeutic equivalents made by Cipla. Plasma cell cancer known as multiple myeloma is treated with lanalidomide. In addition, the immunosuppressive prescription medication is suggested for treating a number of additional adult blood-related cancers include myelodysplastic syndromes, mantle cell lymphoma, follicular lymphoma, and marginal zone lymphoma.’
Despite broader index losses, cement stocks post 2-6% gains.
While overall indices started the day of September 6 lower, shares of UltraTech, Shree Cement, Ambuja, ACC, Ramco, and JK Lakshmi Cement plastered solid gains in trade, increasing 2–6%. The top two Nifty gainers were UltraTech Cement and Shree Cement. With volumes of 25,706,401, Ambuja Cement was one of the top five most active shares on the NSE.
After the Adani group bought Holcim’s investment in ACC, Ambuja, experts continue to believe that the sector is ready for a re-rating. On September 2, Morgan Stanley Asia purchased 9.4 lakh shares of ACC through an open market transaction for more than Rs 215 crore. The National Stock Exchange (NSE) has bulk trade data that shows Morgan Stanley Asia (Singapore) Pte bought 9,41,557 shares of the company.
Adani announced a Rs 31,000 crore open offer on August 26 to acquire a further 26 percent of ACC from public shareholder Ambuja Cements.
As the company claims to have manufactured gas turbines for INS Vikrant, Hindustan Aeronautics achieves a 52-week high.
On September 7, shares of Hindustan Aeronautics Limited (HAL) increased by more than 2% after the firm disclosed that it has built and tested the gas turbines utilised in the recently commissioned aircraft carrier IAC-1 Vikrant.
IAC-1 Vikrant, which was just commissioned as INS Vikrant by the Prime Minister in Kochi, is India’s first aircraft carrier that was developed and built entirely domestically. HAL is happy to be affiliated with it. Four General Electric LM2500 gas turbines from HAL are used to power IAC.
The company claims that these gas turbines were put together and tested at Bangalore’s special HAL facility. HAL completed crucial tasks to get the IAC ready for basin experiments. In the absence of foreign OEM officials, HAL’s crew actively participated in the integration of the power plant to the IAC and remained aboard the IAC for all sea trials, significantly advancing the Make-in-India philosophy.
Analysts advise investors to wake up and leave despite DreamFolks Services’ dreamy launch.
Airport lounge service firm DreamFolks Services experienced a perfect IPO, with shares trading at a premium of 56% over expectations. However, some feel that it is now appropriate to book profits.
Due to DreamFolk’s market share of roughly 95% and its dominant position in the industry, the initial public offering (IPO) had attracted a lot of attention.
The company is currently trading at 150.46x FY22 price to earnings (PE), which according to Amarjeet Maurya, associate vice president of mid caps at Angel One, gives limited potential for growth. Investors who purchased shares, he continued, should book profits right now. It appears that some investors have begun to record profits. The stock is currently trading roughly 5% below the listing price while still holding onto the majority of its gains.