Here is a list of top five buzzing stocks in early trade on Thursday:
Indiabulls Housing: The stock was trading under pressure, falling 12% in early deals as the Reserve Bank of India (RBI) has rejected its proposed merger with Lakshmi Vilas Bank (LVB) Ltd. This spoils Indiabulls Housing Finance (IHF) Ltd’s plan to get a banking license through this merger. In September, the RBI placed LVB under the prompt corrective action (PCA) list.
Bharti Airtel: Shares of the company were up nearly 5% in early trade today as investors cheered Reliance Jio announcing that it will charge customers 6 paise per minute for voice calls made to rival phone networks. Stocks of telecom companies are trading higher as Jio’s announcement indicates stability coming to the sector and gives rival companies room for raising tariffs going ahead.
Vodafone Idea: Shares pared their early double-digit rise, trading 6% higher as the country’s telecom operator Reliance Jio’s announcement on charging voice calls, giving hopes to rival companies for raising tariffs. The telecom industry has been suffering financially ever since Jio was launched in September 2016 offering free voice calls and zero roaming charges for its customers.
Lakshmi Vilas Bank: Shares fell as RBI rejected its proposed merger with IHF. The stock has 71% value since the announcement of the merger in April. The bank was in September placed under the PCA list due to insufficient capital adequacy ratio, high level of bad loans and negative return on asset (RoA) for two consecutive years. The stock was trading 5% lower.
Yes Bank: Concerns over exposure to stressed sectors, especially housing finance companies (HFC), dragged the stock lower. The bank has previously clarified that it sees no threat from the exposure to a large housing finance company and that the HFC is standard on the bank’s book. The stock was down nearly 3% in early trade today.