On the day of expiry, we observed market getting little volatile. But in the last few hours, market was able to close this July series on a record high level. Now, August series is going to start from trading session on Friday. Before it, many events have took place on Thursday which I think would have a positive impact on the market. Here are the few shares in which we can see some action in next few days.
Idea and Bharti Airtel
Recently, Idea Cellular had rallied as much as 20 percent in a single day on the back of sources that DOT is now ready to give its Final approval to Idea-Vodafone Merger. On 26 July, the approval has finally given now by DOT which is a big positive news for the Idea Shareholders. Despite of paying around Rs 3500 crore for this approval, its a great thumps up for Idea because Vodafone and Idea Cellular can now focus on the remaining necessary actions. As Aditya Birla has said in a report, he expects to complete the merger in next few weeks.
At whatever price the deal was closed between Vodafone and Idea, I think this news is going to boost the share price of Idea Cellular in next few days. As Idea is also available at Rs 60, it could be a great opportunity to buy it for 2018. You can also take a look at my previous post on Idea cellular in which I have discussed on why should you buy only Idea Cellular from Telecom sector. You can read it here Idea Cellular: A favourable choice from Telecom sector
Airtel Q1 results
On 26 July, Bharti Airtel had also reported its Q1 results which were somewhat in line expectation. African Business continued to outperm and support overall revenue figure of company. Profit number was ofcourse better than expectation which is Rs 96 crore. Margins for Indian Business has little contracted. But at consolidated level, Airtel has reported a stable quarter performance. Therefore, from numbers I don’t think we would see any great price movement in stock.
But it could possible to see some positive price movement in Airtel shares in next few days due to ongoing development in Idea Cellular. Merger with Vodafone is not going to benefit only Idea, but it will also shape the Telecom sector to only 3 strong private players and 1 Public player, which was long awaited. This will also create synergy for merged entity and may also boost the investor sentiment of Airtel shares for next few days. So, from current levels, it is also possible to see some buying coming into Bharti Airtel Shares.
On 26 July, YesBank has also reported its earnings for Q1 which were better than expectations. During quarter, Private Bank saw a robust loan growth rate of 53 percent. NII also increases 23 percent to Rs 2220 crore. Lead by a sharp growth in Retail Business, private lender posted a total revenue of Rs 8272 crore and a 30 percent rise in net profit to Rs 1260 crore. However, provisioning was little higher in following quarter which could be the reason for the pressure on stock on 26 July.
But in this volatile and much wider NPA possibility, I think little higher provision is not a case of concern, at least for present time. After looking at all the facts, I think YesBank is available for buying at a very good price. From current levels of 370, it is possible to see stock rising as much as to Rs 450 in next one month. But it is possible only in normal or bullish market condition.
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