Market Movers: What drove sharp gains in Kotak Bank’s stock?

In a report analyzing the prospects of the potential buyers that have emerged for Citibank’s retail credit operations in India, CLSA suggested that Kotak Mahindra Bank may stand to gain the most and may have the best chance.

CLSA believes the acquisition of Citi’s retail business will enhance Kotak Bank’s retail and credit asset operations and it will be complementary to its affluent deposit base. Further, the brokerage believes it has the liquidity and high valuations that will aid any potential purchase.

If that was not enough, some benevolent buyer or buyers purchased Rs 178 crore worth of the lender’s stock in a matter of 30 minutes in the last two hours of the session, helping the stock close the day nearly 4 per cent higher.

Weaving gains

Textiles stocks were on fire as the government laid down the red carpet for the industry through a new production-linked incentive scheme worth Rs 10,683 crore.

The scheme will provide further impetus to textile exports from India at a time when exporters were already benefiting from a revival in global demand aided by strong economic recovery in advanced economies post the initial shock of the Covid-19 pandemic.

Shares of Filatex India, Alok Industries, Sutlej Textiles, Vardhman Acryl and Arvind jumped 5-12 per cent during the session as a year great for the sector has got even better.

Disappointment for Voda

Vodafone Idea’s investors would have woken up this morning anticipating a repeat performance of Tuesday’s more than 14 per cent gains as they looked forward to the announcement of the relief measures by the government.

For some time it seemed their wish may be coming true as the stock jumped more than 7 per cent in anticipation of the announcement in the afternoon. Yet, only disappointment ensued.

The Cabinet, which was reportedly going to consider the relief measures, skipped them entirely. While the more than 7 per cent gains evaporated in seconds, the losses weren’t as drastic as one would have expected. The stock ultimately ended little over 2 per cent lower, perhaps, because investors are still clinging on to the hope of relief some day.