Street signs: Hindustan Zinc seen extending gains, exercise your RE & more

Hindustan Zinc seen extending gains

Shares of Hindustan Zinc (HZL) are seen extending last week’s 10-per cent gain as analysts see multiple positive triggers for the stock. Zinc prices have surged to their highest level since 2007 as the global energy crisis disrupted supply from China and Europe. This is expected to put further upward pressure on the price of the commodity. Add to that Nyrstar, one of the metal’s top global producers, announced output cuts at three European smelters. Also, Chinese smelters have already been reducing capacity. Analysts see this benefiting domestic commodity firms like HZL. The stock hit fresh lifetime highs last week.

Analysts positive on top jewelers

Listed jewellers are likely to benefit from the implementation of jewellery hallmarking, even though the deadline has been extended till November. Analysts believe hallmarking could lead to further consolidation, higher imports through the traditional route, and more industry-wide efforts to drive premiumisation. Titan and Kalyan Jewellers are seen benefiting the most. Both companies had reported strong demand during their second-quarter update. Also, their gold savings scheme enrolments have jumped to pre-Covid levels.

Exercise your rights entitlement

Several retail investors who bought the rights entitlement (RE) to Bharti Airtel run the risk of losing their entire capital, if they fail to apply in the rights issue. The telecommunications major’s Rs 21,000-crore rights issue closes on October 21. Those who hold one RE can subscribe to one share in the rights issue. The rights issue pricing is Rs 535 per share, while Airtel’s stock last closed at Rs 689. “Many first-time investors have bought REs solely for trading purposes. They don’t even know how the rights issue process works. Since the trading window has now closed, they have no option but to subscribe to the rights issue,” said a broker, adding REs worth crores had lapsed during Reliance’s rights issue last year. Investors have paid in upwards of Rs 200 to buy one RE of Airtel.