Shares of City Union Bank turned ex-bonus on Friday following the lender’s 1:3 bonus issue, causing the stock price to appear nearly 23% lower due to the adjustment.

The shares of City Union Bank opened at Rs 197.40 apiece on NSE, sharply lower than Thursday’s closing price of Rs 256.80 apiece. However, the decline was solely due to the bonus share adjustment and did not reflect any loss in shareholder value.

In reality, the stock gained more than 2% to trade at Rs 202.10 apiece after adjusting for the bonus issue, as seen at 10.20 am.

All about City Union Bank’s bonus issue

City Union Bank announced a 1:3 bonus issue in April, meaning eligible shareholders will receive one equity share for every three fully paid-up equity shares held in their demat accounts on the record date.

The bonus shares will be issued using nearly Rs 25 crore from the lender’s securities premium account, whose balance stood at more than Rs 940 crore on March 31, 2026. Later in May, City Union Bank fixed June 12 as the record date to determine the eligibility of shareholders for the bonus shares.

Notably, this marks the first bonus issue by the lender in eight years, since a 1:10 bonus issue in 2018. A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolios.

Also read: Bonus bonanza! City Union Bank shares for 1:3 reward

City Union Bank share price

City Union Bank shares have gained more than 9% in one week, and nearly 10% in one month. Shares of the company have fallen over 7% in 2026 so far. In the longer term, they have gained 37% in one year, 115% in three years, and 58% in five years.
The bank reported a 25% year-on-year rise in net profit to Rs 359.56 crore for the fourth quarter of FY26, up from Rs 287.96 crore reported in the corresponding quarter of the previous financial year. Its net interest income (NII), meanwhile, increased around 31% YoY to Rs 785.83 crore during the quarter under review.Also read: Why are markets rallying today?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Apart from the 7 large-cap stocks listed above, PL Capital also named 9 small and mid-cap stocks among its high conviction picks. These are Ajanta Pharma (target price: Rs 3,400 apiece), CESC (target price: Rs 216 apiece), DOMS Industries (target price: Rs 2,883 apiece), HealthCare Global Enterprises (target price: Rs 820 apiece), Ingersoll-Rand (target price: Rs 4,934 apiece), Jindal Stainless (target price: Rs 821 apiece), JSW Infrastructure (target price: Rs 342 apiece), KEI Industries (target price: Rs 5,660 apiece) and Rainbow Children’s Medicare (target price: Rs 1,615 apiece).

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of HFCL and Sterlite Technologies gained up to 5% on Friday, snapping a two-session losing streak as global technology and AI-linked stocks rebounded sharply after a bruising selloff earlier this week that had fuelled concerns the artificial intelligence rally was running ahead of fundamentals.

Sterlite Tech shares gained 5% to their day’s high of Rs 600, while HFCL shares were locked in a 5% upper circuit. Both stocks had fallen 8% each over the previous two sessions.

Sentiment improved significantly across global markets, with South Korea’s KOSPI, the world’s best-performing stock market this year, surging more than 8% in a single session. In the U.S., the Nasdaq Composite rose 2.54% on Thursday as investors returned to beaten-down technology names.

Easing geopolitical tensions and a decline in oil prices, which slipped to a two-month low, added to the risk-on mood, boosting optimism across equity markets. The shift in sentiment followed comments from U.S. President Donald Trump, who said a peace deal with Iran could be reached as early as this weekend.

Can you buy Sterlite Tech, HFCL shares?

Even as India continues to lag markets such as South Korea and Taiwan in direct exposure to the AI and semiconductor cycle, a different AI-linked investment theme is gathering momentum at home, and Sterlite Tech and HFCL are direct beneficiaries.

Both companies are involved in the business of manufacturing optical fibre cables among other verticals. India’s data centre industry is entering a multi-year growth phase, driven by accelerating digitalisation, rising cloud adoption and growing artificial intelligence demand.

Sterlite Technologies has emerged as the biggest winner from the theme, soaring 488% in 2026. Yet analysts believe the rally may not be over. Hong Kong-based CLSA expects the stock to climb another 14.5% from current levels following the company’s $1 billion order win from a US hyperscaler.
With a target of Rs 655, the brokerage says order significantly strengthens Sterlite’s positioning in AI data centres while improving medium-term growth visibility. CLSA expects the deal to reinforce the company’s competitiveness in global markets and is now modelling a 49% EBITDA CAGR between FY26 and FY29 while maintaining an “Outperform” rating on the stock. HFCL has also been among the standout performers, gaining 170% in 2026. The March quarter marked a sharp turnaround for the company. Revenue nearly doubled year-on-year to Rs 1,824 crore, EBITDA swung to Rs 315 crore from negative territory a year earlier, while profit after tax improved to Rs 184 crore from a loss of Rs 83 crore.

“The structural shift is real. Product revenue has grown from 27% of the mix in FY21 to 59% in FY26, and exports now account for 41% of revenue. That’s a business fundamentally changing its character,” said Balaji Rao, Research Analyst at Bonanza.

Beyond optical fibre cables, HFCL is also expanding aggressively into defence and aerospace through the Defsys acquisition. The company is setting up a Rs 1,000-acre ammunition complex in Andhra Pradesh and scaling up its data centre interconnect solutions business, targeting revenue of Rs 400 crore in FY27 and Rs 800 crore in FY28. Its optical fibre cable capacity is set to expand by 25% by December 2026, while backward integration into preforms is expected to reduce raw material costs by 15-20%.

According to international brokerage Nomura, India’s data centre IT load has expanded from around 350 MW in 2019 to nearly 1.5-1.6 GW in 2025, translating into a CAGR of about 29%, compared with roughly 20% globally. As a result, India’s share of global data centre capacity has increased from around 1.5% in 2019 to approximately 2-3% in 2025.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Tom Mueller was the first employee at SpaceX, a company he co-founded with Elon Musk in 2002.

Now, more than two decades later, the company is about to make its public market debut, with an estimated worth of more than $1.8 trillion.

The BBC’s Michelle Fleury spoke to Mueller about Musk’s vision.

Q1: 2026-06-10 Earnings Summary

EPS of -$0.05 misses by $0.05

 | Revenue of $9.67M (22.40% Y/Y) beats by $222.00K

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