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Hindustan Construction Company (HCC) shares dropped as the stock turned ex-rights ahead of its 999.99-crore rights issue. The company will issue up to 79.99 crore shares at 12.50 each, in a ratio of 277 rights shares for every 630 held. The offer opens on December 12 and closes on December 22, with rights renunciation allowed until December 17 (on-market) and December 19 (off-market).
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Investors should be selective in exports, financials, and midcaps. Textiles, pharmaceuticals, and IT offer potential. Private and PSU banks show promise with credit growth. Midcaps and smallcaps are showing earnings recovery. Festive season demand is expected to boost future performance. Opportunities exist for long-term investors.
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The company has struggled to convince investors of the viability of the metaverse, a nascent technology.
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