Stocks Radar: KPIT Technologies, Tata Group Stocks, Swan Energy And More
KPIT Technologies’ shares fell more than 6% on the back of its third quarter earnings.
Indian shares fluctuated between minor gains and losses tracking the mixed trading in Asian equities as the dollar strengthened after Yellen said the American economy is strong enough to warrant higher interest rates.
The S&P BSE Sensex climbed 0.1 percent to 27,275 while the NSE Nifty gained 0.1 percent as well to 8,425.
Here are the stocks moving the market this morning:
Cipla: Stake Sale Boost
Shares of the drug maker rose 0.9 percent to Rs 586 after its wholly-owned subsidiary, Goldencross Pharma inked an agreement to sell its 100 percent stake in Four M Propack to Shriji Polymers.
The company made the deal for Rs 13.5 crore and an additional sum based on assets, worth around Rs 5.7 crore. The transaction is expected to be complete within 45 days, according to the company's statement to the exchanges.
Tata Stocks: NCLT Dismisses Cyrus Mistry’s Plea Against Tata Sons
Shares of Tata Group stocks rose after the National Company Law Tribunal dismissed the contempt plea filed by Mistry against Tata Sons.
The petition had contended that Tata Sons’ decision to call an extraordinary general meeting (EGM) on February 6 to remove Mistry as a director from its board was willful disobedience of the tribunal’s December 22 order and amounted to contempt.
The court has now given Mistry a three-day window to file an affidavit regarding the EGM.
- Tata Steel (-0.8 percent to Rs 464)
- Tata Motors (+1 percent to Rs 527)
- Tata Power (+0.8 percent to Rs 79)
- Indian Hotels (+0.9 percent to Rs 107)
TCS: New CEO Justifies Variable Pay Cut
Shares of the information technology major fell 0.5 percent to Rs 2,248, snapping a three-day wining streak.
In an interview to BloombergQuint, recently appointed CEO Rajesh Gopinathan said the company had decided to cut variable pay because the October to December quarter earnings turned out to be much softer than expected.
It (financial year 2016-17) has panned out softer than what we had thought. So obviously the targets that various units had were not met. We were nowhere near where we thought we would be at the beginning of the year.Rajesh Gopinathan, Chief Executive Officer, Tata Consultancy Services
South Indian Bank: MCLR Cut
Shares of the regional bank fell 0.7 percent to Rs 21.1 before covering its losses, gaining 0.5 percent to Rs 21.3.
The bank reduced its marginal cost of lending rate (MCLR) by 65-80 basis points on Wednesday. The bank's one year MCLR now stands at 9.10 percent, according to the company's notification to the exchanges.
The move comes after a string of banks, led by State Bank of India and ICICI Bank, reduced their MCLRs due to a surge in deposits from demonetisation.
KPIT Technologies: Earnings Reaction
Shares of the tech company fell as much as 6.6 percent to Rs 135 after a 2.1 percent rise in its net profit for the third quarter of the fiscal year.
Net profit stood at 73.6 crore for three-month period ended December, according to the company’s statement to the exchanges. Revenues for the quarter stood at Rs 830.6 crore with a year-on-year growth of 2.1 percent on a constant currency basis.
In the current quarter, despite lower working days, we had marginal growth on a comparable constant currency basis. We will continue to focus on growth with effective account management and new technology solutions for our focus verticals. The cash flow during the quarter was encouraging. We will continue to build further on the same.Kishore Patil, Co-Founder, CEO & MD, KPIT
Swan Energy: Gaining Attention
The company rose 1.7 percent to Rs 183 after it received an expression of interest (EOI) from Tata Realty and Infrastructure, expressing its willingness to invest up to 10 percent of the equity in Swan LNG.
Swan LNG is currently setting up a Floating Regasification Unit (FSRU) in Gujarat.
Earnings Watch
- Axis Bank (-1.3 percent to Rs 482)
- Yes Bank (-0.8 percent to Rs 1,335)
Sensex, Nifty: Movers & Shakers
