Stocks Radar: Welspun, ICICI Bank, Tata Motors and More
Welspun, Tata Motors and ICICI Bank’s shares decline with the Sensex.
Indian shares declined most since Britain voted to leave the European Union on June 24, as the central banks in the world’s biggest economies questioned the benefits of loose monetary policy.
The S&P BSE Sensex dropped as much as 1.9 percent to 28,251 while the NSE Nifty lost 1.9 percent to 8,699.
With the Sensex deep in red, most stocks are falling disregarding any other news flow.
Here are the stocks in focus for the day:
Welspun India (-4.2% to Rs 54)
Shares of the textile maker tanked after Wal-Mart decided to stop selling Welspun’s sheets after a review, over concerns about the products’ quality, dealing a fresh blow to a supplier embroiled in controversy.
Welspun has not been able to assure us the products are 100 percent Egyptian cotton, which is unacceptable. While the sheets are excellent quality, we are offering our customers a full refund.Marilee McInnis, a spokeswoman for Arkansas-based Wal-Mart, in an e-mail to Bloomberg
Vedanta (-3.4% to Rs 165)
Shares of Vedanta tumbled with the Sensex. On September 8, its shareholders approved the company’s merger with the oil exploration company, Cairn India. The news was announced on September 9 after market hours.
The development brings the firm, led by billionaire Anil Agarwal, a step closer to the merger of the cash-rich oil firm Cairn India with its debt-laden parent Vedanta.
Cairn India’s shareholders will take a call on the deal in a meeting today. Shares of the company fell 3.4 percent to Rs 192 on the exchanges.
Tata Motors (-3.48% to Rs 553)
The car maker fell despite its latest figures showed a 16 percent increase in group sales to 86,288 vehicles in the month of August. Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in August 2016 was flat at 30,184 compared to August 2015.
ICICI Bank (-3.5% to Rs 264)
The private bank’s Bahrain branch decided to invest into Resurgent Power Ventures, along with Tata Power, CDPQ Canada, Kuwait Investment Authority and State General Reserve Fund of Oman.
ICICI Bank will hold 10% of the equity and Tata Power will hold 26% of the equity.
Shares of Tata Power dropped 1.5 percent to Rs 75 after the market opened.
HDFC (-1.7% to Rs 1,386)
The finance group’s subsidiary, HDFC Ergo, acquired 100 percent stake in L&T General Insurance Company for Rs 551 crore.
Shares of Larsen and Toubro fell 2.1 percent to Rs 1,488 after the deal. Its general insurance arm contributed 0.5 percent of the parent’s total revenue.
*L&T Tech’s IPO opens today with a price band of Rs 850-860 per share.
Jain Irrigation (-1.9% to Rs 53)
NaanDanJain Irrigation , subsidiary of the company, signed a pact worth €18.7 million with Ministry of Agriculture & National Development, Eritrea for supply of solar powered drip irrigation systems.
Earnings Watch
- Reliance Power (-1.7 percent to Rs 52)
- Tata Steel (-2.5 percent to Rs 384)
- Bajaj Hindusthan Sugar (-1.9 percent to Rs 18)
- Gammon India (-3.6 percent to Rs 17)
- Gitanjali Gems (-1.6 percent to Rs 47)
- National Aluminium Company (-2.3 percent to Rs 48)
- MBL Infrastructures (-1.3 percent to Rs 90)
Earnings Reaction
- Jaiprakash Associates (-6.8 percent to Rs 11)
- Gujarat State Petronet (-3.1 percent to Rs 152)
- Zee Media Corporation (-4.7 percent to Rs 24)
- National Fertilizers (-1.9 percent to Rs 34)
- Housing Development and Infrastructure (-6.3 percent to Rs 94)
- Bhushan Steel (+1.2 percent to Rs 42)