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Stocks Radar: Real Estate, Jewellery Stocks Tank On Demonetization 

Indian stocks tumble on demonetization and U.S. Election uncertainty. 

A Stock Broker Talks on a Telephone While Working on his Computer. (Photographer: Chris Ratcliffe/Bloomberg)
A Stock Broker Talks on a Telephone While Working on his Computer. (Photographer: Chris Ratcliffe/Bloomberg)

Indian shares dropped like nine pins after Prime Minister Narendra Modi’s government unexpectedly pulled out high-denomination banknotes and as early results from the U.S. election raised possibilities that Donald Trump may prevail over Hillary Clinton.

Here are the stocks in focus for the day:

Jewellery, Real Estate Stocks Tank

Real estate stocks and jewellery stocks reacted to Prime Minister Narendra Modi’s announcement that use of Rs 500 and Rs 1,000 denomination notes will be rendered illegal from November 9. The biggest move taken by Modi to counter black money, the news was announced by him in an unscheduled address to the nation on Tuesday night.

Stocks Radar:  Real Estate, Jewellery Stocks Tank On Demonetization 

Real Estate Stocks

  • DLF (-19.6 percent to Rs 129)
  • Indiabulls Real (-19.4 percent to Rs 65)
  • Housing Development Finance Corporation (-5.9 percent to Rs 1,309)
  • Unitech (-20 percent to Rs 4.5)
  • Oberoi Realty (-19 percent to Rs 274)

Jewellery Stocks

  • Titan (-15 percent to Rs 315)
  • Tribhovandas Bhimji (-19.4 percent to Rs 63)
  • Rajesh Exports (-6.6 percent to Rs 436)
  • Gitanjali Gems (-20 percent to Rs 56)
  • Manappuram Finance (-20 percent to Rs 82)
  • Muthoot Finance (-20 percent to Rs 290)

Earnings Reaction

Shares of InterGlobe Aviation tumbled 13 percent to Rs 806 after it reported a 23.6 percent rise in net profit during the July to September quarter, but fell short of street estimates.

Revenue rose 18.9 percent to Rs 4,327 crore, from Rs 3,638 crore, while profitability margins contracted.

The company’s press release acknowledged that the performance was adversely impacted by “operational issues arising out of A320neo engines”. IndiGo also added nine new aircraft during the quarter, which included 6 new A320neos, and 3 used A320ceos which were leased on a short-term operating basis, the release added.

Dilip Buildcon

Shares of the engineering, procurement and construction company plummeted 20 percent to Rs 177, falling with the market.

Western Coalfields declared it as the preferred bidder for removal of various materials specified in the company’s press release on the exchanges. The cost of the project has been set at Rs 541.1 crore.

Shares of the Western Coalfields, Nagpur, has declared the DBL-DECO (a joint venture of the company) as the selected bidder for the removal of all types of materials in all kinds of strata by hiring equipments such as HEMM, trippers, drills, dozers, graders and water sprinklers including its drilling, excavation, loading, transportation, dumping, spreading, dozing, grading and water sprinkling at specified places as per instruction of Engineer in-charge at Kolarpimpari Extension. 

Hotel Leela Venture

Shares of Hotel Leela Venture fell as much as 8.6 percent to Rs 16.

The company said that it was considering legal options including moving the Supreme Court, in a clarification to the Bombay Stock Exchange, regarding a news report which said that the Delhi High Court had asked it to pay Rs 258 crore as royalty to the Airport Authority of India.

The owner of the iconic Hotel Leela confirmed that the ruling in the Delhi High Court, in the matter of dispute between Leela Venture and AAI.

Biocon

Shares of the drug maker fell 10.1 percent to Rs 803 after it announced the submission of Mylan's bilogics license application for a proposed biosimilar trastuzumab to the U.S. Food and Drug Administration. The drug is used to treat breast and gastric cancer.

Mylan and Biocon are exclusive partners on a broad portfolio of biosimilar and insulin products.

Our trastuzumab biosimilar is already being sold in 11 developingmarkets, including India, and we look forward to bringing the product to market in the U.S. and Europe upon approval.
Rajiv Malik, President, Mylan

Earnings Watch

  • Lupin (-8.3 percent to Rs 1,382)
  • Cipla (-9.1 percent to Rs 486)
  • Bosch (-9.2 percent to Rs 19,593)
  • Apollo Tyres (-10 percent to Rs 177)
  • Godrej Properties (-17.8 percent to Rs 295)
  • Power Grid Corporation of India (-5.7 percent to Rs 166)