Stocks Radar: Coal India, Reliance Industries, State Bank Of India
Indian shares declined snapped a two-day gaining streak.
Indian shares declined snapping a two-day gaining streak following weak trade in Asian peers led by metal producers and drug makers.
Here are the stocks moving the market this morning:
Reliance Industries: Largest-Ever Penalty
Shares of the Mukesh Ambani-led company fell 1.7 percent to Rs 1,265 after the Securities and Exchange Board of India barred it from trading futures and options on Indian equity markets for a year for fraudulent activities.
The regulator said Reliance Industries along with 12 other unlisted companies carried out unlawful transaction under the Reliance Petroleum name in 2007. SEBI ordered the companies to return gains of Rs 447 crore plus interest, according to an order posted on its website Friday.
Reliance, in turn, has appealed to SEBI saying that the trades were "genuine and bona fide transactions".
“SEBI appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions,” the exchange filing read.
The company will also challenge the order in the Security Appellate Tribunal.
HCL Technologies: Faces Lawsuit
The company fell 0.8 percent to Rs 865 after MillerCoors, LLC, filed a lawsuit in the Northern Illinois District Court alleging that HCL did not deliver an enterprise software project as per the agreed timeline.
However, HCL said that while the lawsuit has been filed, the company still has a "good business relationship" with MillerCoors and other ongoing projects. "We are in discussion with MillerCoors to resolve this matter amicably," the exchange filing said.
Coal India: Dividend Payout For Second Time
The largest coal producer fell 2.3 percent to Rs 291 on Monday morning. Coal India gave a second dividend in a month on Sunday. The company said it would pay Rs 1.15 per share.
The payment will amount to Rs 713 crore according to Bloomberg's calculations. Earlier this month, the coal company gave out Rs 18.75 per share as dividend.
Meanwhile, the Competition Commission reduced its earlier penalty to Rs 591 crore from Rs 1,771 crore in a case regarding unfair market practices.
Bharat Forge: Divests Entire Stake in Alstom JV
The Pune-based company rose 1.3 percent to Rs 1,028 after it divested its remaining 26 percent stake in the power equipment joint venture with Alstom. Bharat Forge received a total of $35 million as per the agreed terms of sale, it said in a notification to the exchanges.
Bajaj Auto: Says Bye To Kawasaki
Shares of the bike maker rose 0.4 percent to Rs 2,853 after it announced the end of its eight-year alliance with Kawasaki. The announcement will take effect from April 1, 2017.
Bajaj Auto which also has a partnership with Austrian biking firm KTM had been selling Kawasaki bikes through its Probiking network. The company said the decision to part ways was a mutually agreeable one, in a press statement.
“Going forward, Bajaj intends to focus on the KTM brand,” the release quoted Amit Nandi, President of the Probiking division as saying.
Aurobindo Pharma: Indirect Damage
Share of the drug maker fell 3.4 percent to Rs 665 after the European drug regulator recommended suspension of 300 drugs tested by Micro Therapeutic Research Labs.
The entity is a contract research organisation which conducts analytical studies, some of which are used to support marketing authorisation applications of medicines in the EU. Aurobindo Pharma and Zydus are among those who companies that used the lab’s services.
Also Read: EMA Recommends Suspending 300 Drugs Tested By Indian Firm
State Bank of India: May Dilute 8% In SBI Life
India’s largest bank rose 1.2 percent to Rs 279 after it approved an offer for sale of 10 percent of its shares through initial public offer. It may also dilute an 8 percent stake in SBI Life through the IPO, it said in a filing.
Sensex, Nifty: Movers & Shakers
