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

Stocks Radar: Bharat Petroleum, CEAT, Majesco, Ujjivan Financial

Indian shares opened by extending decline for third straight day, tracking weak cues from Asia and ahead of the employment report in the United States.

The S&P BSE Sensex fell as much as 0.24 percent to 32,161, while the NSE Nifty 50 Index declined as much as 0.23 percent to 9,991. The market breadth, however firmly tilted in favour of buyers. About 723 stocks advanced while 458 stocks declined on the National Stock Exchange.

Here Are The Stocks Moving The Market This Morning

Teva Fallout Spreads To India

Drugmakers were the worst performing stocks both on the Sensex and the Nifty after Teva Pharmaceuticals Industries Ltd., the world’s biggest maker of generic medicines, slashed its profit forecast for the second time this year.

The sales forecast was cut to as low as $22.8 billion, amid an acceleration in erosion of prices and delays in approval for cheap copycat medicines in the U.S., its largest market. (Read more about it here)

Biocon: Regulatory Woes Intensify

Shares of Biocon Ltd. declined as much as 9 percent on Friday, the most in almost a month, after the U.S. drug regulator found ten lapses in quality at the biotechnology company’s Bengaluru plant.

The stock has fallen 10 times in 12 trading sessions. It is down over 15 percent in two weeks. Biocon trades at a price to earnings ratio of 40 times, higher than most of its peers.

Bharat Petroleum: Ups Commission

Shares of the oil marketer extended gains for the fourth day and rose as much as 1.2 percent to Rs 496.

The company is considering a venture into gas business and diversify resources for source of fuels as part of its five-year plan, BPCL Chairman and Managing Director D Rajkumar told PTI.

Besides that, he said, the oil company increased the commission offered to its dealers up to 50 percent with effect from August 1.

The stock has returned 22 percent so far this year, compared to a 19.2 percent gain in the S&P BSE Oil & Gas Index. The Relative Strength Index (RSI) was 73, indicating that the stock may be overbought.

Infosys: Gains On New Acquisition

Shares of the country’s second-largest IT firm snapped three-day decline and rose 0.5 percent to Rs 989 after it announced its plans to acquire London-based design studio Brilliant Basics for £7.5 million.

This acquisition represents Infosys’ commitment to the expansion of a worldwide connected network of Digital Studios, the company added in its media statement.

About 53 percent of analysts covering the company have changed their price targets over the past month (23 up, 6 down, 22 unchanged, 3 dropped), according to Bloomberg data. Analyst consensus price target is Rs 1079.41 – 9.3 percent above current market price.

Tata Global Beverages: To Sell Russian Unit

Shares of the tea and coffee maker swung between gains and losses after the company said it is planning to sell its subsidiary in Russia to Skodnya Grand.

Bloomberg data showed that Tata Global trades at 26.7 times trailing 12-month earnings per share. The stock has returned 37 percent so far this year and a gain of 23 percent in the past 12-months.

Stocks Reacting To Earnings

Majesco (YoY)

  • Stock fell as much as 5.8 percent, the most in over five months to Rs 350.15
  • Net loss of Rs 5 crore
  • Revenue down 17.2 percent at Rs 183 crore

Ujjivan Financial(YoY)

  • Stock fell 7.7 percent, the most in three-months to Rs 285
  • Net loss of Rs 75 crore
  • Revenue down 2.7 percent at Rs 323 crore
  • NII at Rs 138.22 crore, a decrease of 19.66 percent

Bombay Burmah (YoY)

  • Stock fell as much as 3.7 percent, the most in about five-months to Rs 842.35
  • Net loss of Rs 1.7 crore
  • Revenue down 20 percent at Rs 54 crore
  • EBITDA up 161 percent at Rs 3.65 crore
  • EBITDA margin expanded to 7 percent from 2.1 percent

CEAT (YoY)

  • Stock fell as much as 6.5 percent, the most in a month to Rs 1,780
  • Profit down 99 percent at Rs 1.4 crore
  • Revenue down 1 percent at Rs 1,629 crore
  • EBITDA down 70 percent at Rs 56 crore
  • EBITDA margin contracted to 3.8 percent from 12.6 percent
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