Stocks Radar: Fortis Healthcare, IRB Infra, Gitanjali Gems, InterGlobe Aviation
Here are the stocks moving the market this morning.
Indian equity benchmarks fell in early trade tracking weak global cues. Banks were among the worst losers after the Reserve Bank of India moved to discontinue letters of undertaking, the banking instrument that was purportedly used in the Rs 12,700-crore Punjab National Bank fraud.
The S&P BSE Sensex fell as much as 0.49 percent to 33,690 and the NSE Nifty 50 index declined 0.53 percent to 10,371.
Twelve of the 19 sector gauges on the BSE were trading lower, led by a 1 percent decline in the S&P BSE Telecom Index.
Here Are The Stocks Moving The Market This Morning:
Bank Indices Fall After RBI Bans Usage Of LoUs
Most bank stocks declined after the Reserve Bank of India, on Tuesday, decided to discontinue issuance of letters of undertaking and letters of comfort for trade credit for imports into India.
Public sector banks were once again worst hit, with the Nifty PSU Bank Index falling as much as 2.2 percent before recovering some lost ground. The broader Nifty Bank Index declined as much as 0.9 percent.
Punjab National Bank and Canara Bank were the worst performers on both indices.
Gitanjali Gems: Falls After CBI Reports Fraud Amount
Shares of the Mehul Choksi-backed jewellery firm fell as much as 4.9 percent in early trade, to a lifetime low of Rs 13.5. The stock has lost more than 76 percent of its value over the past month, after the PNB fraud came to light.
The Central Bureau of Investigation, in a court filing on Tuesday, said the amount that Gitanjali Gems group companies allegedly defrauded from Punjab National Bank was higher than previously estimated. The CBI pegged the amount at Rs 7,080 crore, compared with the bank’s initial estimate of Rs 6,138 crore, according to a Reuters report.
The stock has now fallen for 20 consecutive sessions.
IRB Infra: Gains On Order Win
Shares of the infrastructure company gained as much as 2.8 percent in early trade. The company announced post-market hours on Tuesday that it had won two hybrid-annuity road projects in Tamil Nadu.
The projects, the company’s first in the hybrid annuity space, aggregate to 94.8 km of highway, with a total cost outlay of Rs 3,492 crore. The company’s construction order book has, with the latest order, crossed Rs 10,000 crore.
So far this year, the stock has declined 7.6 percent, compared with a near 1 percent decline in the Sensex. At current levels, the stock is trading below its 50-, 100-, and 200-day moving averages.
Fortis Healthcare: Rises On IHH Healthcare’s Open Offer
Shares of the New Delhi-based healthcare service provider rose as much as 5.5 percent to Rs 161.
Malaysia’s IHH Healthcare may launch a voluntary open offer to public shareholders of Fortis Healthcare in the next few days, according to a report in the Economic Times.
Separately, Yes Bank acquired 8.98 crore shares of Fortis Healthcare Ltd. on invocation of the pledge on shares, after the founder group companies defaulted on repayment of a credit facility provided by the bank.
Fortis Health trades at 17.1 times trailing 12-month earnings per share and 770 times its estimates for the coming year. So far this year, its value has fallen 1.6 percent, compared with a near 1 percent fall in the Sensex.
InterGlobe Aviation: Falls After Flights Cancelled For Second Day
Shares of the Gurugram-based airline fell as much as 5.4 percent, the most in almost six months, to Rs 1,231.
The company informed on its website that 42 flights had been cancelled today. Yesterday InterGlobe Aviation Ltd. had cancelled 47 flights after its fleet of A320neo aircraft was grounded on account of their reportedly faulty engines.
Recent declines notwithstanding, the stock has gained 6.6 percent so far this year.