Stocks Radar: Bharat Dynamics, Wheels India, Union Bank Of India
Indian equity benchmarks fell sharply tracking selloff in global equities after U.S. President Donald Trump imposed trade tariffs on China amid concerns that trade war could hit global growth.
The S&P BSE Sensex fell as much as 1.5 percent or 153 points to 9,961 and the S&P BSE Sensex plunged 1.4 percent or 471 points to 32,534.83. The indices were trading at over five-month low.
All sector gauges compiled by BSE were trading lower led by the S&P BSE Metal index's 2.7 percent drop.
Here Are The Stocks Moving The Market This Morning
Metal Stocks Slump Amid Rising Trade War Concerns
The NSE’s Nifty Metal Index fell as much as 3.29 percent to 3,442.75, its lowest in six months.
Metal prices have been tumbling amid concerns of a trade war between U.S. and China.
The world’s largest metal producer said it doesn’t fear a trade war with the U.S. and announced plans for reciprocal tariffs on $3 billion of imports from the U.S. in the first response to President Donald Trump’s ordering of levies on Chinese metal exports.
This is a response to Trump's tariffs of at least $50 billion in Chinese imports to compensate for alleged intellectual property abuses by China.
Tata Steel Declines: Wins Lenders Nod For Bhushan Steel
Shares of the country's second-largest steelmaker extended decline for the third straight trading session. The stock fell as much as 3.9 percent to hit over a seven-month low of Rs 558.40.
The relative strength index was 29, indicating that the stock may be oversold. The scrip declined 19 percent so far this year, compared to 22 percent gain in the past 12 months.
Creditors for debt-laden Bhushan Steel Ltd. have picked Tata Steel Ltd. as the successful bidder for the assets in India’s insolvency resolution process.
The lenders on Thursday declared the steelmaker’s bid successful, subject to obtaining necessary approvals, including from the resolution professional, the company law tribunal that is overseeing the process, and the Competition Commission of India, Tata Steel said in an exchange filing on Friday.
Bharat Dynamics: Makes D-Street Debut
Shares of the Hyderabad-based defence equipment maker began trading at a discount of nearly 16 percent at Rs 360 apiece on the NSE, over its issue price of Rs 428. Thereafter, the stock recovered some losses to trade at Rs 397.
Bharat Dynamics’ Rs 960-crore initial public offering was subscribed 1.26 times on the last day of bidding. (more details here)
L&T Technology Services: Swings After Order Win
Shares of the engineering services company swung between gains and losses and traded at Rs 1,183.
The company won a multi-million-dollar order from German plastic maker Covestro, according to its stock exchange notification.
L&T Technology trades at 28.5 times trailing 12-month earnings per share and 26 times its estimates for the coming year. The stock is 3.6 percent above the Bloomberg consensus one-year target price.
Wheels India: Gains After Report On Filing Patent
Shares of the wheel maker snapped three-day decline and rose as much as 3.5 percent, the most in nearly a month, to Rs 2,200.
The company filed a patent application for adjustable lugless wheel for tractors, according to a media report.
The stock has returned 69.6 percent over the past 12 months, compared to 12.6 percent advance in Sensex.
Union Bank of India: CBI Detects Fraud
Shares of the lender entered decline for the third consecutive trading session and fell as much as 8.3 percent to Rs 86.80.
The CBI has booked a Hyderabad-based construction and infrastructure company for allegedly defrauding a consortium of eight banks, which includes Union Bank of India, to the tune of over Rs 1,394 crore, officials said. (Full report here)
The stock declined 39 percent so far this year and a loss of 41 percent in the past 52 weeks.
Shalimar Paints: Fund Raising Plans
Shares of the paint manufacturer extended decline for the third straight trading session and fell as much as 4.2 percent to R 139.50.
The company plans to raise Rs 49.73 crore via a rights issue. The board has approved the issuance of 35.52 lakh shares at a price of Rs 140 each.
The relative strength index was 26, indicating that the stock may be oversold. The stock fell 18 percent in the past month, compared to 4.6 percent decline in Sensex.