Stocks Radar: Lupin, InterGlobe Aviation, Sobha, GM Breweries
Indian equity benchmarks pared early losses and traded flat, after a weak start to trade in Asia. U.S. stocks rose for a third straight session, but futures fell over a percent this morning after it emerged that the Trump administration is contemplating additional tariffs on more Chinese goods worth $100 billion.
The S&P BSE Sensex fell as much as 0.3 percent to 33,501.4 while the NSE Nifty 50 Index also dropped as much as 0.3 percent to 10,290.8 in the first hour of trade.
Pharmaceutical and oil and gas companies led the gainers, mitigating losses on the benchmarks. Lupin was the top gainer on the Nifty, with gains of over 6 percent.
The market breadth was tilted in favour of the buyers, with more than one gainer for every stock that lost ground on the BSE. Thirteen the 19 sector gauges on the BSE dropped, led by a 1 percent fall in the S&P BSE Metal Index. Among the gainers, the pharmaceutical and oil and gas gauges on the BSE were up 1.7 percent and 1 percent respectively.
Here Are The Markets Moving The Markets This Morning:
Lupin: Spikes After Receiving Clean Chit From FDA
Shares of the drug maker extended gains for the second day and rose as much as 7.1 percent, the most in over five months, to Rs 842.80.
The pharmaceutical company received a clean chit from U.S. drug regulator for its Pithampur Unit 1 Facility, according to a stock exchange notification.
After the initial spike following the announcement, the stock lost some ground. However, it was still the top gainer on the Nifty.
So far this year, the stock has declined 9.1 percent compared to 1.2 percent decline in Sensex.
Interglobe Aviation: Shelves Plan To Buy Air India
Shares of the Mumbai-based airlines operator, Interglobe Aviation Ltd. fell as much as 2.4 percent, the most in three weeks, to Rs 1,413.7.
Indigo, which was the only airline to publicly show interest in buying parts of Air India Ltd., dropped out of the race for the state asset, in a major blow to Prime Minister’s Modi’s privatisation efforts.
Indigo owners, Rahul Bhatia and Rakesh Gangwal had said earlier that they wouldn’t buy Air India if it involved a partnership with the government, according to a Bloomberg report.
The stock fell after a good run of four consecutive gaining sessions. Around 80 percent of the analysts covering this stock have a ‘buy’ recommendation, 15 percent recommend ‘hold’ while the rest have a ‘sell’ rating on the stock. So far this year, the stock has gained nearly 19 percent.
Sobha: Rises On Sales Numbers
Shares of the Bengaluru based realty firm rose as much as 10.8 percent, the most in almost 11 weeks, to Rs 564, extending its advance for a second consecutive trading session.
The company registered new sales volume of 1.02 million square feet in the fourth quarter of the previous financial year, valued at Rs 812 crore, according to Bloomberg.
ICICI Securities analyst upgraded the recommendation on the stock to ‘add’ from ‘reduce’ with a price target of Rs 543. Trading volume was nearly 34 times the 20-day average.
The stock was also the top gainer in the S&P BSE Realty Index.
Magma Fincorp: Declines After Block Deals
Shares of the non-banking financial services provider fell as much as 7.5 percent, the most in two months, to Rs 154.
Around 10 percent equity, or about 2.4 crore shares, changed hands in block deals, according to Bloomberg data.
Buyers and sellers were not known immediately.
Taking into account the intraday movement, the stock has now declined 1 percent so far this year. Over the past year though, it has gained 29 percent.
Sona Koyo: Investor To Sell Stake
Shares of the New Delhi based auto parts manufacturer fell as much as 8.9 percent, most in almost eight months, to Rs 89.4 which was the lowest level achieved in a little over nine months.
An investor in Sona Koyo Steering Systems Ltd., JTEKT Corporation Ltd., has proposed to sell up to 35 lakh shares to retail and non-retail investors on both the exchanges, according to the company’s exchange filing.
The company is the second smallest amongst its Bloomberg peers with a market cap of around Rs 1,821 crores. Trading volume was 27.3 times the 20-day average. The stock has given negative returns of 15.7 percent so far this year.
GM Breweries: Bonus Announcement
Shares of the Mumbai based alcoholic beverages manufacturer rose as much as 6.6 percent to Rs 1,200, its highest level in three months.
The board of GM Breweries Ltd. has recommended a dividend at the rate of 30 percent or Rs 3 per share, the company said in an exchange filing. The board has also recommended a bonus issue of shares in the ratio of 1:4.
The stock has risen for four trading sessions this week and has given positive returns of 20.1 percent so far this year as compared to Sensex’s negative returns of 1.5 percent in the same times period.
Ballarpur Industries: Timber Sale Push
Shares of the paper manufacturer rose as much as 12.2 percent, the most in three months, to Rs 15.6, extending its advance to the second consecutive trading session.
A unit of Ballarpur Industries Ltd. Sabah Forest, agreed to sell timber assets to an arm of Albukhary Group, for $310 million, according to the company’s exchange filing.
Trading volume of the stock was 11.2 times the 20-day moving average. It has fallen 15.6 percent so far this year.