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Stocks Radar: Infosys, Gruh Finance, UCO Bank, Tata Motors

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Indian equity benchmarks declined, halting their best performance this year, as index heavyweight Infosys tumbled after its FY19 growth outlook disappointed the street.

The S&P BSE Sensex Index fell as much as 0.9 percent to 343,899.3. The NSE Nifty 50 Index was down 0.8 percent at 10,396.4. They subsequently regained some ground.

The market breadth was tilted in favour of the sellers. Seven out of 11 sector gauges compiled by the National Stock Exchange gained led by the Nifty Pharma index's 0.9 percent rise. On the other hand, the Nifty IT index was the top sectoral loser, down 0.1 percent.

Here Are The Stocks Moving The Markets This Morning:

Infosys: Margin Guidance Lower

Shares of the Bengaluru-based information technology firm fell as much as 6.2 percent, the most in eight months, to Rs 1,099.

While the company’s earnings in the fourth quarter met analysts’ estimates, brokerage firms were unimpressed by the lowering of margin guidance for the current financial year. Infosys lowered the target band for operating margin for current year to 22-24 percent from 23-25 percent in the previous year.

Earnings Highlight:

  • Revenue in dollar terms up 1.8 percent to $2805 million
  • Revenue up 1.6 percent at Rs 18,083 crore
  • Net profit down 28.1 percent to Rs 3690 crore
  • EBITDA up 3.5 percent to Rs 4472 crore
  • Margin expanded to 24.7 percent from 24.3 percent
  • FY19 revenue guidance in constant currency at 6 percent – 8 percent.
  • FY19 operating margin guidance range at 22 percent – 24 percent

Also Read: Q4 Results: Brokerages Disappointed By Infosys’ Margin Guidance

The scrip snapped a four-day gaining streak. Trading volume was 95.1 times the 20-day average on account of the multiple block deals.

UCO Bank: Former Chairman Charged In Fraud

Shares of the Kolkata-based state-run bank fell as much as 18 percent to Rs 18.25, the lowest in a little less than 13 years.

Central Bureau of Investigation registered a case against the former chairman of UCO Bank and some others for defrauding the bank of around Rs 621 crore. The charges are for securing loans by producing false documents and diverting the loans. CBI is conducting searches at 10 locations in Mumbai and Delhi in connection with the case.

The bank’s stock has now fallen for four consecutive sessions. It has given negative returns of 31 percent so far this year as compared to a 0.2 percent gain in the Sensex.

Gruh Finance: Bonus Issue

Shares of the mortgage finance firm rose as much as 6.5 percent to Rs 652.5, the highest in almost three months.

Gruh Finance Ltd.’s net profit for the January to March quarter beat analyst estimates and it also announced a bonus share issue. The company intends to issue one bonus share for every one held. The net profit during the fourth quarter stood at Rs 131 crore marginally higher than the consensus of analysts’ estimates–Rs 126 crore.

Trading volume was 29.9 times the 20-day average. The relative strength index of the stock is 73, indicating that the stock may have been oversold.

Fortis: Falls After Confirming IHH Interest

Shares of the hospital chain operator fell as much as 3.3 percent to Rs 147.

The board of Fortis Healthcare Ltd. has received an expression of interest from IHH Healthcare Berhad, countering a bid from the TPG-Manipal combine, according to the company's exchange filing.

The stock has fallen for the second consecutive session, prior to which it had a six-day gaining streak. Trading volume was 43 percent of the 20-day average.

Tata Motors: JLR To Cut Jobs

Shares of the automobile firm fell over 2 percent, the most in almost four weeks, to Rs 349.8.

A report that Tata Motors’ U.K. subsidiary, Jaguar Land Rover, would cut production and jobs could likely have prompted selling.

Trading volume was almost the same as the 20-day average.

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