Traders at a securities brokerage look at changing stock prices. (Photographer: Jerome Favre/Bloomberg)

Stocks Radar: ICICI Bank, Lupin, PNB Housing Finance

Indian equity markets climbed in early trade on the back of a global risk on tone, and strength in banking stocks. Most major Asian stock indices are trading positive after a rally in technology stocks on Wall Street.

The S&P BSE Sensex Index rose as much as 0.5 percent to 35,388.9, while the NSE Nifty 50 Index rose as much as 0.4 percent to 10,758.5.

The market breadth was tilted in favour of the buyers. Thirteen of the 19 sectoral gauges compiled by the BSE rose led by S&P BSE Bankex 1.12 percent gains. Among the losers, the information technology index fell the most, down 0.4 percent.

Here Are The Stocks Moving The Markets This Morning:

PNB Housing: Slumps On Block Deals

Shares of the New Delhi-based housing finance firm fell as much as 7.5 percent, the most in two months, to Rs 1,270.9.

Close to 1.6 crore shares of PNB Housing Finance Ltd., 9.6 percent of the equity, changed hands over four block deals in pre-market trading. While the buyers and sellers were not immediately known, Bloomberg reported on Monday that Quality Investment Holdings, part of the Carlyle Group, was looking to sell stake for a base price of Rs 1,280 per share, a 9 percent discount to the previous closing price.

Around 66.7 percent of the analysts polled by Bloomberg covering this stock have a ‘Buy’ rating.

ICICI Bank Surges On Early Recognition Of Bad Loans

Shares of the Chanda Kocchar-led private lender rose as much as 7.6 percent, the most in a little over six months, to Rs 311.7 extending a four day gaining streak.

ICICI Bank Ltd.’s cheap valuations and lower stress from bad loans was seen trumping the steepest fall in quarterly profit since 2016. Its net profit in the fourth quarter halved on a year on year basis after asset quality worsened and provisions spiked.

Most brokerages remained upbeat as they expect the private sector lender’s asset quality to remain stable despite higher provisions (Read more on what the brokerages had to say).

Also read: ICICI Bank’s Profit Halves As Provisions Surge In March Quarter

This scrip was the top gainer on both the benchmark indices during early hours of today’s session. Trading volume 11.9 times the 20-day average. The stock has lost 1.96 percent so far this year compared with a 1.9 percent gain in the NSE Nifty Bank Index.

Lupin: Gains On Drug Approval

Shares of the pharmaceutical firm rose as much as 1.4 percent to Rs 785, snapping a four-day losing streak.

Lupin Ltd. received final approval from the U.S. drug regulator to market a generic version of Temovate Ointment, which is used to treat a type of skin disease.

Trading volume was 2.7 times the 20-day average. The stock has given negative returns of 11.7 percent so far this year, compared with a 3.8 percent rise in the Sensex.

Talwalkars: Exchange Nod To List Unit

Shares of the gym operator rose as much as 5.9 percent, the most in a little over two months, to Rs 68.7.

Talwalkars Better Value Fitness Ltd. received in-principle nod from exchanges to list Talwalkars Lifestyles. The company also announced that its net profit in the quarter ended March rose 33 percent to Rs 4 crore.

Earnings Highlights:

  • Revenue up 18.75 percent at Rs 19 crore
  • EBITDA up 30 percent at Rs 13 crore
  • Margin at 68.4 percent versus 62.5 percent

Four analysts polled by Bloomberg have a coverage on this stock, all of whom recommend ‘Buy’. The Bloomberg consensus one-year target price is at Rs 369.8.

Himadri Specialty: Plunges Most In 3 Months

Shares of the Kolkata-based specialty chemicals manufacturer rose over 11 percent, the most in three months, to Rs 134.7. The stock has snapped a long six-day decline period.

The reason for the sharp rise in the stock was not immediately apparent. The relative strength index of the stock was below 30 during early hours of trading, indicating that the stock may have been oversold.

Trading volume of the stock was 3.4 times the 20-day average of the firm. Six analysts have coverage on this stock and all have a ‘Buy’ rating on the stock. The Bloomberg consensus 12-month target price is at Rs 230.5.