Stocks Radar: Fortis Healthcare, Telecom Stocks, Nestle
Indian equity benchmarks rose along with Asian peers after stocks in the U.S. rallied to a seven-week high. The April inflation reading in the U.S. came in weaker than expected, prompting expectations that the Federal Reserve may not accelerate its pace of interest rate hikes.
The S&P BSE Sensex Index rose as much as 0.4 percent to 35,389.4, while the NSE Nifty 50 Index rose as much as 0.43 percent to 10,762.5.
The market breadth was more or less evenly split between gainers and losers. Fifteen of the 19 sectoral gauges compiled by the BSE Ltd. rose, led by the S&P BSE Metal Index’s 0.9 percent gains. Among the top losers, the telecom index fell the most, down 2.8 percent.
Here Are The Stocks Moving The Markets This Morning:
Fortis Healthcare: Board Backs Munjals And Burmans
Shares of the hospital chain operator fell as much as 3.2 percent to Rs 148. after having lost more than five percent this week.
The board of Fortis Healthcare Ltd. will recommend the offer proposed by the Munjal and the Burman family offices for the healthcare chain’s hospital and diagnostics businesses, it said in an exchange filing yesterday. (Get the details of the bid here).
The analyst consensus price target, Rs 186.3, is 23.4 percent above the current price of the stock. Seven out of nine analysts covering this stock have a ‘Buy’ rating, while the rest recommend ‘hold’.
PC Jeweller: Rises On Buyback Approval
Shares of the Delhi-based jeweller hit an upper circuit in early trade, rising the most since the start of this week, to Rs 250.7.
The board of PC Jeweller Ltd. approved a buyback of 1.2 crore shares not exceeding Rs 424 crore at a price of Rs 350 each, the company said in an exchange filing. The promoters and the promoter group companies will not participate in the buyback of shares.
Trading volume of the stock was at three times the 20-day average. The stock has risen for six out of seven trading sessions.
Telecom Stocks Plunge On First Reliance Jio Postpaid Plan
Shares of Indian telecom players fell sharply after Mukesh Ambani-led Reliance Jio Infocomm Ltd. launched its first postpaid plan.
The postpaid plan has a monthly rental of Rs 199 which offers ISD calling service at a starting price of 50 paise per minute to the U.S. and Canada. The company also announced an international roaming service with outgoing calls starting at Rs 2 per minute, according to PTI.
Idea fell as much as 8.4 percent to Rs 53.5, hitting its lowest level in almost seven and a half years. The relative strength index of the stock was 12, indicating that the stock may have been oversold.
Bharti Airtel fell as much as 5.8 percent, the most in more than three months, to Rs 388.1.
Nestle: Surges On Profit Boost
Shares of the FMCG company rose as much as 7.1 percent to a record high of Rs 9,619.7 after it reported a 38 percent jump in net net profit for the March-ended quarter.
- Net sales up 10.6 percent at Rs 2757 crore
- Ebitda up 34.6 percent at Rs 697 crore
- Ebitda margin at 25.3 percent
- Net profit up 38 percent at Rs 424 crore
Trading volume was at 7 times the 20-day average. Around 75 percent of the analysts covering this stock recommend 'Buy', 14 percent recommend 'Hold' while the rest have a 'sell' rating on the stock. Global brokerage firm raised its target price on the stock to Rs 10,200 from Rs 9,750 implying a potential upside of 13.5 percent.
Stocks Reacting To Block Deals
- 20 lakh shares changed hands in a block deal on BSE.
- Shares of The Federal Bank Ltd. rose as much as 1.3 percent to Rs 90.5.
Stocks Reacting To Earnings
Shares of Ujjivan Financial Services Ltd. rose as much as 7.7 percent to Rs 434.8.
- NII up 64.5 percent at Rs 211 crore
- Net profit grew 235 percent to Rs 64.9 crore
- Proisions at Rs 34.7 crore
- GNPA at 3.60 percent from 4.24 percent (QoQ)
- NNPA at 0.7 percent from 1.0 percent (QoQ)
Shares of Mphasis Ltd. rose as much as 12.8 percent to a record high of Rs 1,123.8.
- Revenue up 5 percent at Rs 1744.5 crore
- Net profit up 11 percent at Rs 238 crore
- Ebit up 14 percent at Rs 292.5 crore
- Margin at 16.8 percent
Shares of Titan Company Ltd. fell as much as 1.2 percent to Rs 961.6.
- Net sales up 11.7 percent at Rs 3916 crore
- Ebitda up 67 percent at Rs 454 crore
- Ebitda margin at 11.6 percent
- Net profit up 40.5 percent at Rs 282 crore
- Exceptional loss of Rs 80.7 crore