Stocks Radar: Dena Bank, Mphasis, Sun TV, Allahabad Bank
Indian equity benchmarks held gains as investors assessed the exit polls of Karnataka while waiting for key inflation data due later in the day.
The S&P BSE Sensex Index rose much as 0.28 percent to 35,634.34, while the NSE Nifty 50 Index rose as much as 0.23 percent to 10,831.8.
The market breadth was evenly distributed between buyers and sellers. Thirteen of the 19 sectoral gauges compiled by the BSE Ltd. rose, led by the S&P BSE Healthcare Index’s 0.96 percent jump. The S&P Consumer Durables Index was the worst performer, down 0.7 percent.
Here Are The Stocks Moving The Markets This Morning:
Dena Bank: Lowest In 14 Years
Shares of the Mumbai-based public lender fell as much as 12.7 percent to Rs 16.1, its lowest level in more than 14 years.
The RBI has barred Dena Bank from lending and has also frozen fresh hiring, the bank disclosed in a notification to stock exchanges. This after the bank reported a further weakening in its financials with a loss of over Rs 1,225 crore in the fourth quarter, and gross bad loans at over 22 percent of total loans.
The relative strength index of the stock was at 28, indicating that the stock may have been oversold. The stock has fallen more than 31 percent so far this year.
Indian Refiners Rise After IOC Raises Fuel Prices
Shares of Indian oil refiners rose to the highest level in a month after Indian Oil Corporation Ltd. increased its petrol and diesel prices in the first revision since April 24.
- Indian Oil Corporation rose as much as 2.7 percent to Rs 173.7.
- Hindustan Petroleum Corporation Ltd. rose as much as 3.6 percent to Rs 330.2.
- Bharat Petroleum Corporation Ltd. rose as much as 2.8 percent to Rs 410.4.
The retail price for petrol in Delhi increased by Rs 0.17 per litre and for diesel by Rs 0.21 per litre, according to IOC’s website.
Sun TV: Profit Boost, Brokerage Upgrade
Shares of the Chennai-based television channel rose as much as 10.2 percent, the most in almost eight months, extending gains to a second consecutive trading session.
Brokerage firm Nomura upgraded its recommendation on the stock to “Buy” from “Neutral” and also raised its target price to Rs 1,105 from Rs 1,091. This implies a potential upside of 27.3 percent. (To read on what the other brokerages said, click here)
- Revenue up 23 percent at Rs 717 crore
- Net profit up 23 percent at Rs 290 crore
- EBITDA up 33 percent at Rs 522.5 crore
- Margin at 72.9 percent versus 67.6 percent
The stock was the top gainer on the Nifty Media Index which was up as much as 1.7 percent.
Allahabad Bank: Slumps Most In Over Two Months
Shares of the Kolkata-based public sector lender fell as much as 5 percent to Rs 43.4.
The Central Bureau of Investigation will submit a chargesheet against Allahabad Bank CEO and MD Usha Ananthasubramanian and several others in the over Rs 13,000 crore PNB scam.
The bank had also reported a net loss of Rs 3,510 crore in the fourth quarter, weighed down by worsening asset quality.
Tata Global: Falls Most In 15 Months
Shares of the Kolkata-based tea and coffee cultivator fell as much as 8.6 percent, the most in over 15 months to Rs 262.3.
The company’s losses in its joint venture led to a decline in Tata Global Beverages Ltd.’s profit in the March-ended quarter. Brokerage firm Kotak Securitires downgraded the recommendation on the stock to “Reduce” from “Add”. The price target was also reduced to Rs 285 from Rs 300.
The stock has declined by more than 16 percent so far this year.
Mphasis Swings After Block Deals
Shares of the BPO service provider declined 2.8 percent after two block deals but soon recovered to rise 1.2 percent to Rs 1,000 each.
Private equity firm Blackstone Group LP reduced its stake in Mphasis Ltd., to create more liquidity in the stock and enable high-quality long-term investors to participate in the Bengaluru-based IT firm's growth story, according to a Bloomberg report.
The stock, down for a second session, was the most traded by value and volume. Blackstone said it currently does not intend to sell any additional stake.