Stocks Radar: Indiabulls Real Estate, PNB, RCom, Syndicate Bank
Indian stock benchmarks dropped as investors shifted focus to company earnings and concerns about the economy as uncertainty about the formation of a government in Karnataka persisted.
The S&P BSE Sensex fell much as 0.8 percent to 35, 241 while the NSE Nifty 50 Index fell as much as 0.9 percent to 10,699.
The market breadth was firmly tilted towards to the sellers. Nine of the 11 sectoral gauges compiled by the NSE fell, led by losses in NSE Nifty Bank Index, down 1.1 percent. Among the top gainers was the realty index, which was up 0.8 percent.
Here Are The Stocks Moving The Markets This Morning:
Punjab National Bank: Falls On Record Loss
Shares of the fraud-hit state-owned lender fell as much as 12.1 percent to Rs 75.5, the lowest in almost two years.
Punjab National Bank reported the biggest-ever quarterly loss in Indian banking history, at over Rs 13,400 crore. The high loss was on account of a sharp rise in bad loans on account of the new classification norms of the Reserve Bank of India.
It was also partly a fallout of the Rs 14,000-crore fraud involving jewellers Nirav Modi and Mehul Choksi, and their firms. Most brokerages turned bearish on the bank after the results.
Besides downgrading the stock, analysts cut their target price by as much as 50 percent citing a 200-basis point drop in capital adequacy ratio, which brought it below the regulatory requirement. (To read more on the brokerages, click here).
The relative strength index of the stock was at 24, indicating the stock may have been oversold. Around 16 percent of the analysts covering this stock have downgraded their ratings after the fourth quarter results. Trading volume was 15.3 times the 20-day average of the firm.
Indiabulls Real Estate: Gains On Buyback Plans
Shares of the real estate developer rose as much as 10.5 percent, the most in 10 days to Rs 205.35.
The company's board said it will meet on Friday to consider a share buyback proposal, according to its stock exchange filing. Trading volume was 2.8 times its 20-day average. The stock declined 11 percent so far this year.
Indiabulls Real Estate Ltd. was also the top gainer on the NSE Nifty Realty Index.
Syndicate Bank: Lowest In More Than 9 Years
Shares of the Bengaluru-based public lender fell as much as 7.3 percent to Rs 46.5, lowest since March 2009.
Syndicate Bank reported a net loss of Rs 2,195.1 crore in the March-ended quarter due to high bad loans that required higher provisioning. The bank had reported a net profit of Rs 103.8 in the corresponding quarter last year. Provisions during the quarter stood at Rs 3,544.7 crore.
Trading volume was 4.4 times the 20-day average. Only three analysts have a coverage on the stock, each with a buy, hold and sell rating. The 12-month Bloomberg consensus target price is Rs 76.5.
Reliance Communications: Slumps As Bankruptcy Process Starts
Shares of the Anil Ambani-led telecom operator fell as much as 9.7 percent to Rs 11.2, its lowest level in five months. Reliance Communications Ltd. has been falling for seven consecutive trading sessions.
An Indian tribunal on Tuesday said that it has agreed to place RCom under insolvency proceedings, Bloomberg reported. This will jeopardise the company’s proposed $3.7 billion asset sale to Reliance Jio Infocomm Ltd.
The relative strength index of the stock slips to 17, indicating the stock may have been oversold. Trading volume was two times the 20-day average.
Cipla: At Six-Month Low
Shares of the pharmaceutical firm fell as much as 5.2 percent, the most in more than six months, to Rs 548.5, making it one of the worst performers on the Nifty.
There wasn’t a clear reason for the heavy selling in the stock. The counter has been consistently losing ground since the start of the month, losing around 9 percent over the past 11 sessions. So far this year, it has declined over 40 percent.
More than half of the analysts tracked by Bloomberg that cover the stock have a buy rating. Trading volume was 2.6 times the 20-day average.
Hero MotoCorp: Top Loser On Nifty Auto Index
Shares of the two-wheeler manufacturer fell as much as 4.1 percent, the most in a little more than three months, snapping a brief two-day gaining streak.
Hero MotoCorp Ltd. was trading as the top loser on the NSE Nifty Auto Index. The sectoral index lost as much as 0.9 percent in intra-day trading today and around 7.7 percent so far this year.
Trading volume was 2.7 times the 20-day average. The stock has lost around 6.4 percent so far this year.