Stocks Radar: Infosys, Asian Paints, Dr. Reddy’s Laboratories
Indian stocks swung between gains and losses in early trading as investors reassessed the outlook for current corporate earnings season.
The S&P BSE Sensex Index was little changed, hovering near its all-time high at 36,521.09. The NSE Nifty 50 Index declined 0.18 percent to 10,998.15 as of 10.40 am.
The market breadth was tilted in favour of sellers. Nine of the 11 sectoral gauges compiled by the National Stock Exchange fell, led by the NSE Nifty Pharma Index’s 2.2 percent decline. The NSE Nifty IT Index was the top sectoral gainer, up 1.14 percent.
Here Are The Stocks Moving The Market This Morning
Infosys Gains After Bonus Announcement
Shares of the IT services provider pared their early losses and gained as much as 5.1 percent at Rs 1,363.05 apiece after the board of the company approved a bonus issue of 1:1 equity share and dividend of one American Depositary Share for every ADS held.
The software services provider, however, missed analysts’ expectations for the April-June quarter financials announced on Friday.
Infosys secured eight large deals with a contract value of $1.1 billion—the first time in the past seven quarters new pacts had topped the billion-dollar mark.
The company trades 18.8 times trailing 12-month earnings per share and is 4.4 percent below the Bloomberg consensus one-year target price.
Dr. Reddy’s Slips After Judge Blocks Company From Selling Opioid Drug
Shares of the pharmaceutical company declined 10 percent, the most in over a year, after a U.S. federal judge blocked the firm from selling a generic version of Indivior Plc’s opioid treatment Suboxone film.
While the shares traded at Rs 2,140 apiece, the volume was at 3.2 times the 20-day average. The company trades 37.5 times trailing 12-month earnings per share, according to Bloomberg data.
Cochin Shipyard Gains After Rs 102-Crore Deal
Shares of the shipbuilding company snapped their three-day losing streak and gained as much as 1.90 percent at Rs 441.85 apiece.
The company won a shipbuilding contract worth Rs 102.6 crore from Inland Waterways Authority of India for design, construction and supply of 10 Ro-PAX and Ro-Ro Vessels, according to an exchange filing.
The stock is 33 percent below the Bloomberg consensus one-year target price and offered a negative return of 20 percent so far this year.
PC Jeweller Hit After Withdrawal Of Buyback Proposal
Shares of the jewellery maker fell as much as 29.99 percent today at Rs 96 apiece. The company lost 80 percent of its market value in the last six months.
The firm withdrew its proposal to buy back shares worth Rs 424 crore after it failed to receive a no-objection certificate from its bankers, according to an exchange filing.
The company trades 7.1 times trailing 12-month earnings per share, Bloomberg data show.
HUL Hits New All-Time High
The FMCG company gained as much as 1.51 percent ahead of its first quarter earnings announcement today. The shares were priced at Rs 1,769 apiece.
The trading volume was 2.1 times the 20-day average. HUL trades 7.9 times trailing 12-month earnings per share, according to Bloomberg data.
Asian Paints Clocks The Highest Gain In At Least A Year
Shares of the paints maker climbed as much as 1.99 percent, its highest level in at least a year, at Rs 1,392 apiece.
Paint stocks are rallying with analysts envisaging a healthy volume growth this earnings season.
Asian Paints trades 67.6 times trailing 12-month earnings per share and is 4.5 percent above the Bloomberg consensus one-year target price.