Stocks Radar: Jet Airways, Reliance Communications, Lemon Tree Hotels
Indian equity benchmarks opened higher on Friday led by gains in Reliance Industries Ltd., ITC Ltd., ICICI Bank Ltd. and HDFC Bank Ltd. The S&P BSE Sensex rose as much as 0.7 percent to 37,927.45 and the NSE Nifty 50 Index climbed nearly 0.6 percent to 11,458.05 as of 10 a.m.
The market breadth was tilted in favour of buyers. All the Nifty sectoral indices gained, led by a 1.48 percent rise in the NSE Nifty Pharma Index.
Here Are The Stocks Moving The Market This Morning
Jet Airways Gains For Second Straight Session
Shares of the flight carrier gained as much as 2.9 percent for the second straight session to Rs 300.25 apiece.
The debt-ridden carrier will announce its earnings and financial results on Aug. 27, according to its exchange filing. The company last week had said it “deferred the matter of consideration of the unaudited financial results for the quarter”. The Jet Airways board’s audit committee had refused to approve the financial results “pending closure of certain matters”.
Besides, the company said Blackstone Group LP was in talks to buy a stake in the loyalty program of Jet Airways.
The stock is 37 percent below the Bloomberg consensus one-year target price.
Ion Exchange, Vedanta Gain After Deal
The metal exporter said it has signed a contract for engineering, procurement, supply and construction of a water treatment plant worth Rs 438.84 crore from Cairn Oil & Gas, a division of Vedanta.
Ion Exchange’s stock trades at 14.5 times trailing 12-month earnings per share, Vedanta stock trades at 6.3 times, according to Bloomberg data.
Reliance Communications Loses Nearly 3%
Shares of the telecom company lost as much as 2.70 percent to Rs 18.05 apiece.
The Supreme Court of India today held the hearing of the Department of Telecom’s plea against returning Rs 2,000 crore of bank guarantees to Reliance Communications till Aug. 20, according to a Bloomberg report. The telecom department had ordered the government to release the guarantee given by the company.
The stock declined 49 percent so far this year, according to Bloomberg data.
Lemon Tree Hotels Gains After New Property Deal
Shares of the hotels and resorts owner gained as much as 1.92 percent to Rs 79 apiece.
The company has signed a licence agreement for a 90-room property at Vijayawada, Andhra Pradesh under the company’s brand ‘Red Fox Hotel’. The hotel is expected to be operational by June 2020, according to its exchange filing.
The stock trades at 434.4 times trailing 12-month earnings per share and is 15 percent below the Bloomberg consensus one-year target price.
Manpasand Beverages Drops After Volume Buzz
Shares of the fruit juice maker lost as much as 5 percent to Rs 134.40 apiece. The recovered most of its losses thereafter to trade nearly a percent lower.
The company issued a clarification to the exchanges that its management wasn’t responsible for the recent spurt in volumes. It said the increase can be attributed to market conditions.
Trading volume was 1.7 times the 20-day average, according to Bloomberg data.