Stocks Radar: Jaiprakash Associates, ICICI Securities, NMDC, Reliance Home Finance
The Indian equity benchmarks swung between gains and losses as weakness in the local currency dimmed the outlook for equities amid global trade tensions.
The S&P BSE Sensex and the NSE Nifty 50 Index traded at 37,862.73 and 11,420.65, respectively, as of 10.40 a.m. The market breadth was slightly tilted in favour of buyers.
Seven of the 11 sectoral gauges advanced, led the Nifty PSU Bank Index’s 1.32 percent advance. The Nifty FMCG Index was the biggest loser, down 2 percent.
Jaiprakash Associates Falls To Lowest Level In Over A Year
Shares of the industrial conglomerate declined as much as 4.2 percent, its lowest since May 2017, to Rs 10.20 apiece.
ICICI Bank Ltd. moved the National Company Law Tribunal with an insolvency petition against the debt-ridden Jaiprakash Associates Ltd, the infrastructure services firm said in an exchange filing. The firm said it has been given seven days to reply to the petition. The matter has been listed at the tribunal for hearing on Sept. 17.
The stock has fallen 60 percent so far this year and declined 52 percent in the in the past 12 months.
NMDC Gains For Fourth Session In A Row
Shares of the state-owned miner rose for the fourth straight session, up 1 percent, to Rs 121.30 apiece.
India’s largest iron ore miner hiked prices of iron ore for the fourth time this year, according to its exchange filing. The new prices are effective Sept. 7. It hiked lump prices by Rs 200 a tonne to Rs 3,550 per tonne and that of fines by Rs 140 a tonne to Rs 3,100 a tonne in September.
The miner reported a 25 percent year-on-year fall in iron ore production and sales for April-August period, according to data compiled by BloombergQuint. While production stood at 9.85 million tonnes, sales were at 11.04 million tonnes.
The stock trades 14 percent below the Bloomberg consensus one-year target price.
ICICI Securities Jumps After Citi Initiates Coverage
Shares of the ICICI Bank arm rose as much as 3.1 percent to Rs 337.45 apiece after research firm Citi initiated coverage on the stock with a bullish rating.
The brokerage has a ‘Buy’ rating on the counter with a price target of Rs 425 apiece—a potential upside of 30 percent from the last regular trade. Citi expects ICICI Securities to be a key beneficiary of a shift to financial avenues of savings.
The stock trades 19.4 times trailing 12-month earnings per share, according to Bloomberg data.
ConCor Gains After Inking Pipavav Port Deal
Shares of the state-owned cargo services provider rose nearly 1.5 percent to Rs 665.15 apiece.
The company signed an agreement with Central Warehousing Corporation to operate its container freight station facility at Pipavav port, according to an exchange filing. This will help in fulfilling multi-modal transport requirements and meet the growing need of exports, imports and domestic business situated in and around the port, it said.
The stock trades 30.3 times trailing 12-month earnings per share and 29 times its estimates for the coming year, Bloomberg data showed.
Reliance Home Finance Rises On Reports Of Marquee Investors Eyeing Stake
Shares of the Anil Ambani-led mortgage lender gained for the sixth straight session, up nearly 4.4 percent, to Rs 76.90 apiece.
Abu Dhabi Investment Authority, Singapore’s sovereign wealth fund GIC and Public Sector Pension Investment Board of Canada are in race to pick up a 25 percent stake in Reliance Home Finance for Rs 1,500-2,000 crore, newswire PTI reported.
The stock’s trading volume was nearly 13 times 20-day average, according to data compiled by Bloomberg .