Stocks Radar: Sun Pharma, ICICI Prudential Life, KIOCL
Indian equity benchmarks advanced, snapping two days of losses, taking cues from Asian peers led by ONGC Ltd. and Sun Pharmaceutical Industries Ltd.
The S&P BSE Sensex gained 0.24 percent to 37,384.20 and the NSE Nifty 50 Index advanced 0.26 percent to trade 11,308.
The market breadth was tilted in favour of buyers. Eight of the 11 sectoral gauges advanced, led by the NSE Nifty Metal Index’s 1.5 percent gain. The NSE Nifty Media Index was the biggest loser, down 0.9 percent.
Here Are The Stocks Moving The Market This Morning
Sun Pharma Gains After Drug Receives European Comission’s Nod
Shares of the drugmaker rose 2.3 percent, snapping two days of losses, to Rs 657 each.
The company received the European Commission’s approval for psoriasis-treating drug Ilumetri, according to its exchange notification. The roll out of this product will start in Europe over the next few weeks.
The stock rose 4.5 percent in the past one month compared with 1.5 percent decline in the S&P BSE Sensex Index.
ICICI Prudential Life Slips After Inking Cross-Selling Partnership
The life-insurance services provider declined 3.2 percent to Rs 346.95.
The company signed bancassurance partnership with Saraswat Co-operative Bank. Through this partnership, over 280 branches of the Saraswat Bank in Maharashtra, Goa, Gujarat, Delhi, Madhya Pradesh and Karnataka will offer customer-centric life insurance products of ICICI Prudential Life, according to its filing.
The stock’s trading volume was 14 times the 30-day average, Bloomberg data showed.
Strides Pharma Slides After USFDA Issues Observations
The drugmaker’s shares declined 3.4 percent to Rs 481.25 per share.
The U.S. health regulator issued three observations for its Bengaluru facility on completion of its inspection last month, according to its filing.
Shriram Transport Jumps On Goldman Upgrade
The vehicle-finance company gained 2.6 percent to Rs 1,219 per share.
Goldman Sachs upgraded the stock to ‘Buy’ from ‘Neutral’. The price target was revised to Rs 1,491 from Rs 1,590 per share, implying 25 percent increase from last close.
Key highlights from the brokerage report
- Volume growth to sustain momentum
- Asset quality stabilising while loan loss reserve moderating.
- Improving RoA and earnings trajectory not fairly priced.
- Cut FY19-FY21 EPS estimates by 1-3 percent to factor in higher cost of funds.
The scrip trades 17.4 times trailing its 12-month earnings per share and 11 times its estimates for the coming year, Bloomberg data showed.
KIOCL Slumps After Buyback Approval
The state-owned miner’s shares fell as much as 20 percent, its highest on record, to Rs 183.20 apiece.
The company’s board approved buyback of 1.26 crore shares of paid-up capital at Rs 170 per share, according to an exchange filing. The quantum of buyback was Rs 214 crore and record date was fixed as Oct. 1.
The stock declined nearly 48 percent so far this year compared with 10.8 percent advance in the Sensex Index.