Stocks Radar: Dena Bank, SBI Life, Mangalam Drugs,
Indian equity benchmarks gained, reversing early losses amid continued turmoil in non-bank finance firms after a troubled lender disclosed further missed debt payments on Friday.
The S&P BSE Sensex Index rose 0.7 percent to 36,586 and the Nifty 50 Index climbed as much as 0.7 percent to 11,049. Both the gauges had falling well over 0.6 percent in early trades.
The market breadth was tilted in favour of sellers. Ten out of the 19 sectoral gauges compiled by BSE rose led by the healthcare and information technology indices.
Here Are The Stocks Moving The Market This Morning
SBI Life Declines After BNP Paribas Stake Sale Plans
Shares of the life-insurance service provider declined as much as 4.6 percent to Rs 560 apiece, its lowest since listing in October 2017.
BNP Paribas Cardiff may cut stake in the company to comply with minimum shareholding norms, the company said in an exchange filing . The company also said that BNP Paribas Cardiff had confirmed that it was yet to make any firm decision regarding the size, timing or nature of such potential reduction in their shareholding of the company.
The foreign institution held 22 percent stake in SBI Life Insurance as reported to the exchanges for the June quarter.
The stock trades 32 percent below the Bloomberg consensus one-year target price.
Dena Bank Gains After Board Approves Merger
Shares of the Mumbai-based lender rose 3.7 percent to Rs 17 per share.
The state-owned bank’s board approved the proposed merger with Bank of Baroda and Vijaya Bank, according to its stock exchange filing.
The stock has declined 46.8 percent in the past year compared with 16.3 percent gain for S&P BSE Sensex Index.
Himachal Futuristics Gains After Order Win
Shares of the telecom-equipment manufacturer rose as much as 5.5 percent to Rs 20.05 apiece.
The company received purchase orders for Rs 558.36 crore from BSNL for PAN Indian defence communication network, according to a filing with the bourses.
The stock traded at 14.4 times trailing its 12-month earnings per share, Bloomberg data showed. It declined 31 percent so far this year and fell 29 percent in the past 12 months.
Hindustan Zinc Falls After Stock Downgrade
Shares of the Vedanta group-owned miner snapped two-day gaining streak and fell as much as 1.8 percent to Rs 292.15.
Brokerage firm Macquarie downgraded its recommendation on the stock to ‘Underperform’ from ‘Neutral’. The price target was also lowered to Rs 253 from Rs 276, implying a potential downside of 15 percent from last close.
The stock returned 3.3 percent in the last 12 months compared to nearly 16 percent advance in the Sensex.
Mangalam Drugs Hits Upper Circuit After Drug Gets WHO Nod
Shares of the generic drugmaker hit the upper circuit of 5 percent after to trade at Rs 80.90 apiece.
Mangalam Drugs and Organics received approval from World Health Organization for its HIV drug Efavirenz, according to an exchange notification.
The stock snapped its longest losing streak in over two months. It declined nearly 63 percent so far this year and fell 46.2 percent in the past 12 months.