Stock Radar: Andhra Bank, Dr. Reddy’s Labs, Persistent Systems, Sun Pharma
Indian equity benchmarks swung between gains and losses in opening trade after declining in the last three trading sessions. The S&P BSE Sensex fell 0.13 percent to 36,340.10 and the NSE Nifty 50 Index declined 0.16 percent to 10,871.50, as of 10:15 a.m.
The market breadth was tilted in favour of sellers. However, 7 of the 11 sectoral gauges gained, led by a 0.52 percent rise in the Nifty Metal Index. The Nifty IT Index was the biggest loser, down 1.81 percent.
Here Are The Stocks Moving The Market This Morning
Axis Bank Falls As Government Plans To Offload Stake
Shares of the Mumbai-based lender fell for the third straight session and declined as much as 1.8 percent to Rs 698.50 per share.
Specified Undertaking of Unit Trust of India plans to sell 1.98 percent stake on Feb.12, with an option to sell additional 1.02 percent stake in the bank, according to an exchange notification. Floor price of the offer is set at Rs 689.52 per share, with total aggregate consideration of Rs 3,500 crore. The offer will open for retail investors on Feb. 13.
The stock advanced 27 percent so far this year compared to a 7 percent gain in the BSE Sensex Index.
Persistent Systems Gains After Ex-IBM Executive Named CEO Designate
Shares of the IT firm gained a percent intraday to Rs 644.45 apiece.
Persistent Systems appointed Christopher O’ Connor as chief executive officer designate, according to its exchange filing. The filing said he will join the company via its U.S. arm with effect from Feb. 25.
The stock traded at 14 times its estimated earnings per share for the coming year, Bloomberg data showed.
Dr. Reddy’s Labs Rises After Clearing Legal Hurdle In Suboxone Case
Shares of the drug maker rose nearly 2.3 percent to Rs 2,676.45 per share.
A U.S. appeal’s court denied Indivior’s request to further delay Dr Reddy’s from selling generic version of opioid addiction drug Suboxone.
The trading volume was more than double the 20-day average for this time of the day, according to Bloomberg data.
Andhra Bank Declines After Q3 Performance
Shares of the state-run lender declined as much as 3.4 percent to Rs 23 apiece after its third quarter results were announced on Monday.
Key Highlights: (YoY)
- Net Interest Income up 1.6 percent to Rs 1698.3 crore.
- Net loss of Rs 578.6 crore versus net loss of Rs 532 crore.
- Provisions at Rs 1790.2 crore.
- GNPA at 16.68 percent versus 16.36 percent (QoQ).
- NNPA at 6.99 percent versus 7.49 percent (QoQ).
The relative strength index on the stock was below 30, indicating it may be oversold.
Sun Pharma Gains Ahead Of Q3 Results
Shares of the country’s largest drug maker erased opening losses and rose 1.7 percent intraday to Rs 436 apiece ahead of the company’ results announcement for the December-ended quarter.
- Net sales seen to rise 11 percent to Rs 7,415 crore.
- Net profit expected to gain 2.7 times at Rs 980 crore.
- Ebitda seen to rise 11 percent to Rs 1,616 crore.
- Operating margin expected to be flat at 21.8 percent.
21 out of 40 analysts tracked by Bloomberg have a ‘Buy’ rating on the stock, while nine analysts recommended ‘Hold’, 10 had a ‘Sell’ rating.