Stocks In News: Allcargo, IndiGo, JSW Steel, Lupin, Tata Power, Yes Bank

Indian equity bechmarks opened higher on Monday to trade at record highs.

The S&P BSE Sensex rose as much as 0.61 percent to 41,854 points and the NSE Nifty 50 rose 0.56 percent to 12,324. Both the indices were trading at their all-time highs. The broader markets represented by NSE Nifty 500 Index rose 0.57 percent. Infosys Ltd. was the top gainer on the Nifty 50 index while Yes Bank Ltd. was the top loser.

Here’a look at the stocks in news moving Sensex and Nifty today.

Blackstone Group Set To Buy Stake In Allcargo Unit For Rs 380 Crore

Shares of Allcargo Logistics Ltd. gained the most since Jan. 2, 2020, rising as much as 5.42 percent to Rs 105.00 apiece.

The company's board is expected to approve Blackstone Group LLC’s initial investment in its warehousing unit on Monday, Bloomberg reported citing people with knowledge of the matter.

Blackstone Group will purchase further stakes based on achievement of specified performance milestones, which could leave Allcargo Logistics with a minority interest, the people said. They asked not to be identified as the talks are private.

A Blackstone representative declined to comment. A spokesman for Allcargo Logistics declined to immediately comment.

Trading volume in the Allcargo stock was more than quadruple the 20-day average for this time of the day, Bloomberg data shows.

Adani Gas Rises On News Its Seeking Loans For Growth

Shares of Adani Gas Ltd. rose as much as 2.89 percent to Rs 169.00 apiece, after a Mint report on its fundraising plans.

The city gas distributor has sought a perpetual loan of $350 million from its promoters to finance expansion, Mint reported Jan. 13, citing two people aware of the matter. The company will pay an interest of 9 percent for the loan, and spend about $50 million of the $350 million for retail distribution.

The stock has advanced 66 percent in the past 52 weeks, Bloomberg data shows.

Edelweiss Surges After Clarifying On Dealings With Capstone Forex

Shares of Edelweiss Financial Services Ltd. gained the most since Jan. 2, 2020, rising as much as 8.02 percent to Rs 114.20 apiece.

On Sunday, Edelweiss Group denied having any business relationship with Capstone Forex Pvt. Ltd., and debunked the allegations over its involvement in foreign exchange violations.

“If any information is sought from us, as a responsible corporate citizen, we will of course provide the same,” Rashesh Shah, chairman and chief executive officer of Edelweiss, was quoted as saying in a statement. Shah said that a “senior authorised representative attended the Enforcement Directorate’s summon with the requisite information on his behalf” as he was unable to go in person.

Trading volume in the stock was almost 13 times the 20-day average for this time of the day, Bloomberg data shows.

Granules India Gains After Voluntary Recall Of Drug

Shares of Granules India Ltd. rose 2.18 percent intraday to Rs 131.50 apiece—the most since Jan. 10, 2020.

The drugmaker is "voluntarily" recalling ranitidine tablets used to treat ulcers of the stomach and intestines. "Ranitidine is being recalled by various producers from the U.S. market as they contain unacceptable levels of N-nitrosodimethylamine (NDMA). Granules India is recalling this product voluntarily," according to an exchange filing.

Granules India shares are up 8.2 percent in the past five days and fell 0.5 percent in the past 30 days, Bloomberg data shows. The stock has advanced 45 percent in the past 52 weeks, according to the data.

Infosys Rises After Q3 Results, Clean-Chit To CEO, CFO

Shares of Infosys Ltd. gained as much as 4.84 percent to Rs 773.85 apiece—the highest since Oct. 16, 2019.

On Friday, Asia’s second-most valuable software exporter posted quarterly net profit that beat the highest analyst estimates. The company raised its revenue growth guidance for the year ending March 2020 to between 10 percent and 10 percent.

Also, on the same day, Infosys said an independent investigation into whistleblower allegations of “unethical practices” at the company has found no evidence of financial impropriety or misconduct by Chief Executive Officer Salil Parekh and Chief Financial Officer Nilanjan Roy.

Also Read: What Analysts Made Of Infosys Earnings And Clean Chit To CEO

Trading volume in the stock was eight times of the 20-day average for this time of the day, Bloomberg data shows.

DGCA Asks IndiGo To Remove Unmodified Engines By May 31

Shares of InterGlobe Aviation Ltd. came off day’s high after the Directorate General of Civil Aviation asked the operator of IndiGo airlines to remove unmodified aircraft engines by May 31.

India has stepped up scrutiny of engines on Airbus SE’s A320neo jets, forcing IndiGo to have to replace more than previously estimated, a move that could further delay the budget carrier’s expansion plans, Bloomberg reported on Dec. 22, 2019.

A “more intense boroscopic examination” of engines manufactured by Pratt & Whitney has identified more engines at risk of shutting down in midair, DGCA head Arun Kumar told Bloomberg News.

NCLAT To Hear JSW Steel’s Case On Bhushan Power Acquisition On Jan. 23

Shares of JSW Steel Ltd. fell 0.90 percent intraday to Rs 275.40 apiece.

The National Company Law Appellate Tribunal will hear JSW Steel Ltd.’s case on Bhushan Power’s acquisition on Jan. 23, Bloomberg reported. A three-judge panel has asked the Enforcement Directorate if prosecution against Bhushan Power under its new management can be dropped.

The NCLAT had on Oct. 14 temporarily halted the JSW Steel-Bhushan Power deal amid allegations of money laundering by former owners of the insolvent firm. However, an amendment to India's bankruptcy law may allow the takeover to happen.

Also Read: Will Bhushan Power’s Past Continue To Haunt JSW Steel?

JSW Steel shares are up 4.5 percent in the past five days and rose 7.2 percent in the past 30 days. The stock has declined 4.4 percent in the past 52 weeks, according to the data.

Lupin Falls After U.S. FDA Issues Two Observations For Nagpur Plant

Shares of Lupin Ltd. fell as much as 2.33 percent to Rs 741.30 apiece—the lowest since Dec. 12, 2019.

This, after the drugmaker on Saturday said it has received two observations from the U.S. Food and Drug Administration following the inspection of its Nagpur plant.

"The inspection closed with two 483 observations," Lupin said in an exchange filing.

"We are committed to meeting the highest quality standards and are committed to full compliance with CGMP regulations at all our manufacturing facilities. The Nagpur facility is our latest oral solid dosage facility, and this was the seventh U.S. FDA inspection at the facility," Lupin's Managing Director Nilesh Gupta said.

Trading volume in the stock was almost triple the 20-day average for this time of the day, Bloomberg data shows.

Tata Power Rises To Two-Month High After Solar Project Win

Shares of Tata Power Co. Ltd. rose as much as 1.53 percent to Rs 59.85 apiece—Nov. 11, 2019.

The solar power arm of the Tata Group company has received a letter of award from NTPC Ltd. for a 250 MW solar project under the CPSU scheme, according to an exchange filing on Monday. The total valuer of the order is Rs 1,505 crore and the completion period is 20 months.

Tata Power Solar's order book now stands at Rs 7,600 crore.

Also Read: Why Analysts Repose Faith In Tata Power, The Worst Performer Among Peers In 2019

The company’s shares are up 4.4 percent in the past five days and rose 9.7 percent in the past 30 days, Bloomberg data shows. The stock has declined 21 percent in the past 52 weeks, according to the data.

Yes Bank Shares Fall On Lack Of Details On Fundraising Plans

Shares of Yes Bank Ltd. declined the most since Dec. 11, 2019, falling as much as 8.27 percent to Rs 41.05 apiece, after the lender approved a 10,000 crore fundraising plan, but once again stopped short of offering concrete details.

The lack of new investor names in a statement issued late on Friday after a board meeting added to market concerns, given the urgency of Yes Bank’s funding needs. The bank also rejected a previous offer from Canadian investor Erwin Singh Braich and
Hong Kong-based SPGP Holdings.

Also Read: Former Yes Bank Director Alleges Management Misled Shareholders

This came hours after the company’s audit committee chairman and independent director Uttam Prakash Agarwal resigned, and said that the company’s management must be changed “immediately”.

Also Read: India Must End Yes Bank’s Theater of the Absurd

The Yes Bank stock has declined 77 percent in the past 52 weeks, data shows.