Stocks In News: Airtel, Alembic Pharma, BPCL, HPCL, Indian Oil, SpiceJet, TCS, Welspun
Here’s a look at the stocks in news moving the markets today.
Indian equity benchmarks opened higher on Thursday as U.S.-Iran tensions appeared to ease.
The S&P BSE Sensex rose as much as 1.30 percent to 41,344.75 and the NSE Nifty 50 rose 1.31 percent intraday to 12,153.15. The broader markets represented by the NSE Nifty 500 Index rose 1.29 percent.
The market breadth was tilted in favour of buyers. About 1,382 stocks advanced and 292 shares declined on the National Stock Exchange.
Ten out of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty PSU Bank Index’s 2.2 percent gain. On the flipside, Nifty IT Index was the only sectoral loser, down 0.13 percent.
Here’s a look at the stocks in news moving the markets today.
Alembic Pharma Rises After JV Unit Clears U.S. FDA Inspection
Shares of Alembic Pharmaceuticals Ltd. gained the most since Dec. 31, 2019, rising 2.72 percent intraday to Rs 568.40 apiece.
Aleor Dermaceuticals, a joint venture of Alembic Pharma and Orbicular Pharma, has received zero observations from U.S. Food and Drug Administration for its formulation manufacturing facility in Gujarat, according to an exchange filing. The Inspection was carried on from Jan. 6-8.
Trading volume in the stock was more than 11 times its 20-day average for this time of the day, according to Bloomberg data.
BPCL, HPCL, Indian Oil Gain After Crude Oil Prices Ease
Shares of Bharat Petroleum Corp. Ltd., Hindustan Petroleum Corp. Ltd. and Indian Oil Corp. Ltd. edged higher, after oil prices fell on easing Iran-U.S. tensions. Brent crude declined 4.2 percent to close at $65.44 per barrel on Wednesday.
- HPCL rose 4.9 percent, the most in three months, to Rs 253.50 each.
- Indian Oil advanced 3 percent to Rs 125.50 apiece.
- BPCL advanced 3.2 percent, most in a month, to Rs 474.40 each.
Bharti Airtel Rises To Highest In Over A Month After QIP Launch
Shares of Bharti Airtel Ltd. rose as much as 3.51 percent Rs 474.95 apiece—the highest since Dec. 2, 2019.
The telecom operator has launched a qualified institutional placement to raise Rs 14,400 crore at an indicative floor price of Rs 435 apiece—a discount of 5.2 percent from previous close. At this price, the QIP will lead to an equity dilution of 6.1 percent on the expanded equity base.
The company will also be raising $1 billion via issue of foreign currency convertible bonds with a green-shoe option to raise another $250 million.
The proceeds of the issue will be used by the company for paying adjusted gross revenue dues, paring debt and general corporate purposes.
Trading volume in the Airtel stock was 93 percent above the 20-day average for this time of the day, Bloomberg data shows.
Maruti Suzuki Rises Most In A Month After December Production Data
Shares of Maruti Suzuki India Ltd. gained the most since Dec. 13, 2019, rising as much as 2.14 percent to Rs 7,186 apiece.
Production at India’s largest carmaker rose 7.88 percent in December—marking the second successive month of increase after nine months of cuts due to a lingering auto slowdown in India.
Maruti Suzuki’s stock traded at 33 times its estimated earnings per share for the coming year, Bloomberg data shows.
SpiceJet Rises Most In Over A Week As Crude Oil Prices Ease
Shares of SpiceJet Ltd. gained the most since Dec. 30, 2019, rising as much as 10.43 percent to Rs 109.60 apiece.
This is after crude oil prices declined 4.2 percent to close at $65.44 per barrel on Wednesday after U.S.-Iran tensions de-escalated.
Trading volume in the stock was nearly thrice the 20-day average for this time of the day, Bloomberg data shows. Eleven out of 15 analysts tracked by Bloomberg had a ‘Buy’ rating on SpiceJet while three recommended ‘Hold’. One analyst had a ‘Sell’ rating.
TCS Falls Most In Nearly A Month, Top Loser On Nifty
Shares of Tata Consultancy Services Ltd. declined the most since Dec. 12, 2019, falling as much as 1.85 percent to Rs 2,213.45 apiece.
Indian software exporters TCS and Wipro Ltd. are set to report muted profit in the third quarter amid shut downs and furloughs during the holiday season in major markets, Nikkei Asian Review said in a Jan. 8 report.
TCS has likely delayed its quarterly results, which were due today, till after a resolution in the Tata-Mistry case. The Supreme Court will on Friday hear Tata Sons Pvt. Ltd.’s petition challenging NCLAT’s order that reinstated Cyrus Mistry as the company’s exeuctive chairman. Mistry, however, has said he doesn’t want his job back.
TCS shares are up 2.8 percent in the past five days and rose 7.7 percent in the past 30 days, Bloomberg data shows. The stock has advanced 18 percent in the past 52 weeks, according to the data.
Welspun India Gains After Bed Bath & Beyond Withdraws Guidance
Shares of Welspun India Ltd. rose as much as 2.56 percent to Rs 50.05 apiece.
Shares of companies that supply Bed Bath & Beyond Inc. may decline after the chain withdrew its financial guidance on Wednesday following another quarter of declining
sales, with same-store sales falling 8.3% in the company’s third-quarter, Bloomberg reported.
Trading volume in the stock was 20 percent above the 20-day average for this time of the day, Bloomberg data shows.