Stocks In News: Allcargo, Bharti Airtel, Gati, Glenmark, Tejas Networks, Vedanta, Zee
Indian equity benchmarks erased opening gains as investors assessed third-quarter earnings announcements and impact of Coronovirus on markets.
At 11:00 am, the S&P BSE Sensex was 0.14 percent lower at 41,264.57 points while the NSE Nifty 50 was down 0.20 percent at 12,146.00. Grasim Industries Ltd. was the top gainer on the Nifty 50 index while Oil and Natural Gas Corp. Ltd. was the top loser.
Here’s a look at the stock in news moving the markets today.
Bharti Airtel Swings After Getting Approval For 100% FDI
Shares of Bharti AIrtel Ltd. fluctuated between gains and losses after the telecom firm received government approval for 100 percent foreign investment in the company.
The Department of Telecom has approved raising the FDI limit in Bharti Airtel to 100 percent from 49 percent allowed earlier, according to the company’s stock exchange filing on Tuesday.
The approval comes a few days before the company has to clear statutory liabilities of up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is spectrum dues (excluding dues of Telenor and Tata Teleservices).
Bharti Airtel shares are up 9.1 percent in the past five days and rose 12 percent in the past 30 days, Bloomberg data shows. The stock has advanced 79 percent in the past 52 weeks, according to the data.
Gati Swings After Allcargo Buys Nearly 13% Stake In The Company
On Tuesday, Allcargo Logistics said it has acquired about 13 percent stake in Gati and that it is well on track to complete the process to buy as much as 44.5 percent.
As part of this preferential allotment process, Allcargo Logistics has already infused Rs 100 crore into Gati. The preferential allotment would result in the company acquiring 10.91 percent stake in Gati. Allcargo had acquired 27 lakh shares in Gati in the previous week through open market purchases.
Trading volume in the Gati and Allcargo stocks were, respectively, 49 percent and 68 percent below the 20-day average for this time of the day, Bloomberg data showed.
Glenmark Pharma Rises On News It Will Sell India Gynaecology Arm
Shares of Glenmark Pharmaceuticals Ltd. rose 1.58 percent to Rs 356.55 apiece—the highest since Jan. 20.
The company plans to sell its gynaecology business in India and Nepal to True North Fund’s unit Integrace in a deal valued at Rs 115 crore. The company expects to complete the sale by Mar. 31, 2020.
Glenmark shares are up 2.4 percent in the past five days and rose 1.2 percent in the past 30 days, Bloomberg data shows. The stock has declined 46 percent in the past 30 days, according to the data.
Vedanta Gains After ET Reports On Its Plan To Sell Stake In Cairn India
Shares of Vedanta Ltd. gained the most since Jan. 14, 2020, rising as much as 2.83 percent to Rs 158.45 apiece.
Anil Agarwal-led Vedanta Group is considering a plan to sell a minority stake in Cairn India to a strategic partner to raise a minimum of $1.5-$2 billion in efforts to reduce its debt of $6.6 billion, the Economic Times reported, citing sources it didn’t name.
The company’s shares are down 4.9 percent in the past five days and rose 8.5 percent in the past 30 days, Bloomberg data shows. The stock has declined 18 percent in the past 52 weeks, according to the data.
Zee Entertainment Slumps After Reporting Its Q3 Results
Net profit of the company fell 38 percent year-on-year to Rs 349 crore in the third quarter of 2019-20, on the back of revenue that declined 5.5 percent year-on-year to Rs 2,049 crore.
Trading volume in the stock was almost triple the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 40 percent were at the ask price and 44 percent were at the bid.
Tejas Networks Falls The Most In Two Months After Q3 Results
Shares of Tejas Networks Ltd. declined the most since Nov. 22, falling as much as 8.97 percent to Rs 82.20 apiece. The company reported its December quarter results on Tuesday.
The manufacturer of optical and data networking products reported loss of Rs 112 crore in the third quarter of 2019-20 from profit in the year-ago period, even as revenue more than halved due to declining business with the government.
Trading volume in the stock was almost triple the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 58 percent were at the ask price and 28 percent were at the bid, according to the data.