Stocks In News: Aurobindo Pharma, Gayatri Projects, Kotak Mahindra Bank, RIL, SpiceJet
Here’s a look at the stocks in news moving the markets today.
Indian equities opened higher, halting their four-day losing streak.
The S&P BSE Sensex rose as much as 0.9 percent to 41,276 and the NSE Nifty 50 rose as much as 0.96 percent to 12,107. The broader markets represented by the NSE Nifty 500 Index rose 0.85 percent. All the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Pharma Index’s 1.9 percent gain.
Here’s a look at the stocks in news moving the markets today.
Aurobindo Pharma Shares Surge The Most In 11 Years
Shares of Aurobindo Pharma Ltd. gained the most since Jan. 27, 2009, rising as much as 17.95 percent to Rs 590.20 apiece.
The U.S. Food and Drug Administration has issued ‘Establishment Inspection Report with Voluntary Action Initiated’ status to the Hyderabad-based drugmaker after the inspection of Unit IV, a general injectable formulation manufacturing facility of the company, according to its statement to the exchanges.
Trading volume in the Aurobindo Pharma stock was more than eight times the 20-day average for this time of the day with one-month implied volatility of 47 percent, Bloomberg data shows.
Kotak Mahindra Bank Shares Rise To All-Time High
Shares of Kotak Mahindra Bank Ltd. rose as much as 2.98 percent to Rs 1,740 apiece—the highest since listing on Jul. 3, 1997.
The Reserve Bank of India has granted its final approval to the Uday Kotak-led private bank in the matter relating to dilution of promoters' shareholding, the lender said in a statement on Wednesday.
The lender and its regulator had on Jan. 30, 2020, reached to an agreement over promoter stake dilution. In a notification to stock exchanges on that day, Kotak Mahindra Bank said RBI has conveyed its in-principle agreement of the following:
- Promoters voting rights in the bank to be capped at 20 percent of paid-up voting equity share capital until March 31, 2020.
- Promoters’ voting rights in the bank to be capped at 15 percent from April 1, 2020, onwards.
- Promoters’ shareholding in the bank to be reduced to 26 percent within six months from the date of final approval of the RBI.
- Thereafter, the promoters will not purchase any further paid up voting equity shares’ of the nank till the percentage of promoters’ shareholding reaches 15 percent.
The company’s shares are down 0.4 percent in the past five days and rose 0.6 percent in the past 30 days, Bloomberg data shows. The stock has advanced 33 percent in the past 52 weeks, according to the data.
Gayatri Projects Falls For 28th Straight Trading Session
Shares of Gayatri Projects Ltd. declined for the 28th consecutive trading session and hit the lower circuit of 5 percent or Rs 26.60 apiece—the lowest since March 2015.
The scrip is set for its longest losing streak on record. The Relative Strength Index was at 6, indicating that the stock may be oversold, Bloomberg data shows.
The company had last month said it is at an advanced stage of monetising arbitration awards worth more than Rs 900 crore. The proceeds would be used for servicing debt.
Reliance Industries Halts Two-Day Losing Streak
Shares of Reliance Industries Ltd. halted their two-day losing streak and gained as much as 2.08 percent to Rs 1,497.85 apiece.
The Mukesh Ambani-led company’s talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in recent weeks, Bloomberg reported on Tuesday, citing people familiar with the matter.
Aramco officials and bankers on the deal have been working at Reliance’s offices in Mumbai for due diligence this month, according to the people, who asked not to be identified as the information isn’t public. Both the companies are trying to overcome differences over the deal structure, which had stalled the process last year.
The development came a day after Reliance unveiled a plan to consolidate its media business under group firm Network18 Media & Investment Ltd.—a move that while battered the RIL stock boosted those that are set to be amalgamated.
Trading volume in the company’s stock was 15 percent below the 20-day average for this time of the day, with one-month implied volatility of 24 percent, Bloomberg data shows.
SpiceJet Introduces 20 New Flights, Shares Rise Most In Six Weeks
Shares of SpiceJet Ltd. rose 5.8 percent, more than any full-day gain since Jan. 9, to Rs 88.90 apiece.
The budget airline introduced 20 new domestic flights in India on Wednesday, two days after it inducted two Airbus A320 planes in its fleet. The two narrow-body planes, wet leased from Bulgarian BH Air, joined the fleet on Friday, SpiceJet said in a release.
With the latest induction, which has the approval of India’s aviation regulator, SpiceJet now has 121 planes. The airline, however, did not disclose the period for which these planes have been leased.
Also Read: Airbus Probe in India Digs Deeper Into $2.2 Billion Jet Sale
Trading volume in the airline’s stock was 32 percent above the 20-day average for this time of the day. The relative strength index on the stock was below 30, indicating that it may be oversold.