Stocks In News: Bajaj Finance, Bharti Airtel, Dr Reddy’s, RIL, Tata Coffee, TCS
(Photographer: Prashanth Vishwanathan/Bloomberg)

Stocks In News: Bajaj Finance, Bharti Airtel, Dr Reddy’s, RIL, Tata Coffee, TCS

India stocks rose on expectations that Finance Minister Nirmala Sitharaman will announce measures to revive economic growth in Union Budget 2020-21 to be presented on Saturday.

At 10:48 am, the S&P BSE Sensex was trading 0.69 percent higher at 41,248.90 points while the NSE Nifty was 0.79 percent up at 12,150.50. Tata Motors Ltd. was the top gainer on the Nifty 50 index while Eicher Motors Ltd. was the top loser.

Here’s a look at the stocks in news moving the markets today.

Bharti Airtel Rises After Clarifying On Inclusion In ‘Denied Entry List”

Shares of Bharti Airtel Ltd. gained the most since Jan. 23, 2020, rising as much as 2.07 percent to Rs 501.40 apiece.

Clarifying on news reports that the Directotate General of Foreign Trade has blacklisted Bharti Airtel and put it under “denied entry list”, the telecom firm said it has not applied for any such licence since April 2018 since there was no operational need for the same.

“The company has fulfilled all its export obligations under the past licences and applied for closure of these licences along with necessary documents to the authorities in this regard,” Bharti Airtel said in an exchange filing on Wednesday.

The company is working towards an expeditious closure of this matter with the DGFT and for getting the company's name removed from the "denied entry list”, the filing stated, adding that the “said action does not limit the ability of the company to undertake future imports or exports".

Also Read: Airtel Africa's Operating Profit Hits All-Time High On Revenue Boost

This comes days after the Department of Telecom approved raising the foreign direct investment limit in Bharti Airtel to 100 percent from 49 percent earlier. The company also has the approval of the Reserve Bank of India that allowed foreign investors to hold up to 74 percent stake in the company.

Bajaj Finance Rises To Highest In Nearly A Month Ahead Of Q3 Results

Shares of Bajaj Finance Ltd. rose as much as 1.88 percent to Rs 4,292.00 apiece—the highest since Jan. 2, 2020. India’s largest NBFC will report its December qaurter results later today.

Net profit of the company is expected to rise 39.9 percent year-on-year to Rs 1,482 crore on the back of net interest income that’s seen rising 25.3 percent to Rs 3,994 crore, according to analysts polled by Bloomberg.

But Bajaj Finance's assets under management in the October-December period grew at the slowest pace in five quarters after the non-banking lender tighetened lending norms earlier this fiscal. The company’s AUM grew 35.1 percent year-on-year to Rs 1.42 lakh crore in the third quarter, according to its stock exchange filing. On a sequential basis, its AUM rose 7 percent.

Trading volume in the stock was double the 20-day average for this time of the day with one-month implied volatility at 30 percent, Bloomberg data shows.

Tata Coffee Surges Most In More Than Four Months After Q3 Results

Shares of Tata Coffee Ltd. rose 8.51 percent to Rs 107.80 apiece—the highest since Sep. 21, 2019. The company reported its December quarter results on Tuesday.

Net profit of the company more than doubled year-on-year to Rs 24.9 crore in the third quarter of 2019-20 on the back of revenue increased 7.7 percent to Rs 501.4 crore. The company will also sell 160,000 shares held in Tata Chemicals Ltd., according to a stock exchange filing.

Tata Coffee Q3 Results: Key Highlights (YoY)

  • Revenue rose 7.7 percent to Rs 501.4 crore
  • Net profit rose 2.2 times to Rs 24.9 crore
  • Ebitda rose 54.2 percent at Rs 85.1 crore
  • Margin stood at 17 percent versus 11.9 percent

Also Read: Chandra's One-Tata Plan Gets Going With Tata Nexon EV

Trading volume in the Tata Coffee stock was six times the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 45 percent were at the ask price and 46 percent were at the bid, according to the data.

Dr Reddy’s Shares Fall Most In More Than Six Weeks

Shares of Dr. Reddy’s Laboratories Ltd. declined the most since Dec. 13, 2019, falling as much as 2.82 percent to Rs 3.099.20 apiece.

The United States Food and Drug Administration has completed its audit of Dr Reddy’s API manufacturing plant at Srikakulam, Andhra Pradesh, with five observations, the company said in an exchange filing on Wednesday. The Indian drugmaker said it will address the U.S. FDA observations “comprehensively within the stipulated timeline”.

Also Read: Dr. Reddy’s Reports Surprise Loss In Q3 On Impairment Costs

Trading volume in the stock was more than triple the 20-day average for this time of the day with one-month implied volatility of 29 percent, Bloomberg data shows.

RIL Shares Rise After Macquarie Cuts Stock To ‘Underperform’

Shares of Reliance Industries Ltd. rose the most since Jan. 20, 2020, rising 1.54 percent to Rs 1,494.40 apiece.

Macquarie analyst Aditya Suresh has cut the recommendation on RIL to underperform from neutral. The target price was set at Rs 1,300, implying a 12 percent decrease from last price.

Also Read: In Charts: How Reliance Industries Fared In The Third Quarter

RIL shares are down 3.3 percent in the past five days and fell 3.8 percent in the past 30 days, Bloomberg data shows. The stock has advanced 23 percent in the past 52 weeks, according to the data.

TCS Shares Decline Most In More Than A Week

Shares of Tata Consutancy Services Ltd. declined the most since Jan. 20, 2020, falling as much as 1.07 percent to Rs 2,160.30 apiece.

Tata Sons has started arranging funds to pay off telecom dues of 13,823 crore owed
by Tata Teleservices, The Economic Times reported Wednesday quoting unnamed
officials close to the development. It will most likely rely on TCS for funds to pay these dues, the report said.

TCS shares are down 1.9 percent in the past five days and fell 1.5 percent in the past 30 days, Bloomberg data shows. The stock has advanced 9.2 percent in the past 52 weeks, according to the data.

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