Stocks In News: Hindustan Aeronautics, IndiGo, SpiceJet, Strides Pharma, Vedanta
Indian stocks swung between gains and losses after Tuesday’s rebound from their longest losing streak in almost 10 months.
The S&P BSE Sensex slipped 0.29 percent to 38,511.61 points as of 10:27 am in Mumbai while the NSE Nifty 50 fell 0.21 percent to 11,280.00. Sun Pharmaceutical Industries Ltd. was the top gainer on the Nifty 50 index while Yes Bank was the top loser.
Here’s a look at the stocks in news moving the markets today.
Vedanta Records Seventh Decline In Last Nine Trading Sessions
Shares of Vedanta Ltd. recorded their seventh decline in the last nine trading sessions, falling as much 3.72 percent to Rs 115.10 apiece.
Ratings agency Moody's Investors Services has downgraded the company's corporate family rating to B1 from Ba3. The ratings on senior unsecured bonds issued by the metals and mining major and its wholly-owned subsidiary Vedanta Resources Finance II Plc were also downgraded to B3 from B2.
The downgrade was triggered by a sustained deterioration in the company's credit profile, according to Moody's. The outlook on all the ratings is ‘stable’.
Trading volume in the Vedanta stock was more than double the 20-day average for this time of the day, with a one-month implied volatility of 56 percent, Bloomberg data shows.
IndiGo, SpiceJet Tumble To Multi-Year Lows On Coronavirus Fears
India’s listed airlines—InterGlobe Aviation Ltd. and SpiceJet Ltd.—fell to multi-year lows as fears of the coronavirus outbreak turning into a pandemic gathered steam.
IndiGo shares fell as much as 4.51 percent to Rs 1,173.00 apiece—the lowest since Mar. 5, 2019. SpiceJet stock declined 8.14 percent intraday to Rs 68.30—the lowest since Jul. 20, 1999.
Airline stocks across the globe are taking a beating as the COVID-19 contagion spread to more countries. Total infections rose above 93,000, with China reporting 38 more deaths and fatalities rising to nine in the U.S., where the Federal Reserve delivered an emergency interest-rate cut. Emirates Airlines has already asked employees to take an unpaid leave for one month.
Hindustan Aeronautics Falls To Lowest In Six Months
Shares of Hindustan Aeronautics Ltd. fell as much as 5.05 percent to Rs 638.00 apiece—the lowest since Sep. 4, 2019.
The International Court of Arbitration has sent a notice to the state-run aircraft maker regarding request for arbitration from RUAG Aerospace Services GMBH, the company said in an exchange filing on Tuesday, adding that it has initiated necessary action with respect to the arbitration process.
The amount in dispute partially quantified by the opposition party is $21,872,500, or Rs 160.25 crore, against alleged damages on breach of agreement regarding the supply of structural parts for the production of Dornier-228, by the company.
Hindustan Aeronautics’ shares are down 7.4 percent in the past five days and fell 17 percent in the past 30 days, Bloomberg data shows. The stock has advanced 0.2 percent in the past 52 weeks, according to the data.
Strides Pharma Gains After Getting U.S. FDA Nod For Anti-Bacterial Drug
Shares of Strides Pharma Science Ltd. extended their winning streak to a second consecutive trading session, rising as much as 1.90 percent to Rs 474.70 apiece.
The Bengaluru-based pharma company has received United States Food and Drug Administration’s approval for its tetracycline hydrochloride capsule, used for the treatment of bacterial infections of the skin and other body systems.
The U.S. FDA approval has come from its flagship facility in Bengaluru. The said drug will be marketed in the U.S. where its market size is estimated at $16 million, Strides Pharma said in a statement.
Strides Pharma shares are down 3.8 percent in the past five days and fell 2.2 percent in the past 30 days, Bloomberg data shows. The stock has advanced 7.4 percent in the past 52 weeks, according to the data.