Stocks Radar: Airtel, Apollo Hospitals, Reliance Capital, SREI Infrastructure, Sudarshan Chemicals
A look at the stocks in news moving the markets today.
The Indian equity benchmarks erased early gains by midday Thursday, led by declines in Reliance Industries Ltd. and Axis Bank Ltd.
At 11:36 am, the S&P BSE Sensex was trading 0.07 percent lower at 37,244.10 points while the NSE Nifty 50 was 0.10 percent weaker at 11,025.20 points. Indianbulls Housing Finance Ltd. as the top gainer on the Nifty 50 Index while Yes Bank Ltd. was the top loser.
The market breadth was tilted in favour of buyers, as 1,038 stocks advanced and 664 shares declined on the National Stock Exchange. Six of the 11 sectoral gauges traded lower, led by a 1.14 percent fall in the NSE Auto Index. The Nifty Financial Services Index was the biggest gainer, up 0.62 percent.
Here’s a look at the stocks in news moving the markets today:
Apollo Hospitals Rises After Promoter Stake Sale
Shares of Apollo Hospitals Enterprise Ltd. rose as much as 5.93 percent to Rs 1,579.70 apiece on news of a promoter stake sale to cut debt.
Promoters of India’s largest hospital chain are selling up to 50 lakh shares, or 3.6 percent stake in the company, at a floor price of Rs 1,450 per share, a Mint report dated Sept. 11 said. The Apollo Hospitals stake sale could fetch up to Rs 725 crore.
About 50 lakh shares, or 3.6 percent equity, changed hands in a large trade, Bloomberg data showed Thursday. Buyers and sellers were not known immediately.
The Apollo Hospitals stock advanced 35 percent in the past 52 weeks, while Sensex lost 1.2 percent over the same period, Bloomberg data shows.
Reliance Capital Rises After Selling Stake In Reliance Nippon
Shares of Reliance Capital Ltd. rose as much as 6.55 percent intraday, the steepest rise since Aug. 26, to Rs 36.65 apiece.
Reliance Capital has exercised the over-subscription option in Reliance Nippon Life Asset Management Ltd.’s offer-for-sale, doubling the number of shares offered. Bids in the RNAM OFS were received at an indicative price of Rs 266.74 per share.
On Sept. 9, the company said it will sell up to 1.93 crore shares, or 3.15 percent equity, in RNAM for over Rs 505 crore on stock exchanges via an OFS on Sept. 11 and 12.
Reliance Capital’s RNAM stake sale is part of its deleveraging drive. The stock has slumped 91 percent in the last year, while Sensex shed 1.2 percent over the same period, Bloomberg data shows.
SREI Infrastructure Finance Falls After Ratings Downgrade
Shares of SREI Infrastructure Finance Ltd. fell as much as 3.41 percent intraday, the steepest decline since Sept. 4, to Rs 12.75 apiece.
Brickwork Ratings has downgraded SREI Infrastructure Finance’s debt instruments worth Rs 5,327.07 crore with a negative outlook, the company said in a regulatory filing Wednesday.
- NCDs were downgraded to ‘BWR A+’ from ‘BWR AA’, outlook negative
- Perpetual Debt was downgraded to ‘BWR BBB+’ from ‘BWRA+’, outlook negative.
- Commercial Paper was downgraded to ‘BWR A1’ from ‘BWR A1+’.
SREI Infrastructure’s net profit stood at Rs 42.69 crore in the June quarter of 2019-20 on the back of revenue that came in at Rs 1,580 crore. The stock has declined 73 percent in the past 52 weeks, while the Sensex shed 1.2 percent, Bloomberg data shows.
Sudarshan Chemicals Rises After Axis Capital Initiaties ‘Buy’ Rating
Shares of Sudarshan Chemical Industries Ltd. rose as much as 9.37 percent, the most since July 18, to Rs 358.90 apiece. This, after brokerage Axis Capital initiated a ‘Buy’ rating on the stock with a target price of Rs 410.
Axis Capital's observations on Sudarshan Chemicals:
- Focus on specialty segment and step up in capex plans to aid growth.
- Expect positive surprise on volumes/margin given emerging opportunities overseas.
- Favorable product mix and raw material stability to aid Ebitda growth.
The trading volume for the Sudarshan Chemicals stock was almost five times the 20-day average for this time of the day, Bloomberg data shows.
Airtel Falls After Adding Leo Burnett To List Of Agencies
Shares of Bharti Airtel Ltd. fell 2.27 percent, its steepest intraday decline since Sept. 3, to Rs 347.05.
Airtel has added Leo Burnett to its roster of agencies, with mandate to handle a slew of business-to-business and business-to-customer services including below-the-line work and circle marketing campaigns, according to a statement by the advertising agency on Wednesday.
The Airtel stock has advanced 1.1 percent in the past 52 weeks while the Sensex has declined 1.2 percent, Bloomberg data shows.
