Stocks Radar: Aurobindo Pharma, CG Power, Reliance Capital, Reliance Industries, Zee Entertainment
Here’s a look at the stocks in news moving the markets today.
Indian equity benchmarks fluctuated between gains and losses in opening trade on Tuesday, tracking Asian peers that were mixed as well.
At 11:15 am, the S&P BSE Sensex was trading 0.19 percent lower at 39,013.86 points while the NSE Nifty 50 was 0.22 percent weaker at 11,574.30. Reliance Industries Ltd. was the top gainer on the Nifty 50 Index while Eicher Motors Ltd. was the top loser.
The market breadth was tilted in favour of sellers. About 957 stocks declined and 728 shares advanced on the National Stock Exchange. Eight out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Financial Services Index’s 1.66 percent fall. On the flipside, NSE Nifty IT was the top gainer, up 1.60 percent.
Here’s a look at the stocks in news moving the markets today:
Aurobindo Pharma Falls After SEBI Action In Insider Trading Case
Shares of Aurobindo Pharma Ltd. recorded their steepest intraday decline since Aug. 1, falling as much as 4.55 percent to Rs 588.90.
This after the Securities and Exchange Board of India on Monday imposed a total penalty of over Rs 22 crore on Aurobindo Pharma, its promoter PV Ramprasad Reddy, his wife P Suneela Rani and other entities for violating insider trading norms.
According to a SEBI investigation conducted between July 2008 and March 2009, promoter entities traded in Aurobindo Pharma's shares based on unpublished price sensitive information pertaining to the company's Licensing and Supply Agreements with Pfizer Inc. and made "unlawful gains".
The trading volume for the Aurobindo Pharma stock was more three times the 20-day average for this time of the day.
CG power Rises After Getting Extension To Hold AGM
Shares of CG Power And Industrial Solutions Ltd. rose as much as 4.32 percent to Rs 14.50 apiece, extending the gaining streak to two days.
On Monday, Registrar of Companies, Mumbai, granted the fraud-hit power equipment maker an extension of two months and 15 days to hold its annual general meeting for the financial year ended Mar. 31, 2019, the company said in an exchange filing.
The development comes a week after the Securities and Exchange Board India barred CG Power’s ousted Chairman Gautam Thapar and three others from the capital market. SEBI also announced a forensic audit into the company’s books, following a fraud that was detected on Aug. 21.
The CG Power stock has declined 71 percent in the past 52 weeks, Bloomberg data shows.
Reliance Capital Surges Most In Almost A Month
Shares of Reliance Capital Ltd. rose as much as 7.08 percent to Rs 31.00, marking the stock’s biggest intraday gain since Aug. 26.
On Friday, Care Ratings Ltd. downgraded various debt facilities of Reliance Capital to D, following a delay in repayments to debenture holders. The Reliance Group firm blamed a technical glitch in bank servers for the delay, which was eventually corrected and the debenture holders were paid in full.
On Monday, Reliance Nippon Life Asset Management Ltd. said Reliance Capital will exit the mutual fund business by the end of September, following which the company will be renamed.
On Tuesday, the Business Standard newspaper reported that Reliance Nippon Life AMC will use the so-called side-pocketing mechanism to separate its exposure to Reliance Capital’s bonds that were downgraded to D by Care Ratings.
The Reliance Capital stock has declined 91 percent in the past 52 weeks, Bloomberg data shows.
Reliance Industries Surges On News Of Impending Spending Spree
Shares of Reliance Industries Ltd. rose as much as 4.81 percent to Rs 1,298.80 apiece, on reports that the Mukesh Ambani-promoted firm will embark on a spending spree after becoming debt-free in 18 months’ time.
“The required capex is part of RIL’s oil-to-chemicals strategy to transform the Jamnagar refinery, which would take the company from primarily being a producer of fuels to chemicals for higher margins," the Mint newspaper reported, citing a person as saying.
The trading volume for the RIL stock was more than three times the 20-day average for this time of the day, Bloomberg data shows.
Zee Entertainment Slumps As Lenders Dump Pledged Shares
Shares of Zee Entertainment Enterprises Ltd. extended their losing streak to a week, falling as much as 5.74 percent intraday to Rs 256.00.
This, after Lenders to Essel Group sold pledged promoter shares of Zee Entertainment for over Rs 200 crore on Monday. Exchange data show a bulk sale of 7.25 million ZEEL shares was executed on the NSE in a transaction executed by Catalyst Trusteeship Ltd.
Essel Group, run by Subhash Chandra, is seeking an extension to repay debt in order to avoid creditors liquidating its shares, Bloomberg reported on Tuesday.
The trading volume for the Zee Entertainment stock was more than seven times the 20-day average for this time of the day, Bloomberg data shows.