Stocks Radar: Ashoka Buildcon, JBM Auto, Piramal Enterprises, Raymond, Minda, SBI
Towers under construction are silhouetted at sunset in the Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: Ashoka Buildcon, JBM Auto, Piramal Enterprises, Raymond, Minda, SBI

Indian equity benchmarks traded higher after a shaky start.

The S&P BSE Sensex rose 0.53 percent to 37,735 as of 11:55 a.m. and the NSE Nifty 50 rose 0.53 percent to 11,186. The broader markets represented by the NSE Nifty 500 Index rose 0.5 percent.

The market breadth was tilted in favour of sellers. About 915 stocks declined and 755 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Financial Services Index’s 0.5 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 1 percent.

Here are the stocks in news moving the markets today:

JBM Auto Jumps After Order Win

Shares of JBM Auto Ltd. extended gains for the second consecutive trading session, rising 14.50 percent intraday to Rs 214.90 apiece.

On Wednesday, the company informed the stock exchanges that it has received orders for supplying 300 buses, incuding

  • CNG buses to Delhi Integrated Multi-Modal Transit System Ltd,
  • CNG buses to SpiceJet and IndiGo for airport tarmac applications,
  • Electric Buses to Navi Mumbai Municipal Transport Corporation.

The order will be fully executed before the end of 2019-20, JBM Auto said.

The stock has advanced nearly 28 percent in the two days, Bloomberg data shows, while trading volume was more than five times its 20-day average.

SBI Cuts Interest Rates By 10 BPS, Share Price Swings

Shares of State Bank of India fluctuated between gains and losses after India’s largest bank announced a 10-basis-point reduction in interest rates across tenors.

SBI has reduced its Marginal Cost of Funds based Lending Rate, or MCLR, by 10 basis points across all tenors, according to a media statement issued Wednesday. The one-year MCLR now stands at 8.05 percent.

The interest-rate changes are effective Oct. 10.

The SBI stock trades at nine times its estimated earnings per share for the coming year, according to Bloomberg data.

Ashoka Buildcon Gains After Order Win

Shares of Ashoka Buildcon Ltd. rose as much as 2 percent to Rs 99.40 apiece.

The company has received an order from SRIT Infra Pvt. Ltd. for laying of overhead and underground optical fiber cables for Kerala State IT Infrastructure Ltd.

The project, the contract for which is valued at Rs 313.72 crore, has to be completed within 24 months from the date of commencement.

The Ashoka Buildcon stock has declined 6.7 percent in the past 52 weeks compared to a 9.3 percent gain in the Sensex, Bloomberg data shows.

Minda To Buy Delvis Group For Rs 164 Crore, Shares Surge

Shares of Minda Industries Ltd. extended gains for the second consecutive trading session, rising as much as 2.7 percent to Rs 344 apiece.

Minda is set to acquire 100 percent of Delvis Group, which is engaged in automotive lighting design and engineering, for €21 million, or about Rs 164 crore. The acquisition is subject to requisite regulatory approvals and is expected to be completed in two months.

Trading volume for the Minda stock was more than 19 times its 20-day average for this time of the day, Bloomberg data shows. It trades at 28 times its estimated earnings per share for the coming year.

Aurobindo Pharma Rises After Clarifying On U.S. FDA Observations

Shares of Aurobindo Pharma Ltd. rose up to 4.82 percent intraday to Rs 482.00 apiece, after falling the most in 11 years on Monday, when U.S. Food and Drug Administration flagged lack of good manufacturing practices at the drug maker's Telangana plant.

None of the observations made by the U.S. FDA were related to data integrity, the drug maker said in an exchange filing on Monday, exuding confidence of addressing them within the stipulated timeline.

The U.S. FDA issued a Form 483, a kind of inspection report, with seven observations, including lack of documentation, equipment cleanliness and quality control. The regulator had inspected the company’s Formulation Unit-7 from Sept. 19-27.

The Aurobindo Pharma stock has declined 39 percent in the past one year, according to Bloomberg data.

IDBI Bank Falls Amid Plans To Resume Lending For Existing Borrowers

Shares of IDBI Bank Ltd. extended their losing streak to three trading sessions, falling as much as 3.36 percent to Rs 28.80 apiece.

IDBI Bank, which has been under the Reserve Bank of India's prompt corrective action framework, will resume corporate lending in a limited way to existing customers which have a high credit rating, Business Standard reported Tuesday.

It has received RBI’s nod for taking an exposure to clients, the report said. The bank is waiting to meet capital adequacy norms before starting corporate lending.

The IDBI Bank stock has declined 51 percent in the past 52 weeks, Bloomberg data shows.

J Kumar Infra Rises After Clean Chit From SEBI

Shares of J Kumar Infraprojects Ltd. rose as much as 19.97 percent—the highest intraday gain since Jul. 23, 2008—to Rs 153.50 apiece.

On Monday, market regulator Securities and Exchange Board of India said there are no reasonable grounds to believe misrepresentation of financials at J Kumar Infra, which had figured among 331 suspected shell companies.

SEBI, consequently, has revoked its interim directions issued in September 2018, wherein it had directed exchanges to appoint an independent auditor to conduct forensic audit of the firm.

Trading volume for the J Kumar Infra stock was more than 15 times the 20-day average for this time of the day, Bloomberg data shows.

Titan Falls The Most In Three Months On Weak Jewellery Outlook

Shares of Titan Company Ltd. fell 6.51 percent—the steepest intraday decline since July 9—to Rs 1,177 apiece.

On Monday, Titan said sales growth of its mainstay jewellery business remained muted in the quarter ended September as rising gold prices deterred buyers. Jewellery sales fell sharply in July but rose 15 percent year-on-year between August and September, the Tata Group company, which owns the Tanishq brand, informed the exchanges. Retail sales, therefore, grew 7 percent for the quarter ended September, it said.

Titan’s trading volume was more than five times the 20-day average for this time of the day. The stock has advanced 59 percent in the past 52 weeks, Bloomberg data shows.

Yes Bank Denies Report On Likely Microsoft Deal, Shares Fall

Shares of Yes Bank Ltd. fell as much as 10.08 percent intraday to Rs 41.05 apiece, after gaining 8.19 percent on Monday on reports that it is in talks with Microsoft Corp. and two other tech companies for a strategic investment.

The private sector bank, however, denied making any such move.

"The bank in the usual and ordinary course of its business continues to explore various means of raising capital/funds through issuance of securities to diverse set of investors, in order to meet its business/regulatory requirements," Yes Bank told the stock exchanges on Monday.

"The bank is not aware of the source, which resulted in the news item and as a matter of policy, the bank would not like to comment on such an article," it added.

The Yes Bank stock has declined 81 percent in the past 52 weeks, according to Bloomberg data.

Raymond Halts Three-Day Fall

Shares of Raymond Ltd. halted their three-day losing streak, rising as much as 8.9 percent to Rs 595.50 apiece.

The company said its associate firm J. K. Investo Trade (India) Ltd. has entered into an agreement with Elpis Ventures for the sale of its Thane land parcel for Rs 700 crore.

The Raymond stock has gained 2.6 percent in the past five days and returned 2.1 percent in the past 30 days, Bloomberg data shows.

Piramal Enterprises Drops For A Second Day

Shares of Piramal Enterprises Ltd. extended declines for the second consecutive trading session, falling as much as 7.1 percent to Rs 1,377 apiece.

The stock has dropped over 13 percent in two trading sessions.

Relative Strength Index was at 27, indicating that the Piramal stock may be oversold. It trades at 12.6 times its estimated earnings per share compared to a 17.8 times for the two-year historical average, according to Bloomberg data.

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