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Stocks Radar: Axis Bank, Cox & Kings, Dr. Reddy’s, Petronet, Reliance Capital

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

A trader reacts while working in a brokerage house in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)
A trader reacts while working in a brokerage house in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)

The government’s proposal to cut corporate tax rates continued to boost sentiment on Monday the equity benchmarks were trading near day’s high.

At noon, S&P BSE Sensex was trading 3.31 percent higher at 39,263.68 points while the NSE Nifty 50 was up 3.28 percent at 11,643.50. Bharat Petroleum Corp. Ltd. was the top gainer on the Nifty 50 Index while Infosys Ltd. was the top loser.

The market breadth was tilted in favour of buyers. About 1,245 stocks advanced and 487 shares declined on the National Stock Exchange. Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty FMCG Index’s 6 percent gain. On the flipside, NSE Nifty Index was the top loser, down 2.56 percent.

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

Axis Bank Rises After Raising Rs 12,500 Crore In QIP

Shares of Axis Bank Ltd. rose as much as 7 percent intraday to Rs 727.95 apiece, its highest in almost two months.

The private sector bank has raised Rs 12,500 crore in qualified institutional placement from large foreign and local investors, BloombergQuint reported on Friday.

Funds raised via the Axis Bank QIP will boost the lender’s Tier-I ratio by 2.2 percent, according to BloombergQuint calculations. Axis Bank’s Tier-I CAR stood at 12.9 percent in the first quarter of financial year 2019-20. Its total capital adequacy was at 16.06 percent during the same period.

Trading volume for the Axis Bank stock was more than five time the 20-day average for this time of the day.

Cox & Kings Falls After Fresh Default

Shares of Cox & Kings (India) Ltd. fell as much as 4.76 percent intraday to Rs 4.00 apiece due to a a fresh default.

On Friday, Cox & Kings said it has defaulted on payment towards maturity of unsecured commercial papers worth Rs 30 crore, the travel and tours firm said in a BSE filing. "The company is working closely with its lenders to optimise its asset base globally and bring the situation back to normal as soon as possible," it added.

The Cox & Kings stock has declined 98 percent in the past one year, Bloomberg data shows.

Dr. Reddy’s Falls After Halting Global Supply Of Ranitidine Drug

Shares of Dr. Reddy’s Laboratories Ltd. fell as much as 4.82 percent to Rs 2,701.00 apiece—the stock’s steepest intraday decline since Aug. 14.

On Sunday, Dr. Reddy's said it is suspending supply of its drug Ranitidine worldwide as a precautionary measure, pending ongoing investigation by the U.S. Food and Drug Administration into reported impurity in the formulation.

"Dr. Reddy’s is evaluating potential impact of the issue. As a precautionary measure... suspending all shipments worldwide of Ranitidine products until the investigation by the FDA outcome is available,” it said in a filing.

Trading volume for the Dr. Reddy’s stock was 64 percent above the 20-day average for this time of the day, Bloomberg data shows.

Petronet Swings To Fall Most In 3 Years On Deal With Tellurian

Shares of Petronet LNG Ltd. fell as much as 7.4 percent after rising 13.3 percent, after a deal with Tellurian Inc.

On Sunday, Tellurian said it signed a $7.5 billion agreement for Petronet LNG to buy into its proposed liquefied natural gas terminal in Louisiana, in what could potentially be one of the largest foreign investments in the U.S. to ship shale gas abroad.

Petronet will spend $2.5 billion for an 18 percent equity stake in the $28 billion Driftwood LNG terminal and negotiate the purchase of 5 million tons of gas per annum. The remainder of the total will come from debt, Tellurian Chief Executive Officer Meg Gentle said.

The Petronet LNG stock has advanced 7.2 percent in the past 52 weeks, Bloomberg data shows.

Reliance Capital Falls After Care Downgrades Its Ratings

Shares of Reliance Capital Ltd. fell as much as 11.34 percent to Rs 27.75, extending their losses for the third straight trading session.

On Sunday, Mumbai-based Care Ratings Ltd. cut Reliance Capital’s bonds by eight notches to D from BB, citing a delay in coupon payments on several of the lender’s non-convertible debentures, the rating company said in a Sept. 20 statement.

On Monday, Reliance Capital called the downgrade “pre-meditated and prejudiced".

“CARE has arbitrarily disregarded the above confirmation provided by third party independent parties that established the alleged delay was on account of technical glitch in bank servers, while funds had duly been arranged on the due date,” it said.

The Reliance Capital stock has declined 92 percent in the past 52 weeks, Bloomberg data shows.