Stocks Radar: IndusInd Bank, RBL Bank At Multi-Year Lows; Yes Bank Slumps Most In Five Months
Here’s a look at the stocks in news moving the markets today.
The Indian equity benchmarks were deep in the red, an hour before the closing bell on Tuesday. At 2:20 pm, the S&P BSE Sensex was trading 1.64 percent lower at 38,034.87 points while the NSE Nifty 50 was 1.75 percent down at 11,273.35.
Bharat Petroleum Corporation Ltd. was the top gainer on the benchmark Nifty 50 index while Yes Bank Ltd. was the top loser.
Here’s a look at the stocks in news moving the markets today:
RBL Bank Suffers Worst Drop Since Listing, Volume Doubles
Shares of RBL Bank Ltd. fell as much as 21.83 percent to Rs 257.05 apiece, marking the stock's steepest intraday decline since listing.
Speaking to BloombergQuint on the slump, RBL Bank’s Executive Director Rajeev Ahuja said the private lender has exposure to only a few stressed accounts.
“Don’t know what is spooking the stock, don’t see any reason for the sell-off,” Ahuja said, adding that speculation of a fraud inspection is totally out of place. “Our guidance (going forward remains the same...nothing materially different from the guidance we shared at Q1.”
The trading volume for the RBL Bank stock was almost quadruple the 20-day average for this time of the day. Of shares that were traded, 41 percent were at the ask price and 42 percent were at the bid.
Yes Bank Down Most In About Five Months
Shares of Yes Bank Ltd. fell as much as 23.79 percent to Rs 31.55 apiece, the steepest intraday decline since Apr.30. It was the top loser on the Nifty 50 Index.
The trading volume was more than triple the 20-day average for this time of day. Of shares that were traded, 51 percent were at the ask price and 45 percent were at the bid.
IndusInd Bank Slumps The Most In Over Seven Years
Shares of IndusInd Bank Ltd. fell as much as 14.13 percent to Rs 1,188.05 apiece, marking the stock’s steepest intraday decline since Jul 11, 2012.
This, after the Mumbai-based private lender said its gross exposure (aggregate of funded and non-funded) to “a large HFC”, its subsidiaries and associate finance companies stands at approximately 0.35 percent of the loan book.
“The exposure is fully/strongly collateralised with no overdues and the group also maintains equal or higher amounts of unpledged fixed deposits with the bank,” IndusInd Bank said in an exchange filing.
The trading volume for the IndusInd Bank stock was more than triple the 20-day average for this time of the day, Bloomberg data shows.
CG Power Hits Lower Circuit For A Third Consecutive Day
Shares of CG Power & Industrial Solutions Ltd. hit the lower circuit for the third consecutive trading session, falling as much as 4.95 percent to Rs 13.45 apiece.
On Tuesday, the Securities Appellate Tribunal rejected an appeal by Former Chairman Gautam Thapar, Avantha Holdings and former officials of CG Power against a SEBI order barring them from the capital markets.
SAT rejected the appeal filed by Thapar and others as it "found no merit in the appeal" filed by them. It has directed the appellants to file a reply before Oct. 13. SAT had also directed the appellants to approach SEBI for obtaining all the documents required by them to defend their case.
The CG Power stock has declined 71 percent in the past 52 weeks, Bloomberg data shows. The trading volume for the stock was 85 percent below the 20-day average for this time of the day, even as it trades 4.6 times its estimated earnings per share for the coming year.
NBCC (India) Gains After Signing MoU With The Government
Shares of NBCC (India) Ltd. rose as much as 5.4 percent to Rs 36.80 apiece, marking the stock’s steepest intraday gain since Sept. 23.
The company has signed a memorandum of understanding with the Government of India for the development of National Sports University at Imphal for Rs 400 crore.
The stock trades at 12.7 times its estimated forward earnings per share compared to a 25.6 times for the two-year historical average, according to Bloomberg data.
RIL Fluctuates After Saudi Arabia Assures On Crude Oil Supply
Shares of Reliance Industries Ltd. fell as much as 0.54 percent to Rs 1,325.00 after opening higher on reports that Saudi Arabia will ensure crude oil supply to the operator of the world’s largest refinery.
Saudi Arabia has assured RIL that it will supply all the committed crude oil volumes in October as the world's largest oil exporter recovers faster than expected from the biggest attack ever on its oil industry.
Reacting to the development, RIL in an email said Saudi Aramco “has been a major and reliable supplier of crude oil for Reliance for over 20 years, both in terms of volume of crude supply as well as a mix of various grades of crude oil.
The RIL stock has advanced 7.8 percent in the past 52 weeks, Bloomberg data shows.
BPCL, Concor, Shipping Corp Surge On Stake Sale Plans
Shares of Bharat Petroleum Corporation Ltd., Container Corporation of India Ltd. and Shipping Corporation of India Ltd. surged after Bloomberg, citing an unnamed official, reported that the government is weighing a plan to sell stakes in these public sector undertakings.
In early morning trade, the BPCL stock surged as much 8.82 percent to Rs 511.85 apiece, while Concor and Shipping Corp. rose 7.47 percent to Rs 649.90 and 13.99 percent to Rs 49.30, respectively. The disinvestment will be completed in 2019-20 itself, Bloomberg quoted the government official as saying.
The government's PSU stake sale plans come against the backdrop of the corporate tax cuts, which is expected to cost the exchequer Rs 1.45 lakh crore in 2019-20. The government expects to mop up Rs 1.05 lakh crore via disinvestments in the ongoing fiscal, Finance Minister Nirmala Sitharaman had said in Union Budget 2019-20.
IIFL Wealth To Raise Rs 225 Crore Via Bond Issue, Shares Tank
Shares of IIFL Wealth Management Ltd. extended their losing streak to five days, falling as much as 4.78 percent intraday to Rs 1,176.05 apiece.
IIFL Wealth’s board has approved issue of non-convertile debentures to raise up to Rs 225 crore, according to a Bloomberg report.
The trading volume for the IIFL Wealth stock was 98 percent below the 20-day average for this time of the day, Bloomberg data shows.
Bajaj Auto Fluctuates After Disclosing Sept. Auto Sales Data
Shares of Bajaj Auto Ltd. fluctuated between gains and losses to trade little changed at Rs 2,948 apiece after the company announced its September auto sales data.
Bajaj Auto’s total sales declined 20 percent year-on-year to 4.02 lakh vehicles in September, the Pulsar maker said in an exchange filing Tuesday.
- Motorcycle exports rose 1 percent to 1.59 lakh units.
- Total motorcycle sales declined 22 percent 3.36 lakh units.
- Domestic commercial vehicles sales declined 1 percent to 38,153 units.
- Commercial vehicles’ exports fell 17 percent to 27,152 units.
- Total commercial vehicle sales fell 8 percent to 65,305 units.
- Total domestic sales fell 31 percent to 2.15 lakh units.
- Total exports fell 2 percent to 1.86 lakh units.
The Bajaj Auto stock has advanced 6.8 percent in the past 52 weeks, Bloomberg data shows.
Mahanagar Gas, Indraprastha Gas, Adani Gas Rally After Gas Price Cut
Shares of city gas distributors Mahanagar Gas Ltd., Indraprastha Gas Ltd. and Adani Gas Ltd. rallied after India’s oil ministry cut the price of locally-produced natural gas.
This is the first reduction after four straight hikes since October last year.
The price of gas produced from domestic fields has been cut to $3.23 per metric million British thermal unit from $3.69 per mmBtu, the ministry’s Petroleum Planning & Analysis Cell said Monday.
The new price will be effective from Oct. 1 till March 2020.
Maruti Suzuki Sales Decline 24% In September, Shares Rise
Shares of Maruti Suzuki India Ltd. surged as much as 2 percent to Rs 6,850 apiece after it reported a 24.4 percent fall in its auto sales in September.
Maruti Suzuki September Auto Sales: Key Highlights (YoY)
- Sales of mini segment fell 42.6 percent to 20,085 units.
- Sales of compact segment fell 22.7 percent to 57,179 units.
- Sales of Ciaz fell 72.5 percent to 1,715 units.
- Sales of utility vehicles fell 0.5 percent to 21,526 units.
- Sales of Vans fell 32.1 percent to 9,949 units.
- Sales of Super Carry rose 0.4 percent to 2,046 units.
- Total domestic passenger vehicle sales fell 27.1 percent to 1.1 lakh units.
- Total domestic sales fell 24.8 percent to 1.15 lakh units.
- Total exports slumped 17.8 percent to 7,188 units.
The Maruti Suzuki stock trades at 29 times its estimated earnings per share for the coming year, Bloomberg data shows.