Stocks Radar: Bayer CropScience, CG Power, Edelweiss, Kaveri Seed, Syndicate Bank
Here’s a look at the stocks in news moving the markets today.
Indian equity benchmarks were trading lower on Tuesday, dragged down by private sector banks, even as investors assessed geopolitical risks in the aftermath of the Saudi drone attack.
At 11:31 am, the S&P BSE Sensex was trading 0.62 percent lower at 36,893.02 points while the NSE Nifty 50 shed 0.67 percent to 10.935.70. Vedanta Ltd. was the top gainer on the Nifty 50 Index while Axis Bank Ltd. was the top loser.
The market breadth was tilted in favour of sellers. About 949 shares declined and 735 stocks advanced on National Stock Exchange. Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 1.03 percent fall. On the flipside, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.29 percent.
Here’s a look at the stocks in news moving the markets today:
Bayer CropScience Fluctuates After Merger With Monsanto India
Shares of Bayer CropScience Ltd. rose as much as 3.12 percent before falling 0.98 percent to Rs 3,260.10 apiece.
On Monday, German chemical and pharma maker Bayer AG said it has completed the integration of Monsanto's India business with itself.
The National Company Law Tribunal had last week approved the merger of Monsanto India Ltd. with Bayer CropScience. Monsanto India shareholders will now get two equity shares of Bayer CropScience for every three shares they hold in the company.
Monsanto India’s shares rose 1.94 percent intraday Rs 2,183.45 apiece.
CG Power Hits Upper Circuit After Stake Purchase By KKR
Shares of CG Power & Industrial Solutions Ltd. hit the upper circuit of Rs 15.65 apiece.
The India arm of private equity firm KKR & Co. has purchased 10 percent stake in the power equipment maker for Rs 89 crore, bulk deal data on National Stock Exchange showed on Monday.
KKR India Debt Opportunities Fund II and KKR India Financial Services bought over 6.26 crore shares, or 10.01 percent stake, in CG Power, the data showed. The shares were bought at an average price of Rs 14.25 apiece, amounting to a total of Rs 89.31 crore. The shares were sold by Vistra ITCL (India) Ltd.
KKR's stake purchase comes nearly a month after CG Power told the stock exchanges that it will restate earnings on becoming aware of some “suspect, unauthorized and undisclosed” transactions. The CG fraud has resulted in the exits of three executives—Chairman Gautam Thapar, Chief Financial Officer VR Venkatesh and Chief Executive Officer KN Neelkant.
The CG Power stock has declined 71 percent in the past 52 weeks while the Sensex lost 1.9 percent, Bloomberg data shows.
Edelweiss Rises on Large Trade Deal
Shares of the Edelweiss Financial Services Ltd. rose 6.92 percent intraday, the steepest rise since Aug. 27, to Rs 110.50 apiece.
Around 24.2 lakh shares of the firm changed hands in a large trade on the National Stock Exchange, Bloomberg data showed, but the buyers and sellers were not known immediately. According to Bloomberg data:
- Trading volume was more than quadruple the 20-day average for this time of day.
- Of shares that were traded, 28 percent were at ask price and 19 percent at the bid.
- The stock trades at 12 times its estimated earnings per share for the coming year.
- The company's dividend yield is 1.3 percent on a trailing 12-month basis.
The Edelweiss stock has declined 60 percent in the past 52 weeks while the Sensex lost 2 percent, Bloomberg data shows.
Kaveri Seed Rises As It Weighs Buyback Plans
Shares of Kaveri Seed Company Ltd. rose as much as 2.98 percent to Rs 540.60 apiece.
Kaveri Seed’s board of directors will meet on Sept. 24 to consider and approve a share buyback plan. Therefore, in accordance with SEBI’s insider trading norms, the trading window for the stock will remain closed for the company’s promoters, directors, key managerial personnel and designated employees from Sept. 17 to Sept. 26, the agri-chemicals maker said in an exchange filing on Monday.
The trading volume for the Kaveri Seed stock was more than double the 20-day average for this time of the day, Bloomberg data shows.
Multiple Rating Upgrades Push Syndicate Bank Shares Higher
Shares of Syndicate Bank rose as much as 4.40 percent intraday to Rs 32.00 apiece, reacting to multiple rating upgrades.
CARE Ratings Ltd. has revised its ratings on Syndicate Bank’s Basel Bonds to “under credit watch with developing implications" on account of its proposed merger with Canara Bank. S&P Global Inc. has revised the bank’s “long-term issuer credit rating” from stable to positive.
Canara Bank will take over Syndicate Bank as part of the Narendra Modi government’s plan to merge 10 public sector banks into four. This will make it the fourth largest public sector bank.
The trading volume for the Syndicate Bank stock was almost quadruple the 20-day average for this time of the day.