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Stocks In News Today: BPCL, IDBI Bank, RCom, SpiceJet, Unichem

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

A stockbroker on the trading floor of a brokerage in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
A stockbroker on the trading floor of a brokerage in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Indian equity benchmarks extended opening gains to trade at day’s high.

At 11:26 am, the S&P BSE Sensex was trading 0.71 percent higher at 40,644.64 points while the NSE Nifty 50 was up 0.72 percent at 12,002.10. Bharti Airtel Ltd. was the top gainer on the Nifty 50 index while Zee Entertainment Enterprise Ltd. was the top loser.

The market breadth was tilted in favour of buyers. About 1,042 stocks advanced and 674 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 2.5 percent advance. On the flipside, the NSE Nifty Media Index was the only sectoral loser, down 0.6 percent.

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

BPCL Shares Swing On 'Valuation' Talks

Shares of Bharat Petroleum Corp. Ltd. fluctuated between gains and losses after the government set a 50-day deadline for an independent “asset valuer" to determine BPCL’s valuation.

In part an indication of timelines for privatisation of India’s second biggest state-run oil refiner, the government has set a 50-day deadline for an outside “asset valuer” to carry out the valuation of all assets of BPCL—a process that once completed will trigger invitation of price bids from potential acquirers.

The Union Cabinet had on Nov. 20 approved strategic divestment of the government’s 53.29 percent stake in BPCL to a strategic buyer, along with transfer of management control.

BPCL shares are down 2.5 percent in the past five days and fell 2.1 percent in the past 30 days, Bloomberg data shows.

IDBI Bank Shares Falls After Deal With Muthoot Finance

Shares of IDBI Bank Ltd. recorded their steepest intraday decline since Nov. 13, falling as much as 2.97 percent to Rs 37.55 apiece.

On Friday, gold loans firm Muthoot Finance Ltd. said it will buy IDBI Asset Management, IDBI Bank’s mutual fund arm, for Rs 215 crore. Muthoot Finance will purchase 100% equity shares of IDBI AMC and IDBI MF Trustee Company held by the sellers for a total consideration of Rs 215 crore.

The deal, subject to regulatory approvals, is expected to complete by February 2020.

Trading volume for the IDBI Bank stock was more than 12 times the 20-day average for this time of the day, Bloomberg data shows.

RCom Rises After Chairman Anil Ambani's Resignation Is Rejected

Shares of Reliance Communications Ltd. extended their winning streak to a fifth consecutive trading session, rising as much as 6.67 percent to Rs 0.80 apiece.

On Sunday, RCom said its lenders have rejected the resignations of Chairman Anil Ambani and four other directors, and asked them to cooperate in the ongoing corporate insolvency resolution process.

The RCom stock has declined 94 percent in the past 52 weeks, while Sensex gained 16 percent over the same time period, Bloomberg data shows.

SpiceJet Shares Falls After Report Says It’s Facing Liquidity Crunch

Shares of SpiceJet Ltd. fell as much as 3.28 percent to Rs 106.05 apiece—the lowest since Nov. 18—after Business Standard reported the airline is facing a liquidity crunch.

SpiceJet, India’s second-largest airline, is planning to raise around Rs 750 crore by selling new shares, Business Standard quoted three people as saying in a Nov. 25, 2019, report.

The airline is considering a qualified institutional placement, as prolonged grounding of the Boeing 737 Max aircraft and a severe fare war have put the budget carrier’s balance sheet under pressure.

SpiceJet shares are up 2.6 percent in the past five days and rose 4.1 percent in the past 30 days, Bloomberg data shows. The stock has declined 26 percent in the past 52 weeks, according to the data.

Unichem Gets U.S. FDA Approval For Hypertension Drug, Shares Surge

Shares of Unichem Laboratories Ltd rose as much as 7.22 percent to Rs 164.00 apiece, the highest since Nov. 11, 2019, after its hypertension drug was approved by U.S. FDA.

Unichem has received ANDA (Abbreviated New Drug Application) approval from United States Food and Drug Administration for Atenolol Tablets, indicated for the treatment of hypertension, to lower blood pressure, according to an exchange filing on Friday.

The product will be commercialized from Unichem's Ghaziabad plant.

Trading volume for the drugmaker’s stock was more than eight times the 20-day average for this time o the day, Bloomberg data shows.