Stocks Radar: Coal India, Coffee Day, IDBI Bank, Vodafone Idea, Yes Bank
Tracking Asian peers, the Indian stock markets fluctuated between gains and losses today as investors assessed the latest in the unpredicable path of trade talks between the U.S. and China.
At 11:52 am, the S&P BSE Sensex was trading 0.36 percent lower at 37,507.36 points while the NSE Nifty 50 fell 0.37 percent to 11,174.70. Infosys Ltd. was the top gainer and Yes Bank Ltd. was the top loser in the Nifty 50 Index.
The market breadth was tilted in the favour of sellers. About 926 stocks declined and 766 shares advanced on National Stock Exchange. Eight of the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 2.24 percent decline. Nifty Realty Index was the top sectoral gainer, up 1.19 percent.
Here’s a look at the stocks in news moving the markets today:
IDBI Bank Shares Fall After S&P Ratings Action
Shares of IDBI Bank Ltd. fell as much as 10.83 percent intraday to Rs 26.35 apiece, marking the steepest fall since Aug. 16.
S&P Global Ratings has placed 'BB' long-term and 'B' short-term foreign currency issuer credit ratings of the bank on CreditWatch with negative implications, IDBI Bank said in an exchange filing. The update was on account of the uncertainty regarding the bank's ability to meet its capital requirement in the next three months.
S&P, however, sees the breach as temporary and that a capital infusion by the Indian government, by way of the Rs 70,000 crore bank recapitalisation plan, could help rescue IDBI Bank.
Vodafone Idea Falls After TRAI Data On Revenue Market Share
Shares of Vodafone Idea Ltd. fell as much 6.60 percent to Rs. 4.95 apiece, after the telecom firm’s revenue market share fell to its lowest ever in the June quarter, TRAI data showed.
Vodafone Idea’s market share by revenue dropped 350 basis points sequentially to 28 percent as its subscribers switched to other networks and opted for lower rental plans. In comparison, Bharti Airtel Ltd.'s revenue market share rose for the first time in five quarters while that of Reliance Jio grew at its slowest pace since it started charging users.
The Vodafone Idea stock has declined 84 percent in the past 52 weeks, Bloomberg data shows.
Coal India Falls As India Reconsiders Ban On FDI In Coal Mining
Shares of Coal India Ltd. fell as much as 2.7 percent to Rs. 187.25 apiece on a report that said India is reconsidering a ban on foreign investment in coal mining.
The government has moved a step closer to ending a cap on foreign investment in commercial coal mining to spur economic growth, Bloomberg quoted a person as saying. The proposal is being discussed at a Wednesday meeting of the Union Cabinet, led by Prime Minister Narendra Modi, and a decision may come within hours.
Coffee Day Hits Lower Circuit On Stake Sale Talks With TPG
After trading at the upper circuit for the past seven sessions, shares of Coffee Day Enterprises Ltd. hit the lower circuit of Rs 82.75 apiece.
U.S.-based private equity firm TPG Capital is in preliminary discussions on a possible acquisition of Coffee Day Global Ltd., a subsidary of Coffee Day Enterprises that runs the CCD coffee shops, The Economic Times quoted people as saying.
“The proposed transaction is expected to value the coffee chain between Rs 3,500 and Rs 4,000 crore. The transaction will not include its vending machine business,” the report said, citing a person aware of the development. CCD founder, the late VG Siddhartha, had been seeking a valuation of Rs 8,000 to 10,000 crore for the business.
Talks are still at an exploratory stage and may not lead to a transaction.
The Coffee Day stock trades at 15 times its estimated earnings per share, Bloomberg data shows.
Metal Stocks Decline As Moody’s Downgrades Outlook
The Nifty Metal Index fell as much as 2.6 percent to Rs 2,243.40 apiece after ratings agency Moody’s Investors Service Inc. changed its outlook on Asian steelmakers.
Moody’s cited weaker profits as reason for its negative outlook on Asian steelmakers, sending metal stocks down by at least 4 percent intraday.
Nifty Metal Index's Jindal Steel and Power Ltd., Steel Authority of India Ltd., Tata Steel Ltd. and JSW Steel Ltd. were down 3-5 percent on the National Stock Exchange.
Yes Bank To Consider Fundraising On Aug. 30, Shares Fall
Shares of Yes Bank Ltd. fell as much as 7.67 percent to Rs 59.55 apiece after the private sector lender said its board will meet on Aug. 30 to consider a plan for further fundraising.
The Yes Bank board will consider and approve raising of funds by way of issuance of equity shares through a preferencial issue and any other financial instrument on a private placement basis, the lender said in an exchange filing.
Yes Bank had on Aug. 14 raised Rs 1,930.46 crore through a qualified institutional placement to fund its business expansion.
On Tuesday, BloombergQuint reported that talks between Yes Bank and at least four global private equity funds for a possible stake sale went cold after the funds did not get enough comfort from publicly available information on the lender’s asset quality and profitability outlook.