Stocks Radar: CG Power, Coffee Day Enterprises, Jet Airways, Reliance Nippon Life, UPL
A look at the stocks in news moving the markets today.
The Indian stock markets today extended their gains for the second straight session, with Tata Motors Ltd. emerging as the top gainer and Bharti Airtel Ltd. as the top loser.
At 11:35 am, the S&P BSE Sensex was up 0.43 percent at 37,655.57 points while the NSE Nifty 50 was trading 0.58 percent higher at 11,122.35.
The market breadth was tilted in favour of buyers as 1,269 stocks advanced and 417 shares declined. Nine of the eleven sectoral indices compiled by the National Stock Exchange advanced, led by Nifty PSU Bank's 3 percent gain. Nifty IT Index was the top loser, down 1.16 percent.
Here’s a look at the stocks in news moving the markets today:
Jet Airways Rises After Lenders Extend Bidding Deadline
Shares of Jet Airways (India) Ltd. rose as much as 4.9 percent intraday to Rs 38.00 on reports that its lenders have extended a bidding deadline for the airline till Saturday.
Lenders have extended the deadline for submitting Expressions of Interest to include Synergy Group Corp., which submitted an EoI after the expiry of the Aug. 10 deadline, the Mint newspaper quoted a person as saying.
The South American conglomerate owns a majority stake in Colombian carrier Avianca Holdings, the second-largest airline in South America, has shown preliminary interest in Jet Airways, according to media reports.
The Jet Airways stock has declined 87 percent in the past 52 weeks, Bloomberg data shows. The airline, which was grounded on April 17, is currently undergoing resolution under the Insolvency and Bankruptcy Code.
Coffee Day Hits Upper Circuit For Seventh Straight Session
Shares of Coffee Day Enterprises Ltd. hit the upper circuit of Rs 88.40 apiece for the seventh straight trading session—its longest gaining streak since Apr. 24, 2018.
ITC Ltd. is considering a bid to buy a stake in Coffee Day as the cigarette maker seeks to diversify its businesses, Bloomberg quoted people as saying in a Aug. 21 report.
ITC received an inquiry from an intermediary on Coffee Day and there has been no progress, its spokesman said in response to Bloomberg’s query. The news is incorrect and Coffee Day is unaware of any such developments, Coffee Day said in a filing.
Coffee Day has taken several steps to pare its debt since founder VG Siddhartha's death on July 31. The operator of Cafe Coffee Day has sold its Global Village Tech Park in Bengaluru to Blackstone Group—a deal that brought down its debt to less than Rs 1,000 crore.
The Coffee Day stock has gained 40.35 percent in the current winning streak while the Sensex has risen 0.2 percent. Over the 52-week period, CCD shares have declined 64 percent, Bloomberg data shows.
CG Power Shares Hit Revised Lower Circuit
Shares of CG Power & Industrial Solutions Ltd. hit the revised lower circuit of Rs 8.25 apiece, extending its losing streak to six days—the longest since July 2019.
On Monday, BSE Ltd. revised the lower circuits of six companies, including CG Power, to curb volatility in share prices.
The CG Power stock has taken a battering since Aug. 20 when the power equipment maker said it will restate earnings on becoming aware of some “suspect, unauthorized and undisclosed” transactions. On Sunday, PTI reported that investors want Gautam Thapar removed as the chairman of the company.
UPL Gains After JP Morgan Initiates Coverage
Shares of agrochemicals maker UPL Ltd. rose as much as 4.25 percent intraday to Rs 573.15—the highest since Aug. 5.
On Tuesday, brokerage firm JP Morgan initiated its coverage on the UPL stock with an ‘Overweight’ rating. It also fixed the target price at Rs 700, indicating a potential upside of 27.3 percent from previous close.
Here’s what the brokerage had to say on the stock:
- Synergies from Arysta to help drive higher than industry average growth.
- Earnings execution remains the key for deleveraging over the next two years.
- FY20 started as tough year but shows the strength of UPL’s business.
Reliance Nippon Gains After Nippon Life Raises Stake
Shares of Reliance Nippon Life Asset Management Ltd. rose as much as 3.07 percent intraday to Rs 258.80 apiece—logging their fourth straight session of gains.
Japan’s Nippon Life Insurance has increased its stake in RNAM by 10.59 percent to 53.46 percent, an exchange filing showed Tuesday. Nippon will continue to run the company and its operations without any change in its structure and management.
The trading volume of the RNAM stock was six times its 20-day average for this time of the day, Bloomberg data showed.