Stocks Radar: CG Power, Dr. Reddy’s, Mahindra CIE, NMDC, Yes Bank
Indian equity benchmarks were off to a tepid start on Wednesday, tracking Asian peers and Nifty futures traded on the Singapore Stock Exchange.
At 10:50 am, the S&P BSE Sensex was up 0.11 percent at 37,369.73 points while NSE Nifty 50 index rose 0.04 percent to 11,021.25.
The market breadth was tilted in favour of sellers as 1,010 declined and 607 stocks advanced on the National Stock Exchange. Seven of the 11 sectoral guages compiled by Nifty declined, with Nifty Metal being the worst performer and Nifty IT the biggest gainer.
Here’s a look at the stocks in news moving the markets today:
NMDC Shares Fall After Mining Lease Is Withdrawn
Shares of state-run miner NMDC Ltd. fell as much as 1.8 percent to Rs 88.45 apiece, extending a slump that entered its fourth day.
On Tuesday, NMDC sought relief from the central government after Karnataka decided not to extend the lease for its mine in Donimalai despite the state’s high court ruling in favour of India’s largest iron ore miner.
The government of Karnataka has withdrawn the approval letter, issued in November 2018, to extend the mining lease period of NMDC for Donimalai mine and auction it, according to an exchange filing. “The company has filed a revision application against the state’s order with the Ministry of Mines, Government of India and the hearing is fixed on Aug. 21,” NMDC said in the filing. It has also requested the Karnataka government to withdraw its letter/keep it in abeyance.
The NMDC stock has declined 14 percent in the past year, according to Bloomberg data.
Dr. Reddy’s Falls After U.S. FDA Action
Shares of drugmaker Dr. Reddy's Laboratories Ltd. fell 2.5 percent intraday to Rs 2,491 apiece after the U.S. Food and Drug Association issued eight observations for its plant in Duvvada, Andhra Pradesh.
The audit of the Hyderabad-based firm's formulations manufacturing plant (Vizag SEZ Plant 1) at Duvvada, Visakhapatnam, by the U.S. FDA completed on Tuesday, Dr. Reddy's said in an exchange filing.
“We have been issued a Form 483 with 8 observations,” it added. The company will address them comprehensively within the stipulated timeline, said Dr. Reddy’s.
The Dr. Reddy’s stock has advanced 4.2 percent in the past year, Bloomberg data shows.
Mahindra CIE Rises Most In Almost A Year
Shares of auto components maker Mahindra CIE Automotive Ltd. rose as much as 8 percent to Rs 163.70 apiece, the most since September last year.
The stock was up 4.7 percent on high trading volume, while its Relative Strength Index was less than 30—indicating that the stock may be oversold.
According to Bloomberg data, Mahindra CIE is trading at an unusually high 26 percent discount as compared to rivals’ stocks that are trading at 7 percent discount over the past year on a blended forward enterprise value to Ebitda.
The Mahindra CIE stock has declined 38 percent over a 52-week period, Bloomberg data shows.
CG Power Hits Lower Circuit Again, Yes Bank Declines Further
Shares of private sector lender Yes Bank Ltd. fell as much as 5 percent to Rs 67.60 apiece due to its interests in CG Power & Industrial Solutions Ltd., whose stock hit the lower circuit again on Wednesday.
On Tuesday, CG Power said it will restate its June quarter earnings after becoming aware of some “suspect, unauthorized and undisclosed” transactions at the company. Yes Bank holds 12.79 percent stake in CG Power. It recently invoked pledged shares of the company from Gautam Thapar-promoted Avantha Holdings Ltd.
The Yes Bank stock has declined 82 percent over a 52-week period while CG Power has declined 81 percent in the past year, Bloomberg data shows.