Stocks Radar: CG Power, GSK Pharma, IDBI Bank, Jet Airways, Sterlite Tech, IndiGo, Yes Bank, ZEEL
A look at the stocks in news moving the markets today.
Indian equity benchmarks extended opening gains to trade at the day’s high.
At 11:37 am, the S&P BSE Sensex was trading 1.18 percent higher at 39,048.43 points while the NSE Nifty 50 was 1.20 percent up weaker at 11,577.30. ICICI Bank Ltd. was the top gainer on the Nifty 50 Index while HCL Technologies Ltd. was the top loser.
The market breadth was tilted in favour of buyers. About 998 stocks advanced and 673 shares declined on the National Stock Exchange. Nine out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Bank Index’s 2.52 percent gain. On the flipside, NSE Nifty IT was the top loser, down 0.52 percent.
Here’s a look at the stocks in news moving the markets today:
CG Power Appoints New Chairman, Share Price Surges
Shares of CG Power & Industrial Solutions Ltd. extended their winning streak to four trading sessions, gaining as much as 4.92 percent to Rs 16.00 apiece.
On Wednesday, CG Power’s board of directors approved appointment of Independent Director Ashish Kumar Guha as chairman of the company, the power equipment maker said in a regulatory filing. A special situation committee under Independent Director Narayan K Seshadri has also been set up, “to focus on operational improvement, strategic review of international businesses, capital restructuring including raising capital and dealing with the regulatory bodies”.
The CG Power stock has declined 68 percent in the past 52 weeks, Bloomberg data shows.
GSK Pharma Falls After Drug Recall
Shares of GlaxoSmithKline Pharmaceuticals Ltd. recorded its steepest intraday decline since July 16, falling as much as 3.75 percent to Rs 1,382.20 apiece.
GSK Pharma has announced recall of ranitidine hydrochloride tablets produced in India using Active Pharmaceutical Ingredients, or APIs, sourced from Saraca Laboratories Ltd. following detection of genotoxic nitrosamine NDMA by authorities.
The company has also decided to suspend release, distribution and supply of all dose forms of ranitidine hydrochloride products to all markets, including India, as a precautionary action pending the outcome of ongoing tests and investigations.
The GSK Pharma stock has declined 8.5 percent in the past 52 weeks, Bloomberg data shows.
Rumours On IDBI Bank's Financial Situation Batters Stock
Shares of IDBI Bank Ltd. fell 3.39 percent intraday to Rs 35.65 apiece, despite clarifying on rumours circulating on social media regarding its financial situation.
IDBI Bank has termed as “malicious and totally unfounded” messages on social media about its financial health, asserting that its well-capitalised and business continues as usual.
“...On Sept. 19, the bank has raised Rs 9,300 crore from the Government of India and Life Insurance Corporation of India. The Bank urges all its customers and well-wishers not to fall prey to such rumours circulating on social media,” the LIC-controlled bank said in an exchange filing Wednesday.
The IDBI Bank stock has declined 31 percent in the past 52 weeks, Bloomberg data shows.
Jet Airways Falls After Lenders Asked To Release Interim Funding
Shares of Jet Airways India Ltd. extended their losing streak to 14 days, falling as much as 4.60 percent to Rs 30.05 apiece.
The National Company Law Tribunal, which is hearing the Jet Airways insolvency case, has directed financial creditors to release interim funding to the grounded airline within 15 days.
The lenders had in-principle sanctioned Rs 63 crore to the resolution professional. Lead lender State Bank of India is said to have already disbursed its portion of Rs 10 crore. Other lenders, including Yes Bank Ltd., Punjab National Bank, IDBI Bank Ltd., Bank of India, Indian Overseas Bank and Axis Bank are yet to release their portion.
The Jet Airways stock has declined 84 percent in the past 52 weeks, Bloomberg data shows.
Sterlite Technologies Rises After Deal To Buy Impact Data Solutions
Shares of Sterlite Technologies Ltd. rose as much as 4.26 percent to Rs 162.75 apiece after its Mauritius-based subsidiary signed a deal to acquire Impact Data Solutions.
Sterlite Technologies’ group Chief Executive Officer Anand Agarwal spoke with BloombergQuint after the deal. Here’s what he had to say:
- Recent acquisitions were small in size but provided scope to increase market
- The goal is of expanding Sterlite’s addressable market to $75 billion by 2023
- Sterlite Technologies is seeing capex slowdown in China and Europe
- Margin will improve as services business goes higher
The Sterlite Technologies stock has gaine 52 percent in the past 52 weeks, Bloomberg data shows.
IndiGo Gains After Morgan Stanley’s Bullish Stance On Stock
Shares of Interglobe Aviation Ltd. rose as much as 2.30 percent to Rs 1,845.00 apiece after Morgan Stanley imparted the stock its most bullish target yet.
IndiGo shares will top Rs 2,261, the brokerage said, citing these reasons for the overweight stance:
- Rising international mix, rising share of NEOs and healthy fare environment.
- Higher international share expected to result in a lower fuel charge.
- FY21 should see peers adding capacity, pricing power relatively constrained
The IndiGo stock has advanced 114 percent in the past 52 weeks, Bloomberg data shows.
Rana Kapoor Said To Exit Yes Bank, Stock Slumps
Shares of Yes Bank Ltd. fell to their lowest since Sept. 19, losing as much as 5.49 percent intraday to Rs 50.75 apiece.
This, after the Financial Express newspaper reported that co-founder Rana Kapoor will soon seek the Reserve Bank of India’s approval to sell his stake in Yes Bank to Canada’s Brookfield Asset Management Inc., citing people in the know.
The move to exit Yes Bank stems from the Kapoor family’s decision to protect other unlisted entities, such as the Delhi Dabang Kabaddi Club, Awfis Solutions and Art Housing Finance, the report stated.
Trading volume in the Yes Bank stock was 25 percent above the 20-day average for this time of the day, Bloomberg data shows.
Zee Entertainment Surges After Two Bulk Deals
Shares of Zee Entertainment Enterprises Ltd. rose as much as 3.64 percent to Rs 283.40 apiece.
About 34.8 lakh shares of the company changed hands in two large deals, Bloomberg data showed. Buyers and sellers were not known immediately.
Trading volume in the stock was six times its 20-day average, Bloomberg data showed.
The Relative Strength Index was below 30, indicating that the stock may be oversold.