Stocks Radar: Coal India, Force Motors, Godrej Industries, HDFC Life, Wipro
Indian equity benchmarks opened higher on Wednesday, tracking rebound in Asian peers after the Trump administration moved to delay new tariffs on some Chinese imports until December. Also aiding sentiment was a report that showed domestic inflation eased last month.
The S&P BSE Sensex climbed 1 percent to 37,340, while NSE Nifty 50 index rose 1.14 percent to 11,036 as of 10:55 am.
The market breadth was tilted in favour of buyers as 858 advanced and 685 stocks declined on the NSE. Except Nifty Pharma Index (down 2.5 percent) all other sectoral gauges compiled by the bourse gained led by a 2.2 percent jump in Nifty Media index.
Here’s a look at the stocks moving the markets today:
Coal India Falls Despite Q1 Profit Beating Estimates
Shares of Coal India Ltd. extended their three-day decline, falling as much as 4 percent to Rs 197.65 apiece. This after the stock had initially risen 2.7 percent in opening trade.
The world’s largest coal miner’s net profit jumped 22.30 percent year-on-year to Rs 4,629.70 crore. Analysts tracked by Bloomberg had estimated net profit at Rs 4,261 crore. The revenue was inline with forecast at Rs 24,939 crore.
Coal India Q1 Results: Key Highlights (YoY)
- Ebitda, or operating profit, rose 17 percent to Rs 6,613 crore.
- Operating margin expanded 300 basis points to 26.50 percent.
- Raw coal production stood at Rs 149.38 million tonnes in Q1.
- Coal India’s average realisation in Q1 was at Rs 1,470 crore.
The company’s stock is trading at 7.3 times its estimated earnings per share for the year ahead, according to Bloomberg data.
HDFC Life Falls As Standard Life Looks To Sell Stake Via OFS
Shares of HDFC Life Insurance Co. Ltd. slumped as much as 7.5 percent, the most in over a year, to Rs 480.35 apiece after Standard Life said it will sell some of its stake in its Indian joint venture.
Standard Life is looking to sell up to 3.2 percent in HDFC Life Insurance via an offer for sale, a move that will see the company raise $350 million, according to terms for the deal obtained by Bloomberg.
HDFC Standard Life’s stock advanced 3.3 percent in the last year, according to data by Bloomberg.
Wipro Falls After Launch Of AI Venture
Shares of Wipro Ltd. fell as much as 2.6 percent to Rs 251.55 apiece after it announced an Artificial Intelligence tie-up with Intel Corp.
Wipro has launched three edge AI starter solutions powered by Intel Xeon scalable processors. These solutions will help enterprises in energy and utilities, and healthcare markets jump start their AI adoption, the Bengaluru-based IT company said Tuesday.
Wipro will leverage Intel's AI technology to maximise performance of the Wipro AI solutions when running on Intel Xeon scalable processors.
The Wipro stock has advanced 20 percent in the past one year and is trading at 16 times its estimated earnings per share for the year ahead, according to Bloomberg.
Force Motors Skids On Plant Shutdowns
Shares of Force Motors Ltd. fell as much as 6.5 percent to Rs 1,000.50 apiece after the automaker said it will shut down in plants in Maharashtra and Madhya Pradesh for five days due to floods.
Force Motors is observing "block closure" at its plants at Akurdi, Pune, and Pithampur, Madhya Pradesh, from Aug. 14-18 due to the flood situation at Kolhapur, Sangli and Belgaum, where most of its suppliers and vendors are located, the company said in an exchange filing.
The Force Motors stock has declined 58 percent over the 52-week period, according to Bloomberg data.
Godrej Industries Rises As Board Approves Demerger
Shares of Godrej Industries Ltd. rose as much as 5.53 percent to Rs 480 apiece after its board approved a demerger of its wholly-owned unit Ensemble Holdings & Finance Ltd.
The demerger is subject to approval of the Mumbai bench of the National Company law Tribunal, the Reserve Bank of India, the central government and shareholders and creditors of both the companies.
Godrej Industries’ trading volume was more than double the 20-day average for this time of the day. Its shares have risen 2.2 percent in the past five sessions.