Stocks Radar: Den Networks, Container Corp, Future Retail, Tata Steel, Yes Bank
A look at the stocks in news moving the markets today.
The Indian equity benchmarks fluctuated between gains and losses in the initial few hours of trade on Friday, with Vedanta Ltd. emerging as the top gainer and ITC Ltd. as the top loser as of midday.
At 12 noon, the S&P BSE Sensex was down 0.12 percent at 36,429.70 points while NSE Nifty was trading 0.05 percent higher at 10,746.50.
The market breadth was tilted in the favour of sellers as 907 stocks declined and 806 advanced on the National Stock Exchange. Six of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Metal Index’s 2.39 percent gain. Nifty Private Bank Index was the top sectoral loser, down 0.65 percent.
Here’s a look at the stocks in news moving the markets today:
Yes Bank Rebounds After Hitting Five-Year Low
Shares of Yes Bank Ltd. rose as much as Rs 8.80 percent intraday to Rs 61.25 apiece after closing at a five-year low on Thursday.
News of “suspect" transactions in CG Power and Industries Solutions Ltd. have hurt the private sector bank, which holds 12.79 percent stake in the power equipment maker. Yes Bank recerntly invoked pledged shares of CG power, acquiring the stake from the promoter Avantha Holdings Ltd.
The Yes Bank stock has declined almost 85 percent in the last year, Bloomberg data shows.
Container Corp Jumps On Ratings Boost
Shares of the state-owned railway cargo services provider rose 5.75 percent, the most in five months, to Rs 510.05 each.
Brokerage firm Morgan Stanley started coverage on the stock with an ‘Overweight’ rating. It also fixed the target price at Rs 566 apiece, indicating a potential upside of 13.4 percent from last close.
Here’s what the brokerage firm had to say on the stock:
- Dedicated Freight Corridor initiative should benefit Container Corp – a dominant player.
- Rail to gain share post DFC commissioning, fostering quicker and more predictable movement of goods.
- Expect 12 percent earnings compounded annual growth rate over financial years 2019-22.
- The stock traded 17 percent below the Bloomberg consensus one-year target price
Future Retail Falls After Amazon Deal Is Announced
Shares of Kishore Biyani-promoted Future Retail Ltd. fell as much as 8.1 percent, the biggest slide since September 2018, on news that Amazon.com Inc.'s investment arm will acquire a 49 percent stake in promoter group entity Future Coupons Ltd.
The deal gives Amazon.com Inc. an indirect stake in Future Retail as well as an option to acquire all or part of the promoter shareholding in the firm between the third and tenth years.
The Amazon-Future deal is seen as bolstering the Jeff Bezos-led firm's brick-and-mortar presence in one of the world’s fastest-growing retail markets.
Jio Fiber’s Impending Rollout Propels Den Networks' Stock
Shares of broadband service provider Den Networks Ltd. gained for the fifth straight session, rising as much as 9.87 percent intraday to Rs 98.00 apiece.
Den Networks' stock has gained 37 percent since Aug. 12, when Reliance Industries Ltd. announced that Jio Fiber broadband service will be launched pan-India on Sept. 5.
Den Networks’ shares have risen 46 percent since Oct. 17, 2018, when Reliance Jio Infocomm Ltd. said it would acquire a majority stake in the company and GTPL Hathway Ltd. to expand its broadband reach and pool of cable subscribers.
Tata Steel Rises After Thyssenkrupp Appeals Against JV Order
Shares of Tata Steel Ltd. rose as much as 3.63 percent to Rs 345.80 apiece, the highest intraday gain since Aug. 14.
Thyssenkrupp AG on Thursday moved a European court to dispute the European Commission's decision that blocked a planned joint venture with Tata Steel, in a move that may offer some relief to India’s oldest steelmaker which is looking to pare debt.
The Tata Steel stock has declined 41 percent in the past year, Bloomberg data shows.
Edelweiss Drops For Sixth Session In A Row
Shares of the broking firm declined as much as 12.7 percent to Rs 93 apiece. The stock is down over 32 percent so far this month.
Trading volume jumped 6.1 times its 20-day moving average. The relative strength index on the stock was below 30, indicating it may be oversold.