Stocks Radar: Edelweiss, Mindtree, Nalco, PNB Housing Finance, Zee Entertainment
An electronic ticker board indicates S&P BSE Sensex index at the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: Edelweiss, Mindtree, Nalco, PNB Housing Finance, Zee Entertainment

Indian equity benchmarks fluctuated between gains and losses in the first couple of hours of trading on Thursday.

At 11:00 am, the S&P BSE Sensex was trading 0.12 percent higher at 38,647.00 points while the NSE Nifty 50 was flat at 11,463.75. Eicher Motors Ltd. was the top gainer on the Nifty 50 index while Vedanta Ltd. was the top loser.

The market breadth was tilted in favour of buyers. About 874 stocks advanced and 750 declined on the National Stock Exchange. Six out of the 11 sectoral gauges compiled by the NSE traded higher, led by the NSE Nifty Media’s 0.74 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral loser, down 0.99 percent.

A look at the stocks in news moving the markets today.

Edelweiss Rises After CCI Approves Investment Deal With Kora

Shares of Edelweiss Financial Services Ltd. extended their gains for the fourth straight trading session, rising as much as 3.01 percent to Rs 85.50 apiece.

On Wednesday, Competition Commission of India said it has approved the U.S.-based Kora LLC’s proposed investment of $75 million, about Rs 532 crore, in the Edelweiss Group. According to the share subscription agreement, Kora is to invest in Edelweiss Securities Ltd. and Edelweiss Global Investment Advisory business subsidiaries.

The deal was announced in August.

Edelweiss Financial Services’s stock has declined 49 percent in the past 52 weeks, Bloomberg data showed.

Mindtree Falls After Q2 Results

Shares of Mindtree Ltd. fell as much as 3.37 percent, the most since since Aug. 27, to Rs 718.35 apiece despite its September quarter results meeting estimates.

Mindtree Q2 Results 2019-20: Key Highlights (QoQ)

  • Revenue in dollar terms rose 2.7 percent to $271 million
  • Revenue in rupee terms rose 4.4 percent to Rs 1,914 crore
  • Net profit rose 45.6 percent to Rs 135 crore
  • EBIT rose 34.8 percent to Rs 248 crore.
  • Margin stood at 13 percent versus 10 percent

The numbers include a one-time cost of certain payments towards employees.

Mindtree said its operating margin was higher in the July-September period as it was coming off a low base. The Bengaluru-based IT firm, which is now a part of the L&T Group, signed deals worth $307 million in the quarter, $140 million of which were in the digital space. But there was broad-based growth across verticals, Mindtree said.

The trading volume for the Mindtree stock was more than nine times the 20-day average for this time of the day, Bloomberg data showed.

Nalco Falls As Dearth Of Coal Hurts Production

Shares of the National Aluminium Co. Ltd. declined as much as 5.04 percent to Rs 39.60 apiece—the lowest since Sept. 4.

On Wednesday, Nalco said coal shortages have severely impacted its aluminium production. “Short supply of coal has severely impacted aluminium production of Nalco and also the cost of power, as the power purchased from the grid is costly as compared to the power produced by Nalco at its CPP,” the state-run unit said in a statement.

Three units of Nalco’s captive power plant, each of 120 MW capacity, are shuttered and one more unit will be closed due to coal shortage, it said.

The stock has declined 39 percent in the past 52 weeks, Bloomberg data showed.

PNB Housing Finance Surges On Fundraising Plans

Shares of PNB Housing Finance Ltd. rose as much as 15 percent, the most since Jun. 25, 2018, to Rs 437.00 apiece.

On Wednesday, PNB Housing Finance said its board fo directors will meet on Oct. 24 to consider a proposal to raise Rs 10,000 crore via bonds, as well as the company’s second quarter results.

Trading volume for the non-banking financier’s stock was more than 30 times the 20-day average for this time of the day, Bloomberg data showed.

Zee Entertainment Gains Ahead Of Its Q2 Results Today

Shares of Zee Entertainment Enterprises Ltd. extended their winning streak to the fourth consecutive trading session, rising as much as 2.35 percent to Rs 265.75 apiece ahead of its second-quarter results announcement later today.

On Wednesday, the Subhash Chandra-led media firm said VTB Capital Plc has acquired rights to sell 10.71 percent equity held by Essel Media Ventures. Confirming media reports, Zee said VTB Capital Plc has secured the right to potentially monetise 10.28 crore shares of the company held by its promoter Essel Media Ventures.

The stock has declined 43 percent in the past 52 weeks, Bloomberg data showed.

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