Stocks Radar: Indiabulls Housing Finance, Lakshmi Vilas Bank, Nestle India, Piramal Enterprises, Sun Pharma
The Indian stock markets opened lower on Thursday, with financial and non-banking financial stocks contributing the most to the decline.
At 11:20 am, the S&P BSE Sensex was trading 0.63 percent lower at 37,215.51 points while the NSE Nifty 50 fell 0.65 percent to 10,974.50. Sun Pharmaceutical Industries Ltd. emerged as the top gainer while Indiabulls Housing Finance Ltd. was the top loser.
The market breadth was tilted in favour of sellers. About 1,099 stocks declined and 553 shares advanced on the National Stock Exchange. Ten of the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Financial Services Index’s 1.20 percent decline. Nifty Pharma Index was the only sectoral gainer, up 0.49 percent.
Here’s a look at the stocks in news that are moving the markets today:
Indiabulls Housing Finance Falls On Exclusion From Nifty 50
Indiabulls Housing Finance Ltd. fell 8 percent intraday to its lowest since December 2014, on news that it will cease to be a Nifty 50 company from Sept. 27.
Nestle India Ltd. will replace the mortgage lender in the benchmark Nifty 50 Index and Nifty 50 Equal Weight Index. The indices are reconstituted twice every year based on the data for six months ending January and July.
Indiabulls Housing Finance, which had a 34 basis point weighting in the Nifty 50 Index, is expected to see an outflow of $41 million from the rejig, according to Edelweiss Research.
Indiabulls Housing Finance’s stock has had a rough 2019, what with the stock falling 46 percent since the beginning of the year. Year-to-date, its shares are down 67 percent, according to Bloomberg data.
Lakshmi Vilas Bank Slumps After CEO's Resignation
Shares of The Lakshmi Vilas Bank Ltd. fell as much as 4.96 percent to Rs 38.35 apiece, the most in five trading sessions, after its chief executive officer resigned.
Parthasarathi Mukherjee has resigned as the CEO of the firm citing personal reasons, according to an exchange filing by Lakshmi Vilas Bank, which is in the midst of a merger with Indiabulls Housing Finance Ltd.
The Lakshmi Vilas Bank stock has declined 59 percent in the past one year, Bloomberg data shows.
Inclusion In Nifty 50 Sends Nestle India Soaring
Shares of Nestle India Ltd. rose as much as 2.9 percent to Rs 12,890 apiece after news that it will replace Indiabulls Housing Finance Ltd. in the benchmark Nifty 50 Index and Nifty 50 Equal Weight Index from Sept. 27.
After the inclusion, Edelweiss Research expects an inflow of nearly $112 million in Nestle India owing to the rebalancing of index funds which is estimated to come in with a weight of 91 basis points.
Nestle stands out among consumer goods makers as the stock has outperformed the Nifty FMCG index. The maker of Maggi noodles and Nescafe instant coffee has grown faster than most peers in the first half of the current year and even in 2018.
More than 96 percent of the analysts tracked by Bloomberg have a ‘Buy’ rating on the stock with a 12-month return potential of nearly 29 percent.
Piramal Enterprises Falls After It Delays NCD Issue
Shares of Piramal Enterprises Ltd. fell as much as 3.2 percent to Rs 1,835.00 apiece after it delayed a plan to raise funds via bonds.
The administrative committee of the Piramal Enterprises board has decided to defer the issue of privately placed non-convertible debentures aggregating up to Rs 3,000 crore (including an option to retain over-subscription of up to Rs 2,500 crore) to a future date, the company said in an exchange filing on Wednesday.
It did not provide any details on reasons for the deferment.
The company’s stock has declined 41 percent in the past year, Bloomberg data shows.
Sun Pharma Shares Rise After SEBI ‘Clears' It Of Fraud
Shares of Sun Pharmaceutical Industries Ltd. surged as much as 4.49 percent to Rs 431.65 apiece after a news report said SEBI has no found no merit in allegations of fraud levelled against the Dilip Shanghvi-led firm.
A preliminary enquiry by the Securities and Exchange Board of India has found no merit in allegation of violation of securities laws, levelled by a whistleblower, against Sun Pharma, Business Standard quoted two persons as saying.
India’s largest drugmaker has started clinical development of new indications for psoriasis drug Ilumya, which will require front-ended investments, Sun Pharma Chairman Israel Makov said at the company’s annual general meeting in Vadodara on Wednesday.
The Sun Pharma stock has advanced 11 percent over the past 52 weeks as compared to 6.17 percent fall in the Nifty 50 Index over the same period, Bloomberg data shows.