Stocks In News Today: IndiaMART, NMDC, Lux Industries, Reliance Industries
Here’s a look at the stocks in news moving the markets today.
Indian equity benchmarks fluctuated in opening trade on Monday, led by declines in some of India’s valuable firms.
At 10:40 am, the S&P BSE Sensex was trading 0.03 percent lower at 41,669.40 points while the NSE Nifty 50 was up 0.06 percent at 12,279.50.
Zee Entertainment Enterprises Ltd. was the top gainer on the Nifty 50 index while Reliance Industries Ltd. was the top loser.
Here’s a look at the stocks in news moving the markets today:
RIL Worst Performer On Sensex, Second-Worst On Nifty
Shares of Reliance Industries Ltd. declined for a second consecutive trading session, falling as much as 2.58 percent to Rs 1.557.80 apiece.
RIL has mounted a strong counter to the government petition in the Delhi High Court seeking to block its $15 billion deal with Saudi Arabia Oil Company, saying the petition is an abuse of process as no arbitration award has fixed any final liability of dues on the company, according to a Press Trust of India report.
“In a counter affidavit, Reliance said it was a "falsehood" to say the arbitration tribunal had passed an award requiring the company and its partners to pay $3.5 billion to the government,” the report added.
Trading volume in the RIL stock was more than triple the 20-day average for this time of the day, Bloomberg data shows.
Lux Industries Falls To Lowest In More Than 13 Months
Shares of Lux Industries Ltd. fell as much as 8.19 percent to Rs 1,286.60 apiece—the lowest since Nov. 18, 2018.
Trading volume for the stock was more than 20 times the 20-day average for this time of the day, Bloomberg data shows. Of the shares that were traded, 45 percent were at the ask price and 43 percent were at the bid.
Lux shares are down 7 percent in the past five days and fell 3.1 percent in the past 30 days, Bloomberg data shows. The stock has declined 2.8 percent in the past 52 weeks, according to the data.
NMDC Extends Gains For The 10th Day, Shares Near 20-Month High
Shares of NMDC Ltd. extended gains for the tenth consecutive trading session, rising as much as 0.92 percent to Rs 125.50—the highest since May 2, 2018.
The shares are up 8.8 percent in the past five days and rose 25 percent in the past 30 days, Bloomberg data shows. The stock has advanced 31 percent in the past 52 weeks, according to the data.
Trading volume, though, was 12 percent below the 20-day average for this time of the day. Of the shares that were traded, 46 percent were at the ask price and 46 percent were at the bid.
The one-month implied volatility was 36 percent. The stock trades at 8.7 times its estimated earnings per share for the coming year. The analyst consensus one-year target price for the company is Rs 128.67, for a potential return of 2.9 percent.
IndiaMART Gains After Jefferies Initiates ‘Buy’ Rating
Shares of IndiaMART InterMESH Ltd. gained the most since Dec. 12, 2019, rising as much as 5.64 percent to Rs 2,097.00 apiece.
That comes after Jefferies Group LLC, a New York-based independent investment bank and financial services company, initiated ‘Buy’ rating on the stock with target price at Rs 2,500, implying a potential upside of 21.5 percent form the current share price.
Here’s what the research firm had to say about IndiaMART:
- Initiated ‘Buy’ with a price target of Rs 2,500.
- Dominant B2B classified platform in India with strong moats to defend it against competition.
- Expect 20 percent revenue CAGR over FY20-22 despite macro headwinds related to economic slowdown.
- Expect sharp margin expansion to 28 percent by FY22 versus 16 percent in FY19 given strong economies of scale.
- Also free cash flow positive helped by upfront collections and low capex.