Stocks Radar: Bajaj Finance, Lakshmi Vilas Bank, Indiabulls Group Stocks, Reliance Capital, Reliance Nippon
Here are the stocks moving the market this morning.
Indian equity indices halted their three-month losing streak.
The S&P BSE Sensex and the NSE Nifty 50 rallied over 3.5 percent and over 4 percent respectively this month, registering their best September gains since 2013.
Today, the 31-share index fell 0.4 percent to end at 38,667 and the 50-stock gauge declined 0.33 percent to 11,474.45. The broader markets represented by the NSE Nifty 500 Index declined 0.58 percent.
The market breadth was tilted in favour of sellers. About 1,311 stocks declined and 499 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 3.5 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 1.9 percent.
Fab Four Stocks Of The Day
HCL Technologies
- Stock rose as much as 5.3 percent to Rs 1,096.50.
- Citi Group has opened 90-day positive catalyst watch
- Revenue growth guidance stands between 14-16% for FY20
McNally Bharat Engineering
- Stock rose as much as 4.1 percent to Rs 3.85.
- The company entered into a collaboration agreement with Turkish company Kaylon.
- Parties to have 50 percent stake each in the collaboration agreement for infra projects in India.
Dalmia Bharat
- Stock rose as much as 6.9 percent to Rs 872.
- About 19.5 lakh shares changed hands in a large trade.
Kalpataru Power Transmission
- Stock pared losses and rose as much as 3.8 percent to Rs 492.95.
- The company won new orders worth Rs 775 crore.
Here Are The Stocks That Were In Focus In Afternoon Trade
Bharti Airtel Top Performer On Sensex, Nifty; Shares Jump Nearly 7%
Shares of Bharti Airtel rose as much as 6.9 percent, the most in 10 days, to Rs 373 during the last 15 minutes of trade.
The stock is the top performer on Sensex and Nifty. Trading in the company's call options totalled 9,376 contracts, compared with the average of 3,139 over the past 20 days according to Bloomberg data. Trading in the company's put options totalled 3,543 contracts, compared with the average of 2,184 over the same period.
Stocks Moving On Heavy Volumes
Tata Communications
- Stock swung to a gain of as much as 2.1 percent to Rs 378 from a fall of as much as 4 percent.
- Trading volume was nearly double its 20-day average.
Sonata Software
- Stock rose as much as 11.3 percent to Rs 339.
- Trading volume was almost eight times its 20-day average.
New India Assurance
- Stock rose as much as 6.9 percent to Rs 113.
- Trading volume was more than seven times its 20-day average.
Sundaram-Clayton Swings On Plants Shut Announcement
Shares of Sundaram-Clayton fluctuated between gains and losses to trade 0.11 percent higher at Rs 1,976.
“The company's major plants has declared Oct. 1, 2019 as non-working day due to business slowdown across sectors,” it said in a statement on the exchanges.
Of the shares traded, 44 percent were at the ask price and 42 percent were at the bid.
Lupin Recovers After Announcing New Launch
Shares of Lupin recovered from day’s low to trade 0.52 percent lower at Rs 713.70. The stock had declined 2.1 percent intraday.
The company announced that launch of Sildenafil Tablets that had received an approval from the U.S. FDA earlier, according to its stock exchange filing.
The scrip traded at 26 times its estimated earnings per share for the coming year.
Here Are The Stocks Buzzing During Mid-Day Trade
Indiabulls Housing Extends Fall; Shares Drop Nearly 40%
Shares of Indiabulls Housing Finance Ltd. extended opening losses and fell as much as 38.5 percent—the most on record—to Rs 240.05.
The decline came after the Delhi High Court agreed to hear a plea seeking probe against the housing financier for allegedly advancing dubious loans, misappropriation and diversion of funds to the promoters of the company.
The bench, headed by Chief Justice DN Patel, issued notice to the housing financier, the Reserve Bank of India, Securities and Exchange Board of India and asked them to file their replies within two weeks.
Reliance Capital Extends Decline To Hit Record Low
Shares of Reliance Capital fell as much as 13.1 percent, the most in over a month, to an all-time low of Rs 24.30.
The company plans to repay Rs 15,000 crore more to lenders by March, the group’s Chairman Anil Ambani said at the company’s annual general meeting today, adding the company will no longer be in the lending business.
The company’s stock declined 7.8 percent in the past five days and dropped 23 percent in the past 30 days.
HDIL Falls For Tenth Consecutive Trading Session
Shares of Housing Development & Infrastructure Ltd. extended declines for the tenth consecutive trading session—its longest in eight years. The stock fell as much as 4.8 percent to Rs 4.76.
The now-suspended managing director of the crisis-hit Punjab and Maharashtra Cooperative Bank, Joy Thomas, admitted to the Reserve Bank of India that the bank’s actual exposure to HDIL is over Rs 6,500 crore—four times the regulatory cap or 73 percent of its entire assets of Rs 8,880 crore, PTI reported citing people in the know.
The stock has declined 84 percent so far this year compared with the Sensex’s 7.98 percent advance.
Sonata Software Jumps On Heavy Volumes
Shares of Sonata Software Ltd. rose as much as 8.4 percent, the most in seven months, to Rs 330.20.
Trading volume was more than six times its 20-day average, according to Bloomberg data. Of the shares traded, 46 percent were at the ask price and 43 percent were at the bid.
The stock traded at 12 times estimated forward earnings per share for the coming year, Bloomberg data showed.
Bajaj Finance Extends Gain; Shares Hit Record High
Shares of Bajaj Finance Ltd. extended gains for the third consecutive trading session. The stock rose as much as 1.3 percent to an all-time high at Rs 4,111.75.
The stock has returned 54 percent so far this year and advanced 87.9 percent in the past 12 months. The scrip traded at 37.5 times estimated forward earnings per share compared with 32.9 times for the two-year historical average, according to Bloomberg data.
Yes Bank Extends Decline For Fourth Day; Shares Fall 13%
Shares of Yes Bank Ltd. fell for the fourth consecutive trading session—their longest losing streak in nearly two weeks. The stock dropped as much as 13 percent to Rs 42.40, the lowest in nearly a decade.
The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data. The stock declined 20 percent in the past five days and fell 26 percent in the past 30 days.
Stocks That Moved The Markets This Morning
Lakshmi Vilas Bank Hits Lower Circuit
Lakshmi Vilas Bank hit a lower circuit of 5 percent for the second straight trading session on Monday.
This came after the Reserve Bank of India put the bank under prompt corrective action framework. Lakshmi Vilas Bank, however, clarified that PCA does not mean moratorium for the bank and there are no restrictions on operations by depositors. The bank can also undertake lending activities to all segments except corporates and other stressed and high risk sectors, it said in a statement.
Separately, Religare Enterprises Ltd.’s non-bank unit filed a complaint with the Economic Offences Wing of the Delhi Police alleging former promoters Malvinder and Shivinder Singh and The Lakshmi Vilas Bank Ltd. misappropriated nearly Rs 800 crore.
But Lakshmi Vilas Bank clarified that a mere registration of FIR against the lender does not mean anything at this stage. “The bank is committed to cooperate with the investigating agencies and regulatory authorities apparently to bring out the malicious attempts of Religare Finvest to mislead the public to cover up massive fraud indulged by their own promoters/ employees/ group companies,” it said in a separate statement.
Indiabulls Group Stocks Decline For Second Session
Shares of Indiabulls Group stocks extended their decline for the second straight trading session.
This came after the Delhi High Court agreed to hear a plea seeking probe against Indiabulls Housing Finance Ltd. for allegedly advancing dubious loans, misappropriation and diversion of funds to the promoters of the company.
The bench, headed by Chief Justice DN Patel, issued a notice to Indiabulls Housing Finance, the Reserve Bank of India, Securities and Exchange Board of India and asked them to file their replies within two weeks.
Reliance Nippon Gains After Parent’s Stake Sale
Shares of Reliance Nippon Life Asset Management Ltd. rose as much as 3.4 percent to Rs 274.37 apiece.
On Saturday, Reliance Capital announced the completion of a 21.54 percent stake sale in its mutual fund arm Reliance Nippon Life Asset Management to joint venture partner Japan’s Nippon Life Insurance for Rs 3,030 crore. The company will further monetise its balance 4.28 percent stake in RNAM worth Rs 700 crore, it said in an exchange filing.
Reliance Capital’s stock fluctuated between gains and losses to trade 3.4 percent lower at Rs 27 a share.
Cipla Falls After U.S. FDA Issues 12 Observations
Shares of the drugmaker fell as much as 4.1 percent to Rs 421.55 apiece.
The U.S. Food and Drug Administration issued 12 observations to the drugmaker’s plant in Goa over manufacturing practices, according to an exchange filing. The regulator conducted an inspection from Sept. 16-27.
The stock’s trading volume was more than seven times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be ‘oversold’.
63 Moons Technologies Gains After Stake Sale In Arm
Shares of 63 Moons Technologies rose as much as 4.9 percent to Rs 133.85 apiece.
The company completed sale of a 55.35 percent stake in Atom Technologies, a subsidiary, to NTT Data for $9.24 million, according to an exchange filing. Still, it continues to hold 36 percent stake in Atom Technologies and will have one-third representation on board as well.
The stock has declined 7.8 percent in the past five days but has gained 19 percent in the past 30 days, Bloomberg data showed.