Tickers display stock prices inside the Indonesia Stock Exchange in Jakarta, Indonesia. (Photographer: Dimas Ardian/Bloomberg)

Stocks Radar: Action Construction, Bajaj Finserv, PNB Housing, Reliance Nippon

Indian equity benchmarks opened higher driven by gains in Reliance Industries Ltd. and Tata Consultancy Services Ltd. The S&P BSE Sensex rose as much as 0.6 percent to 37,611 and the NSE Nifty 50 Index gained as much as 0.47 percent to 11,310.95 as of 10:00 am.

The market breadth was tilted in favour of the buyers. Seven of the 11 sector gauges compiled by the National Stock Exchange advanced, led by the Nifty Media Index’s 1.17 percent gain. The Nifty Pharma Index was the top sectoral loser, down 1.5 percent.

Here Are The Stocks Moving The Market Today

Action Construction Equipment Gains After Board Approves Buyback

Shares of the New Delhi-based crane manufacturer rose 2.5 percent to Rs 93.25 apiece.

The company’s board approved buyback of 9.9 percent of equity capital at Rs 125 per share, aggregating to Rs 34.25 crore, according to an exchange filing.

Trading volume was 14 times the 20-day average for this time of the day, Bloomberg data showed.

Reliance Nippon Jumps After Report On Promoter’s Stake Buyout Plans

Shares of the asset management company rose as much as 6.3 percent to Rs 212 apiece.

Nippon Life is set to acquire majority of joint venture partner Reliance Capital’s 43 percent stake, Nikkei reported. The acquisition price values the company at Rs 10,400 crore, while the current market cap of the company is Rs 12,060 crore.

The trading volume of the stock was more than 20 times its 20-day average for this time of the day, according to Bloomberg data. Shares of the Reliance Capital— company that owns the above-mentioned stake in the JV also jumped 8 percent intraday to Rs 121.70.

PNB Housing Plunges After Stake Sale Called-Off

Shares of the non-banking lender fell 5.5 percent intraday, the most in over a month, to Rs 716.95.

Promoter Punjab National Bank terminated the agreement to sell 1.08 crore shares of PNB Housing Finance to General Atlantic Group aggregating to Rs 925.8 crore, according to an exchange notification. This was due to conditions not being met on Long Stop Date of May 15.

Ten out of 16 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock, while four analysts had recommended ‘Hold’. Two analysts had a ‘Sell’ recommendation.

Also read: PNB’s Plan To Sell Stake In Housing Finance Arm Falls Through

Arvind Fashions Hits Lower Circuit After CLSA Cuts Price

Shares of Arvind Fashions were locked in the lower circuit after it fell as much as 10 percent to Rs 755.55, the lowest in over two months. This was after CLSA cut its price target on the stock to Rs 1,126 from Rs 1,294. It, however, maintained its ‘Buy’ rating on the stock.

Here’s what CLSA had to say on the stock:

  • Maintained ‘Buy’; cut price target to Rs 1,126 from Rs 1,294.
  • March quarter was subdued due to weaker demand environment.
  • Portfolio consolidation to improve capital efficiency.
  • Margin recovery in value retailing format is the key.

The stock has declined nearly 23 percent in the last six sessions.

Stocks Radar: Action Construction, Bajaj Finserv, PNB Housing, Reliance Nippon

Bajaj Finserv Swings After Q4 Results

Shares of Bajaj Finserv fluctuated between gains and losses to trade 0.18 percent lower at 7,603.50. The non-banking lender announced its March quarter results on Thursday.

Key Earnings Highlights (Q4, YoY)

  • Net revenue up 41.6 percent to Rs 11,110.4 crore.
  • Net profit rises 31.7 percent to Rs 838.7 crore.
  • Declares dividend of Rs 2.5 per share.

The stock traded at 28 times its estimated earnings per share, according to Bloomberg data.

Also read: Q4 Results: Bajaj Finserv’s Profit Jumps 32% But Misses Estimates