Stocks Radar: Aditya Birla Capital, ICICI Bank, ONGC, Infosys, NMDC
There are the stocks moving the market today...
Indian equity benchmarks edged higher in the opening trade, led by the gains in Reliance Industries Ltd. and Infosys Ltd.
The S&P BSE Sensex rose 0.35 percent to 36,853 .76 and the NSE Nifty 50 rose 0.66 percent to 10,915.80, as of 10:15 a.m. The broader market represented by the NSE Nifty 500 Index, too, rose 0.45 percent.
The market breadth was tilted in favour of buyers. About 1,197 stocks advanced and 421 declined on the National Stock Exchange. Nine of the 11 sectoral indices traded higher, led by a 3.2 percent gain in the NSE Nifty Metal Index.
Here Are The Stocks Moving The Market This Morning
Aditya Birla Capital Rises On Report Of Advent Deal
Shares of Aditya Birla Capital Ltd. rose as much as 2.38 percent to Rs 92.55 apiece.
This came on the back of a report that American private equity firm Advent International is in advanced talks with Kumar Mangalam Birla to invest Rs 1,200-1,300 crore in his listed financial holding company Aditya Birla Capital Ltd. for a 6-7 percent stake. The Economic Times first reported on the deal quoting people aware of the development.
The company will hold a board meeting today to approve the fundraising either through a preferential allotment or a qualified institutional placement. If the deal goes through, it will make Advent Aditya Birla Capital’s largest non-promoter shareholder, the report said.
Shares of Aditya Birla Capital have declined 32 percent in the past year compared to a 3 percent drop in the benchmark Sensex, Bloomberg data showed.
ICICI Bank Falls Despite Deal With Wipro
Shares of ICICI Bank Ltd. fell as much as 2.14 percent to Rs 389 apiece, while Wipro gained about 1.11 percent.
Wipro Ltd. has secured a strategic seven-year engagement, valued at $300 million, from ICICI Bank Ltd. to provide a suite of digital services, the software services provider said in an exchange filing.
“Wipro has a significant presence as an IT services provider in the global banking and financial services sector. It provides innovative solutions to banks by leveraging Wipro Holmes, the company’s artificial intelligence platform,” the filing said. At present, Vara lnfotech provides these services to ICICI Bank.
As a part of this strategic engagement, Wipro said it will absorb about 3,800 employees of Vara lnfotech along with its existing contracts, facilities and assets, on a going concern basis, through a business transfer agreement for an all cash consideration of Rs 321 crore. Wipro will provide these services to ICICI Bank from September 2019, it said. The transaction is expected to be completed during the quarter ending Sept. 30.
Oil & Gas Stocks Rise, Led By ONGC
The S&P BSE Oil & Gas Index rose as much as 3.85 percent to 13,454.70, the most in more than three months. Eight of the 10 stocks listed on the gauge gained, led by Oil & Natural Gas Corporation Ltd.
The oil explorer rose as much as 4.66 percent to Rs 124.6 apiece, followed by Bharat Petroleum Corporation Ltd. and Indian Oil Corporation Ltd. Petronet LNG was the biggest drag on the index, according to Bloomberg data.
The 10-stock gauge has declined 11 percent so far this quarter and is heading for its biggest decline since December 2015, Bloomberg data showed.
Infosys Hits Lifetime High
Shares of Infosys Ltd. rose as much as 1.97 percent to hit a lifetime high of Rs 837.50 apiece.
Infosys is trading at a 19 percent premium to its peers compared to an average 2 percent discount over the past two years on a blended forward price-to-earnings basis, Bloomberg data showed.
The IT company’s stock has advanced 15 percent in the last year compared with a 3 percent drop in the Sensex, according to Bloomberg data
NMDC Gains Despite Fall in Sales, Output
Shares of NMDC Ltd. rose as much as 3.83 percent to Rs 82.65 apiece.
Production of India’s largest iron ore miner fell 3.4 percent year-on-year to 1.41 million tonnes in August, according to an exchange filing. Its sales, too, dropped 36 percent to 1.49 million tonnes during the month.
NMDC’s stock has declined nearly 26 percent in the past 52 weeks, Bloomberg data showed.