Stocks Radar: Allahabad Bank, BHEL, DHFL, IndiGo, Infosys
Indian equity benchmarks opened higher today, led by gains in Infosys Ltd. The S&P BSE Sensex rose as much as 0.35 percent to trade at 38,869.68 and the NSE Nifty 50 Index gained 0.21 percent at 11,573.65 as of 9:50 a.m.
The market breadth, however, was tilted in favour of sellers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 1.63 percent fall in the NSE Nifty PSU Bank Index.
The Indian rupee, too, opened higher against the U.S. dollar. The domestic unit appreciated as much as 0.25 percent at 68.51 against the greenback.
A look at the stocks moving the market in today’s trade:
Allahabad Bank Falls Most In Eight Months
Shares of public sector lender Allahabad Bank tumbled as much as 14.42 percent—the most in eight months—to Rs 40.35 apiece.
Allahabad Bank has disclosed an alleged fraud of Rs 1,774.82 crore by Bhushan Power and Steel Ltd, against which it has already made provisions of Rs 900.20 crore, the lender said in an exchange filing.
Bhushan Power and Steel misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks, the exchange filing read.
The bank’s stock has fallen 11 percent in the past five days.
Infosys Gains After Q1 Results
Shares of software services provider Infosys Ltd. rose as much as 5.77 percent to Rs 768.70 apiece—the highest in more than three months.
This came after it raised its revenue forecast for the full year even as higher costs led to a contraction in margin and decline in profit in the quarter ended June.
Key highlights of Infosys Q1 results:
- Revenue in rupee terms rose 1.2 percent sequentially to Rs 21,803 crore.
- Revenue in dollar terms rose 2.3 percent to $3,131 million.
- Operating profit fell 3.2 percent sequentially to Rs 4,471 crore.
- Operating margin narrowed 90 basis points to 20.5 percent.
The stock trades at 20 times its estimated earnings per share for the coming year, according to Bloomberg data.
IndiGo Skids As Regulators Intensify Scrutiny
Shares of IndiGo airlines operator InterGlobe Aviation Ltd. fell as much as 4.64 percent to Rs 1,293.85 apiece today.
With the IndiGo romoter dispute intensifying, the Securities and Exchange Board of India and the Ministry of Corporate Affairs have started digging deep into allegations of governance lapses and violations that could force the government to override existing arrangements and pacts at the operator of budget carrier IndiGo, PTI quoted unnamed officials as saying.
The Relative Strength Index on the stock was below 30, indicating it may be ‘Oversold’.
DHFL Hits Lower Circuit After Q4 Loss
Shares of default-marred Dewan Housing Finance Corporation Ltd. hit the lower circuit after the stock fell as much as 30 percent to trade at Rs 48 apiece.
DHFL reported a loss of Rs 2,223 crore for the quarter ended March. It had posted a profit of Rs 134 crore a year ago and Rs 313.60 crore in the December quarter.
The company’s net interest income stood at Rs 664.52 crore compared with Rs 458.8 crore a year ago. Its total income fell to Rs 3,057 crore, down 69 percent from the year-ago period.
The stock has declined 89 percent in the past 52 weeks compared with the Sensex’s 6 percent gain. The stock trades 349 times below the Bloomberg consensus one-year target price.
BHEL Shares Rise After Rs 100-Crore Order Win
Shares of state-owned engineering firm Bharat Heavy Electricals Ltd. gained as much as 1.16 percent to Rs 65.55 apiece after it won a Rs 100-crore order for setting up a 25 MW floating solar photovoltaic power plant in Andhra Pradesh, according to its exchange filing.
The stock trades at 15 times its estimates earnings per share for the coming year and 14 percent below the Bloomberg consensus one-year target price.