Stocks Radar: Amara Raja Batteries, Eicher Motors, Suven Life Sciences, Wipro
Indian equity benchmarks were off to a tepid start ahead of the Reserve Bank of India’s policy meet scheduled today. The Sensex and Nifty traded flat at 38,907.60 and 11,653.30, respectively, as of 9:45 am.
The market breadth was tilted in favour of buyers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange rose, led by a 0.69 percent advance in the NSE Nifty Auto Index. The NSE Nifty IT Index was the top sectoral loser, down 0.81 percent.
Here Are The Stocks Moving The Market This Morning:
RIL Swings After Jio’s Buys AI Startup
Shares of the Mukesh Ambani-led company fluctuated between gains and losses to trade at 1,375.85 apiece as 9:25 am.
Reliance Jio Infocomm Ltd. entered into a definitive business transfer agreement with Haptik for around Rs 700 crore, according to an exchange filing. The company will hold around 87 percent stake in the target company, a conversational artificial intelligence platform.
Twenty six of the 36 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock, while six recommended ‘Hold’ and four had a ‘Sell’ rating.
Kanoria Chemicals Rises After Canadian Plant Begins Operations
Shares of the Kolkata-based company snapped its two-day blip and rose 2 percent intraday to Rs 63.40 per share.
Kanoria Chemicals and Industries Ltd. commissioned its plant in Canada for production of automotive and industrial electronics with effect from April 2, according to its notification to the stock exchanges.
The trading volume was over five times the 20-day average for this time of the day, according to Bloomberg data.
Eicher Motors Falls After Morgan Stanley Downgrade
Shares of the Royal Enfield parent pared opening gains and declined nearly a percent to Rs 20,026.15 per share.
Morgan Stanley downgraded its recommendation on the stock to ‘Equal-weight’ from ‘Overweight’. Also, the price target was cut to Rs 21,331, indicating a potential upside of 5.6 percent from the previous close.
Here’s what the firm had to say on the stock:
- Regulation-driven price hikes led to sharp slowdown in volumes.
- See margin headwinds; Expect 300 basis points margin contraction over FY19-21.
- Royal Enfield will face competition from Jawa Motorcycles and Bajaj Triumph.
The stock declined 28 percent in the past 12 months compared with a 17 percent gain in the S& BSE Sensex.
Wipro Falls After A Block Deal
Shares of the IT services provider fell as much as 2.6 percent to Rs 254.95 per share.
About 4.44 crore shares changed hands in a pre-market block deal on BSE, Bloomberg data showed. Buyers and sellers weren't known immediately.
The stock advanced 23 percent in the past 12 months compared with Sensex’s 17 percent gain. The stock traded 17 times its earnings per share for the coming year.
Amara Raja Batteries Rebounds After Worst Drop In Over Two Years
Shares of Amara Raja Batteries rose as much as 3.8 percent, the most in two months, to Rs 698, a day after the stock declined 6.7 percent.
This was after the company ended its partnership with U.S. auto parts maker Johnson Controls, which decided to sell its power solutions business globally.
Trading volume was 60 times its 20-day average, Bloomberg data showed.
Suven Life Sciences Jumps After Getting Patents In Israel, Japan
Shares of the pharma company rose as much as 4.5 percent, the most in nearly a month, to Rs 266.55.
The company received product patents in Israel, Japan, New Zealand and Sri Lanka for the treatment of neurodegenerative disorders, according to its exchange notification. The company said these patents will be valid through 2029 and 2036.
Trading volume was more than nine times its 20-day average, Bloomberg data showed.