Stocks Radar: Ashok Leyland, Aditya Birla Fashion, Cipla, Eros, Tata Motors
Indian equity benchmarks fluctuated between gains and losses after opening for trade on Tuesday. The S&P BSE Sensex and the NSE Nifty 50 Index, however, managed to hold gains to trade higher at 38,992.90 and 11,616.20, respectively, as of 9:40 a.m.
The market breadth, too, was tilted in favour of buyers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by a 0.77 percent gain in the Nifty Metal Index. The Nifty IT Index was the top loser, down 0.67 percent.
Here Are The Stocks Moving The Market This Morning
Ashok Leyland Falls After Temporary Shutdown Of Plant
Shares of the commercial vehicle maker fell as much as 3.8 percent to Rs 82.20 apiece—the lowest in almost a month.
This came after the company temporarily shut down its plant at Pantnagar, owing to weak demand and outlook for the industry. The unit will remain closed from July 16-24, it said in an exchange filing.
The stock trades at 10 times its estimated earnings per share for the coming year, according to Bloomberg data.
Cipla Gains On EU Unit’s Joint Venture
Shares of Cipla rose as much as 1.3 percent to Rs 557.60 apiece.
The company’s European Union unit formed a joint venture with Jiangsu Acebright Pharmaceutical Co., Ltd., China for manufacturing, selling and distribution of pharmaceutical products, research and development services, analytical development services to provide high quality and affordable drugs, according to its exchange filing.
Cipla EU will hold 80 percent stake in the joint venture and Acebright will hold the rest, it said, adding the Indian drugmaker unit’s investment in the joint venture is estimated up to $24 million over a period of 4 years.
The stock has declined 11 percent in the past 12 months compared to a 7 percent gain in the Sensex, Bloomberg data showed.
Tata Motors Gains For Fourth Straight Session
Shares of Tata Motors extended gains for the fourth straight session after the automaker’s luxury arm Jaguar Land Rover Automotive Plc. won a £500-million loan guarantee from the U.K. government. The stock rose as much as 1.17 percent to trade at Rs 163.70 apiece.
The guarantee to JLR by the U.K. Export Finance agency was aimed at supporting design, manufacture and export of its electric cars, Bloomberg reported quoting British Prime Minister Theresa May as saying.
The Tata Motors’ stock trades at 11 times its estimated earnings per share for the coming year, Bloomberg data showed.
Eros International Falls After Parent’s Revenue Declines
Shares of the media company slumped as much as 4.55 percent to Rs 15.75 apiece.
Eros International Media’s NYSE-listed parent Eros International Plc’s gross revenue fell 3.1 percent to $79 million and adjusted Ebitda was down 46 percent to $13.1 million for the fourth quarter of financial year 2019, according to Bloomberg News.
The stock has declined 86 percent in the past 52 weeks compared with the Sensex’s 6.4 percent gain, Bloomberg data showed.
Aditya Birla Fashion Gains After Buying Stake In Apparel Firm
Shares of the fashion retail company gained as much as 1.45 percent to Rs 209.90 apiece.
The company has acquired a 51 percent stake in Finesse International Design for Rs 60 crore, according to its exchange filing. That’s expected to help Aditya Birla Fashion to strengthen presence in branded ethnic apparels and accessories, it said.
The stock trades at 13 percent below the Bloomberg consensus one-year target price.