A pedestrian walks past a bear and a bull statue outside the Frankfurt Stock Exchange in Frankfurt, Germany (Photographer: Krisztian Bocsi/Bloomberg)  

Stocks Radar: Bank Of Maharashtra, Cipla, Dr. Reddy’s, Polycab, Wipro

Indian equity benchmarks extended gains for the second consecutive trading session, led by the gains in Reliance Industries Ltd. and ICICI Bank Ltd.

The S&P BSE Sensex rose as much as 0.8 percent to 39,216.70 and the NSE Nifty 50 rose as much as 0.74 percent to hit an all-time high at 11,766.55. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.62 percent.

The market breadth was tilted in favour of buyers. About 1,022 stocks advanced and 547 shares declined on the National Stock Exchange.

Ten out of the 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Bank Index’s 0.9 percent gain. On the flip side, the NSE Nifty Realty Index was the only sectoral loser, down 0.3 percent.

Here Are The Stocks Moving The Market This Morning

Polycab Jumps Over 20% On Stock Market Debut

Polycab India Ltd. listed at a premium of 17.7 percent at Rs 633 on the National Stock Exchange, compared to its issue price of Rs 538. The stock rose as much as 20.2 percent thereafter.

Cipla Swings After Unit Signs Pact

Shares of Cipla Ltd. fluctuated between gains and losses to trade 0.1 percent lower at Rs 565.55.

The pharmaceutical company’s arm entered into a definitive agreement with Pulmatrix Inc. for commercialisation of Pulmazole which is used for treatment of asthma-related allergies, according to its stock exchange notification. The arm will pay $22 million to Pulmatrix in exchange of assignment of all rights for Pulmazole in relation to pulmonary indications, the statement said.

The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data. The scrip traded at 31 times its estimated earnings per share for the coming year.

Bank Of Maharashtra Surges On Heavy Volumes

Shares of Bank of Maharashtra extended gains for the fifth consecutive trading session, its longest gaining streak in nearly two years. The stock rose as much as 14.2 percent to Rs 16.85, the highest in over a year.

Trading volume was more than 20 times its 20-day average, Bloomberg data showed.

Wipro At Over One-Month High Ahead Of Earnings

Shares of Wipro Ltd. extended gains for the eighth consecutive trading session, its longest gaining streak in over two months. The stock rose as much as 1.3 percent to Rs 291.45, the highest since Feb. 26, 2019.

The company is set to announce its March quarter results later today.

Here are the consensus estimates of analysts tracked by Bloomberg (QoQ):

  • IT Services revenue seen 2 percent higher at $2,086 million.
  • Revenue 0.1 percent higher at Rs 15,069 crore.
  • EBIT 0.9 percent lower at Rs 2,749 crore.
  • EBIT margins seen 20 basis points lower at 18.2 percent.
  • Profit seen seen 0.8 percent lower at Rs 2,489 crore.

Dr. Reddy’s Gains On FDA Boost

Shares of Dr. Reddy’s Laboratories Ltd. rose as much as 1.7 percent to Rs 2,840.

The company received an establishment inspection report from the U.S. Food and Drug Administration for its Hyderabad manufacturing plant. In February, the plant had received 11 observations under Form 483 by the FDA.

The regulatory body has determined the inspection classification of this facility as ‘voluntary action initiated’.

The stock traded at 27 times its estimated earnings per share for the coming year. The scrip rose 2.7 percent in the past five days and rose 6.4 percent in the past 30 days.

LIC Housing Falls After Goldman Downgrade

Shares of the housing finance company fell for the second consecutive trading session and declined as much as 1.3 percent to Rs 522.10.

Goldman Sachs downgraded its recommendation on the stock to ‘Sell’ from ‘Neutral’. It also set a price target of Rs 437 per share, indicating a potential downside of 17 percent from the last regular trade.

The stock declined 6.7 percent in the last 12 months compared with a 14 percent gain in the Sensex.

Stocks Reacting To Earnings Announcement

Hathway Cable and Datacom Ltd. (Q4, YoY)

  • Stock rose as much as 4.7 percent to Rs 30.40.
  • Revenue down 9.1 percent to Rs 132.4 crore.
  • Net profit at Rs 212.7 crore versus Rs 12.6 crore.
  • Ebitda down 28.1 percent at Rs 42.4 crore versus Rs 59 crore.
  • Margins at 32 percent versus 40.5 percent.
  • Other Income of Rs 41 crore.
  • Deferred Tax Income of Rs 267.7 crore.
  • Exceptional loss of Rs 84.54 crore.

Tata Metaliks Ltd. (Q4, YoY)

  • Stock rose as much as 2.1 percent to Rs 676.
  • Revenue up 8.7 percent to Rs 593.8 crore.
  • Net profit up 17.5 percent to Rs 64.5 crore.
  • Ebitda down 8.1 percent to Rs 80.8 crore.
  • Margins at 13.6 percent versus 16.1 percent.
  • Deferred Tax Income of Rs 19.5 crore.
  • RM as percent of sales at 60 percent versus 52 percent.
  • Pig Iron Revenue up 10 percent to Rs 426.5 crore.
  • Ductile Iron Pipe Revenue up 15 percent at Rs 345.2 crore.
  • Declares dividend of Rs 3.5 per share.

Tinplate Company of India (Q4, YoY)

  • Stock rose as much as 3.9 percent to Rs 168.40.
  • Revenue up 4.7 percent to Rs 727.8 crore.
  • Net profit down 3.2 percent to Rs 27.6 crore.
  • Ebitda down 8.2 percent to Rs 53.6 crore.
  • Margins at 7.4 percent versus 8.4 percent.
  • Decrease in inventories to Rs 79.4 crore.
  • Employee benefit expenses up 24 percent to Rs 31 crore.

Reliance Industrial Infrastructure Ltd. (Q4, YoY)

  • Stock fell as much as 1.2 percent to Rs 347.40.
  • Revenue down 11.4 percent to Rs 20.9 crore versus.
  • Net profit down 24 percent to Rs 1.9 crore.
  • Ebitda down 27.8 percent to Rs 2.6 crore.
  • Margins at 12.4 percent versus 15.3 percent.
  • Declares dividend of Rs 3 per share.