Stocks Radar: Bharti Infratel, ICICI Prudential, Wipro, Zee Entertainment

Indian equity benchmarks fluctuated after opening for trade on Wednesday. Asian stocks, too, traded mixed. The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 36,444.64 and 10,919, respectively, as of 10:30 a.m. The indices halted their five-day rally yesterday.

The market breadth was slightly tilted in favour of buyers. About 794 stocks advanced and 759 shares advanced on the National Stock Exchange. Six out of the 11 sectoral gauges advanced, led by the NSE Nifty Media Index’s 2.2 percent gain. On the flipside, the NSE Nifty Realty Index was the top loser, down 0.44 percent.

Here Are The Stocks Moving The Market This Morning

Bharti Infratel Gains Ahead Of Earnings

Shares of Bharti Infratel rose as much as 1.4 percent to Rs 281.40 apiece ahead of the company’s results announcement.

The stock traded at 22 times estimated forward earnings per share for the coming year, Bloomberg data showed. It has declined 19 percent in the past 12 months compared to a 1.8 percent advance in the Sensex.

Here’s what the analysts tracked by Bloomberg expect the company to report in the December quarter on a sequential basis:

• Revenue expected to fall 3 percent to Rs 3,541 crore.
• Ebitda seen to decline 10 percent to Rs 1,361 crore.
• Margin seen at 38.4 percent versus 41.3 percent.
• Net profit likely to fall 8 percent to Rs 554 crore.

Wipro Trades Near 19-Year High

Shares of the information technology company extended gains for the second session. The stock rose as much as 2 percent to trade at its highest level since February 2000.

The stock traded at 16.1 times estimated forward earnings per share compared to 15 times for the two-year historical average, Bloomberg data showed. The scrip was the second-best performer on the Nifty.

ICICI Prudential Drops Most Since Listing

Shares of ICICI Prudential Life Insurance Company fell for the second session. The stock declined as much as 11.5 percent, the most since listing on September 2016, to Rs 306 apiece.

The trading volume was almost 30 times its 20-day average, Bloomberg data showed. The open interest jumped over 70 percent.

Also, the company’s net profit fell 34 percent on a yearly basis to Rs 296.8 crore in the December quarter, according to its exchange filing.

Key Earnings Highlights (Q3, YoY)

• Net premium income up 27 percent at Rs 7,483 crore.
• Net profit down 34 percent at Rs 296.8 crore.
• Assets under management rose 8.44 percent at Rs 1.49 lakh crore.
• New business premium up 18.6 percent at Rs 910 crore.

Here’s what analsyts had to say about ICICI Prudential:

Macquarie

• Maintains ‘Outperform’ with a price target of Rs 415.
• Weighed down by capital market volatility.
• Sharp decline in value of new business margin as operating leverage benefits reverse.
• ICICI Prudential is a deeply cyclical stock; opportunity to accumulate.

CLSA

• Maintains ‘Buy’ and cut price target to Rs 430 from Rs 450.
• December-quarter review: weaker capital market flow, lower persistency and margin.
• ULIP dependence drags down premium growth.
• Persistency weakens and hurts margin but strong protection growth.

Zee Entertainment Halts Five-Day Losing Streak

Shares of Zee Entertainment Enterprises halted their five-day losing streak, the longest in nearly three months, to rise as much as 3.4 percent at Rs 439.80 apiece.

The trading volume was more than double its 20-day average, Bloomberg data showed. The scrip has declined 30 percent in the past 12 months compared to a 1.8 percent advance in the Sensex.

Bombay Burmah Jumps Most In Nearly A Month

Shares of Bombay Burmah Trading Corporation Ltd. rose as much as 5.8 percent, the most in nearly a month, to Rs 1,291.55 apiece.

The trading volume was more than 30 times its 20-day average, Bloomberg data showed. The stock declined 18.8 percent over the past year compared to an 1.8 percent advance in the Sensex.

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