Stocks Radar: BPCL, CG Power, DHFL, Raymond, Sun Pharma
A look at the stocks in news moving the markets today.
Indian equity benchmarks opened lower today after Moody’s Investors Service cut India’s outlook to ‘negative’ from ‘stable’ citing a worsening shadow banking crisis, a prolonged slowdown in the economy and rising public debt.
At 9:45 am, the S&P BSE Sensex fell 0.28 percent to 40,540 and the NSE Nifty 50 fell 0.29 percent to 11,978.65. The broader markets represented by the NSE Nifty 500 Index fell 0.23 percent.
The market breadth was tilted in favour of buyers. About 816 stocks advanced and 740 shares declined on the National Stock Exchange. Seven out of the 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Realty Index’s 2.03 percent gain. On the flip side, the NSE Nifty Pharma Index was the top sectoral loser, down 0.72 percent.
Bharat Petroleum Falls After Q2 Results
Shares of Bharat Petroleum Corporation Ltd. fell as much as 1.70 percent intraday to Rs 504.45 apiece, the lowest since Oct. 24.
Bharat Petroleum’s quarterly profit beat analysts’ estimates as it benefited from a one-time tax reversal. Net profit rose 55 percent sequentially to Rs 1,708.5 crore in the quarter ended September, the oil marketer said in an exchange filing. That’s higher than the Rs 1,665 crore estimated by analysts tracked by Bloomberg.
The potential sale of the government’s entire stake in BPCL could result in a reassessment of linkages between the government and oil marketing companies, Fitch group firm India Ratings and Research had said on Tuesday.
Macquarie On BPCL
- Macquarie Maintained ‘Neutral’ with a price target of Rs 500.
- Ebitda, ex-inventory and forex, missed estimates.
- Marketing performance was strong, supported by strong marketing margins.
- Refining performance was weak in the second quarter on lower core margins.
Shares of BPCL advanced 78 percent over the past year, according to Bloomberg data.
CG Power Rises After Seeking Relief To Repay Debt
Shares of CG Power and Industrial Solutions Ltd. rose as much as 4.76 percent to Rs 17.60 apiece, the highest since Aug. 19, 2019.
The board of fraud-hit CG Power & Industrial Solutions has sought a moratorium of 18-24 months from lenders to help revive the company and repay its “legitimate” loans, The Economic Times reported on Friday.
Meanwhile, the government has ordered a probe by the Serious Fraud Investigation Office into the affairs of CG Power and its associate entities.
The company’s stock has declined 54 percent over the past year, Bloomberg data showed.
DHFL Rises After Bombay High Court Order Bars Promoters From Leaving
Shares of Dewan Housing Finance Ltd. rose as much as 4.95 percent to Rs 23.30 apiece, the highest since Oct. 15, 2019.
The Bombay High Court on Thursday restrained Dewan Housing Finance Corporation Ltd. promoters Dheeraj Wadhawan and Kapil Wadhawan from leaving the country while hearing a plea filed by 63 Moons Technologies Ltd. seeking recovery of around Rs 200 crore dues.
The housing financier’s stock has declined 90 percent over the past year, Bloomberg data showed.
Raymond Rises After Hiving Off Core Lifestyle Business
Shares of Raymond India Ltd. rose as much as 12 percent intraday to Rs 754.20 apiece, the highest since July 05, 2019.
The textile maker has spun off its branded lifestyle business into a separate entity as part of a restructuring plan. The company’s lifestyle business, which comprises branded textiles, branded apparel and garments, would be separately listed on the bourses after the demerger, the textile maker said in an exchange filing.
The company’s stock has declined 11 percent over the past year, Bloomberg data showed. Trading volume has risen 40 times the 20-day average for this time of day, according to Bloomberg data.
Sun Pharma Slumps After Q2 Results
Shares of Sun Pharmaceutical Industries Ltd. fell as much as 2 percent to Rs 431.50 apiece, the steepest intraday decline since Nov. 5.
The drugmaker reported a profit in the quarter ended September, matching analysts’ expectations. The company posted a net profit of Rs 1,064 crore in the three-month period compared with a net loss of Rs 270 crore a year ago, India’s largest drugmaker said in an exchange filing.
This comes at a time when India’s pharmaceutical market grew at its fastest pace in more than a year in the quarter ended September as volumes and prices rose despite a fall in new launches.