Stocks Radar: BPCL, DHFL, Reliance Nippon, UCO Bank, Zee Entertainment 

Indian equity benchmarks fluctuated between gains and losses in opening trade.

At 9:48 am, the S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,677.38 and 12,000.2, respectively.

The broader markets represented by the NSE Nifty 500 Index, too, traded flat. The market breadth was tilted in favour of buyers. About 847 stocks advanced and 728 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE traded higher, led by the NSE Nifty Media Index’s 2.39 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.21 percent.

BPCL Falls On Government’s Plan To Cede Control

Shares of Bharat Petroleum Corp. Ltd. fell as much as 2.31 percent to Rs 532 apiece, the steepest intraday fall since Nov. 08.

In approving the sale of the nation’s second-largest state fuel refiner, the cabinet committee on economic affairs has launched one of its biggest privatisation drives in recent years.

Offloading its holding in BPCL can help the government meet its asset sale aim at a time when revenue collections have fallen short amid an economic slowdown. Finance Minister Nirmala Sitharaman in her federal budget in July had said she would push for the privatisation of companies such as Indian Oil Corp. Ltd., ONGC, NTPC Ltd. and GAIL (India) Ltd.

Shares of BPCL have advanced as much as 69 percent in the past year.

DHFL Falls As RBI Supersedes Board

Shares of Dewan Housing Finance Corp. fell as much as 3 percent to Rs 19.55 apiece, the lowest since Nov. 4, after the Reserve Bank of India took control of the debt-laden shadow lender to keep the fallout from an ailing NBFC sector from spreading further into India’s economy.

The mortgage lender has been struggling to pare its debt as the non-bank lender crisis has cut off new credit to the sector.

“In exercise of the powers conferred under Section 45-IE (I) of the Reserve Bank of India Act, 1934, the Reserve Bank has today superseded the Board of Directors of Dewan Housing Finance Corporation Ltd. owing to governance concerns and defaults by DHFL in meeting various payment obligations,” the apex bank said in a press release late Wednesday.

The mortgage lender’s trading volume was more than double the 20-day average, according to Bloomberg data.

Reliance Nippon Touches Record High

Shares of Reliance Nippon Life Asset Management Ltd. rose as much as 5 percent intraday to Rs 380 apiece, the most since its listing.

That came after Reliance Capital informed the exchanges yesterday it will take all legal steps needed to protect its investors’ interest after its holding in Reliance Nippon was “invalidly transferred” by the escrow agent acknowledging an illegal invocation of pledge by one of the lenders.

Shares of Reliance Nippon stock has advanced 116 percent in the past year.

UCO Bank Continues Rally For Third Straight Day

Shares of UCO Bank rose as much as 19.8 percent intraday to Rs 22.40 apiece, extending gains for the third straight day.

UCO Bank Chief Managing Director Atul Kumar Goel said FY20 “will be a turnaround year” for the lender and the next year would be a “golden year”, in an interview with CNBC Awaaz.

The UCO Bank stock has declined 3.4 percent in the past year.

Zee Entertainment Rises On Essel Stake Sale Plan

Zee Entertainment Enterprises Ltd. rose as much as 18.6 percent to Rs 364 apiece, the highest since Sept. 11, 2019.

In a fresh effort to raise fund, Subhash Chandra-led Essel Group, the promoter of Zee Entertainment Enterprises Ltd., will sell up to 16.5 per cent stake in the company to financial investors.

Shares of Zee Entertainment have declined 31 percent in the past year.