Stocks Radar: Corporation Bank, Dish TV, IndiaMart, Mcleod Russel, Uniply

Indian equity benchmarks opened higher, helped by gains in bank stocks. The S&P BSE Sensex and the NSE Nifty 50 Index traded nearly 0.3 percent higher at 39,941.20 and 11,950, respectively, as of 10:00 a.m.

The market breadth was in favour of buyers. Eight of the 11 sectoral gauges compiled by the National Stock Exchange advanced, led by a 1.6 percent gain in the NSE Nifty PSU Bank Index. The NSE Nifty Metal Index was the top loser, up 0.48 percent.

Here Are The Stocks Moving The Market This Morning

Uniply Surges To Nine-Month High

Shares of the plywood maker rose as much as 5 percent to a nine-month high of Rs 66.95 apiece.

Promoters of Uniply Industries agreed to sell a 20.7 percent stake to Kuwait-based Markab Capital, according to the plywood maker’s exchange filing. It will also acquire warrants which, when converted, will constitute an 8.5 percent stake. Markab Capital will in all pay Rs 313.84 crore.

The Relative Strength Index was more than 70, indicating the stock may be ‘Overbought’.

McLeod Russel Hits Lower Circuit For Fourth Day

Shares of the tea grower and processor hit the lower circuit of 5 percent for fourth straight day to trade at Rs 13.60 apiece.

Thursday’s slump came after ICRA downgraded the company’s credit rating to ‘Default’ for borrowings worth Rs 1,031 crore. Its long-term rating was revised to ‘ICRA D’ from ‘ICRA B-’, according to an exchange filing. The short-term rating was revised to ‘ICRA D’ from ‘ICRA A4’.

Besides, McLeod Russel’s auditor—Deloitte Haskins and Sells LLP—said the tea company understated its loss as it didn’t make provisions for advances to promoters.

The stock’s trading volume was more than 150 times the 20-day average. It declined 90 percent in the past 52 weeks, Bloomberg data showed.

Titan Falls On Morgan Stanley Downgrade

Shares of India’s largest branded jewellery maker snapped their two-day gaining streak. The scrip fell nearly 1.4 percent to Rs 1,310.50 apiece.

That came after Morgan Stanley downgraded its recommendation on the stock to ‘Equal-weight’ from ‘Overweight’. It, however, maintained its price target at Rs 1,300.

Here’s what the research firm had to say on the stock:

• Downgraded as target price achieved and now reluctant to push multiples beyond current levels.
• Titan remains as one of our favourite long-term play.
• Sees no downside to financials; FY20 estimates 4 percent ahead of consensus.

The stock has advanced 49 percent in the past 12 months compared to a 13 percent gain in the Sensex, Bloomberg data showed.

Corporation Bank Gains For Third Session; Volumes Surge

Shares of the state-run bank gained for the third straight session. The stock rose as much as 12.9 percent to Rs 28.80.

The trading volume was almost 30 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating the stock may be ‘Overbought’.

Of the shares traded, 45 percent were at the ask price and 35 percent were at the bid, according to Bloomberg data. The scrip has risen 14 percent in the past five days and gained 7.3 percent in the past 30 days.

Dish TV Jumps On Report Of Promoter Offloading Stake

Shares of the television services company extended their for the fourth straight day. The stock rose as much as 4 percent to Rs 32.50 apiece.

Promoters of the direct-to-home service provider will be exiting the business by selling their stake to Airtel Digital TV, the DTH arm of telecom giant Bharti Airtel, Business Standard reported quoting people it didn’t name. Bharti Airtel was likely to partner Warburg Pincus and pay Rs 45-50 a share to the promoters of Dish TV, who would receive between Rs 4,800 crore and Rs 5,300 crore, the report said.

The stock traded at 31 times its estimated earnings per share for the coming year, according to Bloomberg data.

IndiaMart Lists At A Premium On Stock Market Debut

IndiaMart InterMesh Ltd., an online marketplace for business products and services, listed on the bourses at a premium to its issue price.

The scrip opened at 21 percent higher on the BSE at Rs 1,180 apiece compared to its issue price of Rs 973. The stock rose to Rs 1,230 thereafter.