Stocks Radar: Cox & Kings, HDFC, HUL, Maruti Suzuki, M&M Financial Services

Indian equity benchmarks fluctuated between gains and losses on Wednesday after they closed in losses for four straight sessions. The S&P BSE Sensex traded nearly 0.4 percent lower at 37,821.43 and the NSE Nifty 50 Index fell as much as 0.6 percent at 11,262, respectively, as of 10:20 a.m.

The market breadth was tilted in favour of sellers. All of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by a 1.37 percent fall in the Nifty Metal Index.

Here Are The Stocks Moving The Market This Morning

HDFC Gains As It Expects No Significant Impact On Business Due To NHB Order

Shares of India’s largest housing finance company by market value rose as much as 2.03 percent to Rs 2,182 apiece.

Housing Development Finance Corporation Ltd. on Tuesday said the National Housing Bank’s direction to home financiers to desist from providing loans under subvention scheme won’t have “significant impact” on business as the company’s exposure is less than 2 percent of individual loans through this route.

The NHB had advised housing finance companies to desist from funding schemes in which developers offer to service interest on housing loans on behalf of borrowers, citing the prevalence of fraud in them.

The stock’s trading volume was 1.8 times the 30-day average for this time of the day, Bloomberg data showed.

Cox & Kings Set For Record Losing Streak

Shares of travel and tour operator hit the lower circuit for nearly three weeks and are set for their record losing streak. The stock fell 5 percent to trade at a record low of Rs 14.80 apiece.

That came even as the company clarified that licences issued by the International Air Transport Association remains valid till termination, and the company is procuring airline tickets from trusted alternative travel firms on cash and carry basis, according to its exchange filing. IATA had suspended Cox & Kings’ licence for selling air tickets on June 28.

Cox & Kings has also procured interim relief from courts against invocation of its bank guarantees by IATA, the filing said.

The stock trades at 6.1 times its estimated forward earnings per share compared with nine times for the two-year historical average, Bloomberg data showed.

Maruti Suzuki Falls On Report Of Parent Halting Capacity Expansion

Shares of the automaker fell as much as 1.54 percent to Rs 5,783.05 apiece.

That came on the back of parent Suzuki Motor Corporation’s plans to suspend doubling of its vehicle manufacturing capacity in Gujarat amid a slowdown in demand in India, Mint had reported quoting three people it didn’t name. The capacity will be restricted to 750,000 vehicles a year instead of increasing it to 1.5 million a year as planned, the report said.

The stock has declined 22.5 percent this year. That compares with the Sensex’s 5.9 percent gain during the period, according to Bloomberg data.

HUL Rises After Q1 Results

Shares of India’s largest consumer goods maker gained as much as 1.12 percent to Rs 1,712.30 apiece.

That came even as Hindustan Unilever Ltd.’s volume growth fell to its lowest in seven quarters. Its net profit, however, rose and met estimates during the quarter ended June.

The stock has declined as much as 6.1 percent this year, compared with the Sensex’s 5.9 percent gain during the period.

Key Earnings Highlights (Q1, Year-on-year)

• Revenue rose 6.6 percent to Rs 10,114 crore.
• Net profit increased 15 percent to Rs 1,755 crore.
• Earnings before interest, tax, depreciation and amortisation rose 17.6 percent to Rs 2,647 crore.
• Margins stood at 26.2 percent against 23.7 percent.

Mahindra & Mahindra Financial Hits Two-Year Low

Shares of M&M Financial Services plunged as much as 15 percent—the most since September 2018—to Rs 289.15 apiece.

The stock, which has been falling for sixth straight sessions now, is set for its longest losing streak in nearly six months.

That came after the company posted a 74 percent drop in its net profit for the quarter ended June.

Key Earnings Highlights (Q1, YoY)

• Net interest income rose 16.5 percent to Rs 1,238.3 crore.
• Net profit fell 74.6 percent to Rs 68.4 crore.
• Consolidated net interest income rose 17.1 percent to Rs 1,466.2 crore.
• Consolidated net profit fell 66.1 percent to Rs 107.2 crore.
• Impairment on financial instruments stood at Rs 676.8 crore.
• Net NPA stood at 5.7 percent.
• Gross NPA stood at 7.4 percent.