Stocks Radar: Cupid, Ujjivan Financial, Spandana Sphoorty, Sun Pharma
Here are the stocks moving the market this morning...
Indian equity benchmarks opened higher on Monday, mirroring the gains in Asian peers.
The S&P BSE Sensex and the NSE Nifty 50 Index rose about 0.8 percent to 37,651.25 and 11,130.10, respectively, as of 10:50 a.m. The broader market represented by the NSE Nifty 500 Index also gained as much as 0.72 percent.
The market breadth was tilted in favour of buyers. Nine of the 11 sectoral gauges were trading higher, led by a 1.04 percent gain in the NSE Nifty Realty Index. The NSE Nifty Metal Index was the top loser, down 0.35 percent.
The Indian rupee, too, opened higher against the U.S. dollar. The domestic currency appreciated as much as 0.1 percent at Rs 71.15 against the greenback.
Here Are The Stocks Moving The Market This Morning
Sun Pharma Gains On Entering China With Generics
Shares of Sun Pharmaceutical Industries Ltd. rose as much as 4.7 percent to Rs 434.20 apiece after India’s largest drugmaker said it inked a pact with a Chinese company to launch generics in the world’s second-largest pharma market.
Sun Pharma today said one of its wholly owned subsidiaries has granted an exclusive licence to a subsidiary of China Medical System Holdings Ltd. to develop and commercialise seven generic products in Mainland China, according to an exchange filing.
“This collaboration gives us entry into the Chinese generic pharmaceutical market. We see a lot of potential in China for both, our generics and speciality portfolio. With more than 65 percent generics penetration, China represents a significant opportunity for generic pharmaceutical companies,” Dilip Shanghvi, managing director at Sun Pharma, said in the filing.
In June, the Indian drugmaker had inked a pact with China Medical System for two specialty products.
Sun Pharma’s stock trades at 21 times its estimated earnings per share for the coming year, according to Bloomberg data.
Spandana Sphoorty Lists At A Discount
Microfinance lender Spandana Sphoorty Financial Ltd. debuted on the stock exchanges at a discount to its issue price.
The stock listed at Rs 814 apiece on the BSE, 4.9 percent lower than its initial public offering price. The scrip hit an intra-day low of Rs 808 thereafter.
The microfinance lender’s Rs 1,201-crore IPO was subscribed 1.05 times on the final day of bidding. The category reserved for qualified institutional buyers was subscribed 3.10 times, while the segment for non-institutional investors and retail investors subscribed 56 percent and 9 percent, respectively, according exchange data.
Cupid Jumps After Bagging UN Contract
Shares of the contraceptives maker surged as much as 9.1 percent to Rs 139.30 apiece—the highest in two weeks.
This came after Cupid Ltd. received an order worth Rs 14 crore from United Nations Population Fund for supplying male condoms to Uganda, according to an exchange filing.
To be sure, the stock has declined 31 percent in the past 12 months compared to a 1.3 percent fall in the Sensex, Bloomberg data showed.
Coffee Day Hits Upper Circuit
Shares of India’s largest coffee chain operator rose 5 percent to hit an upper circuit of Rs 65.80 apiece.
Promoters of Coffee Day Group are planning to restart talks with Coca-Cola to sell part of their stake in Cafe Coffee Day chain to lower debt, the Economic Times reported quoting people aware of the development. Coca-Cola’s spokesperson, however, refused to comment on the development, the report said.
On Saturday, Coffee Day Enterprises Ltd. said its total debt, currently at Rs 4,970 crore, is expected to reduce by Rs 2,400 crore after the sale of Global Village Tech Park. The company has announced the divestment of Global Village held by its subsidiary Tanglin Developments Ltd. for Rs 2,600-3,000 crore, according to an exchange filing.
The stock’s trading volume was 110 times the 20-day average for this time of the day, Bloomberg data showed.
Ujjivan Financial Services Falls Most In 10 Months
Shares of the microfinance institution dropped as much as 8.5 percent—the most since October—to Rs 260 apiece.
The non-bank lender’s subsidiary Ujjivan Small Finance Bank has filed a draft red herring prospectus with the market regulator for a proposed initial public offering, according to an exchange filing. The fresh issue of equity shares aggregates to Rs 1,200 crore, the filing said.
The stock traded 22 percent below the Bloomberg consensus one-year target price.