Stocks Radar: DHFL, Indiabulls Housing, Sterlite Tech, Sun Pharma
Here are the stocks moving the market.
Indian equity benchmarks opened higher in today’s trade mirroring their Asian peers.
The Sensex traded flat at 39,797.70 and Nifty traded at 11,910.30, 0.10 percent lower, as of 9:40 am. The market breadth was tilted in favour of sellers.
Nine of the 11 sectoral gauges compiled by National Stock Exchange fell, led by a 1.29 percent decline in the NSE Nifty Pharma Index. The NSE Nifty IT Index was the only sectoral loser, down 0.22 percent.
Indiabulls Housing Top Nifty Loser Despite Refuting Allegations On Promoter
Shares of the non-bank lender fell as much as 6.2 percent to Rs 687.10 each, becoming the worst performer on Nifty Index.
Indiabulls Housing refuted the allegation of siphoning Rs 98,000-crore, terming it “bizarre” and made by a “racket of blackmailers”, in an exchange filing. The original complaint (of Rs 55,000-crore alleged fraud) by the blackmailers was dated May 6, 2019, the statement said. After that the company filed a first information report on June 4.
The trading volume was nearly five times the 20-day average for this time of the day, according to Bloomberg data.
DHFL Rises After Stake Sale In Unit
Shares of the non-bank lender gained for the second straight session after it rose 2.7 percent intraday to Rs 92 apiece.
The Mumbai-based company completed the sale of its entire stake (9.15 percent) in Aadhaar Housing Finance to Blackstone’s arm, according to its notification to the bourses.
The stock has fallen 86 percent in the past 12 months compared with the Sensex’s 12 percent gain.
Bharti Airtel Declines After Reaching $26.2 Million-Settlement
Shares of the telecom operator snapped its three-day gain and declined nearly 1.3 percent to Rs 358.80 apiece.
Bharti Airtel will pay the Tanzanian government 60 billion Shillings ($26.2 million) over a period of five years to settle an ownership dispute, according to its exchange notification. The company will pay to the government 1 billion Shillings every month for sixty months starting April, Chairman Sunil Mittal said at a briefing in Tanzania’s Dar es Salaam. The company will also pay the government a special divided at end of this year, Mittal said without mentioning the amount.
The stock returned 1 percent gain in the past 12 months compared with the Sensex’s 12 percent gain.
Sterlite Technologies Surges After Release Of Entire Promoter Pledge
Shares of the optical cables maker rose 11.8 percent intraday to Rs 194 apiece, its highest in a month.
Promoter Twin Star Overseas released entire pledge of 20.74 crore Sterlite Technologies’ shares—or 52.01 percent stake—of on June 10, according to an exchange filing. The company said the pledge was released as per terms of facility agreement with lenders. Pledge was a collateral for loan taken by Volcano Investment Cyprus, the filing said.
The stock traded at 11 times its estimated earnings per share for the coming year, Bloomberg data showed.
Sun Pharma Declines After Goldman Downgrade
Shares of the country’s largest drugmaker declined as much as 2.6 percent to Rs 391.70 apiece.
Goldman Sachs downgraded its recommendation on the stock to ‘Sell’ from ‘Neutral’. Also the price target was cut to Rs 355 from Rs 437, indicating a potential downside of 11.7 percent from last close.
Here’s what Goldman Sachs said on the stock:
- Key businesses facing competitive threats during transitional phase.
- Soft start in specialty clouds earnings trajectory.
- Better entry points could be in store for investors.
The stock traded 20 percent below the Bloomberg consensus one-year target price.
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