Stocks Radar: Dr. Reddy Labs, Aavas Financiers, UFO Moviez
Indian equity benchmarks opened higher after the appointment of Shaktikanta Das as the Reserve Bank of India Governor.
The S&P BSE Sensex traded nearly a percent higher at 35,500.10 and the NSE Nifty 50 Index at 10,658.60, up 1.04 percent as of 10:50 a.m. The market breadth was tilted in favour of buyers. All the 11 sectoral gauges advanced, led by the NSE Nifty Realty Index’s 2.8 percent gain.
Here Are The Stocks Moving The Markets This Morning
Dr. Reddy’s Labs Top Nifty Loser After U.S. Court Ruling On Opioid Drug
Shares of the drugmaker declined nearly 3.1 percent to Rs 2,632.75 per share.
Dr. Reddy’s Laboratories will have to wait a little longer before it can start selling a generic version of Indivior Plc’s Suboxone Film opioid addiction treatment, a U.S. appeals court ruled, reported Bloomberg.
The stock, however, gained 17 percent in the past 12 months compared to 6.9 percent advance in the S&P BSE Sensex Index.
UFO Moviez Jumps After Plans To Buy Stake In Qube Digital Cinema
Shares of the digital-cinema distribution company rose as much as 5 percent to Rs 273.50 apiece.
UFO Moviez’s non-promoter investors agreed to sell their shares in Qube Digital Cinema Pvt. Ltd. to UFO Moviez and ICICI Ventures at Rs 264.88 per share as against an earlier decided price of Rs 302.65, according to an exchange filing.
The trading volume was more than five times its 20-day average for this time of the day, according to data compiled by Bloomberg.
Indiabulls Group Stocks Rally After Housing Finance Unit Raises Rs 250 Crore
Shares of Indiabulls group companies rose after Indiabulls Housing Finance successfully raised Rs 250 crore by selling 18-month bonds at coupon rate of 9.2244 percent, according an exchange notification.
- Indiabulls Housing Finance rose as much as 6.2 percent to Rs 736 apiece.
- Indiabulls Ventures advanced 9 percent to Rs 369.
- Indiabulls Real Estate rose 10.2 percent to Rs 78.70.
- Indiabulls Integrated Services jumped 5 percent to Rs 281.30.
(prices as of 10:35 a.m.)
Reliance Swings After Plans To Demerge Jio’s Tower And Fibre Business
Shares of the Mukesh-Ambani led company fluctuated between gains and losses to trade at Rs 1,102.85 per share, as of 10:45 a.m.
Reliance Industries’ telecom unit Reliance Jio Infocomm board approved transferring fibre and tower businesses into two separate companies, according to its notification to the bourses. The plan is yet to get statutory and regulatory approvals.
The stock traded 17 percent below the Bloomberg consensus one-year target price.
Aavas Financers Gains After Receiving First Coverage
Shares of the micro-finance company rose as much as 3.5 percent to Rs 813.20.
Brokerage and research firm Citi initiated coverage on the stock with a 'Buy' rating and a price target of Rs 930, implying a potential upside of 18 percent from the last regular trade. This is the first analyst coverage for the stock as per Bloomberg data.
Here's what Citi had to say:
- Growth to come from existing locations as well as geographic expansion.
- Niche focus and priority sector lending compliant portfolio supports healthy spreads.
- Premium valuations supported by long growth runway and strong asset quality.