Stocks Radar: Dr. Reddy’s, Jet Airways, Tata Investment Corporation, Vodafone Idea
Indian equity benchmarks opened higher ahead of the Reserve Bank of India’s board meet today to discuss several issues, including banking regulation and its own balance sheet. The S&P BSE Sensex Index and the NSE Nifty 50 Index traded flat at 35,530.85 and 10,693.65, respectively, as of 10:35 a.m. Asian stocks traded mixed as U.S.-China trade tensions showed no sign of improvement over the weekend.
The market breadth was in favour of buyers. Nine of the 11 sectoral gauges advanced, led by a 1.69 percent gain in the NSE Nifty Realty Index. The Nifty PSU Bank Index was the biggest loser, down 0.69 percent.
Here Are The Stocks Moving The Market This Morning
Jet Airways Slumps After Tata Clears Air On Deal
Shares of the cash-strapped airline snapped its four-day gaining streak and declined as much as 12.5 percent to Rs 303.05 apiece.
Tata Sons on Friday said talks to buy a stake in Jet Airways are in early stages and no proposal has been made yet.
The stock fell 54 percent over the past 12 months compared to an 8.2 percent advance in the BSE Sensex, Bloomvberg data showed
Dr. Reddy’s Gains After Clearing U.S. Regulator’s Inspection
Shares of the drugmaker rose as much as 2.8 percent to Rs 2,546.80 apiece.
Dr. Reddy’s Laboratories received zero observation from audit of formulations plant in Srikakulam, Andhra Pradesh by the U.S. drug regulator, according to its exchange filing.
The stock trades at 26 times its estimated earnings per share for the coming year, according to Bloomberg data.
Tata Investment Corporation Jumps After Board Approves Buyback Plan
Shares of the institutional brokerage firm rose for the fifth straight session to Rs 890 apiece.
Tata Investment Corporation’s board approved a buyback of 45 lakh shares, representing 8.17 percent of the total paid-up capital, at Rs 1,000 apiece, according to its exchange notification. The quantum of the buyback aggregates to Rs 450 crore.
The trading volume is almost 47 times its 30-day average, Bloomberg data showed.
HCL Infosystems Falls After Receiving Tax Demand Orders
Shares of the technology products distributor declined as much as 3.8 percent to Rs 25.30 apiece.
The company received a tax demand order of up to Rs 74 crore from the Central Excise and Central Goods & Services Tax office in Noida, according to an exchange filing.
The stock fell 56 percent so far this year compared to a 5.7 percent gain in the BSE Sensex, according to Bloomberg data.
Vodafone Idea Slips After Issuing Clarification On Asset Sale
Shares of the country’s largest telecom operator slumped as much as 7.2 percent to Rs 39.90 apiece.
Vodafone India, in its exchange filing, clarified that the company has not considered any proposal to sell its fibre assets to Bharti Infratel, and the news is “factually incorrect”.
The stock trades at 26 percent below Bloomberg one-year consensus target price.
Stocks Reacting To Earnings
Seshasayee Paper (Q2, Year-on-Year)
- Stock rose 6.2 percent to Rs 1,198.95 apiece.
- Net sales up 45.8 percent to Rs 331 crore.
- Net profit up 92 percent to Rs 50.4 crore.
- Ebitda jumped 70.6 percent to Rs 82 crore.
- Margin stood at 24.7 percent versus 21.1 percent.
Siemens (Q4, Year-on-Year)
- Stock pared opening gains to fall to Rs 934.15 apiece.
- Revenue up 25.4 percent at Rs 3,939.2 crore.
- Net profit down 55.2 percent at Rs 279.2 crore.
- Company had an exceptional gain of Rs 560 crore in the year-ago period.
- Reported Ebitda up 31.9 percent at Rs 418.6 crore.
- Margin at 10.6 percent versus 10.01 percent.