Stocks Radar: Dr. Reddy’s, Minda Corporation, NTPC, Bank Of Baroda
Indian equity benchmarks edged lower following Asian peers as Wall Street concerns spread to the corporate-bond market. The S&P BSE Sensex and the NSE Nifty 50 Index traded nearly 0.8 percent down at 35,162.72 and 10,579.45, respectively, as of 11:50 a.m.
The market breadth was tilted in favour of sellers. Six of the 11 sectoral gauges declined, led by a 2.93 percent fall in the NSE Nifty IT Index. The NSE PSU Bank Index was the biggest gainer, up 1.61 percent.
Here Are The Stocks Moving The Market This Morning:
Dr. Reddy’s Surges After Winning Favourable Ruling In Patent Case
Shares of Dr. Reddy’s Laboratories rose nearly 8.7 percent to Rs 2,655 apiece. The stock became the top performer on the Nifty 50 Index after an appeals court ruling opened the door for the drugmaker to begin sales of a generic version of the opioid treatment Suboxone Film in the U.S., its largest market.
The company’s earnings is expected to get a boost after the court’s ruling. The U.S. Court of Appeals for the Federal Circuit set aside on Tuesday a trial court order that blocked Dr. Reddy’s from selling the generic in the country. The appeals court also said the trial judge was wrong to “say that Indivior was likely to win its patent-infringement case”, remanding the case to the trial court.
Of the 45 analysts tracked by Bloomberg, 21 have a “Buy” rating, 14 recommend a “Hold”, while 10 suggest a “Sell” for the stock.
Bank Of Baroda Gains After Offloading Stake In Clearing Corporation
Shares of the state-run lender rose close to 2.1 percent to Rs 112.50 apiece.
Bank of Baroda agreed to sell a 4 percent stake in Clearing Corporation of India Ltd. to HDFC Bank at Rs 620 a share, with consideration aggregating to Rs 124 crore, according to its exchange filing. After the acquisition, HDFC Bank will increase its stake in CCIL to 9 percent from 5 percent.
Bank of Baroda trades at 12 times its estimated earnings per share for the coming year, Bloomberg data showed.
NTPC At Two-Year Low After Block Deal
Shares of the state-run power generator fell as much as 1.3 percent to Rs 147.15 apiece, its lowest since November 2016.
Around 16 lakh shares of NTPC changed hands in a block deal. Also, the company is considering buying power plants run by indebted RattanIndia Power Ltd. and Jaiprakash Power Ventures Ltd., according to a Bloomberg report.
The stock declined 17 percent in the past 12 months compared with a 6.3 percent gain in the BSE Sensex, Bloomberg data showed.
Minda Corporation At Two-Month High
Shares of the auto parts maker rose as much as 10.6 percent to Rs 145 apiece.
Minda Corporation reduced its stake in joint venture with Japan-based Furukawa Group from 51 percent to 25 percent, according to its exchange notification.
The trading volume is more than 30 times the 20-day average, Bloomberg data showed.
Oil Marketers Gain After Crude Falls To 11-Month Low
Shares of the oil marketing companies gained as crude prices closed at $62.53 a barrel on Tuesday, its lowest since December 2017.
- Shares of Indian Oil Corporation rose 6.8 percent to Rs 148.50 apiece.
- Shares of Bharat Petroleum gained 6.2 percent to Rs 342.85 apiece.
- Shares of Hindustan Petroleum rose 7.6 percent to Rs 261.80 apiece.
(prices as of 9:45 a.m.)