Stocks Radar: GAIL, ITI, NMDC, Oil India, Yes Bank
Indian equity benchmarks opened lower following Asian peers after weakness in some of the biggest technology companies sent U.S. stocks tumbling. The S&P BSE Sensex and the NSE Nifty 50 Index traded nearly 0.4 percent down at 35,644.62 and 10,712.40, respectively, as of 10: 35 a.m.
The market breadth was tilted in favour of sellers. All of the 11 sectoral gauges declined, led by a 1.48 percent fall in the Nifty IT Index.
Here Are The Stocks Moving The Market This Morning
Yes Bank Falls After Director Quits
Shares of the private lender declined as much as 6.5 percent to Rs 191.60 apiece.
Yes Bank’s independent (non-executive) director Rentala Chandrashekhar resigned from the bank’s board with immediate effect, according to an exchange notification. Chandrashekhar said he was unhappy with the “developments taking place in the recent past and the way it was handled”.
The stock declined 33 percent so far this year compared with a 7.5 percent gain the BSE Sensex, according to Bloomberg data.
NMDC Swings After Issuing Clarification On Mine Lease
Shares of the state-run miner fluctuated between gains and losses to trade at Rs 100.50 apiece.
NMDC, in an exchange notification, clarified that Donimalai mine’s lease had been extended by the Karnataka state government for a period of 20 years with effect from Nov. 4. The state cabinet had not taken any decision to cancel the lease. Production has been suspended temporarily as a few legal and other issues were pending before the Karnataka government, it said.
Out of the 20 analysts tracked by Bloomberg, 16 have a “Buy” rating, three recommend a “Hold”, while one has a “Sell” rating on the stock.
Oil India Gains After Board Approves Buyback Plan, Fundraising
Shares of the oil and natural gas explorer rose as much as 1.8 percent to Rs 204.35 apiece.
Oil India’s board approved raising foreign currency debt securities worth Rs 4,000 crore. It also approved a buyback of 4.45 percent of total paid-up share capital at Rs 215 apiece aggregating to Rs 1,086 crore, according to an exchange filing. The record date is set for Dec. 3.
The stock trades at 6.6 times the estimated earnings per share for the coming year, Bloomberg data showed.
GAIL Jumps On Goldman Sachs’ Rating Upgrade
Shares of the state-owned gas explorer snapped its four-day losing streak and rose 3.4 percent to Rs 346 apiece.
Global research firm Goldman Sachs upgraded its recommendation on the stock to ‘Buy’ from ‘Neutral’, and raised price target to Rs 490 from Rs 260, implying a potential upside of 46.4 percent from the previous close.
The stock trades 28 percent below the Bloomberg consensus target price.
ITI Tops Nifty 500 On Heavy Volumes
Shares of the telecom equipment maker rose nearly 12.1 percent to Rs 97.35 apiece on heavy volumes.
The trading volume is more than 11 times its 30-day average, according to Bloomberg data. The stock is the top gainer on the NSE Nifty 500 Index.