Stocks Radar: Garden Reach, HEG, Tata Motors, Indiabulls Ventures
Indian equity benchmarks edged higher in early trade, led by gains in Bajaj Finance, Tata Motors and Hero MotoCorp, amid a mixed trade in Asian stocks as yields on Treasuries retreated from a seven-year peak.
The S&P BSE Sensex and the NSE Nifty 50 Index rose more than a percent to trade at 34,704.11 and 10,437.25, respectively, as of 11 a.m.
The market breadth was tilted in favour of buyers. Ten out of 11 sectoral gauges advanced, led by a 3.25 pecent gain in the NSE Nifty Media Index. The NSE Nifty IT Index was the only sectoral loser, down 0.11 percent.
Here Are The Stocks Moving The Market This Morning
Garden Reach Makes A Weak Debut On Bourses
Shares of the state-run shipbuilder listed at a 13 percent discount at Rs 102.40 apiece, compared with its issue price of Rs 118.
The initial public offer subscribed 1.02 times on the final day of bidding. The company had extended the closing date of the issue due to a lukewarm response and as well as revised the lower cap price to Rs 114 from Rs 115 apiece.
NLC Gains The Most In Over A Year On Buyback Approval
Shares of the state-owned power generator rose as much as 12.6 percent, the most since March 2017, to Rs 83 apiece.
NLC India’s board approves to buy back 14.19 lakh shares at Rs 88 a share, according to an exchange filing. The amount of buyback aggregates to Rs 1,249 crore. The shares proposed in the buyback represent 9.28 percent of the company’s equity paid-up share capital.
The stock trades at 6.2 times trailing its 12-month earnings per share, Bloomberg data showed.
SBI Swings As Lender Plans to Step Up Portfolio Purchases From NBFCs
Shares of the country’s largest state-owned lender hovered between gains and losses to trade at Rs 265.15 apiece.
State Bank of India on Tuesday said it will increase its planned purchase of portfolios from non-banking financial companies. The bank sees an opportunity to buy additional portfolio in the range of Rs 20,000-30,000 crore this year.
Stocks of finance companies, however, were trading higher. Muthoot Finance gained nearly 8 percent to Rs 401.80 apiece and Shriram Transport Finance rose as much as 8.6 percent to Rs 1,048.45 a share.
Indiabulls Ventures Hits Lower Circuit For Thirteenth Session In A Row
Shares of the consumer finance company were locked in the lower circuit of 5 percent at Rs 376.40 apiece for the thirteenth straight session.
The company is expected to announce its results for the September quarter on Wednesday. The stock fell 51 percent in the last month compared to a 8.9 percent decline in the S&P BSE Sensex, according to Bloomberg data.
Tata Motors Rebounds After Global Wholesales Rise
Shares of the carmaker snapped its five-day decline and rose as much as 3.5 percent to Rs 190.80 apiece.
Tata Motors Group’s September global wholesales, including Jaguar Land Rover, rose 6 percent year-on-year to 1.23 lakh units, according to an exchange filing. Tata Motors’ commercial vehicles and Tata Daewoo global wholesales were up 25 percent at 52,018 units. Its passenger vehicles global wholesales declined 4 percent to 71,559 units.
The stock trades 47 percent below the Bloomberg consensus one-year target price.
HEG Surges After BofAML Initiates Coverage With A ‘Buy’
Shares of the graphite electrode maker rose as much as 16.7 percent to Rs 3,777 apiece.
Bank of America Merrill Lynch initiated a coverage on the stock with a ‘Buy’ rating. It has a price target of Rs 6,700, implying a potential upside of 108 percent from the last regular trade. BofAML expects a 30-40 percent dividend payout ratio implying an 8.5 percent dividend yield.
The stock gained 42 percent so far this year, according to Bloomberg data.