Stocks Radar: Gruh Finance, Inox Leisure, Reliance Nippon AMC, Sun TV 

Indian equity indices opened higher as investors seemed bullish after the return of Narendra Modi-led National Democratic Alliance to power.

The S&P BSE Sensex rose as much as 0.50 percent to 38,989 and the NSE Nifty 50 Index gained nearly 0.43 percent to 11,704.60, as of 9:50 am. The market breadth was tilted in favour of buyers.

Ten of the 11 sectoral gauges compiled by the National Stock Exchange declined, led by the Nifty PSU Bank Index’s 1.17 percent advance. The Nifty IT Index was the only sectoral loser, falling 0.10 percent.

Reliance Nippon Snaps Its Seven-Day Gaining Streak

Shares of the asset management company snapped its seven-day gaining streak and declined 4.3 percent intraday to Rs 224.50 apiece.

Trading volume on the stock was more than nine times its 20-day average for this time of the day, Bloomberg data showed.

Reliance Nippon Life Asset Management Ltd.’s promoter Reliance Capital plans to sell 8.66 percent stake in the company worth Rs 1,155 crore. The promoter will sell up to 5.3 crore shares at a floor price of Rs 218 apiece—a discount of about 7.6 percent to current market price—through an offer-for-sale, according to an exchange filing.

Inox Leisure Hits Lifetime High

Shares of the multiplex chain rose over 10 percent to hit an all-time high of Rs 356 per share.

Inox Leisure Ltd.’s trading volume was more than 16 times its 20-day average for this time of the day, according to Bloomberg data. The relative strength index on the stock was more than 70, indicating it may be overbought.

Greaves Cotton Gains After Buyback Plan Modification

Shares of the engineering equipment maker rose 2.5 percent intraday to Rs 144.90 apiece.

Greaves Cotton Ltd. modified its share buyback plan. The board approved to buyback 5.32 percent of share capital at Rs 175 per share aggregating to Rs 227.5 crore, according to its exchange notification.

Shares of the company trade at 16 times its estimated earnings per share for the coming year, Bloomberg data showed.

Gruh Finance Plunges After Block Deals

Shares of the non-bank lender plunged 7.5 percent, the most in four months, to Rs 306 apiece.

Around 2.5 crore shares or 3.6 percent of equity changed hands in six trades, according to Bloomberg data. Buyers and sellers were not known immediately.

Last month, Kolkata-based Bandhan Bank Ltd. said it has received approval of the Competition Commission of India for the proposed acquisition of Gruh Finance Ltd. from HDFC Ltd..

Sun TV Falls After Q4 Results

Shares of the media group erased early gains and declined as much as 1.7 percent to Rs 538.80. The company reported its March quarter results on Tuesday. Net profit declined 2.4 percent year-on-year to Rs 283 crore, according to the Chennai-based company’s exchange filing.

Other Key Highlights:

• Revenue up 23.9 percent to Rs 889 crore.
• Ebitda up 16.3 percent to Rs 608.1 crore.
• Margin at 68.4 percent versus 72.9 percent.
• Depreciation up 2 times to Rs 242 crore.
• Other expenses up 52 percent to Rs 70 crore.

Here’s what the brokerages had to say on the stock:

Macquarie

• Maintained ‘Outperform’; cut price target to Rs 700 from Rs 725.
• Tariff order impacts March quarter’s topline.
• Tariff order impact to normalise by the September.
• Increased churn from Arasu augurs well; Telco deals with Sun Nxt should drive subscription growth.

CLSA

• Maintained ‘Buy’; cut price target to Rs 730 from Rs 770.
• Weak March quarter performance hit by TRAI’s new regime.
• OTT/SunNXT ramping up well and is awaiting agreement with Jio.
• Valuations are inexpensive.

Shares traded 30 percent below the Bloomberg consensus one-year target price.