Stocks Radar: HCL Technologies, Hotel Leelaventure, Mindtree, Reliance Power
Indian equity benchmarks extended gains for the seventh consecutive trading session. The S&P BSE Sensex advanced 0.1 percent to 38,145.60 and the NSE Nifty 50 traded 0.07 percent higher at 11,463.90, as of 9:55 a.m.
The market breadth was tilted in favour of buyers. Seven out of the 11 sectoral gauges gained, led by the NSE Nifty Pharma Index’s 0.86 percent advance. The NSE Nifty Auto Index was the biggest loser, down 1.10 percent.
Mindtree Falls After L&T Plans To Acquires Majority Stake
Shares of the IT services provider pared opening gains and fell as much as 1.6 percent to Rs 947.60 apiece.
Larsen & Toubro plans to buy a controlling stake in Mindtree after it entered into an agreement with Coffee Day Enterprises founder VG Siddhartha to buy his 20.3 percent shareholding in the firm, according to an exchange filing. In a three-step transaction, L&T will get between 20.3 to 66.3 percent of Mindtree at a total cost of up to Rs 10,730 crore.
Meanwhile, shares of L&T declined as much as 1.9 percent and Coffee Day Enterprise fell 2.7 percent intraday.
Tata Motors Falls Despite Clarifying On Vehicle Recall
Shares of the carmaker ended its two-day gaining streak and declined nearly a percent to Rs 180.90 per share.
Tata Motors clarified that Jaguar Land Rover recalled its vehicles voluntarily due to a carbon dioxide emissions-related issue, and costs associated with this step weren't material, Bloomberg News reported.
The stock declined 46 percent in the past 12 months compared with a 16 percent gain in the Sensex.
Hotel Leelaventure Locked In Upper Circuit After Plans To Sell Hotels
Shares of the Mumbai-based company advanced 5 percent intraday to Rs 11.55 per share.
Hotel Leelaventure said it will sell four Leela hotels in Bengaluru, Chennai, Delhi and Udaipur to a Brookfield-sponsored private real estate fund for Rs 3,950 crore, according to a stock exchange filing. The above four hotels contribute nearly 80 percent of the total income and 88 percent of the total net worth of the company.
The stock declined 35 percent in the past 12 months compared with a 16 percent gain in the BSE Sensex.
HCL Technologies Gains After Inking Agreement With Xerox
Shares of the IT firm snapped its one-day blip and rose as much as 1.2 percent to Rs 1,024 apiece.
HCL Technologies entered into a shared services arrangement with Xerox Corporation following which Xerox will outsource certain global administrative and support functions, according to its notification to the exchanges. The transaction revenue over the course of seven years will be $1.3 billion.
The stock traded at 14 times its estimated earnings per share for the current year, Bloomberg data showed.
Reliance Group Stocks Advance
Shares of the Anil Ambani-led Reliance Group companies gained after Reliance Communications paid Rs 550 crore to Ericsson as per the directions of the Supreme Court. (Read the full story here)
Besides, Reliance Communications and Reliance Jio terminated their agreement for sale of specified assets by mutual consent.
Torrent Power Gains After Block Deal
Shares of Torrent Power rose as much a 3.1 percent to Rs 269.40. About 4.6 crore shares of the company changed hands in a block deal during pre-market trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Trading volume was five times its 20-day average, Bloomberg data showed.
ICICI Lombard Swings After Receiving The Most Bullish Price Target Yet
Shares of ICICI Lombard General Insurance Company fluctuated between gains and losses to trade 0.5 percent lower at Rs 973.20.
Brokerage and research firm Jefferies initiated coverage with a ‘Buy’ rating on the stock and set a price target at Rs 1,136, implying a potential upside of Rs 15.8 percent from the current market price. This is the highest price target so far among the analysts tracked by Bloomberg.
Here’s what Jefferies had to say about ICICI Lombard:
- Expect strong demand for consumer-oriented products and low correlation to markets.
- Long-term motor insurance RoE accretive; expect benefits over FY19-21.
- Well positioned to deliver RoE’s in excess of 20 percent.
- Expect book value and net profit to grow at a compounded annual growth rate of 19 percent and 25 percent respectively over FY19-21.