Employees ride an elevator between electronic ticker boards that indicate the latest stock figures inside the atrium at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: HDFC Bank, Lupin, Persistent Systems, Asian Paints

Indian equity benchmarks opened higher as Asian stocks and U.S. futures erased earlier losses amid a rally in Chinese shares. The S&P BSE Sensex and the Nifty 50 Index traded 0.18 percent higher at 34,378.55 and 10,321.90, respectively, as of 10:45 a.m.

Yet, the market breadth was slightly tilted in favour of sellers. Five of the 11 sectoral gauges fell, led by a 1.05 percent decline in the NSE Nifty Media Index. The NSE Nifty Financial Services Index was the top sectoral gainer, up 1.12 percent.

Here Are The Stocks Moving The Market This Morning

Lupin Gains After Muscle Relaxation Drug Gets European Committee’s Nod

Shares of the drugmaker rose as much as 1.6 percent to Rs 894.70 apiece.

Lupin Neurosciences, a specialty pharma division of Lupin, said the scientific committee of the European Medicines Agency has adopted a “positive opinion” recommending the marketing authorisation of its drug NaMuscla, according to an exchange filing. The drug is used for treating a group of rare, inherited neuro-muscular disorder, which causes inability of muscle relaxation following voluntary contraction.

The stock trades 31.2 times trailing its 12-month earnings per share and 31 times its estimates for the coming year, Bloomberg data showed.

HDFC Bank Rises After Q2 Earnings

Shares of the country’s largest private lender snapped its three-session decline and rose as much as 2.7 percent to Rs 2,020.45 apiece.

Net profit of the company rose 20.6 percent sequentially to Rs 5,005.7 crore in the July-September quarter, according to its exchange filing. That compares with the Rs 5,033-crore consensus estimate of analysts tracked by Bloomberg.

Other Highlights

  • Net interest income rose 20.6 percent to Rs 11,763.40 crore.
  • Net NPA stood at 0.40 percent compared with 0.41 percent in the previous quarter.
  • Gross NPA remained unchanged at 1.33 percent compared with the preceding quarter.

Brokerages, too, maintained their stance on the private lender citing a steady quarter.

JPMorgan

  • Maintains ‘Overweight’ with a price target of Rs 2,400, implying a potential upside of 22 percent from the last regular trade.
  • The company reported a steady performance during the September quarter and maintained asset quality.
  • It continued to gain market share both in terms of assets and deposits.
  • Robust loan growth of 24 percent.

Edelweiss

  • Maintains ‘Buy’ with a price target of Rs 2,454, implying a potential upside of 25 percent from the last regular trade.
  • Yet another consistent quarter with an improved traction in core operating profitability.
  • Sound fundamentals bolstering market share and spurring loan growth.
  • Asset quality steady; outlook stable.

Persistent Systems Slumps To 2-Year Low After Q2 Results

Shares of the IT services provider fell 16.5 percent, the lowest since September 2016, to Rs 552 apiece after the company’s second quarter earnings missed estimates.

Earnings Highlights (Quarter-On-Quarter)

  • Revenue rose 0.2 percent to Rs 835.5 crore.
  • Profit increased 0.9 percent to Rs 88.1 crore.
  • EBIT rose 3.7 percent to Rs 103.4 crore.
  • EBIT margin stood at 12.4 percent against 11.98 percent.

The trading volume is 26 times its 20-day average, according to Bloomberg data.

Stocks Radar: HDFC Bank, Lupin, Persistent Systems, Asian Paints

Reliance Power Jumps After Subsidiary Wins Arbitration Award

Shares of the power generator rose nearly 2.7 percent to Rs 28.10 apiece.

Sasan Power, a wholly owned subsidiary of Reliance Power, bagged an arbitration award against North American Coal Corporation, according to an exchange notification. Sasan Power is required to pay only Rs 17 crore towards outstanding invoices against NACC’s claims of Rs 235 crore.

The stock, however, declined 46 percent so far this year, according to Bloomberg data.

Asian Paints Swings Ahead Of Earnings

Shares of the paintmaker fluctuated between gains and losses to trade at Rs 1,237.15 apiece ahead of its earnings announcement for the quarter ended September.

Earnings Preview (Year-On-Year)

  • Net profit likely to remain flat at Rs 578 crore.
  • Revenue expected to rise 11.9 percent to Rs 4,772 crore.
  • Ebitda expected to rise 12.8 percent to Rs 903.5 crore.
  • Margin seen at 18.9 percent against 18.8 percent.

The stock is 17 percent below the Bloomberg consensus one-year target price.

NDTV Falls The Most In 3 Weeks After Enforcement Directorate Issues Notice

Shares of the media company fell as much as 4.5 percent, the most in three weeks, to Rs 32 a share.

The Enforcement Directorate issued a show cause notice to NDTV for alleged breaches of foreign exchange rules to the tune of Rs 4,300 crore, according to its exchange filing.

The stock declined close to 47 percent this year compared to an 8.3 percent advance in the BSE Sensex Index, Bloomberg data showed.

AU Small Finance Bank Slips After Morgan Stanley Downgrade

Shares of the Jaipur-based lender fell nearly 7.3 percent to Rs 500.50 apiece after Morgan Stanley lowered the stock recommendation to ‘Equal-weight” from “Overweight”.

The stock has 10 ‘Buy’, four ‘Hold’ and one ‘Sell’ recommendation, according to Bloomberg data.