Stocks Radar: Hindalco, PSU Bank Index, Force Motors
Indian equity benchmarks rose the most in 10 days ahead of the announcement of the Monetary Policy Committee’s decision on policy rates this afternoon. A global rally in equities have lent strength to the Indian markets.
The S&P BSE Sensex rose as much as 1.2 percent to 33,427.4, while the NSE Nifty 50 Index was up 1.3 percent to 10,264.2.
The market breadth was firmly tilted in favour of the buyers. All the 19 sector gauges on the BSE climbed, led by a 3.2 percent rise in the S&P BSE Metal Index and followed by a 2.4 percent rise in the S&P BSE Basic Materials Index.
Here Are The Stocks Moving The Market This Morning:
NIFTY PSU Bank Gains Ahead Of MPC Meet
The NSE Nifty PSU Bank Index rose as much as 2.1 percent in early trade.
The monetary policy committee will meet today to set the course for the new financial year. All economists polled by Bloomberg expect the Monetary Policy Committee to maintain the benchmark rate at 6 percent and also maintain a neutral stance.
IDBI Bank and Syndicate Bank were the top gainers.
The recent move up for PSU bank stocks comes after a long bout of concerted selling. So far this year, the index has declined just under 22 percent, most of which took place after the Rs 12,700-crore Punjab National Bank fraud came to light.
Force Motors: Sales Push
Shares of the Pune-based vehicle manufacturer rose as much as 5.8 percent, the most in two weeks, to Rs 2,950.
Force Motors Ltd., like most other automakers reported strong volume growth in March. It sold 4,364 units in India, up 6 percent on year, and 54 percent sequentially.
Trading volume was 11.8 times the 20-day average of the day. The stock has given negative returns of nearly 21 percent so far this year. That compares with a 5.3 percent drop in the NSE Nifty Auto Index.
Hindalco Industries: Rises As Correction Seemed Exaggerated
Shares of the Mumbai-based integrated aluminium and copper manufacturer, rose as much as 4.3 percent, the most in almost two months, to Rs 209.4. The stock has risen after four consecutive sessions of losses.
Street analysts said that the 24 percent drop in the stock so far this year was overdone. Analysts attribute the drop to trade concerns and weak aluminium prices. The risk-reward profile for the stock is positive, Jefferies wrote in a note.
U.S. tariffs will not impact the company as its U.S. subsidiary, Novelis, is likely to be unaffected, Jefferies and Macquarie said in their respective research notes.
Hindalco Industries Ltd. is the top pick for brokerage firm Macquarie from the metals segment. It has reiterated its ‘outperform’ rating with a target price of Rs 296 and a potential upside of 42 percent.
Jefferies has a ‘buy’ recommendation on the stock with a target price of Rs 309 and a potential upside of 48 percent.
Smartlink Network: Buyback Boost
Shares of the communications equipment manufacturer rose as much as 12.9 percent to Rs 100.7.
The board of Smartlink Network Systems Ltd. will consider a proposal to buyback the fully paid up equity shares of face value of Rs 2 of the company.
Trading volume was 110.9 times the 20-day average. The stock has returned a negative 13 percent so far this year and a loss of 1.1 percent in the past 52 weeks.
PVR: Drops On Bombay High Court Statement
Shares of the multiplex operator fell over 2 percent in early trade. The Bombay High Court said on Wednesday that food in multiplexes should be sold at regular prices.
Interestingly, shares of sector peer Inox Leisure were up 2 percent.
At the current level of Rs 1,235, shares of PVR are trading over 9 percent below their 200-day moving average. So far this year, the stock has lost over 12.5 percent.
The volumes in early trade were nearly three times the 20-day average.
Stocks Reacting To Block Deals
- Shares of Ashok Leyland Ltd. rose as much as 1.9 percent to Rs 148.6.
- 13 lakh shares changed hands in a single block.