Stocks Radar: HUL, Ircon International, Ruchi Soya, Tata Motors
Indian equity benchmarks fluctuated between gains and losses in opening trade as stocks of information technology firms fell.
The Sensex and the Nifty traded 0.2 percent higher each at 39,092.50 and 11,748.30, as of 10:00 am. The market breadth was tilted in favour of buyers.
Seven of the 11 sectoral gauges compiled by the National Stock Exchange rose, led by a 1.64 percent advance in the NSE Nifty Realty Index. The NSE Nifty IT Index was the top sectoral loser, down 1.52 percent.
Here Are The Stocks Moving The Market This Morning
Tata Motors Gains After A Seven-Day Falling Streak
Shares of the automaker rose 3.1 percent intraday to Rs 213.65 apiece.
Also, Tata Motors Ltd. reported its sales figures for the month of April on Thursday. The company sold 42,577 units last month, a fall of 20 percent from the year-ago period, according to its stock exchange notification.
Key Highlights (YoY)
- Domestic passenger vehicle sales fell 26 percent to 12,694 units.
- Domestic commercial vehicle sales down 18 percent to 29,883 units.
- Domestic medium and heavy commercial truck sales fell 33 percent to 9,403 units.
- Exports down 53 percent to 1,402 units due to inventory pile up in Bangladesh, security concerns in Sri Lanka and slump in Middle East automotive market, the filing said.
The stock traded at 107 times its estimated earnings per share for the coming year, according to Bloomberg data.
HDFC Life Falls After Promoter Plans To Offload Stake
Shares of the life insurer fell 3.9 percent intraday, the biggest drop in over a month, to Rs 401.10 apiece.
Its promoter Standard Life (Mauritius Holdings) 2006 Ltd. plans to sell up to 3.6 crore shares, or 1.78 percent stake, in the open market, according to an exchange filing. The floor price is set to Rs 390 per share. The seller proposes to sell these shares on May 3 for non-retail investors and on May 6 for retail investors. The floor price is at a discount of almost 7 percent to the current market prices.
The trading volume was over 50 times the 20-day average for this time of the day, Bloomberg data showed. The stock traded at 57 times its estimated earnings per share for the coming year.
Ircon Gains After Winning Sri Lankan Government Order
Shares of the state-owned construction company rose for the second straight session and over 3 percent to Rs 412.45 apiece.
Ircon International Ltd. received an order worth $91.27 million from the Sri Lankan Government for upgradation of railway tracks, according to an exchange filing. The contract will be executed over a period of 36 months.
The stock declined 14 percent in the last 12 moths compared with an 11 percent gain in the Sensex.
IT Shares Decline
The NSE Nifty IT Index fell for the second consecutive trading session, led by the declines in HCL Technologies Ltd. and Tata Consultancy Services Ltd.
Ruchi Soya Locked In Upper Circuit
Shares of the cooking oil manufacturer were locked in the upper circuit after it rose 10 percent to Rs 8.95 apiece.
Lenders of the company had approved Patanjali’s resolution plan, the company said in an exchange notification.
The relative strength index on the stock was over 70, indicating it may be overbought.
HUL Falls Ahead Of Q4 Results
Shares of the FMCG major declined 1.1 percent to Rs 1,704 apiece. The company is scheduled to announce the results of the March-ended quarter today.
Results Preview (YoY)
- Revenue expected to rise 10 percent at Rs 10,001 crore.
- Ebitda to rise up 14.9 percent at Rs 2,348 crore.
- Ebitda margin expected at 23.5 percent versus 22.5 percent.
- Net profit seen to rise 19.2 percent to Rs 1,611 crore.
The stock traded 11 percent below the Bloomberg one-year consensus target price.