Stocks Radar: ICICI Lombard, Varun Beverages, Balkrishna Industries, Sun Pharma, Future Market
A pedestrian walks near the Bombay Stock Exchange (BSE) building in Mumbai, India, on Thursday, Aug. 29, 2019. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: ICICI Lombard, Varun Beverages, Balkrishna Industries, Sun Pharma, Future Market

Indian equity benchmarks fluctuated as investors looked for bargains amid lingering concerns that the faltering economic growth may prolong the earnings revival for corporates.

At 12:50 p.m., the S&P BSE Sensex was little changed at 36,597 and likewise the NSE Nifty 50 at 10,800. The market breadth was split evenly in favour of both sellers and buyers.

About 793 stocks declined as the same number of shares advanced on the National Stock Exchange. Five out of 11 sectoral gauges compiled by the NSE traded higher, led by the NSE Nifty PSU Bank Index.

ICICI Lombard Slumps As Insurance Regulator Removes Lock-In Period

Shares of ICICI Lombard General Insurance Co Ltd. fell as much as 3.17 percent to Rs. 1,152.20 apiece, its lowest in almost two weeks.

This was after the Insurance Regulatory and Development Authority of India waived off the earlier imposed lock-in period on the equity shares held by Fairfax. The lock in period was till March 29, 2021 and currently Fairfax holds 10 percent stake in the insurance company.

The ICICI Lombard stock advanced 48 percent in the last year, according to Bloomberg data.

Varun Beverages Rises As It Fixes Floor Prices For Marquee Buyers

Shares of Varun Beverages Ltd. rose as much as 3 percent to Rs. 648.75 each, the most in almost three weeks.

The beverage maker fixed its QIP’s floor price at Rs 644.08 -- at premium of 2 percent to its previous closing prices. The issue opened on Sept. 3.

The meeting of the QIP committee of Varun Beverages is scheduled to be held on Friday, the company said in an exchange filing Tuesday, where it will consider and approve the issue price, among other things.

The Varun Beverages stock advanced 19 percent in the past 52 weeks, against a loss of 4.4 percent of the Sensex, according to Bloomberg data.

Balkrishna Slumps To Two-And-A-Half Year Low On Weak Global Cues

Shares of Balkrishna Industries Ltd. fell 6.55 percent intraday to Rs. 682 per piece, to its lowest since March 14, 2017.

Macquarie initiated an ‘Underperform’ rating with a price target of Rs 575 on the tyremaker. While it acknowledged its proven track, the broking firm expects intensifying competition to add pressure going forward.

  • A weakness in global agriculture and mining activities worsened the headwinds Balkrishna is facing.
  • A rise in capital expenditure will weigh on the company’s net profit and return on capital employed, hurting earnings and valuations.

The Balkrishna stock fell 40 percent in the last year, while the Sensex lost 4.1 percent, according to Bloomberg data.

Sun Pharma Top Nifty Loser

Shares of Sun Pharmaceuticals Ltd. slumped as much as 5.18 percent to Rs. 416.60 apiece, the most since Aug. 14.

According to a report, the Securities and Exchange Board of India has ordered a forensic audit against the drugmaker to look into allegations of financial irregularities and lapses in corporate governance standards.

The trading volume on the stock was more than triple the 20-day average while its put options doubled.

Gujarat Alkalies Jumps For Third Straight Session

Shares of the chemical maker rose as much as 8.5 percent to Rs 426 after the company said it will consider stock split in a board meeting on Sept. 27.

The board will also consider a proposal for amendment to the capital clause of the memorandum of association and the articles of association of the company.

Trading volume was seven times the 20-day average for the stock. The analyst consensus one-year price target for the company is Rs 591.

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