Stocks Radar: IDBI Bank, Jet Airways, Dilip Buildcon
The Indian equity benchmarks extended their decline to the third straight session, dragged by the oil and gas stocks, ahead of the Reserve Bank of India’s policy review later in the day.
The S&P BSE Sensex and the NSE Nifty 50 Index declined over 1 percent to trade at 34,782.43 and 10,458.70, respectively, as of 10.40 a.m.
The market breadth was tilted in favour of sellers. Nine of the 11 sectoral gauges fell, led by a 2.6 percent decline in the NSE Nifty Metal Index. The NSE Nifty IT Index was the top gainer, up 0.39 percent.
Here Are The Stocks Moving The Market This Morning
Oil Stocks Slump After Government Cuts Price
Shares of Indian oil marketing companies fell after the central government on Thursday cut prices of auto fuels by Rs 2.5 a litre. The government cut excise duty on petrol and diesel by by Rs 1.50 a litre and also asked state-run oil marketers to cut retail prices by Re 1.
- Indian Oil Corporation’s shares declined nearly 25 percent, its biggest fall in over a decade, to Rs 105.25 apiece.
- Shares of Bharat Petroleum fell as much as 28 percent, its biggest decline since May 2004, to Rs 238.55 apiece.
- The Hindustan Petroleum stock declined the most in a decade, falling nearly 24.38 percent, to Rs 164.20 apiece.
Goldman Sachs, too, lowered price targets of oil retailers and said the government’s move confirms reversal of deregulation of fuel retail market.
- For IOC, it maintained ‘Neutral’; cut price target to Rs 125 from Rs 185.
- For BPCL, it downgraded the stock to ‘Sell’ from ‘Buy’; cut price target to Rs 260 from Rs 470.
- For HPCL, it downgraded the counter to ‘Sell’ from ‘Buy’; cut price target to Rs 170 from Rs 345.
Dilip Buildcon Rises After Bagging New Contract
The construction services company rose as much as 2.2 percent to Rs 642 apiece.
The Bhopal-based company received a letter of acceptance for an engineering, procurement and construction project for a dam in Rajasthan for Rs 601 crore, according to its filing with the bourses. The order was given by the Water Resource Department of Kota.
The stock traded 41 percent below Bloomberg consensus one-year target price.
Rs 258-Crore From Jet Privilege Fails To Lift Jet Airways Stock
Shares of the low-cost carrier fell nearly 5.8 percent to Rs 185.65 a share.
The company received around Rs 258 crore from Jet Privilege, its customer loyalty programme, for advance ticket sale, according to a PTI report.
The fresh funding comes as a lifeline to the Naresh Goyal-promoted full service carrier, which has been in financial turbulence amid losses, caused by high jet fuel prices, rupee depreciation and inability to raise fares due to cut-throat competition.
The stock declined 77.7 percent so far this year compared with a 4.1 percent advance in the Sensex, Bloomberg data showed.
IDBI Bank Gains After LIC’s Open Offer
Shares of the state-owned lender rose nearly 4.1 percent to Rs 59.30 apiece.
LIC made an open offer for a 26 percent stake in IDBI Bank at Rs 61.73 a share, according to an exchange filing. The offer price is 7.7 percent higher from its previous close.
The trading volume was 8.4 times the 20-day average, Bloomberg data showed.
Jaiprakash Power Swings After Lender Initiates Insolvency Proceedings
Shares of the power producer fluctuated between gains and losses to trade at Rs 2.33 apiece.
ICICI Bank has filed an application initiating corporate insolvency process against the company, the company said in an exchange notification.
The stock fell 70 percent in the last one year compared to a 12.4 percent advance in the Sensex, according to Bloomberg data.