Stocks Radar: Indian Oil, Motherson Sumi, HCL Technologies
Indian equity benchmarks halted their three-day rally after opening lower, mirroring its Asian peers.
The S&P BSE Sensex and the NSE Nifty 50 Index traded flat at 35,960 and 10,798.65, respectively, as of 10:10 a.m.
The market breadth, however, was tilted in favour of buyers. Eight of the 11 sector gauges advanced, led by a 0.63 percent gain in the Nifty Realty Index. The Nifty Media was the biggest loser, down 0.11 percent.
Here Are The Stocks Moving The Market This Morning
Indian Oil Tops Nifty After Dividend, Buyback Announcement
Shares of the country’s largest oil retailer rose 3.5 percent intraday to Rs 142.20 per share.
The board of Indian Oil Corporation Ltd. announced that the company will buyback 3 percent of the total equity worth Rs 4,435 crore at Rs 149 per share, a premium of 9 percent to the last price and dividend of a Rs 6.75 per share aggregating to Rs 7,886 crore, according to an exchange filing. Record date for the buyback is set on Dec. 25.
The stock traded at nearly eight times its estimated earnings per share for the coming year, Bloomberg data showed.
Motherson Sumi Surges After Report Of Possible Merger
Shares of the auto-parts maker rose as much as 11 percent to Rs 179.30 apiece, its highest in over two months.
Motherson Sumi is said to be in early-talks with Germany-based Leoni over a possible merger, reported news agency Reuters, citing unnamed sources. Deal could be worth more than $1.14 billion.
The trading volume was 14 times the 20-day average for this time of the day, according to data compiled by Bloomberg.
Vodafone Idea, Airtel Gain After Tribunal Quashes Regulator’s Tariff Order
Shares of Vodafone Idea gained as much as 2.4 percent to Rs 35.75 while Bharti Airtel advanced close to 3 percent to Rs 312.10.
The rise in share prices follows telecom tribunal setting aside Telecom Regulatory Authority of India’s February order on predatory pricing and discounted tariff. The tribunal said TRAI cannot impose penalty and has asked the telecom regulator to reconsider the provisions within six months.
Adani Enterprises Declines After Stake Buy In Defence-Equipment Maker
Shares of the mining conglomerate fell close to 1.3 percent to Rs 154.10 per share.
Adani Enterprises’ defence arm acquired 1.3 crore shares in Alpha Design Technologies for Rs 400 crore, according to its notification to the bourses. The target company belongs to the aerospace and defence industry which develops and manufactures defence electronics and avionics. Its customers include global original equipment manufacturers, India’s armed forces, defence public sector units and Indian Space Research Organisation.
The stock, however, has advanced 70 percent in the past 12 months compared to 8.7 percent gain in the S&P BSE Sensex Index.
HCL Technologies Falls After Stock Downgrade
Shares of the IT services provider declined as much as 2.8 percent to Rs 951 apiece.
Investment bank and credit-rating firm JP Morgan downgraded recommendation on the stock to “neutral” from “overweight”. Also, the price target was lowered to Rs 1,035 per share from Rs 1,170.
The stock traded 22 percent below the Bloomberg consensus one-year target price.