Stocks Radar: Jain Irrigation, Lemon Tree Hotels, United Bank Of India
Indian equity benchmarks extended gains for the third session and are poised for their longest winning streak in over two weeks. The S&P BSE Sensex Index and the NSE Nifty 50 Index rose as much as 0.89 percent to 36,127.25 and 10,870.20, respectively, as of 9:55 a.m.
The market breath was tilted in favour of buyers. All the sectoral gauges advanced, led by the NSE Nifty Pharma Index’s 1.1 percent gain.
Here Are The Stocks Moving The Market This Morning
United Bank Of India Jumps The Most In Nearly Two Months
Shares of the PSU Bank rose as much as 14.3 percent, the most since Oct. 30, to Rs 13.20 apiece.
The government said it would infuse Rs 2,159 crore in the equity capital via preferential allotment. (Here’s how much other banks are expected to receive)
The trading volume was more than 20 times its 20-day average, Bloomberg data showed. The Relative Strength Index was 72, indicating that the stock may be ‘Overbought’.
Lemon Tree Hotels Surges On Joint Venture Plans
Shares of the hotel chain operator rose as much as 13.7 percent, the most in nearly two months, to Rs 77.80 apiece.
The company entered into a joint venture with private equity firm Warburg Pincus affiliate ‘Magnolia Grove Investment’ with a primary focus on co-living, according to its exchange notification. (More details here)
The joint venture partners will initially invest Rs 1,500 crore in equity over a period of time, with an option to invest another Rs 1,500 crore, the statement said. Warburg Pincus will hold a 68 percent stake, while Lemon Tree Hotels will hold a 30 percent stake and the balance will be held by Patanjali Keswani, it said.
The trading volume was 48.7 times its 30-day average, Bloomberg data showed. The stock gained 32.4 percent since its listing on April 2.
Kansai Nerolac Gains On Acquisition Plans
Shares of the paintmaker rose as much as 1.3 percent to Rs 486.45 apiece.
The company plans to acquire Perma Construction Aids for Rs 29.1 crore, it said in its stock exchange filing. The paintmaker said the acquisition will be completed by Jan. 28.
The stock declined 0.7 percent in the past five days and rallied 5.5 percent in the past 30 days, Bloomberg data showed.
Hindustan Construction Company Swings After Fundraising
Shares of the construction company fluctuated between gains and losses to trade at Rs 11.25 apiece.
The company raised Rs 498 crore via rights issue, according to its statement on the exchanges. The promoter stake in the company increased from 27.8 percent to 33.12 percent, it said.
The stock declined over 69 percent in the past 12 months compared with a 7 percent advance in the Sensex, Bloomberg data showed.
Jain Irrigation Falls The Most In Two Weeks
Shares of the micro-irrigation systems maker fell as much as 5.3 percent, the most since Dec. 14, to Rs 48.05 apiece.
The trading volume was over 13 times its 30-day average, Bloomberg data showed. It traded at 7.7 times its estimated forward earnings per share compared with a 13.9 times for the two-year historical average.