Stocks Radar: Jindal Steel & Power, L&T, Reliance Industries
Indian equity benchmarks fell for the second session, following its Asian peers as the U.S. 10-year Treasury yield rose to its highest level in seven years. The S&P BSE Sensex fell as much as 1.76 percent to 35,341.68 and the NSE Nifty 50 Index fell as much as 1.79 percent to 10,663.65 as of 10.20 a.m.
The Indian rupee hit a record low of 73.73 against the U.S. dollar soon after it opened for trade.
The market breadth was tilted in favour of sellers. All of the 11 sectoral gauges declined, led by a 2.65 percent fall in the NSE Nifty IT Index.
Here Are The Stocks Moving The Market This Morning
L&T Top Performer On Sensex, Nifty
Shares of the construction company snapped their four-day decline, its longest losing streak in nearly a month, and rose as much as 3.2 percent to Rs 1,285 apiece.
The company’s board approved the buyback of equity shares, according to its exchange notification. The company will buyback around 6.1 crore shares, representing 4.35 percent of the paid-up equity capital at Rs 1,475 each, aggregating to a total consideration not exceeding Rs 9,000 crore, the statement said. Oct. 15 has been set as the record date for the buyback, it said.
Besides, ONGC awarded a contract worth $1.69 billion to Baker Hughes, McDermott International and L&T’s unit—L&T Hydrocarbon. ONGC expects the start of first gas production by December 2019, first oil by March 2021 and overall project completion by August 2021, according to a Bloomberg report.
The stock was the best performer on the Sensex and Nifty. The scrip traded at 19 times estimated forward earnings per share compared to a 22.4 times for the two-year historical average, according to Bloomberg data.
Reliance Industries Fell The Most In Over Nine Months
Shares of the Mukesh Ambani-led company fell for the third straight session. The stock fell as much as 5.1 percent, the most in over nine months, to trade at Rs 1,144.05 apiece.
According to an Economic Times report, Reliance Industries is said to be in talks to buy Hathway Cable to launch its GigaFiber high-speed home broadband services.
Reliance Industries and Hathway Cable, however, clarified that both were looking at various options to grow their business and they did not want to comment on any market speculation and rumours.
The stock was the worst performer on the Sensex and Nifty. The scrip returned 28.1 percent so far this year compared to a 5.4 percent advance in the Sensex, Bloomberg data showed.
Jindal Steel & Power Gains After Q2 Production Rises
Shares of the steelmaker snapped a four-day decline, its longest losing streak since Aug. 16, and rose as much as 2.7 percent to Rs 191.65 apiece.
The company’s steel production rose 46 percent on a yearly basis to 13 lakh tonnes during the July-September period, according to its exchange notification.
Jindal Steel trades at 19 times its estimated earnings per share for the coming year, Bloomberg data showed.
VST Tillers Tractors Falls After September Sales Slump
Shares of the tractor maker fell for the fifth straight session, its longest losing streak since Sept. 14. The stock fell as much as 6 percent to trade at Rs 1,570 apiece.
The company’s sales of power tillers fell 38 percent on a yearly basis to 1,152 units last month. Tractor sales declined 40 percent year-on-year to 801 units during the period, according to its exchange notification.
The Relative Strength Index was 13, indicating the stock may be ‘Oversold’. The stock declined over 35 percent so far this year, Bloomberg data showed.
Federal Bank Declines After RBI Imposes Penalty
Shares of the lender fell as much as 3.1 percent to Rs 68 apiece.
The bank was fined Rs 5 crore by the Reserve Bank of India for non-compliance in reporting of data CRILC (risk-based supervision), payment of compensation in ATM-related issues and know your customer norms, according to the central bank’s notification.
The Relative Strength Index was 29, indicating the stock may be ‘Oversold’, according to Bloomberg data.