Stocks Radar: Kotak Mahindra Bank, HCL Technologies, Zydus Wellness, Jet Airways
Indian equity benchmarks snapped a three-day blip following Asian stocks. The S&P BSE Sensex and the NSE Nifty 50 Index traded higher at 35,524.44 and 10,638.95, respectively, as of 10:35 a.m.
The market breadth was tilted in the favour of buyers. Eight of the 11 sectoral gauges advanced, led by a 1.29 percent gain in the NSE Nifty Private Bank Index. The NSE Nifty Metal Index was the top loser, down 0.98 percent.
Here Are The Stocks Moving The Market Today
Kotak Mahindra Bank Jumps The Most In Over Four Years
Shares of the Uday Kotak-led lender rose as much as 8 percent, the most in over four years, to Rs 1,275 apiece.
Warren Buffet-promoted Berkshire Hathaway is looking to buy a 10 percent stake in the private bank, CNBC-TV18 reported quoting unnamed sources. According to the Reserve Bank of India’s guidelines, promoter Uday Kotak needs to bring down his stake in the bank below 20 percent from 29.73 percent.
Berkshire and Kotak Mahindra Bank are yet to respond to BloombergQuint’s emailed queries.
HCL Technologies Worst On Nifty After Buying Unit From IBM
Shares of the IT firm slumped as much as 5.4 percent to Rs 958.15 apiece.
HCL Technologies Ltd. on Friday said it was buying some of International Business Machines Corp.’s software assets for $1.8 billion. The transaction, subject to regulatory reviews, is expected to close by mid-2019, according to HCL’s filing on the bourses.
The stock traded 13 times its estimated earnings per share for the coming year, Bloomberg data showed.
Coal India Swings After Government Trims Stake
Shares of the world’s largest coal miner fluctuated between gains and losses to trade lower at Rs 238.55 apiece.
The government sold 2.21 percent equity shares of Coal India, worth Rs 3,300 crore, to the CPSE ETF managed by Reliance Nippon Life Asset Management Ltd. After the sale, the government’s holding in the state-run miner fell to 72.92 percent of the equity paid-up share capital from 75.13 percent, according to its regulatory filing.
The stock was below 30 on the Relative Strength Index, indicating it may be oversold.
Oil Retailers Gain As Crude Extends Slide
Shares of oil marketers rose after crude declined for the third day amid signals that OPEC and other aligned oil producers won’t curb output enough to erase a supply overhang.
Brent crude fell as much as 0.97 percent to $59.48 a barrel.
- Bharat Petroleum rose as much as 1.9 percent to Rs 330.95 apiece.
- Hindustan Petroleum rose as much as 2.2 percent to Rs 230.30 apiece.
- Indian Oil rose as much as 2.2 percent to Rs 133.60 apiece.
Zydus Wellness Gains After Board Approves Issue Of Preference Shares
Shares of the dairy products maker rose 2.14 percent to Rs 1,265.70 a share.
Zydus Wellness said it will raise funds by issuing preference shares worth Rs 2,575 crore to Cadila Healthcare, Zydus Family Trust, Pioneer Investment Fund and True North Fund, according to an exchange filing. The board also approved that non-convertible debentures worth Rs 1,500 crore will also be raised within one year from now.
The stock gained 33 percent in the past 12 months compared to an 8.3 percent gain in the S&P BSE Sensex, according to Bloomberg data.
Jet Airways Soars On Report Of Etihad Stepping In To Rescue
Shares of the cash-strapped airline rose close to 4 percent to Rs 288.75 apiece.
The Abu Dhabi-based airline offered to guarantee loans worth $150 million for Jet Airways, Mint reported citing unnamed sources.
The stock traded 13 percent lower compared to Bloomberg consensus one-year target price.
Steel Stocks Fall After Citi Downgrade
Shares of steelmakers fell after a report by brokerage firm Citi said falling steel prices, rising leverage and valuations made Indian steel “unattractive”. Steel prices are also expected to normalise in 2019 as China demand slows, it said.
Steel Authority of India Ltd. declined the most on the Nifty Metal Index, falling as much as 4.5 percent to Rs 50.65 apiece. JSW Steel declined 2.4 percent to Rs 298.25 apiece.
- Tata Steel: Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 440 from Rs 620.
- JSW Steel: Downgraded to ‘Sell’ from ‘Buy’; cut price target to Rs 290 from Rs 410.
- SAIL: Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 40 from Rs 72.