Stocks Radar: Mindtree, Punjab National Bank, Quick Heal Technologies, Yes Bank
Here are the stocks moving the market.
Indian equity benchmarks declined for the second session after the markets reopened post-budget announcement. The indices were dragged down by losses in HDFC Bank and Reliance Industries Ltd.
The S&P BSE Sensex and the NSE Nifty 50 Index traded nearly 1 percent lower at 39,150 and 11,699, respectively, as of 10:00 a.m.
The market breadth remained in favour of sellers. All sectoral gauges compiled by the National Stock Exchange declined, led by a 3.1 percent fall in the NSE Nifty PSU Bank Index.
The benchmark indices had ended in losses on Friday after Finance Minister Nirmala Sitharaman in her budget speech proposed to raise minimum public shareholding to 35 percent from 25 percent and increased taxes on India’s wealthy.
Here Are The Stocks Moving The Market This Morning
Quick Heal Technologies Rises On U.S. Patent Grant
Shares of the internet security solutions provider rose as much as 3.7 percent to Rs 170 apiece.
The Pune-based company was granted U.S. patent for anti-ransomware technology, according to its exchange filing. The technology is based on artificial intelligence and machine learning and detects and blocks ransomware on a real-time basis, it said.
The company’s annual general meeting is scheduled on July 15.
Mindtree Falls After Top Executives Quit
Shares of the mid-sized software services provider fell nearly 3.8 percent to Rs 831.50 apiece—the lowest in at least six months.
That came after Rostow Ravanan resigned as the company’s chief executive officer and managing director, and Krishnakumar Natarajan quit the post of executive chairman, according to an exchange filing. Besides, NS Parthasarathy resigned as executive vice-chairman and chief operating officer, the filing said.
The stock traded at 16 times its estimated earnings per share, Bloomberg data showed.
PNB Slumps After Detecting Another Fraud
Shares of the state-run lender slumped as much as 7.5 percent—the most in nearly two months—to Rs 75.70 apiece.
The bank has detected another fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd., according to its exchange filing. The steelmaker allegedly “misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks”, the filing said.
The stock’s trading volume was more than 13 times the 20-day average for this time of the day, Bloomberg data showed.
IndusInd Bank Swings On Credit Suisse Initiating Coverage
Shares of the private lender hovered between gains and losses to trade at Rs 1,523.80 apiece.
Credit Suisse restarted its coverage on the stock with an ‘Outperform’ rating. It also fixed the target price at Rs 1,800, indicating a potential upside of 17.4 percent from the last close.
Here’s what Morgan Stanley had to say on the stock:
- Expects credit costs to remain elevated, but low provision coverage ratio and improving pre-provision operating profit to assets to cushion it.
- Strong growth in microfinance institutions loans to keep overall growth outlook for the merged entity intact.
- Build-in Bharat Financial merger which accretes 10 percent to FY19 EPS.
The stock has declined 22 percent in the past 12 months compared with a 10 percent gain in the Sensex, Bloomberg data showed.
Yes Bank Top Performer On Sensex, Nifty
Shares of Yes Bank snapped their four-day losing streak. The stock rose as much as 7 percent to Rs 94.35 apiece.
That came after the Mumbai-based lender refuted speculations over the lender’s board and management stability, asset portfolio, future growth prospects, among others, according to its exchange filing.
“We suspect it is a deliberate and malicious attempt to create instability in the institution by undermining investor and client confidence. We have apprised the authorities of these developments,” Yes Bank said.
Besides, the company said its financial position is sound and stable and its liquidity and operating performance continue to be robust.
The Relative Strength Index on the stock was below 30, indicating it may be ‘Oversold’.