Stocks Radar: Mindtree, SpiceJet, Kansai Nerolac, Dr. Reddy’s
Here are the stocks moving the market in today’s trade.
Indian equity benchmarks opened higher and are set for their longest stretch of weekly gains in over six months.
S&P BSE Sensex gained as much as 0.4 percent to 38,533.30 and the NSE Nifty 50 Index advanced as much as 0.35 percent to 11,562.50. The market breadth was tilted in favour of buyers.
Nine of the 11 secotral gauges compiled by the National Stock Exchange rose, led by a 1.15 percent advance in the NSE Nifty Realty Index. The NSE Nifty Media Index was the only sectoral loser, down 0.87 percent.
Here Are The Stocks Moving The Market This Morning:
Mindtree Falls As Board Schedules Another Meeting
Shares of the information technology firm declined as much as 1.6 percent to Rs 935 per share.
Mindtree Ltd.’s board will meet again on March 26, according to its notification to the bourses. The company said no decision was taken on the proposed share buyback on March 20.
On Monday, infrastructure giant L&T made an offer to buy up to 66 percent stake in Mindtree for around Rs 10,800 crore—a move that Mindtree’s promoters have vowed to oppose.
The stock traded 20 times its estimated earnings per share for the coming year, according to Bloomberg data.
Fortis Healthcare Fluctuates
Shares of the hospital chain swung between gains and losses to trade at Rs 136 apiece as of 9:50 am.
Securities and Exchange Board of India ordered both Fortis Healthcare Ltd. and Fortis Hospitals Ltd. to continue pursuing measures to recall the outstanding Rs 403 crore amount along with due interest from Singh Brothers and related entities.
All six analysts tracked by Bloomberg had recommended a ‘Buy’ on the stock.
Dr. Reddy’s Gains After Drug Gets Tentative U.S. FDA Approval
Shares of the drugmaker rose for the fifth-day in a row as it jumped nearly a percent to Rs 2,779 per share, its longest gaining streak in two months.
Dr. Reddy’s Laboratories Ltd. received U.S. Food and Drug Administration’s tentative approval for its pain killer pregabalin, according to the drug regulator’s website.
The shares gained 31 percent in the past 12 months compared to a 17 percent gain in the S&P BSE Sensex Index.
Kansai Nerolac Slumps After CLSA Downgrade
Shares of the paint manufacturer fell as much as 5 percent, a fourth straight decline, to Rs 436.30 each.
Brokerage firm CLSA downgraded its recommendation on the stock to ‘Sell’ from ‘Underperform’. It also lowered price target to Rs 385 from Rs 450, indicating a potential decline of 16.67 percent from the previous close.
The stock traded 47 times its estimated earnings per share for the coming year, Bloomberg data showed.
SpiceJet At Eight-Month High
Shares of the low-cost airline surged 14.2 percent intraday to Rs 104.70 apiece, its highest since July 2018.
SpiceJet Ltd. is considering taking control of 40 Jet Airways aircraft after being tapped in by the government, Bloomberg reported citing unnamed sources.
Trading volume was almost 40 times its twenty-day average for this time of the day, according to Bloomberg data.
Also, air passenger data was released for the month of February by Directorate General of Civil Aviation on Wednesday.
- Domestic air passenger traffic grew 5.6 percent to 113.49 lakh—growth slowest in last 59 months.
- IndiGo’s passenger traffic grew 15 percent to 49.31 lakh.
- Jet Airways’ passenger traffic fell 28 percent to 12.92 lakh.
- SpiceJet’s passenger traffic grew 17 percent to 15.58 lakh.