Stocks Radar: Reliance Industries, Shree Cement, Telecom Stocks, Yes Bank
Here are the stocks moving the market today...
India’s equity indices opened higher, extending gains for the second straight session.
The Sensex and the Nifty 50 Index rose as much as 0.8 percent to 40,777.76 and 12,025.80, respectively, as of 11:05 a.m. The broader market represented by the NSE Nifty 500 Index, too, rose 0.66 percent.
The market breadth was tilted in favour of buyers as 956 stocks advanced and 718 declined on the National Stock Exchange. All the 11 sectoral gauges traded higher, led by a 2.22 percent gain in the Nifty Media Index.
Here Are The Stocks Moving The Market This Morning
RIL Hits A Record High
Shares of Reliance Industries Ltd. rose as much as 3.9 percent to Rs 1,568.70 apiece, an all-time high.
The company’s telecom unit, Reliance Jio Infocomm Ltd., indicated that it will increase tariffs. Its peers Bharti Airtel Ltd. and Vodafone Idea Ltd., too, announced tariff hikes in December.
The telecom regulator is likely to initiate a consultation process for revision of tariffs, according to Reliance Jio’s statement. “Like other operators, we will also work with the government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures, including appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investment.”
The RIL’s stock is trading at seven times the 20-day average, Bloomberg data showed.
Reliance Capital Falls To Lowest In Nearly A Month
Shares of Reliance Capital Ltd. fell as much as 5 percent to Rs 18.05 apiece, the lowest since Oct. 29.
Anil Ambani-led Reliance Capital said its shareholding in a wholly-owned subsidiary, Reliance General Insurance Company Ltd., has been transferred to IDBI Trustee Services. The shareholding has been transferred upon invocation of pledge by the IDBI Trustee Services, according to an exchange filing. The company, however, did not disclose financial details.
“The company has been engaged in efforts to monetise its shareholding in Reliance General Insurance Company as part of its overall plans for debt reduction,” it said.
Shree Cement Rises On QIP Issue
Shares of Shree Cement Ltd. rose as much as 2.32 percent to Rs 20,470 apiece, the highest since Oct. 30.
The cement maker opened its qualified institutional placement on Tuesday with a floor price of Rs 19,806.46 apiece—a discount of 1 percent to the closing price of Nov. 19.
The company, the filing said, may offer discount on the floor price as may be approved by the committee in accordance with SEBI (Issue of Capital and Disclosure Requirements) regulations.
The Shree Cement stock has advanced 26 percent in the past year, Bloomberg data showed.
Telecom Stocks Continue Rally
Shares of Vodafone Idea Ltd. and Bharti Airtel Ltd. extended gains for at least two straight sessions.
The telecom operators announced plans to increase tariffs from next month, days after the Supreme Court ordered India’s struggling carriers to pay pending dues worth thousands of crores.
While Vodafone Idea said it will “suitably” increase its tariffs from Dec. 1 to ensure that its customers continue to enjoy world-class digital experiences, Bharti Airtel will appropriately increase price offerings as the sector was “highly capital intensive” with fast-changing technology cycles that require continuing investments.
- Bharti Airtel rose as much as 3 percent to Rs 452.95—the highest since Jan. 23, 2018.
- Vodafone Idea gained 35 percent during the day to Rs 8.15 apiece—the highest since July 29.
Their trading volume was more than nine times the 20-day average for this time of the day, Bloomberg data showed.
Yes Bank Falls On Disclosing Bad Loan Divergence
Shares of Yes Bank Ltd. declined as much as 3.35 percent to Rs 62 apiece.
The private lender informed the exchanges that the Reserve Bank of India found under-reporting of bad loans at the bank in 2018-19. The regulator had previously detected a divergence in the assessment of bad loans in FY16 and FY17 but none in FY18.
The bank had disclosed gross NPAs of Rs 7,882 crore, implying a divergence of Rs 3,277 crore or 41 percent. The divergence in reporting of net NPAs for the year stood at Rs 2,299 crore or 51 percent of the net NPA amount reported by the bank, the notification said.
Yes Bank stock has declined 69 percent in the past year, Bloomberg data showed. The company’s dividend yield is 3.1 percent on a trailing 12-month basis.
