Stocks Radar: Tata Power, Vodafone Idea, Bank Of India
Indian equity benchmarks opened lower on Thursday, led by declines in HDFC Bank, Larsen & Toubro and ONGC. The S&P BSE Sensex and the NSE Nifty 50 Index fell nearly 4 percent to trade at 35,775.32 and 10,746, respectively, as of 11: 30 a.m.
The market breadth was tilted in favour of sellers. Eight of the 11 sectoral gauges fell, led by a 1.02 percent decline in the Nifty Metal Index. The Nifty PSU Bank Index was the top gainer, up 0.22 percent.
Here Are The Stocks Moving The Market This Morning
Bank of Baroda Gains, Dena Bank, Vijaya Bank Fall After Merger Nod
Shares of Bank of Baroda rose, while Dena Bank and Vijaya Bank declined after the Union cabinet approved the three-way merger of the state-run lenders. The banks then announced the share swap ratios for the transaction.
- Shares of Bank of Baroda rose 3.4 percent to Rs 120.8 apiece.
- Dena Bank slumped 20 percent, the most in nearly a decade, to Rs 14.35 apiece.
- Vijaya Bank stock fell 7.5 percent to Rs 47.20 apiece.
(Prices as of 9:25 a.m.)
Bank Of India Falls After Board Approved Raising Authorised Capital Limit
Shares of the state-run lender declined nearly a percent to Rs 108 apiece.
Bank of India’s board approved increasing the authorised capital from Rs 3,000 crore to Rs 6,000 crore and fundraising plans via equity shares and tier-I and tier-II capital bonds, according to the lender’s exchange filing. The shareholders also approved the issue of preferential shares to the government for Rs 10,086 crore.
The stock was above 70 on the Relative Strength Index, indicating it may be ‘Overbought’.
Tata Power Gains After BEST Extended Purchase Pact
Shares of the power generator rose close to 2 percent to 76.25 apiece.
The Maharashtra Electricity Regulatory Commission allowed Mumbai Transport Undertaking ‘BEST’ to extend its existing 667-megawatt power purchase agreement with Tata Power for five years till March 2024, according to the power supplier’s exchange filing. Power will be supplied from Tata’s Trombay thermal and hydro plants.
The stock declined 25 percent in the past 12 months compared with a 6.1 percent gain in the BSE Sensex, according to Bloomberg data.
Oil Marketers Slump After Crude Rises
Shares of oil retailers fell after Brent crude surged as much as 5.1 percent to $56.56 a barrel on Wednesday.
- Indian Oil Corporation Ltd. fell as much as 2.61 percent to Rs 134.10 apiece.
- Bharat Petroleum Corporation Ltd. declined 5.57 percent to Rs 346.75 apiece.
- Hindustan Petroleum Corporation Ltd. dropped 4.67 percent to Rs 244.70 apiece.
(prices as of 9:51 a.m.)
Vodafone Idea Slips As It Loses Users
Shares of the India’s largest telecom operator fell as much as 5.2 percent to Rs 34.85 apiece.
Vodafone Idea lost 73.6 lakh customers in October, according to data released by the Telecom Regulatory Authority of India. Reliance Jio Infocomm Ltd. added 1.05 crore users during the same period.
The stock traded 22 percent below the Bloomberg consensus one-year target price.
Alembic Pharma Gains On U.S. FDA Approval
Shares of the Vadodara-based drugmaker rose as much as 2.2 percent to Rs 593.15 after it received U.S. drug regulator's nod for Pramipexole Dihydrochloride extended-release tablets in several strengths.
Alembic Pharma in an exchange filing said:
- The drug is therapeutically equivalent to reference listed drug product (RLD) Mirapex ER Tablets.
- Drug is indicated for treatment of Parkinson's disease
- The tablet had estimated market size of $38.6 million for twelve months ending December 2017 according to IQVIA
- Alembic has a cumulative total of 84 ANDA approvals