Stocks Radar: Wipro, L&T Infotech, Godrej Consumer, Sun Pharma
Indian equity benchmarks opened higher, bucking the weakness in Asian peers. The S&P BSE Sensex traded nearly 0.5 percent higher at 38,799 and the NSE Nifty 50 Index at 11717.95, up 0.33 percent, as of 9:52 a.m.
The market breadth was tilted in favour of buyers. Nine out of the 11 sectoral gauges gained, led by the NSE Nifty IT Index’s 1.14 percent advance. The NSE Nifty Realty Index was the biggest sectoral loser, down 1.18 percent.
Wipro Gains On Bagging Largest-Ever Deal
Shares of the information technology services provider gained 6.1 percent, the most in nine years, to Rs 319.5 apiece after bagging $1.5 billion-worth contract from Alight Solutions LLC. The tenure of the contract is 10 years.
The trading volume was 517.5 times the 20-day average, Bloomberg data showed.
L&T Infotech Falls On OFS
L&T Infotech Ltd. declined nearly 3 percent to Rs 1,745 per share after parent company Larsen & Tourbo Ltd. proposed to offload its stake in the company.
L&T proposed to sell 59 lakh shares, or 3.41 percent, of the paid-up equity capital of L&T Infotech with an over subscription option of 46 lakh shares on Monday and Tuesday, through the stock exchange mechanism. Shares at floor price of Rs 1,700 a share, 5.4 percent lower than Friday’s closing price.
The scrip trades at 26.7 times, trailing 12-month earnings per share and 21 times its estimates for the coming year, according to Bloomberg data.
Godrej Consumer Falls After Divesting Stake In U.K. Arm
Shares of the personal care products maker fell a percent to 1,437.35 apiece, after erasing early gains. The company sold its entire stake in its U.K. subsidiary to U.S.-based JZ International for 34 million pounds, according to a stock exchange notification.
The stock trades at 11 percent above the Bloomberg one-year target price.
Leela Hotels Surges After Reports Of Brookfields Acquisition
Shares of Hotel LeelaVenture advanced as much as 6.71 percent to Rs 17.50 apiece. Global asset management company Brookfield is said to be in talks with the Indian hotel-chain to acquire stake, according to an Economic Times report.
The stock has declined 15.6 percent so far this year compared with 14.8 percent in the S&P BSE Sensex Index.
Sun Pharma Rises To 17-Month High
Shares of the pharmaceutical company rose as much as 1.5 percent to Rs 662.50, its highest since April 2017.
The U.S. FDA completed auditing Sun Pharma's Halol plant with no observations, two people familiar with the matter informed BloombergQuint.
The stock rose 13 percent in the past month compared to 3.1 percent advance in the S&P BSE Sensex Index.