Stocks Radar: Yes Bank, Dixon Technologies, Majesco, Dr. Reddy’s Labs
Indian equity benchmarks opened higher on positive earnings sentiment for Asian stocks.
The S&P BSE Sensex and the NSE Nifty 50 Index gained as much as 0.6 percent to trade at 35,588.50 and 10,670.45, respectively, as of 9:55 a.m.
The market breadth was tilted in favour of buyers. All sectoral gauges compiled by the National Stock Exchange rose, led by a 1.74 percent gain in the Nifty Metal Index.
Here Are The Stocks Moving The Market This Morning:
Dr. Reddy’s Labs Gains After U.S. Court Refuses To Block Generic Drug Sale
Shares of the drugmaker rose nearly 2 percent to Rs 2,584 apiece.
U.S. Supreme Court cleared the way for Dr. Reddy’s Laboratories Ltd. to resume selling the generic version of Indivior Plc.’s opioid addiction drug, reported Bloomberg.
The stock advanced 18 percent so far this year compared to a 4.7 percent gain in the S&P BSE Sensex Index.
Mahindra & Mahindra Swings On Stock Downgrade
Shares of the automaker fluctuated between gains and losses to trade at Rs 628.15 per share as of 9:35 am .
Brokerage firm JPMorgan downgraded its recommendation on the stock to ‘Neutral’ from ‘Overweight’. It also cut price target to Rs 700 from Rs 900.
Here’s what the brokerage said on the stock:
- Downgraded the stock due to moderating growth trends and lack of catalysts.
- Valuations are cheap but unlikely to improve in a hurry.
- Concerns: Tractor volume growth peaking, demand slowdown and margin pressure.
37 out of 41 analysts tracked by Bloomberg have a ‘Buy’ rating on the stock, while four analyst recommended ‘Hold’.
Majesco Surges After Winning U.S. Contract
Shares of the software solutions provider surged as much as 5.5 percent to Rs 468 per share.
Majesco Ltd.’s subsidiary received a contract for digital solutions from American Public Life Insurance Company, according to its exchange filing.
The stock traded 20 times its estimated earnings per hare for the coming year, according to Bloomberg data.
Yes Bank Gains After It Denies Wrongdoing In Divergence Issue
Shares of the private lender rose 2.2 percent intraday to Rs 218.30 per share.
Yes Bank Ltd. offered clarification on its decision to release parts of a confidential risk assessment report days after the Reserve Bank of India censured it for doing so. The bank also stated that it has not made any undue benefit by disseminating the information and it was in due compliance.
Stocks Of Consumer Electronic Companies Spark After Cabinet Approves New Policy
Shares of consumer electronic products makers rallied after Cabinet approved National Electronic Policy.
Information Technology Minister Ravi Shankar Prasad stated a target to reach $400 billion revenue by 2025 in electronic manufacturing in a press briefing.
- Redington India rose as much as 2.4 percent to Rs 84 per share.
- MIRC Electronics surged 10.8 percent to Rs 22.60 apiece.
- Dixon Technologies gained 3.9 percent to Rs 2,283.95 per share.
Kaveri Seed Declines For The Fifth Straight Session
Shares of the Secunderabad-based agricultural chemicals company plunged as much as 12.3 percent to Rs 368.80 per share.
The trading volume was almost 90 times its 20-day average for this time of the day, Bloomberg data showed. The relative strength index on the stock was below 30, indicating the stock may be oversold.