Stocks Radar: Zee Entertainment, TCS, GE Power, Bandhan Bank
The selloff in Indian equities worsened after fresh concerns around the U.S.-China trade war and rising interest rates triggered S&P 500 Index’s worst drop in seven months.
The S&P BSE Sensex fell and the NSE Nifty 50 Index fell over 2 percent to trade at 33,905.85 and 10,198.30, respectively, as of 11.15 a.m.
The market breadth was tilted in favour of sellers. Ten of the 11 sectoral gauges declined, led by a 5.47 percent drop in the Nifty PSU Bank index. The Nifty Media Index was the only gainer, up 0.11 percent.
Here Are The Stocks Moving The Market This Morning
Zee Entertainment Falls After Q2 Profit Declines
Shares of the entertainment content developer fell as much as 5.5 percent to Rs 434.65 apiece.
The company’s net profit stood at Rs 386 crore in the quarter ended September, lower than the Bloomberg consensus estimate of Rs 400 crore. Revenue increased 24.5 percent year-on-year to Rs 1,976 crore during the quarter.
The stock declined 12.5 percent in the past one year compared with an 8.2 percent advance in the S&P BSE Sensex, Bloomberg data showed.
Other Key Highlights (Year-On-Year)
- Ebitda rose 37 percent to Rs 653 crore.
- Operating margin expanded 290 basis points to 33 percent.
- Advertising revenue rose 22.7 percent to Rs 1,210.6 crore.
- Domestic subscription revenue rose 23.3 percent to Rs 1,152.6 crore.
- International subscription revenue stood at Rs 58 crore.
- Overall subscription revenue rose 21.3 percent to Rs 608.2 crore.
Graphite Electrode Stocks Gain Amid Market Rout
Shares of graphite electrode makers Grapite India and HEG extended their winning streak for the third session and were among the top gainers on the NSE Nifty 500 Index.
Shares of HEG rose as much as 6.54 percent to Rs 4,140 apiece, while Graphite India hit an upper circuit of 5 percent at Rs 870 apiece.
Also, Bank of America-Merrill Lynch initiated coverage on both stocks with a ‘Buy’.
GE Power Falls After Announcing Another Factory Shutdown
Shares of the power generator declined nearly 7.7 percent to Rs 666 apiece.
The company has decided to close its factory at Shahabad with effect from Oct. 11, according to an exchange notification. Earlier, the company reported that its Vadodara plant was shut from Aug. 27. The management said the company was exploring various options to dispose off the land and building, including machinery and equipment, related to these factories.
The trading volume was nearly 20 times the 20-day average, according to Bloomberg data.
PTC India Fluctuates After Winning Fresh Bangladesh Deal
Shares of the power utility network company swung between gains and losses to trade at Rs 69.95 apiece.
The New Delhi-based company signed a fresh pact for supplying 200 megawatt power to Bangladesh for 15 years, according to an exchange filing. The company was already supplying 290MW power to Bangladesh. The transaction is expected to generate export earnings worth $1.8 billion over its contract period.
The stock trades 45 percent below the Bloomberg consensus one-year target price, Bloomberg data showed.
Aviation Stocks Gain After Government Cuts Tax On Jet Fuel
Shares of airlines jumped after the government lowered the excise duty on aviation turbine fuel to 11 percent from 14 percent, effective Thursday.
- InterGlobe rose nearly 6.9 percent to Rs 797.20 apiece.
- SpiceJet gained 3.16 percent to Rs 70.25 apiece.
- Jet Airways rose 2.41 percent to Rs 193.70 a share.
(Figures as of 11.07 a.m.)
Bandhan Bank Falls After Stock Downgrade
Shares of the private lender fell as much as 8.4 percent to Rs 469.20 apiece.
Brokerage firm Macquaire downgraded the stock recommendation to ‘Neutral’ from ‘Outperform’. It also lowered the price target to Rs 540, implying a potential upside of 5.5 percent from the last regular trade.
The firm said the downgrade was due to valuations and uncertainties. The bank also reported its earnings for the quarter-ended September on Wednesday. Its profit rose 47.4 percent year-on-year to Rs 488 crore.
The stock trades at 42.1 times trailing 12-month earnings per share, Bloomberg data showed.
TCS Slides Ahead Of Earnings
Shares of the country’s largest IT services company fell nearly 5 percent, the biggest intraday fall in over six months, to Rs 1,941 apiece.
Analysts expect the company to post margins of over 26 percent for the first time in seven quarters. The company is also expected to benefit largely from the rupee’s downfall.
The stock gained 49.1 percent so far this year compared to a 0.5 percent gain in Sensex Index, Bloomberg data showed.