Stocks Radar: L&T, SBI Life, Emami, Star Cement, Glenmark, Max India
Indian equity indices opened higher, paced by gains in Larsen & Toubro Ltd. and private sector banks. As of 10:05 am, the Sensex was trading 0.2 percent lower at 39,119.75 points and Nifty was down 0.18 percent at 11,702.90.
Market breadth was tilted in favour of sellers. Six of the 11 sectoral gauges compiled by the National Stock Exchange fell, led by a 1.19 percent decline in the NSE Nifty Auto Index. Nifty PSU Bank Index was the top gainer, up 0.47 percent.
A look at the stocks moving the markets today:
Glenmark Pharma At Five-Year-Low
Shares of Glenmark Pharmaceuticals Ltd. declined 1.8 percent intraday to Rs 490.85 apiece, its lowest since November 2013.
The U.S. Food and Drug Administration issued a Complete Response Letter for nasal spray Ryaltris and cites deficiencies in the Drug Master File for the drug, according to Glenmark Pharma’s exchange notification. The company sees resolution in the the next 6-9 months.
The stock traded over eight times its 20-day average for this time of the day, Bloomberg data showed. The relative strength index on the stock as below 30, indicating it may be oversold.
SBI Life Gains After Morgan Stanley Initiates Coverage
Shares of SBI Life Insurance Co. Ltd. rose for the third-straight day and rose as much as 1.3 percent to Rs 709 each.
Morgan Stanley initiated coverage on the SBI Life stock with an ‘Overweight’ rating. The brokerage firm also fixed the price target at Rs 850, implying a potential upside of 21 percent from previous close.
The stock traded at 49 times estimated earnings per share for the coming year, according to Bloomberg data.
Larsen & Toubro Rises After Winning ‘Mega’ Order
Shares of India’s largest infrastructure company Larsen & Toubro Ltd. rose nearly 1.5 percent to Rs 1,563.45 apiece.
The company won two 660 megawatts power projects in Bihar, according to a filing with the stock exchanges. The project was classified as a “mega" order as it is worth more than Rs 7,000 crore, the filing said.
The L&T stock advanced 20 percent in the past 12 months compared to a 10 percent gain in the Sensex.
Emami Slumps After Block Deal
Shares of Emami Ltd. fell for the tenth day in a row after it declined as much as 5.9 percent to trade at near a five-year low at Rs 272.10.
About 3.27 crore shares, or 7.2 percent equity, of Emami changed hands in a block deal on the Bombay Stock Exchange, Bloomberg data showed.
While buyers and sellers were not known immediately, trading volume was almost 60-times its 20-day average for this time of the day, Bloomberg data showed.
Max India Gains After Completing Merger Of Healthcare Unit
Shares of Delhi-baed health insurer Max India Ltd. rose as much as 2.25 percent to Rs 66.00.
Radiant Life Care Pvt. Ltd. and private equity firm KKR & Co. completed acquisition of 49 percent stake in Max Healthcare Institute Ltd., according to an exchange filing. Max India’s promoters have received an advance of Rs 361 crore from KKR in exchange for a 4.99 percent stake in the merged entity, the filing added.
Max India shares were trading 52 percent lower than Bloomberg consensus one-year target price.
Star Cement Jumps After Calling Off Merger With Subsidiary
Shares of cement maker Star Cement Ltd. snapped its two-day fall and rose as much as 4 percent to Rs 127 apiece.
The company decided not to proceed with a proposed amagalmation with its wholly-owned subsidiary Mega Technical & Engineers due to technical constraints, according to an exchange filing.
The company is trading at 15 times its estimated earnings per share for the coming year.