Stocks Radar: ACC, Ambuja Cements, Eicher Motors
Indian stocks rebounded in opening trade amid optimism on improving global growth following Emmanuel Macron's victory as France's next president.
#BQMarketsNow |Nifty opens above 9,300. ACC, Ambuja, Eicher Motors lead the gainers list.https://t.co/M4rPC5hlEi pic.twitter.com/hlzndloZX7
May 8, 2017Here are the stocks moving the market this morning:
PSU Bank: Top Brass Reshuffle
Shares of select public sector lenders reacted to the government's decision to appoint a new CEOs and MDs, days after passing the ordinance for managing the banking sector's bad loan problems.
- Punjab National Bank (-1.3 percent to Rs 172)
- Bank of India (-2.2 percent to Rs 179)
- Corporation Bank (+1.5 percent to Rs 61)
- Syndicate Bank (+0.7 percent to Rs 88)
- Indian Overseas Bank (+3.6 percent to Rs 31)
- Allahabad Bank (+2 percent to Rs 86)
- Union Bank of India (+1.9 percent to Rs 190)
- Vijaya Bank (+2.1 percent to Rs 84)
Also Read: India Names New CEOs at Punjab National, 6 Other State-Run Banks
Ambuja Cement, ACC: Merger Talks
Shares of Ambuja Cements and ACC gained after talks of a possible merger between the two cement companies.
The boards of the two companies have initiated a study to explore the possibility of a merger, two separate stock exchange filings by Ambuja and ACC said. No decision has been taken to merge yet, the filings added.
- ACC (+5.8 percent to Rs 1,756)
- Ambuja Cements (+8.2 percent to Rs 266)
Also Read: ACC, Ambuja Mull Merger To Create India's Second Largest Cement Maker
Procter & Gamble Hygiene: Announces Dividend
The company rose 5.4 percent to Rs 7,800 after it announced an interim dividend of Rs 362 per share. The total sum will stand around 5 percent of its total market share.
The stock has risen 4.1 percent in the last month compared to a 0.7 percent rise in the benchmark Sensex.
Bosch: Restarts Operation In Bengaluru Unit
The company swung between gains and losses after it resumed operation in its Adugodi unit, post a temporary shutdown on the sate pollution control board notice. It fell as much as 0.9 percent to Rs 23,252 but gained 0.5 percent to 23,381 soon after.
The company resumed operations after the board clarified that the notice did not apply to Bosch's facility. The notice called for a closure of all industrial units around the Bellandur lake in Bengaluru.
Earnings Reaction: Eicher, Equitas Holdings, Shoppers Stop
Eicher Motors rose 4.5 percent to Rs 26,999 after its net profit rose 34 percent to Rs 459 crore for the January to April quarter. Yet, this was the slowest profit growth for the company in the last four years. The stock gained the most since November 2016.
Profit margins expanded to 27.4 percent from 25.9 percent, allowing the company to announce a dividend of Rs 100 per share.
Eicher plans to invest Rs 800 crore in the Royal Enfield brand over the next financial year, it said in a separate media statement, which will be used to set up a new manufacturing facility in Chennai, and to establish product development and technical centres in U.K. and India.
Apollo Tyres fell 3.1 percent to Rs 238 after its net profit fell 16 percent to Rs 228 crore. Margins also contracted to 10.3 percent compared to a 15.2 percent int he same quarter a year ago. The company will now issue non convertible debenture worth Rs 1,500 crore according to a different filing.
Shoppers Stop fell 6.4 percent to Rs 353 after the apparels retail company showed a net loss of Rs 36 crore because of a one-time cost. The stock saw its biggest fall since September 2014.
An exceptional loss of Rs 47.8 crore eroded its profit, which stood at Rs 10 crore in the corresponding quarter.
Profit margins remained flat.
Equitas Holdings fell 6.2 percent to Rs 150 after posting a net profit of Rs 6.9 crore compared to Rs 47 crore in the corresponding quarter. Its asset quality worsened as gross non performing asset rose to 3.53 percent from 2.46 percent int he last quarter.
Net interest income, however, rose 30 percent to Rs 221 crore.
Avenue Supermarts fell 3.3 percent to Rs 782 despite reporting a 47 percent increase in standalone profit in its first earnings report since listing. Sales also rose 40.5 percent to 3,210 crore over the quarter. The stock snapped a four-day winning streak where it gained 9.8 percent.
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