Indian shares declined in early trade, following a weak handover from global equity markets. Equities across Asia joined a global rout in bonds as investors remained on the edge after central bankers stepped up talk of tighter policy conditions.
The S&P BSE Sensex fell 0.1 percent to 31,330 while the NSE Nifty 50 index dropped 0.1 percent as well to 9,658. Most sectoral indices traded on a weak note. The Nifty Pharma and Nifty PSU Bank index bucked the trend.
The market breadth was skewed in favour of the sellers. About 735 stocks opened with declines while 675 stocks advanced on the National Stock Exchange.
Here Are The Stocks Moving The Market This Morning:
Bharat Forge: Unit Signs New Pact
Shares of the automotive parts manufacturer rose 1.5 percent to Rs 1,125 after the company unit signed a memorandum of understanding (MoU) with Israel's Aerospace Industries to build new maintenance centre in India.
The joint-venture will help to develop, build, market and manufacture selected air defense systems and light weight special purpose munitions, in accordance with government's ‘Make in India' policy, the company said in its exchange fling.
Bharat Forge trades at 37.0 times trailing 12-month earnings per share and 32 times its estimates for the coming year, according to Bloomberg data. The stock has risen three times in five trading sessions.
IDFC & Shriram Twins: Merger Buzz
Shares of IDFC Bank and IDFC extended their gains on reports that the private sector lender is looking at merger possibilities with Shriram group's twin non-banking firms.
A senior official at the Shriram Group told BloombergQuint, on the condition of anonymity, that they are open to the idea of a merger or an acquisition at the right place at the right time. The board of Shriram Capital is expected to meet on Saturday to explore strategic options available, this person said.
IDFC Bank, too, has a board meet scheduled for Saturday, an official at the lender told BloombergQuint without sharing details on the agenda for the board meet. This person said that IDFC Bank is in talks with more than one candidate.
- IDFC Bank (+2.8%)
- IDFC (Swings between +2.6% and -0.4%)
- Shriram Transport Finance (Swings between +2.1% and -1.1%)
- Shriram City Union Finance (Swings between +1.6% and -1.5%)
Also Read: An IDFC Bank-Shriram Merger? Will They? Should They?
InterGlobe Aviation: Swings On Air India Talks
Shares of the budget carrier's parent swung between gains and losses after it said its not interested in any joint venture with the government if takes over some of Air India Ltd.'s operations.
InterGlobe is planning low-cost, long-haul international flights with or without Air India, the company said in a conference call with its shareholders. (For more details, click here).
The stock rose four times in five trading sessions. The stock has returned 50 percent so far this year and a gain of 24 percent in the past 52 weeks.
Also read: IndiGo Says Buying Air India Would Bolster International Network
RBL Bank: Declines On NPA Divergence
Shares of the private sector lender fell as much as 3.1 percent, the biggest intraday drop since May 26, after reported a divergence in its gross bad loans at the end of financial year 2015-16 stood at Rs 339.30 crore.
RBL Bank's disclosures come after the RBI directed banks to state divergences in NPA reporting in a notification in April this year. Larger private sector lenders such as ICICI Bank Ltd., Axis Bank Ltd. and Yes Bank Ltd. have all reported divergences in their respective annual reports over the last few weeks.
Trading volumes was 5.8 times its 20-day average. The stock has returned 54 percent so far this year.
Tata Motors: Slashes Commercial Vehicles Prices
Shares of Tata Motors fell 1.1 percent to Rs 432.25, extending its weekly loss.
The automaker said it has reduced prices of its commercial vehicles to pass on GST benifts to its consumers on Thursday. The ex-showroom price of passenger transportation was reduced in the range of 0.6 percent to 8.2 percent and the prices of price of cargos have been reduced in the range of 0.3 percent to 4.21 percent, the company said in its exchange filing.
Bloomberg data showed that the consensus price target was 23.7 percent higher than the current stock price. Tata Motors trades at 19.7 times trailing 12-month earnings per share.
Navin Fluorine International: Boosts On Shareholders Approval
Shares of the fluorochemicals manufacturer rose 1.8 percent to Rs 3,088 after the company received shareholders' approval to sell its Dahej unit.
The stock rose three times in five trading sessions. The stock has returned 22 percent so far this year and a gain of 56 percent in the past 52 weeks.
Stocks Reacting To Brokerage Calls
Timken India
- Shares of the industrial component manufacturer extends decline for the second day and fell 2.13 percent to Rs 763.4.
- Despite today's dall, the stock is up over 13 percent this week
- Brokerage firm ICICIdirect upgraded the stock rating to ‘Buy' from earlier ‘Reduce' and increased ts price target to Rs 867 from Rs 700
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
