Indian stocks climbed higher, along with most of Asian equities, after a stronger-than-anticipated U.S. hiring data reinforced faith in global economic rebound.
Both S&P BSE Sensex and the NSE Nifty 50 index opened at a fresh record high before retreating from those levels. The NSE Nifty 50 index opened at 9,765.90 while the Sensex opened at 31,595.46.
Price quotes on the National Stock Exchange were not updating with deals not going through.
Here Are The Stocks Moving The Market This Morning:
IDFC & Shiram: Merger Talks Begin
Shares of IDFC group companies extended gains after it entered 90-day exclusive merger talks with the Shriram group.
Brokerage firm Credit Suisse increased its price targets on Shriram City Union Finance and Shriram Transport Finance to Rs 3,200 and Rs 1,350 respectively. The broking firm, however, maintained its rating on stock for both the companies at ‘Outperform'.
Another brokerage firm Deutsche Bank downgraded the stock to ‘Sell' from ‘Hold' and lowered its target price to Rs 60 from Rs 68, according to Bloomberg News.
Besides that, IDFC Bank was also in news after it invoked pledged shares of shares of Monnet Power pledged by its parent.
- IDFC rose 4.6 percent To Rs 64.50
- IDFC Bank rose 6.5 percent To Rs 68.90
- Shriram Transport Finance fell 3.7 percent To Rs 1,049.95
- Shriram City Union Finance fell 3.7 percent to Rs 2,400
Also Read:
- It May Be A Win For IDFC Bank But Is The Mega Deal A Win for Shriram Group Companies?
- A Shriram-IDFC Bank Merger Could Dilute The Bank's Book Value
Tata Motors: JLR Sales Boost
Shares of the automobile manufacturer rose 4.8 percent, the biggest intraday jump since May 24, after the company's unit Jaguar Land Rover (JLR) sales rose 11 percent in June.
Sales of Jaguar increased 16.4 percent to 15,343 units, while the sales of Land Rover increased 8.9 percent to 36,428 units, the company said in its media statement on the exchange.
Retail Sales Gain
- China +65.3 percent
- U.K. and Europe +3.7 percent
- North America +3.2 percent
Tata Motors was among the best performers on S&P BSE Sensex Index. Tata Motors trades at 19.9 times trailing 12-month earnings per share, according to Bloomberg data.
Biocon: Woes On Inspection
Shares of the integrated bio-technology firm fell as much as 9.5 percent, the most intraday in eight months, after the drug maker's three key products failed French health authority inspection.
In a report filed on the European Medicines Agency's website, the French regulator found concerns with sterile products, biological medicinal products, packaging and quality control testing at the Biocon unit.
The report lists deficiencies concerning biosimilar products named Fulphila (Pegfilgrastim), Ogivri (Trastuzumab) and Semglee (Insulin glargine).
In a statement to the stock exchanges, Biocon said that there were no critical observations in the final report. The pharma company said it was told by the French regulator that a follow-up inspection was required in order to receive a go-ahead certificate for the drugs.
The stock declined 3.8 percent in the past month, compared with the 0.8 percent advance in the S&P BSE Sensex Index. Biocon trades at 32 times trailing 12-month earnings per share, according to Bloomberg data.
Fortis Healthcare: More Room For Investment
Shares of the healthcare service provider rose 2.8 percent to Rs 163.30, after the Reserve Bank of India raised investment limit for foreign investors in the company.
The central bank raised the investment limit for FIIs/FPIs to 74 percent from 24 percent earlier, according to its exchange filing.
Besides this, brokerage firm ICICI Securities upgraded the stock rating to ‘Buy' from ‘Add'. However, it lowered its target price to Rs 198 from Rs 208. It has returned a negative 10 percent so far this year and a gain of 2 percent in the past 52 weeks.
Sun Pharmaceuticals Industries: Settles Dispute
Shares of the country's largest pharma company rose 3.3 percent to Rs 567.30, after it, along with one of its subsidiaries, entered settlements with certain plaintiffs in an antitrust litigation matter currently pending in the U.S.
The settlements extend to all claims brought by Apotex Corporation and the Retailer Purchaser Plaintiffs. The settlements remain are confidential. The matter is currently pending in U.S. Districts Court in For the District of Eastern Pennsylvania, the exchange filing said.
The stock was among the best performers on S&P BSE Sensex Index. Bloomberg data showed that the stock trades at 21 times, its estimated forward earnings per share, compared to 24.1 times for two-year historical average.
CARE Rating: A Bidding War Brewing?
Shares of the rating agency jumped as much as 13.5 percent, the most since June 29, after a report suggested that U.S.-based Fitch is looking to buy a stake in the company.
Fitch, through its 100% subsidiary, India Ratings, has approached some of the large shareholders of CARE, according to the Economic Times report.
Last month, Crisil had purchased a 8.9 percent stake in its domestic rival from Canara Bank, calling it just a financial investment.
A creeping acquisition or a hostile takeover is very much on cards, the report said quoting an unnamed source close to the matter. “The timing is a matter of conjecture.”
Cadilla Healthcare: FDA Nod
Shares of the drug maker rose 3.1 percent to Rs 530.95 after the company received approval from the U.S. drug regulator for tablets used to treat high blood pressure and urine blockages, according to an exchange filing.
The pharmaceutical company also received approval for an anti-psychotic drug.
Bloomberg data showed that Cadila Health trades at 36.5 times trailing 12-month earnings per share. It returned 48 percent year-to-date and a gain of 46 percent in the past 52 weeks.
Stocks Reacting To Brokerage Calls
NTPC:
- Shares of the power generator rose 1.2 percent to Rs 161
- Brokerage firm CLSA upgraded the stock to ‘Buy' from ‘Outperform' and raided its target price to Rs 186 from Rs 176
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