Stocks Radar: GAIL, HDIL, Reliance Capital, Tata Steel
Indian equity benchmarks gained led by metal stocks after broking firm CLSA upgraded its outlook on the sector while technology shares declined.
The S&P BSE Sensex climbed 0.2 percent to 31,335 while the NSE Nifty rose 0.2 percent to 9,688. The market breadth was firmly skewed in favour of the bulls. About 4 stocks advanced to every 1 that declined.
#BQMarketsNow | Nifty climbs as metals rally on CLSA upgrade.https://t.co/raYIA1J4Um pic.twitter.com/imaJzHMyIw
June 8, 2017Here Are The Stocks Moving The Market This Morning:
Tata Steel: Ratings Upgrade
Shares of the steel maker rose 3.8 percent intraday, the most since May 26, to Rs 509.5 after CLSA raised its price target on the stock to Rs 710 from Rs 570, while reiterating a buy rating.
About 50 percent of analysts covering the company have changed their price targets over the past month (17 up, 1 down, 15 unchanged, 3 dropped). Trading volume jumped 2.7 times its 30-day average.
The stock returned 29 percent so far this year and a gain of 52 percent in the last 12-months.
Housing Development and Infrastructure: Debt Woes Intensify
Shares of the real estate developer fell as much as 3.12 percent intraday, the biggest fall since May 30, to Rs 90.15 after it failed to repay loan worth Rs 144 crore to Central Bank of India, which led to seizure of its Kurla property, according to report by DNA.
The stock returned 53 percent so far this year and a loss of 5.6 percent in the past 52 weeks.
GAIL India: Downgraded To Sell
Shares of the natural gas processing and distributor fell nearly 3 percent to Rs 390.7 after Motilal Oswal downgraded its stock to ‘sell' from earlier ‘neutral'. It also revised its price target to Rs 357 -- a downside of around 11 percent from current levels.
U.S. contracts pose threat of losses, the broking firm said in a note. Also, it will be challenging to get customers for the 5.8 mmtpa import contracts signed with US companies. Long-term U.S. contracts put to risk 20 percent of EBITDA, and contract renegotiation a distant possibility, Motilal note said.
Oil Companies: Crude Holds Biggest Tumble
Shares of the oil explorers fell, while oil-marketing companies rose after oil nudged higher after plummeting on Wednesday. Oil recovered a small portion of the more than 5 percent plunge triggered by a report showing a rise in U.S. crude stockpiles.
- Indian Oil Corporation: (-0.3% at Rs 423.85)
- Oil India (-2.3% at 292.85)
- Bharat Petroleum: (+0.4% at Rs 717.80)
- Hindustan Petroleum: (+0.3% at Rs 541.95)
- ONGC (-1.7% at Rs 169.4)
Reliance Capital: Mutual Fund Arm To Float IPO
Shares of the financial holding services firm rose 1.91 percent to Rs 596 after its board approved to list its mutual fund arm - Reliance Nippon Life Asset Management (RNAM), on stock exchanges, subject to necessary regulatory and corporate approvals.
The asset manager will be the first to among top three players in asset management company to go for listing on stock exchange, according to its exchange filing. The company plans to sell at least 10 percent stake through IPO.
The stock was up 1.5 percent on high trading volume with 3.9 times 30-day average volume.
Tata Consultancy Services: Downgrade Woes
Shares of the country's largest software provider dropped as much as 2.6 percent, extending on its 3 percent decline day before, after Nomura lowered its rating on the stock to reduce from neutral earlier.
The analyst currently has a price target of Rs 2,200 (13.8 percent below market price) on TCS. Current quarter earnings per share estimates are dispersed 80.6 percent more than typical for the past 20 quarters, Bloomberg data showed.
Infosys: Outlook Maintained
Shares of fell 1.37 percent to Rs 964.7 after a newspaper report suggest that the company has “dumped its ambitious long-term revenue target”.
Meanwhile, the company issued a statement saying that the report on pricing cuts attributed to the Infosys COO was “incorrect” and the comments were “misrepresented".
In a June 7 investors presentation, Rao said the country's second largest IT services provider continues to hold its guidance for 6.5 percent-8.5 percent revenue growth in constant currency for FY18. It also held its outlook for operating margin in 23-25 percent band, he said.
Indiabulls Ventures: IVL Finance Net Worth Increase
Shares of the security broking firm rose 2.01 percent to Rs 155.15 after its wholly-owned subsidiary IVL Finance's net worth increased to Rs 1,000 crore through capital investment.
- Says unit IVL Finance Limited would be undertaking consumer finance business
- Says consumer finance business is expected to significantly add to consolidated bottom line of IVL going forward
The company indicated a low dividend yield of 0.7 percent, compared to 9.3 percent for two years historical average.
Bharat Wire Ropes: Snaps 2-Day Losses
Shares of the wire manufacturer jumped 4.24 percent intraday, the biggest rise since June 2.
JM Financial Products and JM Financial Services increased their holdings in the company to 11.34 percent post a 1.15 percent stake buy through an off-market transaction.
The stock was up 2.5 percent on moderate trading volume with 0.8 times 30-day average volume.
Endurance Tech: Expansion Plans
Shares of the auto parts maker rose 2.4 percent To Rs 921 after the company said it plans to undertake capacity expansion at its Chennai Plant.
The company intends to expand from the existing 8161 million tonne to 12,250 million tonne for an investment of Rs 9.12 crore, according to its exchange filing.
The Relative Strength Index (RSI) is 76, indicating that the stock may be overbought. About 75 percent of analysts covering the company have changed their price targets over the past month (2 up, 1 down, 1 unchanged), as of Wednesday.
Gati Ltd: Settlement Agreement Nod
Shares of the logistics services firm rose 0.9 percent to Rs 126.4 after a Hyderabad court approved settlement agreement between company and FCCB bondholders, the company said in its exchange filing.
The stock remained unchanged on high trading volume with 1.5 times 30-day average volume.
Cyient: Qualified Supplier Boost
Share of the data analytics and engineering services provider rose 5.17 percent to Rs 552 after the company was qualified as an approved product supplier to United Technologies Corporation (UTC) Aerospace systems.
Further, the company said in its exchange filing that UTC reduced its minority equity stake in the networks and operations solutions firm.
The stock returned 6 percent so far this year and a gain of 9.2 percent
Edelweiss Financial Services: Issues Maiden Perpetual Bonds
Share of the financial services provider fell 2.26 percent to Rs 192.4 after the company issued perpetual bonds on private placement basis. The company, in its filing on exchange, said that the issues is the largest among NBFCs in the last three years.
About 50 percent of analysts covering the company have changed their price targets over the past month (1 up, 0 down, 1 unchanged).
M&M Financial Services: Issues NCDs
Shares of the finance company fell 1.02 percent to Rs 360.8 after the lender to Mahindra vehicle buyers issues NCDs worth Rs 125 crore at a face value of Rs 10 lakh each, the company said in its filing on exchange.
Morgan Stanley analyst Subramanian Iyer upgraded the stock to a rating equivalent of strong buy. The analyst currently has a price target of Rs 425.00 (17.3 percent above market price).
Tata Communication: Plans To Launch IoT Devices
Shares of the telecommunications provider rose 1.23 percent to Rs 739.7 after the company announced plans to launch 50 million Internet of things (IoT) devices by 2022, according to Economic Times.
Besides that, the company's directors have recommended a final dividend of 60 percent, i.e. Rs 6 per share of the face value Rs 10 each, it said in a filing.
The stock returned 15 percent so far this year and a gain of 62 percent in the past 52 weeks.
Tata Power: Revision on Credit Rating
Shares of the electricity generator and supplier fell 1.81 percent after the ICRA revised long-term rating for the company from AA to AA-.
“The existing rating from ICRA had a negative outlook in the view of under-recovery of fuel costs at 4,000 megawatt Ultra Mega Power Project operated by the company's wholly owned subsidiary,” The company said in its exchange filing.
About 28 percent of analysts covering the company have changed their price targets over the past month (6 up, 1 down, 16 unchanged, 2 dropped)
Piramal Enterprise: Extends Loan To Embassy Group
Shares of the company fell about 1 percent to Rs 2,776.95.
According to a PTI report, Piramal Enterprises, through its subsidiary Piramal Finance Ltd., has financed an amount of Rs 1,100 crore to real estate firm Embassy group for development of housing and commercial projects in Bengaluru, Chennai and Hyderabad.
About 33 percent of analysts covering the company have changed their price targets over the past month (1 up, 0 down, 0 unchanged, 2 dropped)
Kotak Mahindra Bank: Plans to Raise Funds
Shares of the private sector bank rose 1 percent to Rs 979 after the company announced that it will raise Rs 5,000 crore funds. According to a regulatory filing, the decision to raise Rs 5,000 crore will be put to vote at the company's AGM on July 20,2017.
The stock returned 36 percent so far this year and a gain of 29 percent in the past 52 weeks.
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