Indian shares advanced, led by gains in Suzlon Energy Ltd. after it swung back into the black in the fourth-quarter. Positive global cues also supported sentiment.
#BQMarketsNow | Indian markets start the week on a positive note.https://t.co/ovWn3bi6QM pic.twitter.com/AavIAtYR28
Here are the stocks moving the markets this morning:
Defence Stocks: New Policy
The Defence Acquisition Council (DAC) headed by the finance minister Arun Jaitley finalised a new policy for private firms to bid for more defence requirements.
Private players will be roped in to build advanced defence products like submarines and fighter jets, according to a report by news wire agency PTI. Most Indian companies are expected to tie up with foreign entities.
- Larsen and Toubro (+1.4 percent to Rs 1,747)
- Ashok Leyland (+1.1 percent to Rs 86)
- Reliance Infra (+1 percent to Rs 575)
- Tata Motors (+1.4 percent to Rs 449)
- Punj Lloyd (+4 percent to Rs 23)
- Bharat Forge (+2.1 percent to Rs 1,078)
Laurus Labs: All Clear
Shares of the drug maker rose 3.8 percent to Rs 570 after The U.S. Food and Drug Administration (FDA) completed an inspection at its API facility, with out making any observations on the plant.
Aarti Industries: To Demerge Personal Care Segment
The chemical manufacturer rose 1.5 percent to Rs 899 after its board approved the demerger of its home and personal care business. The board has also asked the management to begin discussions with merchant bankers and other agencies, according to the company notification.
The home and personal care segment which sells shampoos, body wash, disinfectants, detergents, toothpastes and so on, accounts for 5 percent of the company's total revenue.
PVR, Inox Leisure: GST Impact
PVR Ltd.'s shares dropped 7.7 percent to Rs 1,397 after the Goods and Service Tax Council imposed a 28 percent tax on cinema tickets priced above Rs 250. The Council has classified such tickets as a luxury, thus falling under the highest GST tax bracket. Multiplex owners currently pay an entertainment tax of 8-10 percent. The stock saw its largest drop since November 2016.
Shares of Inox Leisure also fell 2.9 percent to Rs 279.
Also Read: Come GST, Which Services Will Burn A Bigger Hole In Your Pocket?
Mahindra Holidays: Bonus Issue
The company jumped 5.8 percent to Rs 485 after its board recommended a Rs 88 crore bonus issue in a 1:2 ratio for its shareholders. The stock gained the most since October 2016.
The company posted a 4.5 percent rise in net profit while revenue rose 26 percent in the March ended quarter, While its operating profit remain flat, margins fell by 500 basis points.
Claris Lifesciences: Baxter Deal On Track
The drug maker rose 1.7 percent to Rs 344 after it said that its $625 million injectables deal with Baxter is back on track for an approval from the Federal Trade Commission of U.S.
While the approval is expected to come in by August 2017, the deal with Baxter is expected to conclude by September 2017, the company said in a exchange filing.
KEC International: Bags Orders
The stock rose 2.8 percent to Rs 252 after the company bagged a Rs 945 crore order from multiple countries.
Its transmission and distribution business received order worth Rs 560 crore from Sri Lanka and America while the civil business segment received those worth Rs 227 crore. The cables business also gained orders worth Rs 158 crore, according to PTI.
Index Changes
The benchmark BSE Sensex will feature 31 companies from June 19, from the current 30 companies.
The Bombay Stock exchange has announced the inclusion of Kotak Mahindra Bank Ltd. and Tata Motors DVR into the index while government-promoted GAIL India Ltd. has been dropped.
- Kotak Mahindra Bank (+1.4 percent to Rs 950)
- Tata Motors DVR (+1.1 percent to Rs 269)
- GAIL (-2 percent to Rs 393)
Earnings Reaction
IFCI fell 2.2 percent after reporting a loss of Rs 317.9 crore while sales declined 41.6 percent for the March-ended quarter. The board has also approved to sell entire stake in Tourism Finance Corporation of India, comprising of Rs 2.1 crore shares or 26.09 percent equity.
Titagarh Wagon rose 6.7 percent to Rs 131 after reporting a net profit of Rs 12 crore from net loss of Rs 7 crore. Margins however, contracted by 100 basis points. This was the stock's biggest gain since April 25.
Suzlon Energy rose as much as 8 percent to Rs 22, the most since March 2016, after reporting net profit of Rs 579 from loss of Rs 333.9 crore. Suzlon recorded all-time high commissioning levels by installing 1,779 MW in financial year 2016-17.
VRL Logistics fell as much as 8.4 percent, the most since November 2016. This came after the company's net profit fell to Rs 8 crore from Rs 11 crore in the corresponding March ended quarter.
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