Stocks Radar: Jet Airways, Maruti Suzuki, Reliance, Aurobindo Pharma

Indian equity benchmarks on Friday opened lower mirroring their Asian peers.

The Sensex fell 0.46 percent to 39,434.75 and the Nifty traded at 11,788.90, 0.37 percent lower, as of 9:50 am. Market breadth was tilted in favour of sellers. All sectoral gauges compiled by the National Stock Exchange fell, led by a 1.28 percent decline in the NSE Nifty Pharma Index.

Jet Airways Slumps After Being Admitted To NCLT

Shares of the Jet Airways (India) Ltd. slumped 10 percent to Rs 56.60 apiece after the crisis-hit airline was admitted to the National Company Law Tribunal for insolvency proceedings under India's bankruptcy laws.

NCLT has sought a progress report on Jet Airways in three months instead of 180 days and directed the resolution professional to takeover the assets immediately and to submit fortnightly reports starting July 5.

Operational creditors, including pilots seeking salary dues, have been directed to file claims with the resolution professional. The case is next listed on July 5, to get details on the progress report.

The stock rose 150 percent intraday on Thursday before ending around 90 percent higher at close.

Tata Motors Skids After Moody's Rating Downgrade

Shares of the Jaguar Land Rover parent fell nearly 3 percent to Rs 154.50 each.

Credit-rating agency Moody's downgraded Tata Motors Ltd.' corporate family rating and the company's senior unsecured instruments rating to Ba3 from Ba2, according to its statement. The downgrade reflects the sustained deterioration in credit profile led by the weak performance of JLR. Moody's also downgraded the corporate family rating of JLR to B1 from Ba3 and probability of default rating.

The trading volume was nearly five times the 20-day average for this time of the day, Bloomberg data showed.

Maruti Suzuki Top Nifty Loser

Shares of the country's largest carmaker Maruti Suzuki India Ltd. fell 3.3 percent, the most in a month, to Rs 6,400.

Brokerage and research firm UBS downgraded the stock rating to ‘Sell' from ‘Buy' and cut price target to Rs 5,800 from Rs 8,000, according to their research report.

Here's what UBS had to say:

• Downgrade on rich valuations; current valuation ahead of fundamentals.
• Like trusted brand name, asset-light business model and pace of new project addition.
• Cut FY20/21 EPS estimates by 6 percent/1 percent to factor Ind-AS impact, higher interest and selling cost.

On Thursday, Maruti Suzuki increased prices of its best-selling compact sedan Dzire, according to its notification to the bourses. Price shall now vary from Rs 5,82,613 to Rs 9,57,622 (ex-showroom, Delhi NCR). The Dzire versions are now compliant with 'AIS-145 Safety Norms' and the Dzire petrol is now BS-VI compliant, the notification said.

The stock traded at 25 times its estimated earnings per share for the coming year, according to Bloomberg data.

Reliance Industries Falls After Report Of Jio IPO

Shares of the Mukesh Ambani-led conglomerate declined 0.6 percent to Rs 1,289 apiece after an Economic Times report said Reliance Industries Ltd. is exploring an initial public offering for telecom arm Reliance Jio Infocomm Ltd. in the latter half of 2020 at the earliest. The RIL stock has advanced 27 percent in the past 12 months compared to a 11 percent gain in the Sensex.

Balaji Telefilms Advances After Selling Film Rights Worth Rs 100-Crore

Shares of the media company extended its gains for a second day after it rose 8.7 percent to Rs 65.70 apiece.

Balaji Telefilms Ltd. has sold rights for four upmoving movies for over Rs 100 crore, according to an exchange filing. Pen Marudhar Entertainment, a subsidiary of Pen Studios, has acquired the distribution rights for Mental Hai Kya, Jabariya Jodi, Dream Girl and Dolly Kitty Aur Woh Chamakte Sitaare, the filing said.

The stock traded 61 percent below the Bloomberg consensus one-year target price.

Aurobindo Pharma Near 11-Month Low As Regulatory Concerns Prevail

Shares of Aurobindo Pharma Ltd. fell as much as 7.7 percent to Rs 578.65, the lowest in nearly 11 months.

The pharma firm received a warning letter from the U.S. Food and Drug Administration for its Srikakulam plant, according to its statement on the exchanges. “Aurobindo Pharma is committed in resolving issues at the earliest and the existing business won't be impacted from the plant,” the statement added.

The stock traded at 12 times its estimated earnings per share for the coming year, Bloomberg data showed.