Stocks Radar: ITC, InterGlobe Aviation, Just Dial, MSR India

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Indian equity benchmarks declined, reflecting weak global markets, with investors continuing their risk-off trade as nations grapple with how to deal with escalating provocations from North Korea.

The S&P BSE Sensex fell as much as 0.7 percent to 31,586 while the NSE Nifty 50 Index lost 0.7 percent as well to 9,882. Fifteen of the 19 sector gauges compiled by BSE Ltd. declined led by S&P BSE Realty Index’s 1.1 percent loss.

Here Are The Stocks Moving The Market This Morning

ITC: Drops After Brokerage Downgrades

Shares of the salt-to-hotel conglomerate fell as much as 1.93 percent, the most since August 8, to Rs 277.40 after two brokerages downgraded the stock.

Global brokerage firm Macquarie downgraded the stock to ‘Neutral’ from ‘Outperform’ and cut its target to Rs 304 from Rs 340. It expects cigarette volume to decline by 4 percent in FY18. It has also cut FY18-19 earnings estimate by 2-5 percent and recommended switching to Hindustan Unilever.

Another brokerage Jefferies cut its rating on ITC to ‘Hold’ from ‘Buy’. It said cigarette business remains impacted by regulatory pressures and other businesses will see gradual uptick in growth and profitability.

Bharat Financial Inclusion: RBI Bars FII Investment

Shares of the micro-finance lender fell as much as 2.53 percent to Rs 900 after the Reserve Bank of India restricted foreign institutional investors from investing in the company, according to its exchange statement.

The stock trades at 21.6 times estimated forward earnings per share. It has risen 8.6 percent in the past month, against 1.9 percent decline in the Sensex Index.

ICICI Bank: Unit Gets IPO Nod

Shares of the private sector lender declined as much as 1 percent to Rs 294.75 after its general insurance arm’s Rs 6,000 crore IPO got a green signal from the stock markets regulator

The IPO involves dilution of up to 86.2 lakh equity shares of face value of Rs 10 each of ICICI Lombard General Insurance, according to a PTI report.

Trading volume was 47 percent of the 20-day average for this time of day. The analyst consensus price target was Rs 339.30, Bloomberg data showed, implying a potential upside of 15.1 percent from the current market price. The stock has returned 54 percent so far this year, against a 33.1 percent gain in the Nifty Bank Index.

Bajaj Finance: QIP Issue Opens

Shares of the non-banking finance company provider swung between gains and loses ahead of a share sale.

The company plans to raise up to Rs 4,500 crore through stake sale via qualified institutional placement (QIP), with at floor price of Rs 1,771.9 a piece, the bankers aware of the development told BloombergQuint.

Bajaj Finance trades at 52.7 times trailing 12-month earnings per share. So far this year, the stock has returned 113 percent and a gain of 59 percent in the past 12-months.

InterGlobe Aviation: Extends Decline To Day 2

Shares of the budget carrier operator declined for the second consecutive trading session and fell as much as 2.1 percent, the most in two-weeks, to Rs 1,229.55.

The Gurugram-based airline company might buy a stake in Jet Airways, to extend its international operations, if the Air India bid fails, according to a Mint report citing unnamed sources.

Among the 18 analysts tracked by Bloomberg, 10 analysts have a ‘Buy’ rating on the stock, while six have a ‘Hold’ rating and two have a ‘Sell’ rating. The stock has returned 48.3 percent so far this year.

Stock Reacting To Bulk Deals

Just Dial

  • Stock snapped two-day decline and rose as much as 5.9 percent to Rs 399.75
  • HDFC Mutual Fund bought 32.06 lakh shares (4.6 percent) at Rs 375 each
  • SCI Growth Investments II sold 13.93 lakh shares (2 percent) at Rs 375.27 each
  • Sequoia Capital India Growth Investment Holdings I sold 14.94 lakh shares (2.1 percent) at Rs 375.55 each
  • Sequoia Capital India Investment Holdings III sold 7.11 lakh shares (1 percent) at Rs 375.28 each
  • Salasar Techno Engg. Ltd: KIFS Enterprise bought 1 lakh shares at Rs 243.2 each.

Jenburkt Pharmaceuticals

  • Stock fell as much as 3.5 percent to Rs 456.45
  • Girik Wealth Advisors Private Limited sold 30,794 shares (or 0.7 percent equity) at Rs 433.26 each

MSR India

  • Stock fell as much as 4.9 percent to Rs 35.10
  • Aspire Emerging Fund bought 5 lakh shares (0.8 percent equity) at Rs 33.35 each
  • TVNR Securities and Holdings sold 4.02 lakh shares (0.6 percent equity) at Rs 33.47 each

Stock Reacting To Earnings

Ortel Communications (Q1FY18, YoY)

  • Rose as much as 5 percent to Rs 36.75
  • Net loss of Rs 2.85 crore compared to a profit of Rs 1 crore
  • Revenue fell 7.8 percent to Rs 47 crore
  • EBITDA grew 5 percent to Rs 10.5 crore
  • Margin expanded to 22.3 percent from 19.6 percent
[“Source-bloombergquint”]