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The Indian equity benchmarks opened lower following their Asian peers, which are set for the worst week since March amid continuing worries about emerging markets and the outlook for the technology sector’s earnings. The S&P BSE Sensex and the NSE Nifty 50 Index traded at 38,293.46 and 11,553.90, respectively, as of 10.45 a.m.
The market breadth was slightly tilted in favour of buyers. Seven of the 11 sectoral gauges declined, led by a 0.66 percent fall in the Nifty PSU Bank Index. The Nifty Auto Index was the top gainer, up nearly 1 percent.
Here Are The Stocks Moving The Market This Morning:
Sun Pharma Falls On U.S. FDA Observations For Halol Plant
Shares of the drugmaker fell as much as 5.6 percent to Rs 640 apiece after six observations were issued by the U.S. drug regulator for the company’s Halol plant.
The FDA issued the observations based on inspections conducted during Aug. 27-31. BloombergQuint accessed the Form 483 issued to the drugmaker.
The stock trades 55.2 times trailing its 12-month earnings per share and 36 times its estimates for the coming year, according to Bloomberg data.
Bajaj Auto Jumps The Most In Two Months On Capacity Expansion Plans
Shares of the two- and three-wheeler maker jumped as much as 3.3 percent—the most in two months—to Rs 2,874.50 apiece on the company’s capacity expansion plans.
Bajaj Auto said it will expand its three-wheeler and quadricycle capacity to one million units per year as the government plans to end mandatory permits for these vehicles. Union Transport Minister Nitin Gadkari announced a ‘no-permit’ regime for CNG three-wheelers at the 58th SIAM Annual Convention yesterday.
The stock rose 6.4 percent in the past month compared to a 1.2 percent advance in the S&P BSE Sensex, Bloomberg data showed.
L&T Technology Rises After Acquiring Semiconductor Maker
Shares of the Larsen and Toubro subsidiary gained nearly 3.4 percent to Rs 1,799 apiece.
L&T Technology plans to acquire Graphene Semiconductor Services Pvt. Ltd. for Rs 93 crore, according to its exchange filing. This deal is aimed at strengthening the company’s footprint in very-large-scale-integration chip design and embedded software services and to cross-sell to client base of Graphene Semiconductor Services.
The stock is 7.5 percent above the Bloomberg consensus one-year target price.
Reliance Naval Slumps After Lender Files Insolvency Application
Shares of the warships and submarine maker declined nearly 5 percent to Rs 15.35 apiece.
IDBI Bank Ltd. has moved the National Company Law Tribunal against Reliance Naval and Engineering Ltd. seeking debt resolution under the Insolvency and Bankruptcy Code, according to an exchange notification. A similar application was filed by another lender IFCI Ltd. in November which is pending admission.
The company’s debt stood at Rs 5,300 crore as of March, according to filings. Bankers, however, said total dues are at about Rs 9,000 crore, including principal and interest. IDBI Bank has chosen EY as the interim resolution professional for Reliance Naval’s insolvency process, a person close to the development told BloombergQuint.
The stock declined 69 percent so far this year, Bloomberg data showed.
M&M Gains On Reports Of Product Launch Plans
Shares of the automaker rose as much as 1.1 percent to Rs 944.90 apiece.
The company will launch two SUVs and one premium car by the end of the year, Bloomberg reported quoting Managing Director Pawan Goenka as saying. He said 1,000 electric cars will be made per month by May next year versus 500 units produced now. The automaker expects new launches to contribute an additional up to 9,000 units to its monthly sales.
The stock returned 41.7 percent in the past one year compared to a 21.9 percent return of the S&P BSE Sensex, Bloomberg data showed.
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