Tata Steel shines on UK arm sale
Tata Steel stock ended the session higher by 6.75 per cent at Rs 324.40 on the BSE as the company has put its entire UK business up for sale to stem heavy losses, a move that would draw a line under its almost decade-long foray into Britain's declining steel industry.
On the NSE, the scrip ended up by 6.47 per cent at Rs 323.50.
After a board meeting in Mumbai, the steel giant said the financial performance of its UK arm had deteriorated sharply in recent months, following years of weak conditions which have already forced it to shed hundreds of jobs.
Blaming high manufacturing costs, domestic market weakness and increased imports into Europe from countries like China, Tata Steel saw little change in the competitive position of its UK operations, which employ about 15,000 people and include Port Talbot, Britain's largest steel plant.
Adani Ports stock climbs over 3%
Shares of Adani Ports and Special Economic Zone surged over 4 per cent today after the company raised Rs 500 crore through issue of debentures.
The stock rose 3.32 per cent to Rs 245.85 on the BSE at the closing trade. On the NSE, it climbed 4.37 per cent to Rs 248.25.
“The company has raised Rs 500 crore today by allotment of 5,000 rated, listed, secured, taxable, redeemable, non—convertible debentures (NCDs) of the face value of Rs 10,00,000 each on private placement basis,” it had said in a regulatory filing to the BSE yesterday. Earlier this month, the company had also raised Rs 150 crore through debentures.
Rallis India stock jumps on IKEA deal
Shares of agro-chemical firm Rallis India rose over 5 per cent today after the Tata group’s agri-input arm entered into an agreement with IKEA India to transfer its leasehold right over a land parcel here for nearly Rs 214 crore.
Earlier, the stock jumped 4.82 per cent to Rs 178 on the BSE. On the NSE, it rose 5.29 per cent to Rs 178.90.
The company shares ended the session higher by 1.88 per cent at Rs 173 and up by 1.53 per cent at Rs 172.50 on the NSE.
Rallis India had yesterday said it has entered into an agreement with Swedish furniture retailing giant IKEA to monetise its surplus assets.
“The company signed an agreement for assignment of its leasehold rights in respect of the leasehold land at MIDC Industrial area, Turbhe, Navi Mumbai to IKEA India Pvt Ltd,” Rallis India had said in a BSE filing.
On the size of the agreement, Rallis said “consideration of Rs 213.93 crore is payable by IKEA to the company for assignment of its leasehold rights’’.
Rallis India is a subsidiary of Tata Chemicals with business presence in the farm essentials vertical. It is into seeds, agro-chemicals, plant growth nutrients and agri-services.
Lupin stock recovers; outlook cloudy
Lupin shares ended the session higher by nearly 6 per cent, after a 3-day streak in which they lost 9.5 per cent.
On the BSE, the stock surged 5.21 per cent to Rs 1,474.50 and on the NSE, it was up 5.88 per cent at Rs 1,484.
The drop was steepest on Tuesday when Lupin had said the US FDA had issued some “minor” observations on Mandideep facilities in central India.
Macquarie says observations can put pressure on valuation multiples even as they do not impact the business in near-term
Macquarie has cut the price target to Rs 1,800 from Rs 2,200, but maintains “outperform” rating.
The FDA had issued 9 observations on Lupin's Goa facility earlier this month.
Macquarie estimates Goa and Mandideep facilities account for about 2/3rd of Lupin's US sales.
Lupin is marginally cheaper than its peers (forward PE of 19.35x vs 19.50x), but its EPS growth rate is much slower, according to Thomson Reuters data
22 of 39 brokerages covering the stock rate it “buy” or higher, 11 “hold” and 6 rate it “sell” or lower; median PT is Rs 1,970.India's Sun Pharma gains on deal to buy Novartis Japan brands.
Sun Pharma gains on Novartis deal
Shares of Sun Pharmaceuticals gained as much as 2.44 per cent after the company signed a deal to buy Novartis Japan brands.
The stock ended the session higher by 2.21 per cent at Rs 811.60 on the BSE and up by 1.97 per cent at Rs 810 on the NSE.
Sun Pharma says it will acquire 14 prescription brands in Japan from Novartis AG for $293 million.
Brands have combined annualised revenues of $160 million, Sun says, adding Japan's pharmaceutical market is estimated to be at $73 billion.
The stock is now down about 1.9 per cent YTD vs a 4 per cent drop in Sensex.
The stock is more expensive than its peers (Sun's forward PE is 24.11 vs 19.35 for peers), but its EPS growth of about 170 per cent far outstrips its peers, according to Thomson Reuters data.
Suzlon climbs on IndianOil order
Suzlon Energy shares surged over 8 per cent as the company announced it had received a 48.30 MW power order from Indian Oil Corporation.
On the BSE, the stock ended higher by 8.08 per cent at Rs 13.91 and on the NSE, it was up 8.17 per cent at Rs 13.90.
Located in the districts of Jaisalmer and Jodhpur in Rajasthan, the project is scheduled for completion by March 2017, a filing to the BSE said.
Suzlon will also provide comprehensive operation and maintenance for an initial period of 10 years.
BPCL stock hits 2-1/2 month high
Shares of oil marketing company BPCL today hit 2-1/2 month high.
The stock rose as much as 3.83 per cent to its highest since January 18.
The company shares ended the session up by 2.97 per cent at Rs 900.95 on the BSE. On the NSE, the stock was up 2.97 per cent at Rs 900.
According to technicals, the stock will break resistance at Rs 889.3, the 61.8 per cent Fibonacci retracement level on the fall from Rs 987 to Rs 731.15.
The stock's 20-day simple moving average (SMA) has crossed above its 50-day SMA, indicating a bullish signal.
BPCL stock is trading within an ascending channel in which prices are expected to rise until price breaks the downside trend line decisively.
Price volume trend hitting a new high is a positive sign.
The stock was up 13.62 per cent over the past month as of Tuesday's close, while the broader index was 8.73 per cent higher.