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Logistics stocks drew mixed reactions today as uncertainty still prevailed in markets with regard to actual roadmap to GST implementation after the Rajya Sabha passed the historic Bill yesterday.
Shares of Allcargo Logistics surged 6.72 per cent, Transport Corporation of India rose 3.74 per cent and Blue Dart Express went up by 2 per cent on the BSE.
On the other hand, the scrip of Arshiya Ltd fell 3.88 per cent, Snowman Logistics was down 3.84 per cent, Sical Logistics (3.55 per cent) and Container Corporation of India (3 per cent).
The long-pending indirect tax reform Goods and Services Tax (GST) Constitutional Amendment Bill was passed by the Rajya Sabha yesterday.
“As for the markets, the passing of this Bill is definitely a sentiment boost. However after an initial euphoria, I believe the markets will cool off given that the actual implementation is still some time away.
“Also, I believe that much of the GST impact is already priced in, as is reflected in the significant run up seen in the midcap and small cap stocks that were supposed to benefit from GST, especially those which were facing competition from the unorganised players,” said Dhananjay Sinha, Head-Institutional Research, Economist & Strategist, Emkay Global Financial Services Limited.
Auto stocks
Auto stocks rallied sharply in the morning trade on the bourses as the Rajya Sabha had yesterday passed the historic GST Bill, which is expected to lower the tax administrative cost for the sector.
According to experts, the implementation of GST would reduce the on-road prices for price sensitive, entry-level segment, and improve the affordability of vehicles for the end-consumers.
Shares of Hero MotoCorp rose 2.09 per cent, while Tata Motors jumped 3.99 per cent and Maruti Suzuki saw its shares soar nearly 2 per cent.
Mahindra & Mahindra jumped 1.63 per cent and Bajaj Auto shares rose 2.09 per cent.
The BSE Auto Index was trading at 21,082.72, higher by 354.57 points, or 1.71 per cent, in the morning trade.
According to automakers, the uptick in auto stocks is largely on anticipation that the implementation of GST would benefit auto manufacturers.
Meanwhile, the broader market was trading flat with the 30-share benchmark index Sensex quoted at 27,768.12, a rise of 70.61 points or 0.25 per cent at 11.08 am.
Bata India
Shares of footwear major Bata India today slumped almost 6 per cent as the company reported a marginal rise in standalone net profit for the first quarter ended June 30, 2016.
The scrip tanked 5.9 per cent to Rs 520.55 on the BSE.
On the NSE, shares of the company plunged 5.92 per cent to Rs 520.35.
Bata India had yesterday reported a flat growth in standalone net profit at Rs 50.49 crore for the first quarter ended June 30. The company had posted a net profit of Rs 50.18 crore during the April-June period a year ago.
Net sales was down 1.46 per cent during the quarter under review at Rs 674.26 crore against Rs 684.29 crore in the corresponding quarter of the last fiscal, Bata India had said in a BSE filing.
Cadila Healthcare
Shares of Cadila Healthcare today rose sharply by 9.5 per cent despite the company reporting a 22.59 per cent dip in consolidated net profit for the quarter ended June 30.
Shrugging off the disappointing numbers, the scrip opened the day on a positive note and further jumped 9.48 per cent to Rs 379.90 as the trade progressed on the BSE.
On the NSE, shares of the company surged 9.21 per cent to Rs 379.75.
Cadila Healthcare had yesterday reported 22.59 per cent dip in consolidated net profit at Rs 356.2 crore for the quarter ended June 30.
The company had posted a net profit after taxes, minority interest and share of profit of associates and joint ventures of Rs 460.2 crore for in corresponding period of the previous fiscal, Cadila Healthcare had said in a filing to BSE.
Consolidated total income from operations stood at Rs 2,287.1 crore during the quarter under consideration against Rs 2,382.6 crore in the same period a year ago.
Punj Lloyd
Punj Lloyd’s scrip today surged as its subsidiary Pt Engineering Ltd sold its entire stake in UK-based Simon Carves Engineering to Engineers and Constructors International Inc for $2 million (over Rs 13 crore).
After opening the day on a strong note, the scrip further jumped 7.61 per cent to Rs 21.20 on the BSE.
On the NSE, shares of the company soared 6.83 per cent to Rs 21.10.
“Pt Engineering Ltd, a subsidiary of the company, has sold its entire shareholding in its wholly owned subsidiary registered in the United Kingdom viz Simon Carves Engineering Ltd to Engineers and Constructors International, Inc,” Punj Lloyd had said in a filing to BSE yesterday.
Engineers and Constructors International Inc is a design and engineering company belonging to the Mitsui Group. It is based out of Baton Rouge, Louisiana, US, the filing said.
Natco Pharma
Shares of Natco Pharma today advanced by over 7 per cent as the company has got final approval for its Abbreviated New Drug Application (ANDA) for generic versions of Tamiflu oral capsules from the US Food and Drug Administration.
The scrip surged 7.33 per cent to Rs 650.90 — its one-year high level — on the BSE. On the NSE, it moved up by 6.89 per cent to touch its 52-week high of Rs 650.
Natco Pharma Ltd today said it has received final approval for its ANDA for generic versions of Tamiflu oral capsules (Oseltamivir Phosphate), 30 mg, 45 mg and 75 mg, from the USFDA.
“Natco and its marketing partner Alvogen are the first generic players to receive this approval,” Natco said in a regulatory filing.
Tamiflu is a prescription medicine used to treat the flu (influenza) in people 2 weeks of age and older who have had flu symptoms for no more than 2 days. Tamiflu can also reduce the chance of getting the flu in people 1 year and older.
Motherson Sumi
Shares of auto component firm Motherson Sumi Systems rose over 5 per cent today after the company’s board decided to seek shareholders’ approval to raise over Rs 3,500 crore to enhance long-term resources.
The scrip gained 5.39 per cent to Rs 347 on the BSE.
On the NSE, shares of the company moved up by 5.38 per cent to Rs 347.15.
“The board decided to enhance long-term resources to support the growth potential and to have the ability to raise capital at an appropriate time that an enabling resolution would be sought from shareholders in the ensuing AGM to be held on August 31,” Motherson Sumi Systems Ltd (MSSL) had said in a regulatory filing yesterday.
The company will seek the resolution for preferential allotment of up to 17.80 million equity shares or FCCB worth Rs 562.5 crore to Sumitomo Wiring System, Japan, it added.
Further, the resolution seeks to raise an amount of up to Rs 3,000 crore via qualified institutional placement.
“This is a step towards gearing up for the growth in line with the vision 2020 announced by the company. MSSL has set the target of becoming $18 billion company by 2020.”
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