The News International Team
11:50 am Buzzing: Shares of Sadbhav Engineering (SEL) climbed as much as 4 percent intraday after Kotak Institutional Equities raised target price on the stock to Rs 275 from Rs 230 earlier.
According to the brokerage house, the stock looks attractive as the company’s roads portfolio offers a long runway for growth with protection against surprises in traffic and cash flows.
“SEL has a durable roads portfolio, benefiting from long residual life, normalized traffic risk, and well-spread and back-ended debt-repayment schedule (protects on cash flows against business volatility). Stricter norms on overloading can boost toll collections. However, the early stage of portfolio will keep the business in investment mode for another 2-3 years,” Kotak explained.
11:30 am Interview: Infosys founders Narayana Murthy and family sold 23.3 percent of their stake on Monday, along with Nandan Nilekani and family – who sold 31.3 percent stake. K Dinesh and family and SD Shibulal too sold 21.5 percent and 9.6 percent, respectively.
Vibhor Singhal of Phillip Capital believes investors are reading too much into promoters selling their stake and yesterday’s selling was an over-reaction. However, overall he is bearish on the stock when compared to TCS and Tech Mahindra . He says Vishal Sikka’s vision for the company will take time to materialise. In the midcaps space, he likes Persistent Systems.
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The market is still dragging with the Sensex down 73.16 points at 28046.24. The Nifty is down 28.10 points at 8410.15. About 1150 shares have advanced, 1081 shares declined, and 101 shares are unchanged.
TCS, Dr Reddy’s Labs, Sun Pharma, GAIL and HDFC Bank are top gainers in the Sensex. Among the losers are Tata Power, Sesa Sterlite, Bharti Airtel, NTPC and ITC.
Crude oil futures fell by 1.22 percent to Rs 3,885 per barrel today as speculators engaged in reducing their exposures amid a weakening trend in Asian trade where it tumbled to fresh five-year lows owing to weak demand. Marketmen said trading sentiment remained subdued after crude struck fresh five-year lows in Asia with analysts forecasting further falls owing to weak demand, a global supply glut and fewer production halts.
Globally, Shanghai continues its run and rallies to a fresh 3.5-year high. Brent continues to trade at 5-year low.