Stocks To Watch: Aurobindo Pharma, Federal Bank, HUL, MOIL

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India was little changed at 9,863.

Here are the stocks to watch out for in today’s session:

Aurobindo Pharma

• Gets U.S. FDA nod for tablet version of gRenvela
• Market size for the drug at $1.8 billion, according to IMS data
• Drug had multiple filers including Lupin, Glenmark, Cipla and Impax
• Product can result in annual sales of $128 million, according to Deutsche Bank
• Sales through the product can be between $125-150 million, according to Motilal Oswal

• Glenmark: Signs pact with Cyndea Pharma for Generic soft-gelating capsules
• Bhansali Engineering Polymers: To invest Rs 300 crore to increase ABS production capacity to 137 kilo tonnes per annum from 80 kilo tonnes per annum
• Federal Bank: RBI raises FII limit to 74 percent from 49 percent
• Sun Pharma: Gets U.S. FDA nod for Paroxetine Hydrochloride oral tablet
• Lupin: Gets U.S. FDA nod for Armondafinil oral tablet
• Cadila Healthcare: Gets U.S. FDA nod for Pitavastatin oral tablet

MOIL

• Government to sell 6.65 lakh shares at Rs 346.75 per share via OFS
• OFS to be open from July 19-27

Other Corporate Announcements

• NDTV: Income Tax appellate tribunal dismissed company’s appeal against the assessment order
• Coral India Finance And Housing: Shareholders approve 5:1 stock split
• Gammon Infrastructure: Sold entire holding in subsidiary for Rs 1.50 lakh
• Power Grid: Powergrid Kala Amb Transmission Ltd., a 100 percent wholly-owned subsidiary secured through Tariff Based Competitive Bidding declares the commissioning of its project on July 12
• JM Financial: Subsidiary of company acquires 24.35 lakh or 8.56 percent shares of Spandana Sphoorty Financial Ltd.
• Grasim: will trade ex-Aditya Birla Capital today. F&O lot size revised to 750
• Navin Fluorine: Trades ex-stock split from today
• Ashok Leyland: Partners with Sun Mobility to develop electric vehicles

Today’s Nifty Call

F&O Setup

• Long unwinding seen in Nifty with the index shedding 18 lakh shares in open interest
• Nifty Bank sees fresh longs and adds 2 lakh shares in open interest
• Heavy call writing seen at levels of 9,900-10,000
• 10,000 level has total open interest concentration of 67.2 lakh shares
• 9,900 call sees open interest addition of 17.6 lakh shares
• 10,000 call adds 20.2 lakh shares in open interest
• 9,900 put sees open interest shedding of 16.9 lakh shares
• Nifty Put-Call Ratio falls to 1.34 from 1.53

Active Stock Futures

• ITC: Sees open interest addition of 23 percent on the short side
• Havells: Sees open interest addition of 13 percent on the short side
• Mindtree: Sees open interest addition of 9 percent on the short side
• Reliance Industries: Sees long unwinding on account of open interest shedding of 9 percent
• Asian Paints: Sees short covering on shedding 8 percent in open interest

Stocks In F&O Ban

• Fortis Healthcare
• GMR Infrastructure
• HDIL
• Indiabulls Real Estate
• JSW Energy
• Just Dial
• Kaveri Seeds
• Oriental Bank of Commerce
• Network18
• Ujjivan Financial Services

Bulk Deals

Fortis Healthcare

• Promoters sold 1.35 crore shares worth Rs 203 crore
• Norges Bank bought 57.3 lakh shares in block
• Fortis Healthcare Holding held 22.2 crore shares in company as per June data
• Fortis promoter shareholding has fallen to 40.2 percent from 42.9 percent in June
• The promoter shareholding as of January was 62.9 percent

Eros International

• Promoters sold in 11.9 lakh shares in the company worth Rs 25.6 crore
• Eros Worldwide held 4.7 crore shares in the company as of March 31

Jubilant Foodworks

• Goldman Sachs bought 4.1 lakh shares in Jubilant Foodworks at Rs 1,322 per share
• Goldman Sachs did not previously hold any shares in the company

• Grasim: India Opportunity Fund bought 11.2 lakh shares sold by Marquarie at Rs 1,303 each
• Veto Switchgears: Promoters sold 1.6 lakh shares at Rs 225 per share

Earnings Reaction To Watch

Hindustan Unilever (Q1, YoY)

• Revenue up 4.8 percent to Rs 9,222 crore
• EBITDA up 11.4 percent to Rs 1,866 crore
• EBITDA margin expands to 21.9 percent from 20.6 percent
• Net profit up 9.3 percent to Rs 1,283 crore

Jay Bharat Maruti (Q1, YoY)

• Revenue up 30.4 percent to Rs 434.67 crore
• EBITDA up 21.38 percent to Rs 28.9 crore
• EBITDA margin contracts to 7.7 percent from 8.1 percent
• Net Profit up 44 percent to Rs 10.12 crore

Sasken Technologies (Q1, QoQ)

• Net profit down 60.1 percent to Rs 17.29 crore
• EBITDA down 14.9 percent to Rs 12.81 crore
• EBITDA margins contract to 10.9 percent from 12.8 percent

CRISIL (Q1, YoY)

• Net profit up 9 percent to Rs 67.25 crore
• EBITDA up 13 percent to Rs 103.35 crore
• EBITDA margins expand to 25 percent from 24 percent

Sundaram Finance (Q1, YoY)

• Net profit up 30.1 percent to Rs 117.34 crore
• Revenue up 9.3 percent to Rs 609.7 crore

Earnings To Watch Today

Other Earnings Today

• Amtek Auto
• Bajaj Finserv
• GNA Axles
• Havells India
• Jubilant Industries
• Mastek
• Sanofi India

Brokerage Calls

HUL

• CLSA maintained 'Underperform' and hiked price target to Rs 1,250 from Rs 1,100
• Edelweiss maintained a 'Hold' rating and raised price target to Rs 1,253 from Rs 1,106
• Credit Suisse maintained a 'Neutral' stance, hiked price target to Rs 1,200 from Rs 1,100
• Morgan Stanley maintained 'Underweight' and raised price target to Rs 850 from Rs 795

• UltraTech Cement: JP Morgan maintained an 'Overweight' rating with the price target set at Rs 4,400
• HPCL: HSBC maintained 'Buy' rating and hiked price target to Rs 433 from Rs 431
• Edelweiss Financial Services: Citi initiated coverage on the stock with a 'Buy' rating and hikes price target to Rs 240.
• Reliance Industries: HSBC upgraded stock to 'Hold' with the price target hiked to Rs 1,340 from Rs 1,170
• BPCL: HSBC maintained a 'Hold' rating on the stock with the price target increased to Rs 477 from Rs 437
• Thermax: Deutche Bank upgrades stock to 'Hold' and hikes price target to Rs 870 from Rs 850

Indian Oil Corporation

• HSBC maintained a 'Hold' rating and cut the price target to Rs 369 from Rs 385
• BoFAML upgraded the stock rating to 'Neutral' and set the price target at Rs 413

Media Reports

• Tata Power: To invest $90 million in its renewable energy arm, TPREL. (Mint)
• Jet Airways: In massive expansion mode; adds 96 new weekly flights. (PTI)
• Petronet LNG: Eyes 2019 rescue for nearly idle $700 million Kochi LNG terminal. (Mint)
• HCL Infosystems: In talks to distribute Apple products in India. (PTI)
• Max Finacial Services: The company is working on a new merger plan with HDFC Life. (Economic Times)
• Shriram Transport Finance: The company raised Rs 980 crore through bonds. (PTI)
• Monnet Ispat: It wants NCLT to consider the buyer's offer. (Economic Times)
• Ashok Leyland: Joins hands with SUN Mobility for electric vehicles. (Economic Times)
• BHEL: Beats L&T, Doosan to win 2,400-MW project. (Economic Times)
• Oil India: Submits report to Centre for gas pipeline in Assam. (PTI)
• HPCL: Cabinet may deliberate on HPCL stake sale to ONGC on Thursday. (PTI)
• Ultratech Cement: Plans Rs 2,600 crore plant in Madhya Pradesh. (Financial Express)
• Reliance Industries: The company alongwith Shell claim government's $3 billion demand to be premature. (Economic Times)
• Mahindra and Mahindra: To invest $1 billion across various sectors in the U.S. over the next 5 years. (Financial Express)
• Reliance Capital: Foreign funds buy 4.5 percent stake in Reliance Mutual Fund for $100 million ahead of its IPO in October. (Business Standard)