Stocks To Watch: Avenue Supermarts, HCL Technologies, Infosys, Reliance Industries, Shree Cement, Tata Motors, Yes Bank

Stocks in Asia chalked up modest gains on Wednesday after the biggest daily decline in almost three weeks, with investors continuing to assess prospects for the coronavirus impact to prove short-lived.

But equities were firmer in Japan and South Korea; Australia saw more modest gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.18 percent to 12,040.50 as of 6:58 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here Are The Stocks To Watch Out For In Today’s Trade

• Reliance Industries in talks to sell a minority stake in its oil-to-chemical division to Saudi Aramco have been gathering pace in recent weeks, Bloomberg reported quoting people familiar with the matter.
• HCL Technologies to launch Global Delivery Centre in Connecticut, USA with anchor client, Stanley Black & Decker.
• Siti Networks: Brickwork Ratings downgraded the company’s long-term bank loan facilities worth Rs 883.46 crore to BWR D from BWR BB (negative). The downgrade was due to the delays in debt servicing.
• Den Networks, TV18 Broadcast, Hathway Cable & Datacom: Board approved the merger scheme of the afore-mentioned companies into Network18 Media & Investments.
• Avenue Supermarts promoter sold 1.48 crore shares (2.28 percent) in pubic via OFS. Promoter holding now stands at 74.99 percent of the total paid-up capital of the company.
• Infosys has partnered with GE Appliances for digital solutions.
• Bharat Road Networks said that application has been filed against the company by ILFS before NCLT claiming a sum of Rs 70 crore. The company stated that it has an outstanding of Rs 139.02 crore against the ILFS group for which they have initiated the recovery proceedings.
• Balkrishna Industries: HDFC MF decreased its stake from 8.06% to 5.99% on February 17.
• Future Consumer promoters hold 46.29 percent stake in the company, out of which 89.1 percent is pledged.
• Tata Consumer Products (Tata Global Beverages) sold 7.05 lakh shares (0.28 percent) and Tata Chemicals sold 1.6 lakh shares (0.06 percent) to promoter Tata Sons, respectively on Feb. 18.
• Ruchi Soya Industries: SBI Cap Trustee on behalf of lenders increased its stake from 50.7 percent to 98.87 percent in the company on encumbrance via pledge on Feb. 17.
• Quess Corp approved merger 4 wholly-owned arms with self.

Nifty Rejig

Shree Cement Ltd. will replace private lender Yes Bank Ltd. in the benchmark Nifty 50 Index from March 27.

The National Stock Exchange of India Ltd. has also revised the criteria for inclusion of companies in its sectoral indices, according to its press release. Companies should now be part of the Nifty 500 index at the time of review against the existing criteria of ranking among the top 800 firms in terms of both average daily turnover and average daily full market value in the previous six months.

Nifty Next 50

Inclusion

• Adani Transmission
• IDBI Bank
• Info Edge
• Larsen & Toubro Infotech
• Torrent Pharmaceuticals

Exclusion

• Ashok Leyland
• Indiabulls Housing Finance
• L&T Finance Holdings
• Shree Cement
• Vodafone Idea

Nifty 500

Inclusion

• Bharat Rasayan
• Century Textile & Industries
• Future Supply Chain Solutions
• Garden Reach Shipbuilders & Engineers
• GMM Pfaudler
• Gujarat Fluorochemicals
• Hathway Cable & Datacom
• IIFL Wealth Management
• IRCTC
• Ingersoll Rand
• JTEKT India
• Mahindra Lifespace Developers
• Navneet Education
• Sharda Cropchem
• Reliance Capital
• Shipping Corporation of India
• Sterling And Wilson Solar
• Reliance Power
• Tata Communications
• Tata Steel Long Products
• Transport Corporation of India
• Vesuvius India

Exclusion

• Bliss GVS Pharma
• Dewan Housing Finance Corporation
• IFCI
• Indiabulls Integrated Services
• ITD Cementation
• Jain Irrigation Systems
• Kennametal India
• Kirloskar Oil Eng
• Lakshmi Vilas Bank
• Magma Fincorp
• National Fertilizers
• Parag Milk Foods
• PC Jeweller
• Reliance Infrastructure
• Shilpa Medicare
• Sundaram Clayton
• Tasty Bite Eatables
• Va Tech Wabag

Nifty Midcap 100 Exclusions

• Future Consumer
• Graphite India
• HEG
• IDBI Bank
• Info Edge
• L&T Infotech
• NBCC India
• Sterlite Technologies
• Torrent Pharmaceuticals
• Varroc Engineering

Nifty Midcap 100 Inclusions

• Adani Gas
• Adani Green Energy
• Ashok Leyland
• Indiabulls Housing Finance
• IRCTC
• L&T Finance Holdings
• NIIT Technologies
• Polycab India
• Vodafone Idea
• Yes Bank

Nifty Small Cap 100 Exclusions

• Arvind Fashions
• BSE Ltd
• CARE Ratings
• CPCL
• CreditAccess Grameen
• DHFL
• Future Lifestyle Fashions
• Gujarat Alkalies & Chemicals
• India Cements Ltd
• J.K. Cement
• Karnataka Bank
• Minda Industries
• NIIT Technologies
• Suzlon Energy
• Venky's (India)

Nifty Small Cap 100 Inclusions:

• Affle (India)
• Bajaj Consumer Care
• Birla Corporation
• Capri Global Capital
• Century Textile & Industries Ltd
• Dixon Technologies (India)
• Graphite India Ltd
• HEG
• HeidelbergCement India
• Indian Energy Exchange Ltd
• Inox Leisure
• Navin Fluorine International
• NBCC (India)
• Sterling And Wilson Solar
• Sterlite Technologies

Trading Tweaks

• Continental Seeds and Chemicals, Vadivarhe Speciality Chemicals, KPI Global Infra to move into ASM Framework
• Trejhara Solutions, Mohit Industries to move into short term ASM Framework
• Caplin Point Laboratories, IndoStar Capital Finance to move out of short term ASM Framework
• TCI Finance, Tata Teleservices (Maharashtra), Shemaroo Entertainment price band revised to 5 percent

Who’s Meeting Whom

• Trent to meet Dalal & Broacha Stock Broking on Feb. 20
• CRISIL to meet Aditya Birla Sun Life MF on Feb. 20
• Mahindra Lifespace Developers to meet Locus Investments on Feb. 19
• PI Industries to meet CX Partners and JM Financial from Feb. 19-25
• Mahindra Logistics to meet Harding Loevner and Kotak Securities on Feb. 19

Insider Trading

• Som Distilleries promoters acquired 16,000 shares from Feb. 17-18
• Axis Bank promoter General Insurance Corporation of India sold 1 lakh shares on Feb. 17
• Divi’s Lab promoter Madhusudana Divi sold 20k shares on Feb. 17

(As Reported On Feb. 18)

Money Market Update

The rupee ended weaker at Rs 71.56 against the dollar on Tuesday versus Rs 71.29 against the dollar on Monday.

F&O Cues

Futures

• Nifty February futures closed at 12,019, premium of 27 points
• Nifty February futures open interest down 0.8 percent, sheds 1 lakh shares in open interest
• Nifty Bank Feb futures closed at 30,625, premium of 63 points
• Nifty Bank futures open interest down 1.7 percent, sheds 19,000 shares in open interest

Options

Nifty PCR at ** Vs 1.14 (across all series) – to update in the morning

Nifty Weekly Expiry: Feb. 20

• Max open interest on call side at 12,100 (22.5 lakh shares)
• Max open interest on put side at 11,900 (18.8 lakh shares)
• Open Interest addition seen at 12,000C (+11.4 lakh shares), 11,900P (+7.4 lakh shares)
• Open Interest shedding seen at 12,200C (-7.8 lakh shares)

Nifty Monthly Expiry: Feb. 27

• Max open interest on call side at 12,200 (28.2 lakh shares)
• Max open interest on put side at 12,000 (33.6 lakh shares)

Securities In Ban

In Ban

• NCC
• Yes Bank

New In Ban

• Yes Bank

Brokerage Radar

Emkay on Jindal Stainless

• Maintained ‘Hold’; raised price target to Rs 79 from Rs 78.
• Co reported in line set of earnings.
• Higher than expected raw material cost offset better than expected topline.
• At 3.7x Sep-21E EV/Ebitda, stock seems fairly valued.

Citi on Biocon

• Maintained ‘Buy’; raised price target to Rs 360 from Rs 350
• Revise our EPS estimated for the current and the next financial year at 9.6 percent and 3.8 percent respectively.
• An interesting play on the global biosimilars opportunity.
• Expect EM sales to lead growth for biopharma business.

On LIC Housing

Emkay

• Maintained ‘Sell’ with a price target at Rs 371.
• Maintain estimates.
• Despite clear denial from managements, markets do assign some merger probability
• LIC may be required by the regulator to conduct all lending business through a single entity
• Reduction in promoter stake in IDBI Bank would be more convenient after the merger
• Government's intention of selling the existing stake in IDBI Bank adds further weightage to the merger possibility
• Synergies attached to the merger are higher than what the market is anticipating

Morgan Stanley

• Maintain ‘Equal-Weight’; cut price target to Rs 400 from Rs 440.
• LIC Housing Finance and IDBI Bank have denied merger plans.
• Lack of compliance with RBI norms will remain an overhang.
• Yet a merger wouldn't be easy to execute either.
• Not moving to UW – we think a merger is not a straightforward conclusion.