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Stocks To Watch: Canara Bank, DHFL, HDFC Bank, NMDC

Here are the stocks to watch out for in trade! 

A man looks through a pair of Leica Camera AG binoculars during the grand opening of the Leica concept store in Washington, D.C, U.S. (Photographer: Joshua Roberts/Bloomberg)
A man looks through a pair of Leica Camera AG binoculars during the grand opening of the Leica concept store in Washington, D.C, U.S. (Photographer: Joshua Roberts/Bloomberg)

Asian stocks rose, building on gains in global shares amid optimism over progress in the U.S.-China trade war and indications of more stimulus from the European Central Bank.

Japan’s Topix index and South Korea’s Kospi both climbed about 1 percent, with more modest gains seen in Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 11,769 as of 7 a.m.

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Stocks To Watch

  • Punjab National Bank Basel III-compliant tier-I bonds worth Rs 6750 crore downgraded to ‘A/Negative’ vs ‘A+/Negative’ earlier by India Ratings. The agency believes that any delays in the management-expected timelines for capital augmentation triggers is likely to result in continuing pressure on capital ratios.
  • DHFL repaid Rs 7.5 crore on June 18.
  • NMDC produced 3.04 MT iron ore in May 2019 versus 2.12 MT year on year. Sales at 3.37 MT versus 2.31 MT year on year.
  • Canara Bank board permitted stake sale in Can Fin Homes. Stake sale to happen at an appropriate time depending on the market conditions and available options.
  • Quickheal clarified that promoters had tendered 42 lakh shares as part of the buyback program and not sold the same. To clarify further, the promoters have not tendered their 100 percent holding in the buyback. Consequently, post buyback, their shareholding in the company has gone up from 72.32 percent (pre-buyback) to 72.83 percent (post-buyback)
  • The Reserve Bank of India imposed a penalty of Rs 1 crore on HDFC Bank for non-compliance with directions issued by RBI on Know Your Customer/Anti-Money Laundering norms and on reporting of frauds.
  • Jain Irrigation: India Ratings cuts its long term issuer Rating to BBB with outlook at 'Watch Negative'. The downgrade reflects deterioration in the liquidity profile on account of delay in realisation of receivables from its micro-irrigation systems (MIS) segment.
Opinion
Air Passenger Growth Rebounds In May

Bulk Deals

Man Industries

  • Kobe Steel sells 12 lakh shares at Rs 51.5 per share; Promoters buyers.

Who’s Meeting Whom

  • Voltas to meet investors like Goldman Sachs, Motilal Oswal, Citi, Kotak etc on June 19.
  • Eicher to meet Stieinberg India Fund and Hill Fort India Fund on June 20.
  • Tamil Nadu Newsprint & Papers to meet analysts and investors on June 19 in Chennai.
  • Himachal Futuristic Communications to meet fund managers, institutional investors and analysts on June 19.
  • Eicher Motors to meet Steinberg India Fund and Hill Fort India Fund on June 20.
  • Crompton Greaves Consumer Electricals to meet Mirae Asset Financial Group and Helios Capital on June 27.
  • IRCON International: One-on-one investor meet is going to be held on June 19 with M3 Investment Private Limited.

Pledge Share Details

  • Max India: 2.75 crore shares pledged by Max Ventures released (9 crore shares pledged as of March 2019).
  • Max Financial Services: 48.6 lakh shares pledged by Max Ventures released.
  • Adani Enterprises: Shares Pledged by Gautam Adani/Rajesh S Adani (on behalf of SB Adani Family Trust) on 19 lakh shares released.
  • Adani Transmission: Shares pledged by Gautam Adani/Rajesh S Adani (on behalf of SB Adani Family Trust) on 29 lakh shares released.
  • JSW Steel: Promoter pledged additional 1.08 percent equity.
  • JSW Energy: Promoter pledged additional 0.69 percent equity.

F&O Cues

June Futures

  • Nifty futures closed at 11,700, premium of 9 points versus 25.5 points
  • Nifty futures open interest down 3 percent, sheds 5 lakh shares in open interest.

Bank Nifty

  • Bank Nifty futures closed at 30,331, discount of 20 points versus premium of 52.7 points.
  • Bank Nifty futures open interest down 5 percent, sheds 88,000 shares in open interest.

Options

  • Nifty PCR at 1.13 versus 1.08 (across all series).

Nifty Weekly Expiry 20 June

  • Max open interest on call side at 11,900 (26 lakh shares).
  • Max open interest on put side at 11,700 (12.2 lakh shares).
  • Open interest addition seen at 11,750C (+3.8 lakh shares), 11,850C (+3.5 lakh shares).
  • Open interest shedding seen at 12,000C (-5.6 lakh shares), 12,100C (-3.2 lakh shares).

Nifty Monthly Expiry 27 June

  • Max open interest on call side at 12,000 (24 lakh shares).
  • Max open interest on put side at 11,500 (28.4 lakh shares).

Stocks In F&O Ban

In Ban:

  • DHFL
  • IDBI Bank
  • Jet Airways
  • PC Jeweller
  • Reliance Capital

Out Of Ban:

  • Reliance Infrastructure

Brokerage Radar

CLSA on Bharat Forge

  • Maintain 'Sell'; cut target price to Rs 390 from Rs 420.
  • Risk of simultaneous slowdown in three key segments.
  • Industrial, domestic truck & export truck form 65 percent of revenue.
  • Cut FY20-21 EPS estimates by 2-3 percent factoring in lower exports.

UBS on Titan

  • Maintain 'Buy'; hiked target price to Rs 1,600 from Rs 1,250.
  • Aggressive growth strategy and flawless execution keeps us bullish.
  • Expect market share gains to continue; Expect EPS CAGR of 30 percent over FY19-22.
  • Jewellery segment market share to reach 20.5 percent till FY23 versus 13.5 percent in FY19.

Goldman Sachs On Indian Steel

  • Global activity slowed significantly; China growth concerns impact spreads.
  • Domestic demand resilient, but spreads unlikely to bounce back.
  • Preferred integrated steel mills as ore availability remains uncertain.
  • Tata Steel: Reinstated 'Buy' with target price of Rs 570.
  • JSW Steel: Downgraded to 'Neutral' from 'Buy'; cut target price to Rs 296 from Rs 327.

HSBC on Aviation Sector

  • Domestic traffic grew, but airlines selling more seats at lower fares.
  • Load factor down for most; market share normalizing now.
  • Fares should normalize further going forward.