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Stocks To Watch: GM Breweries, HDFC, Nestle India, NHPC, RCom, Union Bank

Here are the stocks to watch out for in today’s trade.  

A trader works at the new Nasdaq Inc. trading floor of the Philadelphia Stock Exchange. (Photographer: Charles Mostoller/Bloomberg)
A trader works at the new Nasdaq Inc. trading floor of the Philadelphia Stock Exchange. (Photographer: Charles Mostoller/Bloomberg)

Asian stocks opened lower, with Japan slumping in its first trading day of the year, after weak economic data added to anxiety about global growth and Apple Inc.’s sales outlook cut sunk U.S. stocks.

Japanese shares tumbled as traders returned from an extended new-year break, with a slide in Apple suppliers and a rally in the yen weighing on sentiment. Australian stocks fell and Chinese futures pointed to a weaker start. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,688.50 as of 6:40 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

  • HDFC in its third quarter results said that loan assigned for the quarter stands at Rs 6,959 crore as compared to nil in the corresponding quarter of the previous year. The company also stated that there were no proceeds on account of sale of investments in group companies as compared to last year’s corresponding quarter where it had earned Rs 5,257 crore from the stake sale in the initial public offering of HDFC Standard Life Insurance. Income from dividend stood at Rs 2 crore while in the base quarter is stood at Rs 151 crore, which included Rs 141 crore from HDFC Standard Life Insurance.
  • Power Grid Corporation’s board approved investment of Rs 267.33 crore for 500 MW Thyristor Controlled Reactor in Haryana and Rs 112.12 crore for communication scheme under the Central sector for Western Region.
  • NHPC Limited said that shutdown of its Himachal Pradesh Power Station will cause a tentative loss of 35.1 MU in production of electricity 6.5 percent in PAF. The tentative financial loss based on the final tariff determination by Central Electricity Regulatory Commission will be around Rs 30.14 crore, the company stated in its press release. On Dec. 20, the company had intimated complete shutdown for this 520 MW Parbati III Power Station Plant in Himachal Pradesh.
  • Reliance Communications moved to Supreme Court against Government of India for not clearing spectrum sale to Reliance Jio. The apex court of India will hear the company’s plea on Jan. 7.
  • Nestle India said that as per their lawyers who appeared in Supreme Court, the apex court has agreed with the company’s contention on Maggi ban case and has set aside both interim orders passed by National Consumer Disputes Redressal Commission, which was challenged by Nestle. In the press release it was also stated that the Supreme Court has directed that reports received from Central Food Technological Research Institute will be the basis for proceedings before the redressal commission.
  • Sun Pharma’s arm completed the acquisition of 100 percent stake in Japan based Pola Pharma. The share agreement for this transaction was done on Nov. 26.
  • Vascon Engineers concluded sale of land in Gurgaon and Pune for Rs 50 crore. The management say that sale of these non-core assets will ensure adequate liquidity in the operations.
  • Torrent Power appointed as Distribution Franchisee for distribution in three sub-divisions under Thane Urban Circle for 20 years. The circle has a customer base of 2.15 lakh and the company under the agreement will distribute electricity to consumers on behalf of Maharashtra State Electricity Distribution Company, and to upgrade infrastructure.
  • CESC Limited appointed as Distribution Franchisee for Malegaon Municipal Corporation in Maharashtra by the state electricity distribution company.
Opinion
Supreme Court Revives Suit Against Nestle Over Maggi Noodles

Earnings Reactions To Watch

GM Breweries (Q3, YoY)

  • Revenue up 5.7 percent to Rs 124.6 crore.
  • Net profit down 25.1 percent to Rs 16.7 crore.
  • Ebitda down 27.2 percent to Rs 24.9 crore.
  • Margin at 20 percent versus 29 percent.
  • Raw material/sales at 71 percent versus 64 percent (after adjusting excise and other taxes).

Bulk Deals

VA Tech Wabag

  • Norges Bank acquired 3.31 lakh shares or 0.61 percent equity at Rs 259.53 each.

Norges Bank is the central bank of Norway and it also manages the Government Pension Fund of Norway.

Trading Tweaks

  • ONGC record date for share buyback.
  • SMS Lifesciences price band revised to 10 percent.

Money Market Update

  • Rupee closed at 70.19/$ versus 70.17/$ on Wednesday.

F&O Cues

  • Nifty January futures closed trading at 10,718, premium of 46 points.
  • Maximum open interest for January series call at 11,000 strike price, open interest at 39.2 lakh shares.
  • Maximum open interest for January series put at 10,500 strike price, open interest at 39.6 lakh shares.

Stocks In F&O Ban

  • Adani Power
  • Jet Airways

Put-Call Ratio

  • Nifty PCR at 1.34 from 1.47.
  • Nifty Bank PCR at 0.83 from 0.84.
Stocks To Watch: GM Breweries, HDFC, Nestle India, NHPC, RCom, Union Bank

Brokerage Radar

UBS on Federal Bank

  • Maintained ‘Buy’; hiked price target to Rs 120 from Rs 95.
  • Strong operating growth to drive re-rating.
  • NPL risks smaller than expected earlier.
  • Increase earnings estimates for the current and the next financial year by 5 percent and 15 percent respectively.

CLSA on Infosys

  • Maintained ‘Buy’ with a price target of Rs 910.
  • Fruits of 2018-19 investments to be share gains and growth acceleration.
  • 2019 is likely to be a year with a catch up with TCS on growth and capital return.
  • Infosys should enjoy secular growth improvement; Top picks.

PhillipCapital on Marico

  • Maintained ‘Buy’; raised price target to Rs 425 from Rs 370.
  • Commodity windfall to aid margins in medium term.
  • International business (ex-South Africa) is poised for double-digit constant currency revenue growth.
  • Reiterate high conviction Buy; Hike FY19-21 EPS estimates by 5-6 percent on benign input costs.

PhillipCapital on Specialty Chemicals

  • Sustained product price to drive value growth.
  • Higher rupee realisation to complement conducive industry scenario.
  • Improved demand scenario to supports growth.
  • Top results picks: Aarti Industries, Vinati Organics, Atul Ltd and Camlin Fine.

JM Financial on Timken India

  • Maintained ‘Buy’ with a price target of Rs 675.
  • Indian railways spends on rolling stock set to accelerate.
  • Exports to sustain double digit growth.
  • ABC Bearings facility to see ramp up in production.