Stocks To Watch: Alkem Labs, Cadila Healthcare, DCB Bank, M&M

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India gained 0.48 percent to 9,952.

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

• Cadila Healthcare: Received tentative approval from the U.S. FDA to market Fingolimod capsules used for treatment of multiple sclerosis
• Alkem Labs: U.S. FDA completes inspections of its Taloja facility. No Form 483 issued
• Indraprastha Gas: Received permission from Government of Haryana to lay city gas distribution network in Gurugram
• Shreyas Shipping & Logistics: Signed a memorandum of agreement for acquisition of 1100 teus multipurpose vessel. Delivery expected in early September, 2017
• SBI: Filed insolvency plea against Adhunik Metalinks in National Company Law Tribunal.

M&M

• LIC divests 2 percent stake
• Sold over 1.2 crore shares through market sale
• Total holding now reduced to 9.95 percent

Bank Of Baroda

• LIC divests 2.04 percent stake
• Sold over 4.7 crore shares in the open market
• Total holding now reduced to 9.28 percent

Suzlon

• U.S. Subsidiarya ‘Suzlon Energia Eolica Da Brasi’ files for voluntary liquidation in Brazil
• Decision taken in wake of continued financial stress in its operations

ICICI Bank

• ICICI Lombard Insurance files DRHP with SEBI
• To offer up to 8.62 crore shares via IPO

Other Corporate Announcements

• Lypsa Gems & Jewellery: Board approves allotment of bonus shares in the ratio of 2:5
• 63 moons: Subsidiary of company terminates all arrangements with Continental Africa Holdings Ltd. for sale of 100 percent stake in its Mauritius unit
• Bhansali Engineering Polymers: Board approves capex of Rs 300 Crore through internal accruals for capacity expansion
• Navin Fluorine: Board approves sale of 6.85 lakh shares held by company in Mafatlal Industries to NOCIL

Akshar Chemicals

• To issue equity shares worth Rs 75 crore via QIP
• The floor price for the issue is set at Rs 816.59 per share

Today’s Nifty Call

F&O Setup

• Premium on Nifty futures expands to 13 points
• 9.600-9,800 continues to remain strong support for Nifty
• 9,900 put added 20 lakh shares in open interest
• Options data indicates strong support and marginal resistance to Nifty
• Nifty Put-Call Ratio moves higher to 1.5 from 1.46

Active Stock Futures

• Oriental Bank of Commerce: Sees open interest addition of 18 percent on the short side
• Hexaware: Sees open interest addition of 10 percent on the short side
• Mindtree: Sees open interest addition of 9 percent on the long side
• Kotak Mahindra Bank: Sees open interest addition of 7 percent on the long side

Stocks in F&O Ban

• GMR Infra
• HDIL
• IndiaBulls RealEstate
• Jaiprakash Associates
• JSW Energy
• Kaveri Seeds
• Oriental Bank of Commerce
• Ujjivan Financial Services

Bulk Deals

Eros International Media

• Promoter Eros Worldwide sold 12.44 lakh shares or 1.33 percent stake at Rs 209.71 each
• Reduced its holding to 4.58 crore shares or 48.88 percent from 4.71 crore shares or 50.21 percent

Veto Switchgear

• Promoter Veto Electropower India Pvt. Ltd. sold 2.5 lakh shares or 1.36 percent stake at Rs 225 each
• Reduced its holding to 89 lakh shares or 48.57 percent from 91.5 lakh shares or 49.93 percent

Fortune Financial Services

• Kirti Jayantilal Doshi sold 3.64 lakh shares or 0.7 percent stake at Rs 322 each
• Reduced his holding from 22.34 lakh shares or 4.38 percent to 18.70 lakh shares or 3.66 percent
• Hina Kirti Doshi bought 3.64 lakh share 0.7 percent at Rs 322 each

Earnings Reactions To Watch

Karnataka Bank (Q1FY18)

• Net profit up 10.13 percent to Rs 133.85 crore (YoY)
• Net Interest Income up 16.38 percent to Rs 424.42 crore (YoY)
• Gross NPA at 4.34 percent from 4.21 percent (QoQ)
• Net interest margin expands 9 basis points to 2.64 percent

DCB Bank (Q1FY18)

• Net profit up 39 percent to Rs 65 crore (YoY)
• Net interest income up 32 percent to Rs 233 crore (YoY)
• Gross NPA up 15 basis points to 1.74 percent (QoQ)
• Net interest margin expands 18 basis points to 4.23 percent

Gruh Finance (Q1FY18)

• Net profit up to Rs 72 crore
• Income from operations grows to Rs 398 crore
• Gross NPA at 0.64 percent from 0.56 percent
• Net NPA at 0.16 percent from 0.27 percent

Man Industries (Q1, YoY)

• Net profit down 62.68 percent to Rs 11.35 crore
• EBITDA down 36.47 percent to Rs 10.71 crore
• EBITDA Margin contracts 123 basis points to 3.67 percent

Earnings To Watch

• ACC
• Capri Global
• Hindustan Media
• IMFA
• Jubilant Foodworks
• Linde India
• Prakash Industries
• Sharda Motors
• Shree Digvijaya Cement

Brokerage Calls

Infosys

• Goldman Sachs maintained 'Sell' rating and hiked the price target to Rs 799 from Rs 781.
• HSBC maintained 'Buy' rating with the price target of Rs 1,150.
• Credit Suisse maintained their 'Neutral' rating on Infosys with the price target hiked to Rs 1,025 from Rs 1,000.
• CLSA assigned an 'Underperform' rating to the stock and projected FY18 margins to decline by 30 basis points.
• Nomura maintained 'Neutral' rating with the price target set at Rs 1,000.

• SpiceJet: SBICap maintained 'Buy' rating with the price target hiked to Rs 138 from Rs 123.
• TCS: HSBC assigned 'Hold' rating to the stock with the price target cut to Rs 2,380 from Rs 2,430.
• IGL: Citi retained their 'Buy' rating on their top gas pick with the price target hiked to Rs 1,330 from 1,250.

Media Reports

• HPCL: To invest Rs 61,000 crore by 2021 on expansion projects. (Business Standard)
• Mahindra & Mahindra: To pump in $1 billion in the U.S. over the next 5 years. (Business Standard)
• NBCC: Eyes 25 percent revenue growth in FY18. (Business Standard)
• Maruti Suzuki: To automate treasury operations to hedge against currency swings. (Economic Times)
• ONGC: Oil ministry intensifies monitoring of ONGC fields. (PTI)
• Religare Enterprises: RHC’s debentures downgraded as Singh brothers default on payment. (Mint)
• Shriram Group: It hopes to move to the next level with IDFC merger. (Mint)
• Britannia: Scouts for opportunities in the bakery segment. (Business Standard)
• Allcargo Logistics: To get int last-mile delivery, eyes Rs 1,500 crore income. (Business Standard)
• GMR Infrastructure: Abu Dhabi Investment Authority may pick up to 49 percent stake in GMR’s Hyderabad airport. (Economic Times)
• Tata Sponge: Gets green nod to raise capacity. (Economic Times)