Stocks To Watch: Bajaj Finance, HCL Technologies, ITC, Kotak Mahindra Bank

The Singapore-traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India, declined 0.48 percent to 9,927.

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

• RBI says FPI investment in Bharat Financial shares reached trigger limit
• Bajaj Finance QIP opened at a floor price of Rs 1771.9 per share
• Merck Ltd. says its holding company is considering full or partial sale of its $1 billion consumer health business
• HCL Technologies acquired 100 percent stake in U.K.-based ETL Factory Ltd. for 7 million pounds
• Phoenix Mills increases stake in subsidiaries Offbeat Developers, Vamona Developers, Classic Mall and Alliance Spaces
• Hospital stocks will be in focus as National Pharmaceutical Pricing Authority asks companies to display knee implant system cost on websites within three days

IPO Watch

• Dixon Technologies IPO opens today. Issue price of Rs 1,760 - Rs 1,766

Brokerage View

Centrum: ‘Avoid’ rating on the back of low margin business, high valuations, 90 percent of the issue is offer for sale. There are better investment opportunities in the market.

Angel Broking: Subscribe for a mid-to-long term period as the company will report higher revenue, margin improvement owing to its presence in high growth segments, experienced management and growing share of original design manufacturer segment.

• Bharat Road Network IPO opens today. Issue price of Rs 195 - Rs 205

Brokerage View

Angel Broking: Neutral rating as valuations leaves limited scope for further appreciation to issue price. Company present only in build–operate–transfer (BOT) project segment; lack of engineering, procurement, and construction segment makes its highly dependent on the traffic growth and price increase for improving its profitability.

ICICI Securities: Avoid rating as valuations are at par with other established players. At Rs 205, issue valued at 1.4 times FY17 price-to-book value; price band should have been at a discount to IRB Infrastructure (trading at similar levels).

Other Corporate Announcements

Phoenix Mills

• Acquired additional 4.98 percent stake in subsidiary, Offbeat Developers Ltd. for Rs 27.9 crore, increasing its holding to 93.93 percent from 88.95 percent post acquisition
• Acquired additional 7.96 percent in subsidiary, Vamona Developers Ltd. for Rs 109.99 crore, with its holding increasing to 99.51 percent from 86.55 percent post acquisition
• Acquired additional 1.81 percent stake in Classic Mall Development Company for Rs 24.92 crore, increasing its holding to 50 percent from 48.19 percent post acquisition
• Acquired 37.33 percent stake in Alliance Spaces Pvt Ltd for Rs 24.83 crore, increasing its holding to 74.09 percent from 36.76 percent post acquisition

Music Broadcast Ltd.: Says Radio City to offer customized content across all Lucknow metro stations

Today’s Nifty Call

F&O Setup

• Nifty September Futures closed at a premium of 19.4 points from 14.6 points earlier
• Nifty September futures closed at 9,971.6 open interest up 4 percent
• September series highest Call base at 10,000 (open interest at 41.7 lakh, open interest down 7 percent)
• September series highest Put base at 9,700 (open interest at 46.3 lakh, open interest up 4 percent)
• Call strikes 9,900, 10,000, 10,100 see unwinding of open interest
• Put strikes 9,800, 9,900, 10,000 see open interest addition

Active Stock Futures (September series)

• Ramco Cement saw open interest addition of 57 percent on long side
• V Guard saw open interest addition of 27 percent on long side
• L&T Finance saw open interest addition of 17 percent on long side
• Hexaware saw open interest addition of 16 percent on short side
• OFSS saw open interest addition of 13 percent on short side
• Ceat saw open interest addition of 11 percent on long side
• Titan saw open interest addition of 10 percent on long side
• Berger Paints saw open interest addition of 10 percent on long side

F&O Ban

• Indiabulls Real Estate
• JSW Energy

Bulk Deals

Justdial

• HDFC Mutual Fund bought 32.06 lakh shares or 4.6 percent stake at Rs 375 each
• SCI Growth Investments II sold 13.93 lakh shares or 2 percent stake at Rs 375.27 each
• Sequoia Capital India Growth Investment Holdings I sold 14.94 lakh shares or 2.1 percent stake at Rs 375.55 each
• Sequoia Capital India Investment Holdings III sold 7.11 lakh shares or 1 percent stake at Rs 375.28 each

MSR India

• Aspire Emerging Fund bought 5 lakh shares or 0.8 percent stake at Rs 33.35 each
• TVNR Securities and holdings pvt ltd sold 4.02 lakh shares or 0.6 percent stake at Rs 33.47 each

• Salasar Techno Engg. Ltd: KIFS Enterprise bought 1 lakh shares at Rs 243.2 each
• Jenburkt Pharmaceuticals: Girik Wealth Advisors Private Limited sold 30,794 shares or 0.7 percent stake at Rs 433.26 each

Earnings To Watch

• Butterfly Gandhimati
• Jay Shree Tea
• Kakatiya Cement
• MT Educare

Earnings Reaction to Watch

Ortel Communications (Q1, YoY)

• Revenue fell 7.8 percent to Rs 47 crore
• EBITDA grew 5 percent to Rs 10.5 crore
• Margin expanded to 22.3 percent from 19.6 percent
• Net loss of Rs 2.85 crore compared to a profit of Rs 1 crore

Brokerage Radar

• Kotak Mahindra Bank: JPMorgan upgrades stock rating to Overweight from Neutral and hikes price target to Rs 1,100 from Rs 875
• Mahanagar Gas: IDFC upgrades stock to Outperform from Neutral and raises price target to Rs 1,220 from Rs 1,075
• Sun Pharma: CLSA maintained its Sell rating on the stock with price target of Rs 370
• Reliance Industries: CLSA retained its Buy rating on the stock with price target of Rs 1,920
• Astral Poly: CLSA reiterated its Buy on the stock with price target of Rs 785
• Bharat Electronics: Citi maintained its Buy rating with price target hiked to Rs 220 from Rs 213
• Divis Lab: Edelweiss retained a Reduce rating on the stock with price target of Rs 545
• Jindal Steel and Power: Citi maintained its Buy rating with price target of Rs 200
• GIC Housing Finance cut to hold at Centrum Broking
• ITC cut to hold at Jefferies; cut to neutral at Macquarie, price target Rs 304

Media Reports

• InterGlobe Aviation: IndiGo may buy stake in Jet Airways if Air India bid fails. (Mint)
• NLC India: Government eyes Rs 2,500 crore from selling 15 percent stake in NLC India. (Mint)
• Maruti: R.C, Bhargava says that the automaker will not hold back in electric vehicle segment. (Mint)
• Indraprastha Gas: IGL, IOC-Adani and HPCL-Oil India set to win gas distribution licences . (Economic Times)
• ICRA: ICRA says Uttar Pradesh to clock record sugar output of 9.7 million tonne in upcoming season. (Business Standard)