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Stocks To Watch: ABB, Bharti Airtel, Idea Cellular, Royal Orchid Hotels, Yes Bank 

The Singapore-traded SGX Nifty dropped 0.23 percent to 10,044 as of 7:05 a.m.



Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)
  • Telecom stocks in focus as TRAI cuts IUC charges to 6 paise per minute from 14 paise currently
  • Anti-dumping duty on import of certain type of bus, truck tyres from China for 5 years
  • Yes Bank: Last day of trade before stock split from Rs 10 to Rs 2
  • ABB India: Axis Capital upgrades stock to ‘Buy’, with a target of Rs 1,750 per share

The Singapore-traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India, dropped 0.23 percent to 10,044 as of 7:05 a.m.

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

  • Telecom stocks in focus as the telecom regulator cut interconnect charges to 6 paise from 14 paise currently. Termination charges will be zero from 2020.
  • Hindustan Copper signs memorandum of understanding with Nalco and Mineral Exploration Corp to form a joint venture for exploration and sale of minerals
  • Shreyas Shipping to acquire a container vessel of about 1500 TEUs. Delivery expected by Mid-October
  • Edelweiss increased holding to 92.20 percent in ECL Finance
  • Shilpi Cables says BDR Builders and Developers acquired 18.47 percent stake in the company
  • Gujarat Apollo bought back 9.98 lakh shares from May 4 to September 19 for a total amount of Rs 17.86 crore

Other Corporate Announcements

  • Entertainment Network: Commenced broadcast from its radio stations in Jammu
  • India Infoline Finance: To consider fund raising on September 25
  • Yes Bank: Last day of trade before stock split from Rs 10 to Rs 2
  • Graphite India and Jai Corp: Circuit filter revised to 10 percent
  • Autolite (India): Circuit filter revised to 5 percent
  • Lasa Supergenerics, Dishman Carbogen Amcis and Provestment Services to be listed on September 21

IPO Watch

  • Dixon Technologies and Bharat Road Network added to BSE IPO Index
  • ICICI Lombard General Insurance IPO subscribed 2.9 times at close
  • SBI Life Insurance IPO opens today; issue price Rs 685-700 per share

F&O Setup

  • Nifty September Futures closed with a premium of 21 pts from 22 points
  • September Nifty Futures open interest unchanged, Bank Nifty open interest down 3 percent
  • India VIX closed higher by 0.2 percent at 11.46
  • September series highest Call base at 10200 (open interest at 55.8 lakh, up 4 percent )
  • September series highest Put base at 10,000 (open interest at 59.6 lakh, open interest down 4 percent)
  • Call strikes 10,150, 10,200 see open interest addition
  • Put strikes 10,050, 10,100 see open interest addition

Active Stock Futures

  • Kajaria Ceramics sees open interest addition of 32 percent on long side
  • Tata Chemicals sees open interest addition of 22 percent on long side
  • Indigo sees open interest addition of 20 percent on short side
  • PEL sees open interest addition of 14 percent on short side
  • BEML sees open interest addition of 14 percent on long side
  • GAIL sees open interest addition of 11 percent on long side
  • Granules sees open interest addition of 11 percent on short side
  • Andhra Bank see open interest addition of 7 percent on long side

Stocks In F&O Ban

  • Bharat Earth Movers
  • DHFL
  • HDIL
  • Indiabulls Real Estate
  • Infibeam
  • JP Associates
  • JSW Energy
  • Just Dial

Kamat Hotels

  • KIFS Enterprise bought 5 lakh shares or 2.1 percent stake at Rs 96.39 each

Religare Industries

  • IndusInd Bank sold 9.21 lakh shares or 0.5 percent stake at Rs 45.35 each

ADF Foods

  • Promoter Mishal Ashok Thakkar sold 18 lakh shares or 8.5 percent stake at Rs 233.52 each
  • Mentor Capital bought 9 lakh shares or 4.2 percent stake at Rs 227 each
  • Alpana Sanjay Dangi bought 8.51 lakh shares or 4 percent stake at Rs 240.06 each

Royal Orchid Hotels

  • Ashish Kacholia sold 8.37 lakh shares or 3.1 percent stake at Rs 125.16 each
  • Royal Bank of Scotland bought 9.28 lakh shares or 3.4 percent stake at Rs 126.43 each

Tata Chemicals

  • Tata Sons bought 1.04 crore shares or 4.1 percent stake at Rs 642.55 each
  • Tata Global Beverages sold 1.04 crore shares or 4.1 percent stake at Rs 642.55 each

Tata Global Beverages

  • Tata Sons bought 4.31 crore shares or 7.1 percent stake at Rs 213.35 each
  • Tata Chemicals sold 4.31 crore shares or 7.1 percent stake at Rs 213.35 each

Tata Motors

  • Tata Sons bought 3.87 crore shares or 1.3 percent stake at Rs 421.44 each

Media Reports

  • Bharti Airtel plans to spend over Rs 32,000 crore in next two fiscals (Economic Times)
  • Two Adani Power companies secure over 1/3rd of CIL coal (Economic Times)
  • Unitech serious developer, not fly-by-night operator: Chairman (PTI)
  • Infosys inks seven-year deal with CMA CGM Group (PTI)
  • MMRDA shortlists ten for Mumbai Trans Harbour Link project – L&T, Tatas, HCC among bidders (ET)
  • Adani Power big gainer in Shakti auction (Economic Times)

Brokerages On TRAI’s Interconnect Decision

CLSA

  • Cut in Interconnect Usage Charges to impact Bharti Airtel’s and Idea Cellular’s EBITDA by 4 percent and 7 percent respectively
  • IUC contributes 7-8 percent to Airtel’s consolidated EBITDA
  • IUC contributes 11-13 percent to Idea’s consolidated EBITDA
  • Relaince Communications’ EBITDA to be boosted by 3 percent from lower IUC
  • Reliance Jio’s FY19 EBITDA estimates could rise by 20 percent

Motilal Oswal

  • Bharti and Idea’s immediate EBITDA impact should be less than 5 percent
  • Jio’s IUC per subscriber to reduce to Rs 40 from Rs 85; total savings of close to Rs 6,000-4,500 crore
  • Jio’s reduction in free offers to taper competitive intensity by the end of FY18

Bank of America Merrill Lynch

  • Net IUC contributes 10 percent  and 15 percent of Bharti Airtel’s EBITDA and Idea Cellular’s EBITDA respectively.
  • Expect Bharti Airtel’s consolidated EBITDA to be impacted by 2-5 percent till FY21 estimates
  • Expect Idea’s consolidated EBITDA to be impacted by 4-13 percent till FY21 estimates
  • Beyond FY21, expect Bharti, Idea’s EBITDA to go down by 6-15 percent
  • TRAI’s move to bring IUC to zero post 2020 is likely a negative surprise

Goldman Sachs

  • Bharti Airtel’s FY18-20 EBITDA estimates cut by 2-4 percent
  • Idea Cellular’s FY18-20 EBITDA estimates cut by 6-10 percent
  • Expect negative impact on Bharti’s annual cash flow by $150 million
  • Expect Idea to generate $250 million of negative cash flow in FY18
  • IUC to help Jio generate additional $200-450 million EBITDA during FY18-20
  • Reliance Industries’ target price hiked to Rs 905 from Rs 875

Brokerage Radar

  • CLSA On Reliance Industries: Maintains ‘Buy’; target price hiked to Rs 1,050 per share from Rs 990
  • Citi On Havells: Maintains ‘Neutral’; hikes target price to Rs 525 from Rs 500
  • Deutsche Bank Markets Research On Whirlpool India: Maintains ‘Hold’; hikes target price to Rs 1,120 form Rs 1,080
  • Credit Suisse On Adani Ports & SEZ: Maintains ‘Outperform’, target price hiked to Rs 460 from Rs 360
  • Credit Suisse On Larsen & Toubro: Remains ‘Outperform’ at Credit Suisse, target price hiked to Rs 1,425 from Rs 1,330