Stocks To Watch: ONGC, RCom, RBL Bank, TD Power Systems

  • Reliance Communication says it is not making any payment to lenders for time being.
  • RBL Bank acquires an additional 2.08 percent stake in Swadhaar Finserve, increasing its holding to 60.48 percent.
  • ONGC says Venezuela’s state-run PDVSA is committed to the arrangement with ONGC Videsh.

Indian equity benchmarks posted its longest losing streak in four weeks, on investor worry the government may breach fiscal targets as inflation rises. The S&P BSE Sensex Index dropped 0.6 percent at the close, with Sun Pharma leading the declines. The NSE Nifty 50 Index declined 0.7 percent to 10,118.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,147 as of 7:00 a.m.

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

  • Reliance Communication: Says it is not making any payment to lenders for time being.
  • CRISIL: To buy entire stake in Pragmatix Services for Rs 56 crore.
  • NHAI: Terminates agreement with Atlanta for Gujarat project.
  • RBL Bank: Acquires an additional 2.08 percent stake in Swadhaar Finserve, increasing its holding to 60.48 percent.
  • Manaksia Industries: To set up wholly-owned subsidiary in India and Tanzania for its agro-commodities business.
  • ONGC: Says Venezuela’s state-run PDVSA is committed to the arrangement with ONGC Videsh.
  • Seamec: Approves scheme of demerger of EPC and Vessel division of HAL offshore into itself.

Trading Tweaks

  • Tube Investments shifted to B group. Circuit filter revised to 20% percent.
  • Kinetic Engineering circuit filter revised to 10 percent.
  • Khadim India added to BSE IPO Index

Offerings/Listings

  • Edelweiss: QIP issue opens; seeks around $300 million at a floor price of Rs 285.14 a share; to set issue price on Nov. 20.
  • 5Paisa Capitalt to list on exchanges. IIFL demerged ‘5Paisa Digital Undertaking’ into its fully-owned subsidiary 5Paisa Capital in 2016.

F&O Setup

  • Nifty November futures closed at 10,154, premium of 36 points versus 47.6points
  • November contracts: Nifty open interest down 2 percent; Bank Nifty open interest down 1 percent
  • India VIX closed 0.7 percent higher at 14.2
  • Max open interest for November series at 10,500 Call (open interest at 58.2lakh, up 3 percent)
  • Max open interest for November series at 10,200 Put (open interest at 45.4 lakh, down 1 percent)

F&O Ban

  • In ban: DHFL, Indiabulls Real estate, India Cement, Infibeam, Jet Airways, JP Associates, JSW Energy, Just Dial. Kaveri Seed, Reliance Communications, Reliance Capital
  • New in ban: Jet Airways, Reliance Communications, Reliance Capital
  • Out of ban: HDIL, Jain Irrigation

Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.

Active Stock Futures

Stocks To Watch: ONGC, RCom, RBL Bank, TD Power Systems

Bulk Deals

Vadilal Industries

  • Radhika Sharma bought 40,000 shares or 0.6 percent stake at Rs 1040.2 each.
  • Avvanti advisors sold 36,611 shares or 0.5 percent stake at Rs 1040 each.

Indo Count Industries: Param Value Investments bought 10 lakh shares or 0.5 percent stake at Rs 116.9 each.

Control Print: India Opportunities Growth Fund sold 84,000 shares or 0.5 percent stake at Rs 439.32 each.

CMM Infra Projects: Systematix Shares & stocks sold 1.14 lakh shares (net) at Rs 61.28 each.

Earnings Reactions To Watch

Wonder La (Q2, YoY)

  • Revenue up 1.2 percent at Rs 49.4 crore.
  • Net profit down 37.8 percent at Rs 2.3 crore.
  • EBITDA up 20.65 percent at Rs 11.1 crore.
  • Margin at 22.5 percent versus 18.9 percent.

CARE Ratings (Q2, YoY)

  • Revenue up 12.3 percent at Rs 91 crore.
  • Net profit up 2 percent at Rs 48.3 crore.
  • EBITDA up 11 percent at Rs 66.5 crore.
  • Margin at 73.1 percent versus 74.1 percent.

New India Assurance (Q2, YoY)

  • Gross written premium up 12.2 percent at Rs 6,489.2 crore.
  • Profit up 187.5 percent at Rs 748.3 crore.
  • Combined ratio improved to 112.5 percent.
  • Solvency ratio stood at 2.24 from 2.04.

TD Power Systems (Q2, YoY)

  • Revenue up 19.4 percent at Rs 126 crore.
  • Net profit at Rs 5 crore.
  • EBITDA at Rs 9 crore.
  • Margin at 7.1 percent versus 1.4 percent.

Results Today

  • Ahluwalia Contracts
  • Gati
  • Honda Siel
  • Bharat Matrimony

Brokerage Radar

CLSA on Jubilant Foodworks

  • Maintained ‘Buy’ with price target of Rs 2,200.
  • Menu price hike of around 6 percent effected.
  • Need to watch out for customer reactions to the menu price change.
  • Price change varies across portfolio with prices of entry-level seeing almost no change.
  • With lower GST rate on output end-prices dropped 11 percent, which should help volumes.

Deutsche Bank Jubilant Foodworks

  • Maintained ‘Buy’ with price target of Rs 1,775.
  • Domino’s has implemented a weighted average price hike of 6 percent.
  • Mitigates the potential margin headwind due to impact of stranded taxes.
  • Remains top pick in consumer discretionary.
  • Easy comps on revenue growth and potential for higher cost savings in the second half may drive consensus earnings upgrades.

Macquarie on Ceat

  • Maintained ‘Outperform’ with price target of Rs 2,200.
  • Margins improved in the previous quarter on the back of volume growth, lower rubber prices and cost-control.
  • Expect volume growth to improve further in the second half, led by restocking by the trade channel.
  • Expect margins to improve on benign rubber prices, favourable mix and an increase in utilisation.
  • Expect Earnings per share to grow at a compound annual growth rate of 15 percent over the financial years till March 2020.

Media Reports

  • Suzlon Eyeing $250 million from stake sale in Unit (Mint).
  • Federal Bank In Process of Divesting 26% Stake in The Fully Owned NBFC Arm Fedfina (Financial Express).
  • Govt need not consult Statutory Board: SC On Combination Drugs Ban (Economic Times)
  • Government To Float Another Tender For 10,000 Electric Cars (PTI)
  • Finance Ministry Asks State-Owned Banks To Submit Fundraising Roadmap In A Month (PTI)
  • ONGC, Cairn Bid For 41 Oil And Gas Blocks (PTI)