A trader watches a quote screen minutes before the start of trading on the floor of the New York Stock Exchange. (Photographer: Daniel Acker/Bloomberg News.)

Stocks To Watch: Canara Bank, HDFC, Navin Fluorine, Wipro

  • HDFC to sell 100 percent stake in HDFC Developers and HDFC Realty to Quikr for a total consideration of Rs 355 crore.
  • VIP clothing to allot 1.65 crore shares at Rs 26 each via a rights issue.
  • Wipro promoter holding increased to 74.33 percent after completion of buyback.
  • SRS to sell its SRS Value Bazaar business for Rs 32 crore to Spencer’s Retail.

Indian equity benchmarks were little changed as gains in Larsen & Toubro and Tata Steel were offset by losses in Mahindra & Mahindra, Axis Bank and Maruti Suzuki.

The S&P BSE Sensex was little changed at 33,756 and the NSE Nifty 50 was also little changed at 10,440. The mid and small cap shares outperformed their large cap counterparts as the S&P BSE MidCap Index rose 0.7 percent and the S&P BSE SmallCap Index advanced 1.1 percent.

Here Are The Stocks To Watch Out:

  • HDFC to sell 100 percent stake in HDFC Developers and HDFC Realty to Quikr for a total consideration of Rs 355 crore.
  • Navin Fluorine to spend Rs 115 crore for the expansion of its Current Good Manufacturing Practice capacity at its Dewas facility.
  • Dalmia Bharat says creditors approves resolution plan for subsidiary Murli Industries.
  • VIP clothing to allot 1.65 crore shares at Rs 26 each via rights issue.
  • Gitanjali Gems denies claims of insolvency.
  • Canara Bank plans to sell 4 percent stake in Can Fin Homes. The bank will hold 26 percent stake after the sale.
  • Wipro: Promoter holding increased to 74.33 percent after completion of buyback.
  • Zee Media starts TV news channel for UP, Uttarakhand.
  • 3i Infotech alloted 10.6 lakh shares against conversion of FCCBs.
  • SRS to sell its SRS Value Bazaar for Rs 32 crore to Spencer’s Retail.
  • Aarti Industries to buy back 8.2 lakh shares (1 percent) at Rs 1,200 each.
  • HIL started operations at its plant in Andhra Pradesh.
  • Indian Overseas Bank: RBI rejects notes to account on asset divergence.

Bulk Deals

  • Polaris Consulting: Kotak Mahindra AMC sold 6.22 lakh shares or 0.6 percent stake at Rs 358.68 each.
  • Motherson Sumi: Promoter Samvardhana Motherson International sold 2.87 crore shares or 1.4 percent stake at Rs 375.02 each.
  • Amarjothi Spinning Mills: Care Portfolio Managers sold 45,433 shares or 0.7 percent stake at Rs 176.52 each.
  • Ultramarine Pigments: Thirumalai Chemicals bought 2.05 lakh shares (0.7%) at Rs 294.85 each.
  • Tara Jewels: Promoter Rajeev Sheth sold 1.97 lakh shares (0.8%) at Rs 17.12 each.

F&O Setup

  • Nifty December Futures closed trade at 10,462.4, premium of 18.4 points versus 26 points on Wednesday.
  • December Futures: Nifty open interest down 6 percent and Bank Nifty open interest down 4 percent.
  • India VIX ended at 12.08, down 0.8 percent.
  • Maximum open interest for December series at 10,500 Call (open interest at 65.3 lakh)
  • Maximum open interest for December series at 10,000 Put (open interest at 79.9 lakh, down 1 percent)

F&O Ban

In ban: Balrampur Chini, DHFL, DLF, Fortis, GMR Infrastructure, HDIL, IFCI, Jet Airways, JP Associates, JSW Energy, Reliance Communications, Wockhardt

New in ban: DHFL, GMR Infrastructure, IFCI, Reliance Communications, Wockhardt

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

Brokerage Radar

CLSA on Accenture

  • Growth acceleration led by consulting, U.S. and FS
  • Guidance for the current fiscal revised to 6-8 percent from 5-8 percent.
  • Consulting acceleration could be a sign of demand improvement.
  • Indian peers tend to be mid-to-late cyclical and may lag this trend.
  • Nature of demand favours Infosys and HCL Tech the most.

JP Morgan on Reliance Infrastructure

  • Maintained ‘Overweight’ with price target of Rs 630.
  • Implied equity value of deal is Rs 6,250 crore, i.e., two times regulated equity base.
  • Transaction may take couple of quarters to conclude.
  • Roadmap to liquidate loan advances and execution of defense opportunities crucial.

JP Morgan on Indiabulls Real Estate

  • Maintained ‘Overweight’ with price target of Rs 235.
  • Mandarin Oriental deal improves visibility on London asset monetisation.
  • Project could yield Rs 2,500 crore in free cash once complete.
  • Comfort on monetisation of balance part improves post this deal.
  • Progress on Dwarka Expressway improves visibility on the Gurgaon assets.
  • IBCAL minority sale key near-term catalyst.

Credit Suisse on Marico

  • Maintained ‘Neutral’ with price target of Rs 310.
  • Focus on driving volume growth and innovations.
  • Management sees window of few quarters to accelerate share gain for Parachute.
  • Margins likely to squeeze in near term; Recovery post copra cycle turns.
  • No volume growth challenge for hair oil over next 10 years.
  • Bangladesh back on growth path.

Motilal Oswal on Britannia

  • Maintained ‘Buy’; Raised price target to Rs 6,100 from Rs 5,845.
  • Continuing new launches in low unit packs (LUP) aiding growth.
  • Creams LUPs to penetrate well in the rural markets.
  • LUPs to aid ramp-up of sales without diluting margin.
  • Rapid growth in distribution; Growing presence in weak states.

IDFC Securities on Bharat Forge

  • Maintained ‘Outperformer’ with price target of Rs 800.
  • FTR, leading North American commercial vehicle industry consultant, expects 20 percent jump in class VIII truck next year.
  • Strong class VIII forecast for 2018 bodes well for Bharat Forge.
  • Class VIII trucks from North America comprise 17 percent of revenues.
  • Rising freight, improving economy and mandatory electronic logging to trigger demand for class VIII.
  • Remain positive given multiple growth opportunities.

Motilal Oswal on Entertainment Network India

  • Upgraded to ‘Buy’ from ‘Neutral’; price target unchanged at Rs 910.
  • Stock attractive after recent correction.
  • Expect revival in Ad revenue in November-December 2017.
  • New stations should break even by the next financial year.
  • Ishq stations and untapped markets to help maintain dominance.
  • To spend Rs 300 crore in the next financial year to acquire TV Today’s frequencies in 3 Metros and on phase-3 auctions.
  • Expect revenue and ebitda to grow at a compounded rate of 15 percent and 29 percent respectively by March 2020.

Media Reports

  • Bank of India to shut 400 ATMs, 300 more under review (Business Standard).
  • Cabinet nod for Auction of 680 FM Channels (Business Standard).
  • Reliance Power moves High Court for early coal allocation (Economic TImes).
  • Promoter sells 1.37 percent stake in Motherson Sumi(Economic TImes).
  • KT Corp, Baring Asia vie for BoB Cards unit; sale of upto 100 percent in the unit could fetch BoB upwards of Rs 1,200 crore (Economic Times).
  • Chinese lenders eye 70 percent in RCom’s DAKC campus; said to be looking to settle dues via land deal; RJio and Airtel bid for telco’s assets (Economic Times).
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