Stocks To Watch: IDBI Bank, Jindal Steel, Prestige Estates, Yes Bank

  • Yes Bank acquires 5.62 percent in One Point One Solution under Anchor investor portion.
  • NBCC to sell 25,16,013 shares via OFS to employees.
  • Srikalahasthi Pipes’ QIP closes; Issue price fixed at Rs 360.5 which is at discount of 5 percent to the floor price.
  • IDBI Bank to terminate rating engagement with Moody’s for MTN program.
  • Punjab & Sindh Bank approves raising funds via share issue.

Indian equity benchmark topped 34,000 for the first time on Tuesday, marking the fifth such round-number milestone reached this year. The Sensex has climbed 28 percent so far this year, one of the best performers among Asia’s major markets.

A global stock rally and a flood of local liquidity amid falling returns from property and gold have put the Indian guage on course for its best year since 2014.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was a little changed at 10,531 as of 6:50 a.m.

Here Are The Stocks To Watch Out For In Wednesday’s Trade

  • Pidilite Industries’ Board approves buy back of upto Rs 500 crores at Rs 1,000 per share vai tender route.
  • Reliance Communications announces exit from SDR framework with zero write-offs to lenders; to reduce debt by Rs 25000 crore.
  • ITC says certain individuals and NGOs have filed petition against HC ruling on cigarette warning.
  • Yes Bank acquires 5.62 percent in One Point One Solution under Anchor investor portion.
  • NBCC to sell 25,16,013 shares via OFS to employees.
  • Srikalahasthi Pipes’ QIP closes; Issue price fixed at Rs 360.5 which is at discount of 5 percent to the floor price.
  • IDBI Bank to terminate rating engagement with Moody’s for MTN program.
  • Punjab & Sindh Bank approves raising funds via share issue.
  • Prestige Estates to acquire 66.66 percent in group company, Prestige Projects for Rs 324 crore.

Bulk Deals

  • Lokesh Machines: Sushmita Kacholia sold 1.28 lakh shares or 0.8 percent equity at Rs 75.53 each.
  • Tara Jewels: Promoter Rajeev Sheth sold 1.79 lakh shares or 0.7 percent equity at Rs 16.46 each.

Vishal Fabrics

  • Asia Investment Corp Mauritius bought 3.74 lakh shares or 1.7 percent equity at Rs 300 each.
  • Promoter Devkinandan Corporation sold 3.75 lakh shares or 1.7 percent equity at Rs 300 each.

Shanti Educational Initiatives

  • LTS Investment Fund bought 80,800 shares or 0.5 percent equity at Rs 142 each.
  • Promoter Tripoli Management Pvt Ltd sold 80,800 shares or 0.5 percent equity at Rs 142 each.

F&O Setup

  • Nifty December futures closed trade at 10526, a discount of 5 points from a premium of 12 points.
  • Nifty January futures trading at 10,567.8, a premium of 37 points.
  • All series: Nifty open interest up 8 percent; Bank Nifty open interest up 12 percent.
  • Nifty Rollover at 35 percent, Bank Nifty Rollover at 30 percent.
  • India VIX ended at 12, up 4 percent.
  • Max open interest for Dec. series at 10,500 Call (open interest at 55.4 lakh, down 2 percent).
  • Max open interest for Dec. series at 10,000 Put (open interest at 70 lakh, down 6 percent).

F&O Ban

  • In ban: Balrampur Chini, DHFL, DLF, GMR Infrastructure, HDIL, IFCI, Jet Airways, Jain Irrigation, JP Associates, Reliance Capital, Wockhardt
  • New in ban: HDIL, Jet Airways, Jain Irrigation, Reliance Capital
  • Out of ban: Fortis Healthcare, Reliance Communications

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 Stocks Futures

Stocks To Watch: IDBI Bank, Jindal Steel, Prestige Estates, Yes Bank

Brokerage Radar

Edelweiss Securities On Kotak Mahindra Bank

  • Upgraded to ‘Buy’ from ‘Hold’ with revised target price of Rs 1205 per share.
  • Upgrade follows recent interaction with management.
  • Confidence stems from culmination of integration pangs (opex & cost).
  • Merger of ING Vysya Bank lower than estimated on opex and asset quality fronts.
  • Improved visibility on transitioning to steady‐state returns profile in the near term.
  • Liability franchise continues to strengthen: Stupendous Saving Account accretion.
  • Continued stress in economy and hence CV/CE portfolio to moderate bank growth prospects.

Barcalys On Concerns Of FY18 Slippages

  • Achieving the fiscal deficit target goal will be a difficult balancing act, but possible.
  • Government’s tax and non-tax revenue collection to be Rs 800-1,200 billion lower than the budgeted sum.
  • Disinvestment proceeds remain strong.
  • Divestment could generate a surplus of Rs 300-400 billion over and above BE of Rs 725 billion.
  • Government can avoid exceeding its gross market borrowing target for the current financial year.

Motilal Oswal on Sanghi Industries

  • Initiated coverage with ‘Buy’ rating and price target of Rs 157, a potential upside of 23 percent from yesterday’s close.
  • Sanghi Industries is one of the lowest cost cement producers due to its quality limestone, locational advantage and strong integration across the manufacturing value chain.
  • Sanghi Industries’ strength lies in its access to 1b tonne of quality marine limestone reserves.
  • Expect SIL’s margins to expand by 8.4pp over the financial years through March 2020.
  • Diversification into new markets to bring in scale and margin expansion.
  • Sanghi Industries is a strong re-rating candidate led by expected increase in capacity and anticipated scale benefits led by diversification into new higher-priced markets.
  • Expect operating income and net profit to grow at a compounded rate of 33 percent and 61 percent respectively over the financial years through March 2020, with improved pricing and positive operating leverage.
  • Expect return on equity to increase by 11pp to 16.8 percent in the financial year-ending March 2020, led by a sharp uptick in profitability.

Media Reports

  • Biscuit maker Anmol Industries planning IPO in 2018 (Mint).
  • Consumer Goods Makers Pins Hopes On 2018 To Erase Woes Of 2017 (Mint).
  • DLF promoters conclude nearly Rs 9000-crore deal with DCCDL (Financial Express).
  • TVS rejigs key roles to sharpen focus on premium bikes and global markets (Economic Times).
  • Apollo Tyres plans to use Rs 1500 cr QIP proceeds to expand operations (Economic Times).
  • Alok Industries’ insolvency pro calls for fresh bid to attract more players (Economic Times).