Stocks To Watch: Biocon, Idea Cellular, InterGlobe Aviation, Quess Corp

The rally in Asian stocks stalled Wednesday even after U.S. stocks rose for a third day. The yen strengthened as the dollar resumed its decline.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 11,072 as of 7:10 a.m.

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

• Manappuram Finance board authorises managing director to scout for investment opportunity.
• Godrej Agrovet clarifies stake in Maxximilk less than 51 percent.
• Quickheal Technologies receives order from tax authorities demanding Rs 37.7 crore. Company will appeal against the order with CESTAT.
• Aurionpro Solutions’ arm Cyberinc partners with ECS to distribute Isla Malware Isolation Platform across Asia Pacific.
• Shriram EPC bags order worth Rs 84 crore from Jharkhand to set up drinking water and Sanitation facilities.
• Wipro bags multi-year business process services contract from Nilfisk.
• Majesco QIP opens with a floor price of Rs 532 per share.
• Genus Papers leases manufacturing facility for 5 years for production of Kraft paper.
• Alembic to buy back 1.02 crore shares (3.84 percent equity) at Rs 80 per share.
• Savita Oil Technologies to buy back 2.8 lakh shares (1.92 percent equity) at Rs 1,605 per share.
• Sanghi Industries QIP closes with the issue price fixed at Rs 129 per share, at a discount of 4.78 percent to the floor price.
• ONGC signs loan pact worth Rs 18,060 crore with Punjab National Bank, Bank Of India, Axis Bank to fund HPCL stake buy.

F&O Setup

• Nifty Jan. futures trading at 11,085, premium of 1.7 points from a premium of 1.8 points
• Nifty Feb. futures trade at 11,108, premium of 24 points
• Across series: Nifty open interest up 3 percent, Bank Nifty open interest up 8 percent
• India VIX ended at 16.2, up 5.5 percent
• Rollover: Nifty at 31 percent, Bank Nifty at 35 percent
• Max open interest for Feb. series at 10,800 Call (open interest at 20.5 lakh, up 1 percent)
• Max open interest for Feb. series at 10,500 Put (open interest at 39.6 lakh, up 4 percent)

F&O Ban

• In ban: Dewan Housing, HDIL, IFCI, Jet Airways, Jindal Steel, JP Associates, Kaveri Seed, Reliance Communication
• New in ban: Jet Airways, Jindal Steel, Reliance Communication
• Out of ban: Balrampur Chini , DLF, Fortis, HCC, Just Dial

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

Active Stock Futures

Bulk Deals

Varun Beverages

• Reliance MF – Growth Fund bought 11.50 lakh shares or 0.6 percent equity at Rs 700 each.
• Reliance MF – Top 200 Fund bought 10 lakh shares or 0.5 percent equity at Rs 700 each.
• AION Investments II Singapore Pte sold 40 lakh shares or 2.2 percent equity at Rs 700.26 each.

Oriental Hotels: Reliance MF – Mid & Small Cap Fund sold 1.19crore shares or 7.1 percent equity at Rs 61.5 each.

Zee Entertainment: Essel Holdings sold 1.38 crore shares or 1.4 percent stake at Rs 595.13 each.

Earnings Reactions To Watch

Indiabulls Housing Finance Q3 (YoY)

• Income from operations grew 29.5 percent to Rs 3,349 crore.
• Core NII up 23.6 percent at Rs 1,410 crore.
• Net profit grew 55.4 percent to Rs 1,167.7 crore.
• Provisions for loan assets/bad debt at Rs 262 crore.

RBL Bank Q3 (YoY)

• NII up 45.3 percent at Rs 467 crore.
• Net profit up 28.5 percent at Rs 163.5 crore.
• Provisions at Rs 82.3 crore.
• GNPA at 1.56 percent from 1.44 percent (QoQ).
• NNPA at 0.97 percent from 0.78 percent (QoQ).

Nucleus Software Q3 (QoQ)

• Revenue up 6 percent at Rs 106 crore.
• Net profit up 15 percent at Rs 18 crore.
• EBIT up 48 percent at Rs 17 crore.
• Margin at 16 percent from 11.5 percent.
• Other income down 34 percent at Rs 5.4 crore.

L&T Technology Services Q3 (QoQ)

• Revenue up 7.5 percent at Rs 969 crore.
• Net profit up 2 percent at Rs 126 crore.
• EBIT up 8.5 percent at Rs 134 crore.
• Margin at 13.8 percent from 13.7 percent.

Crompton Greaves Consumer Electricals Q3 (YoY)

• Revenue up 6.6 percent at Rs 938 crore.
• Net profit up 28 percent at Rs 69.5 crore.
• EBITDA up 18.4 percent at Rs 116 crore.
• Margin at 12.4 percent from 11.1 percent.

Indiabulls Real Estate Q3 (YoY)

• Revenue multiplied six-folds to Rs 2,100 crore.
• Net profit up 45 percent at Rs 85 crore.
• EBITDA up 710.5 percent at Rs 231 crore.
• Margin at 11 percent from 9.5 percent.

Wabco India Q3 (YoY)

• Revenue up 33 percent at Rs 650 crore.
• Net profit up 45.5 percent at Rs 64 crore.
• EBITDA up 29 percent at Rs 100 crore.
• Margin at 15.4 percent from 15.8 percent.

Syngene International Q3 (YoY)

• Revenue up 17 percent at Rs 388 crore.
• Net profit up 11 percent at Rs 82 crore.
• EBITDA up 11.5 percent at Rs 126 crore.
• Margin at 32.5 percent from 34 percent.

United Spirits Q3 (YoY)

• Revenue down 8 percent at Rs 2,263 crore.
• Net profit down 9 percent at Rs 135 crore.
• EBITDA down 7 percent at Rs 272.5 crore.
• Margin flat at 12 percent.

Shemaroo Q3 (YoY)

• Revenue up 17 percent at Rs 133 crore.
• Net profit up 29 percent at Rs 18 crore.
• EBITDA up 22 percent at Rs 36 crore.
• Margin at 27.1 percent from 26 percent.

PNB Housing Finance Q3 (YoY)

• Revenue from operations up 44 percent at Rs 1,438.5 crore.
• Net profit up 58 percent at Rs 217.5 crore.
• GNPA at 0.42 percent from 0.37 percent (QoQ).
• NPA at 0.33 percent from 0.27 percent (QoQ).

Alembic Q3 (YoY)

• Revenue up 11 percent at Rs 30 crore.
• Net profit up 700 percent at Rs 5.6 crore.
• EBITDA up 567 percent at Rs 5 crore.
• Margin at 16.7 percent from 2.8 percent.

Credit Suisse on Autos

• Maruti: Maintained ‘Neutral’; raised price target to Rs 9,400 from Rs 7,300.
• Eicher: Maintained ‘Underperform’; cut price target to Rs 23,500 from Rs 26,600
• Maruti better on almost all counts.
• Maruti has a better fiscal 2020 visibility on both demand and supply.
• Eicher also likely to see higher cost increase and competitive intensity.
• For Eicher success of new launches important.
• Longer-term penetration argument also favours Maruti.

Earnings To Watch

• Idea Cellular
• Biocon
• Canara Bank
• Capital First
• Container Corporation Of India
• HEG
• InterGlobe Aviation
• Kei Industries
• Kpit Technologies
• L&T Infotech
• Mahindra & Mahindra Financial Services
• Mas Financial Services
• Motilal Oswal Financial Services
• Mphasis
• Pfizer
• Pidilite Industries
• Quess Corp
• Raymond
• Sagar Cements
• Vijaya Bank

Media Reports

• ArcelorMittal exits race for Bhushan Power (Economic Times).
• Continue bankruptcy process on Shilpi Cable: SC(Economic Times).
• Lenders reject Amtek Auto bids (Economic Times).
• DLF wants its redevelopment arm to have zero debt (Economic Times).
• Bank of Baroda set to float $1 billion QIP (Financial Express).