Electronic ticker boards indicate the latest stock figures inside the atrium at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Bharat Financial, PNB, TCS, Yes Bank

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Summary
  • RBI clears IndusInd Bank merger with Bharat Financial.
  • PNB says Rs 942 crore is not new fraud, recall of credit limits, Bloomberg reports.
  • BPCL to submit resolution plan for insolvent Nagarjuna Oil by March 17.
  • NCLT approves DLF merger scheme for some units.
  • IRB InvIT: Nomura bought 64 lakh shares at Rs 82.75 per share.

Asian stocks retreated following a drop in American equities after a fresh personnel shakeup in the Trump administration spurred concerns about a unilateral approach to trade, national security and foreign affairs.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.4 percent to 10,389 as of 6:55 a.m.

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

  • RBI cleared IndusInd Bank merger with Bharat Financial.
  • PNB says Rs 942 crore is not new fraud but recall of credit limits.
  • Yes Bank acquired 17.31 percent stake of Fortis Healthcare pursuant to invocation of pledge.
  • IRB Infra, Modern Road emerge as preferred bidder for NHDP project with cost of Rs 3,465 crore.
  • NHAI awards Dwarka Expressway contract worth Rs 1,047 crore to L&T says NHAI.
  • L&T Finance Holdings successfully closes QIP of up to Rs 1,000 crore.
  • Usha Martin clarifies has not been contacted by ED with respect to investigation of granted loans.
  • BPCL to submit resolution plan for insolvent Nagarjuna oil by March 17.
  • NCLT approves DLF merger scheme of some units.

F&O Setup

  • Nifty March Futures closed trading at 10,426.4 discount of 0.4 points versus premium of 11.4 points.
  • March series: Nifty open interest down 2 percent, Bank Nifty open interest down 5 percent.
  • India VIX ended at 14.4, down 0.2 percent.
  • Max open interest for March series at 10,500 call strike (open interest at 46.8 lakh, down 3 percent).
  • Max open interest for March series at 10,000 Put (open interest at 48.7 lakh, down 9 percent).

F&O Ban

  • In ban: Andhra Bank, Balrampur Chini, BEML, Dewan Housing, IDBI, JP Associates
  • No new stocks in or out of ban list.

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

Active Stock Futures

Bulk Deals

  • TCS: Tata Sons sells 3.1 crore shares at an average of Rs 2,874 per share.
  • IRB InvIT: Nomura bought 64 lakh shares at Rs 82.75 per share.
  • Vishal Fabrics: Shanti Exports bought 2.6 lakh shares at Rs 667 per share.
  • Ashapura Intimate Fashions: Promoter Harshad Thakkar bought 1.3 lakh shares at Rs 464 per share.

Brokerage Radar

Citi on Voltas

  • Maintained ‘Buy’ with price target of Rs 744.
  • Favorable weather forecasts for business.
  • Pre-buys in December quarter should not impact current quarter AC sales.
  • EMP business' RoCE focus to continue.
  • Consumer durable JV product launch likely in the second half of 2018.
  • Top pick in India consumer electricals.

Citi on Coal India

  • Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 320 from Rs 365.
  • Most triggers have largely played out.
  • Limited visibility on further triggers.
  • Further FSA price hikes may not be imminent.
  • E-auction price upside may be limited.
  • Commercial mining not a worry.
  • Can expect another small dividend payout.

Citi on Vedanta and Hindustan Zinc

  • Vedanta: Maintained ‘Buy’ with price target of Rs 360.
  • Hindustan Zinc: Maintained ‘Neutral’ with price target of Rs 285.
  • Hindustan Zinc would have to pay dividend of Rs 26 per share based on Vedanta’s dividend.
  • Dividend of Rs 24 per share by Hindustan Zinc would imply cash outflow of $1.9 billion.
  • Vedanta does not have to pay dividend distribution tax (DDT).
  • Vedanta remains a story of ramping up operations to their full potential.

Credit Suisse on Capital Goods

  • Investment cycle pick up—more optimism.
  • Data points better but not entirely conclusive.
  • Industrial sector data points also quite sedate till now.
  • Execution improvement seems more broad based.
  • Expect pick up but build likely to be gradual.
  • Capital goods order inflows modest; Construction sector execution has picked up.

Jefferies on FMCG

  • Next fiscal to witness gradual recovery in topline led by trade normalisation and mild rural uptick.
  • Underlying drivers for strong rural recovery are still missing.
  • Margins to play a lesser role in driving earnings.
  • Valuations are close to all-time high.
  • Prefer discretionary over staples.

CLSA on Cement

  • Worst of sand shortage seems to be behind.
  • Sand availability has improved in Madhya Pradesh, Bihar, Tamil Nadu, Uttar Pradesh.
  • Problems opened up avenues for ‘manufactured sand’ or M-sand.
  • M-sand make it better than even natural sand for use in construction.

Media Reports

  • IHH to make voluntary open offer for Fortis to buy non promoter shares (Economic Times).
  • Only Liberty House bids for ABG Shipyard (Economic Times).
  • Torrent Pharma may raise Rs 1,500 cr by selling shares to institutional investors (Mint).
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