Stocks To Watch: Biocon, Future Retail, GAIL, InterGlobe, Ultratech

Summary
  • Binani Industries says it will apply to NCLT for termination of Binani Cement’s insolvency proceedings.
  • GAIL plans pipeline to link Northeast India to National Gas Grid: Bloomberg.
  • RBI allows raising FPI limit in Future Retail to 49 percent from 24 percent.

Stocks in Asia and U.S. equity futures fell, building on losses on Wall Street after a sell-off in technology shares bruised trader sentiment before a key Federal Reserve policy meeting.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,084 as of 6:55 a.m.

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

  • Binani Industries says Binani Cement will apply to NCLT for insolvency exit and sell assets to UltraTech.
  • BGR Energy Systems wins order worth Rs 87.68 crore from Tamil Nadu Transmission Corporation.
  • Granules gets ANDA approval for Metformin tablets.
  • Inox Wind offer for sale to non-retail gets 122 percent demand for shares offered.
  • Sona Koyo offer for sale to non-retail gets 28 percent demand for shares offered.
  • IndiGo market share at 39.9 percent versus 39.7 percent (MoM).
  • Jet Airways at 16.8 percent versus 16.6 percent (MoM).
  • SpiceJet at 12.4 percent versus 12.6 percent (MoM).
  • GAIL plans pipeline to link Northeast India to National Gas Grid (Bloomberg).
  • Nitesh Estates says discussions with investors for Pune Mall in advanced stage and is expected to conclude by April 30.
  • IFCI says Supreme Court has upheld the sale of the assets of Blue Coast Hotels for recovery of dues.
  • RBI allows raising FPI limit in Future Retail to 49 percent from 24 percent.
  • Religare Enterprises says India Horizon Fund has withdrawn its petition against the company.
  • Prism Cement's JV completes expansion of tiles capacity at Matel plant, Morbi.

IPO Watch

  • Bandhan Bank IPO subscribed 14.6 times on final day.
  • Hindustan Aeronautics IPO continues on day 3. The issue is subscribed 0.45 times so far.
  • Karda Construction IPO continues on day 3. The issue is subscribed 1.24 times so far.
  • Sandhar Technologies IPO continues on day 2. The issue is subscribed 0.02 times so far.

F&O Cues

  • Nifty March Futures closed trading at 10,122.8, premium of 28.8 points from 37 points.
  • March series: Nifty open interest down 3 percent, Bank Nifty open interest up 5 percent.
  • India VIX ended at 15.8, up 4 percent.
  • Max open interest for March series at 10,500 call strike (open interest at 66 lakh, up 13 percent).
  • Max open interest for March series at 10,000 Put (open interest at 62.9 lakh, up 36 percent).

F&O Ban

  • In ban: BEML, Dewan Housing, HDIL, IDBI Bank, JP Associates, Reliance Communications, SAIL
  • New in ban: Reliance Communications
  • Out of ban: Bank of India, TV18 Broadcast

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 Stocks To Watch

Bulk Deals

  • TD Power Systems: India Value Fund IV sold 6 lakh shares or 1.8 percent equity at Rs 201 each.
  • GSS Infotech: Elara India Opportunities Fund bought 1 lakh shares or 0.6 percent equity at Rs 67.5 each
  • Samtel Color: ICICI Bank Ltd A/c ICICI Treasury sold 4.29 lakh shares or 0.5 percent equity at Rs 0.45 each.
  • Punjab Alkalies & Chemicals: IDBI Bank sold 5.25 lakh shares or 1.9 percent equity at Rs 36.4 each.

Sintercom India:

  • India Max Investment Fund sold 8 lakh shares at Rs 73.97 each.
  • Jagdish Master bought 7 lakh shares at Rs 74 each.

Brokerage Radar

Morgan Stanley on Metals

  • Hindalco: Downgraded to ‘Equalweight’ from ‘Overweight’; cut price target to Rs 256 from Rs 292.
  • Vedanta: Maintained ‘Overweight’; cut price target to Rs 386 from Rs 395.
  • Coal India: Maintained ‘Underweight’; raised price target to Rs 245 from Rs 221.
  • Vedanta benefits from strong volume growth in aluminium and zinc.
  • Hindalco’s earnings are geared to aluminium prices; Volumes have peaked.
  • Upside risk to Coal India’s earnings is less likely.

Motilal Oswal on Shilpa Medicare

  • Maintained ‘Buy’ with a price target of Rs 749; implying a potential upside of 53 percent from the last regular trade.
  • Issuance of EIR by U.S. FDA comforting.
  • EIR lowers regulatory risk over medium term.
  • Strong oncology ANDA pipeline pending for approval.
  • Oncology API and CRAMS on steady track.
  • Expect revenue and net profit to compound at a rate of 16 percent and 35 percent respectively over the fiscal 2017-2020.

Credit Suisse on Zee Entertainment

  • Maintained ‘Outperform’ with a price target of Rs 650.
  • Digital platform Zee5 launched with differentiated content.
  • Await response to Zee5.
  • Advertising growth remains strong.
  • Subscription income should grow mid-teens.
  • Regional remains a key focus area.
  • Operating margins to remain strong.

CLSA on SBI Subsidiaries Meet

  • Subsidiaries scaling up well.
  • Potential listing can unlock value.
  • Subsidiaries are seeing healthy growth – better than parent.
  • Listing of AMC/others can unlock value.
  • Insurance – Large in life, but smaller in general.
  • SBI Card – among the fastest-growing companies.
  • SBI Funds – Growing, but lags on profitability.

CLSA on HCL Tech

  • Maintained ‘Buy’ with a price target of Rs 1,170.
  • Building HCL into a next gen IT services business.
  • Revenue trajectory to remain robust.
  • Organisational structure aids agility.
  • Strategic bet on IP licensing in the creation of its own IP.
  • Valuations attractive; Top pick in sector.
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