A trader speaks on a phone as he monitors financial data at a broking firm. (Photographer: Simon Dawson/Bloomberg)

Stocks To Watch: Coal India, Hero MotoCorp, HDFC Bank, Idea Cellular

Asian stocks opened higher on Monday after U.S. jobs data bolstered optimism in the world’s largest economy, all but firming an interest rate increase from the Federal Reserve later this month.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent higher at 10,725.50 as of 7:15 a.m.

BQ Live

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

  • FII limit for HDFC Bank open for 4.3 crore shares.
  • Government weighs on mega-merger of IDBI Bank, OBC, Central Bank and BoB (Mint).
  • ICICI Bank board begins search for new chairman. MK Sharma’s term expires this month. (The Economic Times)
  • Cadila Healthcare’s Zydus received final approval from the U.S.FDA for Doxycycline Hyclate Capsules.
  • Whirlpool approved acquisition of 49 percent stake in Elica PB India for Rs 180 crore in cash.
  • Dilip Buildcon received letter of award by NHAI for project valued at Rs 1,313.9 crore in Karnataka.
  • U.S. FDA completed inspection at Dr. Reddy’s Srikakulam Plant with no observations.
  • Hero MotoCorp sales up 11 percent year-on-year to 706365 units in May 2018.
  • SBI hiked MCLR by 10 basis points across tenors with effect from June 1.
  • Shivam Autotech said that the company has achieved 8 percent increase in sales in May.
  • HDFC MF acquired additional 0.46 percent equity in GNA Axles.
  • Kajaria Ceramics to acquire 8 percent equity in Clean Solar Power (Jaipur) for Rs 2 crore.
  • Punj Lloyd divested balance shareholding of 51 percent in three units.
  • Karnataka Bank raised interest rates on domestic & NRE rupee term deposits to 7.25 percent from 7.10 percent from May 31.
  • Coal India May production at 47.14 million tonne versus target of 51.16 million tonne. Offtake at 52.86 million tonnes versus target of 58.18 million tonne.
  • CBI registered case against 13 officials of ONGC, Rajahmundry and Deep Industries.
  • HDFC increased its Retail Prime Lending Rate on it Home Loans by 10 basis point with effect from June 2.
  • Idea Cellular seek shareholders approval to change name to Vodafone Idea Ltd.

Bulk Deals

  • Just Dial: Ishana Capital bought 4.25 lakh shares or 0.6 percent equity at Rs 583.12 each.
  • Vakrangee: Baron Emerging Markets Fund bought 72.67 lakh shares or 0.7 percent equity at Rs 34.08 each.
  • Balrampur Chini: State Street EM Fund sold 13.33 lakh shares or 0.6 percent equity at Rs 73.43 each.

Who’s Meeting Whom

  • Bharat Forge to meet B&K securities on June 5 and Morgan Stanley on June 6.
  • Coal India to meet investors at Nomura Investment Forum Asia 2018 from June 4 – 5 at Singapore.
  • CG Power & Industrial solutions to meet Aditya Birla MF on June 4.

Insider Trades

  • Crisil Ltd.’s promoter S&P Global Asian Holdings Pte. Ltd. acquired 6.32 lakh shares on May 30.

(As reported on June 1)

Money Market Check

  • Rupee ended at 67.06/$ on Friday versus 67.41/$ On Thursday.

F&O Cues

  • Nifty June futures closed trading at 10,683.9, discount of 12.3 points versus 33.9 points.
  • June series-Nifty OI up 2.4 percent and Bank Nifty OI down 5 percent.
  • India VIX ended 13.5, up 2.6 percent.
  • Max OI for June series at 11,000 Call, OI at 37.2 lakh, OI up 22 percent.
  • Max OI for June series at 10200 Put, OI at 31.8 lakh, OI up 10 percent.

F&O Ban

  • In Ban: None

Brokerage Radar

Citi on SAIL

  • Upgraded to ‘Neutral’ from ‘Sell’; raised price target to Rs 83 from Rs 50.
  • Expect steel spreads to sustain on better demand, supply limits and falling inventories.
  • expect strong volumes and fall in net debt-to-EBITDA to three times by 2019-20.
  • Raise Ebitda estimates for the current and the next financial year by 26 percent and 25 percent respectively on potentially higher steel prices.

Credit Suisse on India Automobile

  • Passenger vehicles see demand acceleration in May.
  • Volume CAGR is strongest for tractors.
  • Healthy growth in commercial vehicles with market share gain for Tata Motors.
  • Two-wheeler: Another month of double-digit growth.
  • Ashok Leyland and TVS Motor lose share.
  • Prefer M&M and Escorts among OEMs.

Nomura on Tata Motors

  • Maintained ‘Buy’ with a price target of Rs 495.
  • JLR U.S. retail sales better than expected at 17 percent in May.
  • Land Rover drives volume; Jaguar continued to remain weak.
  • Expect 9 percent growth in overall JLR volumes in 2018-19.

Credit Suisse on J&K Bank

  • Maintained ‘Neutral’; cut price target to Rs 62 from Rs 77.
  • March quarter results were in line with other corporate banks.
  • Loan growth weak as growth slowed across segments.
  • With coverage down, bank would need additional provision.
  • Stock is attractive but RoE likely to remain muted at 10 percent.

Nomura on Coal India

  • Maintained ‘Neutral’ with a price target of Rs 332.
  • Output growth maintains rapid pace in May.
  • Growth uptick were arguably boosted by base-effect.
  • Expect production and offtake at 611mt and 622mt respectively, implying 8 percent and 7 percent growth respectively in the current financial year.