Pedestrians walk past an electronic ticker board that indicates stock figures for Oil & Natural Gas Corp. (ONGC), from left, Reliance Industries Ltd., State Bank of India and Sun Pharmaceutical Industries Ltd. at the Bombay Stock Exchange (BSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Idea, RCom, SBI, Lupin, Vedanta

Summary
  • Idea Cellular gets telecom department’s approval to increase FDI limit to 100 percent.
  • RCom won’t pay interest on NCD to JLF until restructuring process ends.
  • Vedanta will add 1.5 MTPA of iron ore production with potential up to 2.5MTPA to its capacity after ESL acquisition.
  • Lupin receives U.S. FDA approval for Nystatin and Triamcinolone Acetonide Cream USP.
  • SBI fined Rs 7 crore by ED for irregularities in foreign remittances during March 2009 to August 10.

Asian stocks struggled for traction Tuesday after pacing a global rally as investors set aside protectionist fears in favour of optimism over the U.S. economy.

Stocks edged higher in Japan, were little changed in South Korea and fell in Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent lower at 10,590 as of 7:45 a.m.

Stocks To Watch In Tuesday’s Session

  • Biocon and Mylan's Biosimilar Pegfilgrastim received U.S. FDA approval.
  • Idea Cellular get approval from DoT to increase FDI limit from 67.5 percent to 100 percent.
  • Maruti Suzuki’s total production up 22 percent to 1.84 lakh units in May.
  • Reliance Communications won’t pay interest on NCD to JLF until restructuring process ends.
  • Vedanta will add 1.5 MTPA of iron ore production with potential up to 2.5MTPA to its capacity after ESL acquisition.
  • Sudarshan Chemicals divests its plastic masterbatch business- Prescient Color Ltd. and plans to invest Rs 1000 crore over next 5 years.
  • Sunteck Realty increases its investment limits by RPFI/FII from 24 percent to 49 percent.
  • GE Shipping gets contract to sell its Bulk Carrier of 52,200 deadweight tonnage.
  • Lupin receives U.S. FDA approval for Nystatin and Triamcinolone Acetonide Cream USP, used in the treatment of cutaneous candidiasis. Has market size of $62.2 million annually.

Other Corporate Announcements

  • Weizmann Forex to buyback 4.4 lakh shares (3.77 percent) at price Rs 702 each aggregating to Rs 30.64 crore.
  • MCX completes deal to acquire 24 percent in CDSL Commodity Repository.
  • Jagran Prakashan to buy back 1.5 crore shares (4.82 percent) at Rs 195 each aggregating to Rs 292.5 crore.
  • NIIT enters into 5-year agreement with Pitney Bowes for learning and development.
  • WestBridge Crossover Fund LLC invests Rs 64.5 crore in Kajaria Ceramics.
  • SBI fined Rs 7 crore by ED for irregularities in foreign remittances during March 2009 to August 10.

Bulk Deals

  • Shankara Building Products: Alliant Techsystems Trust sold 1.17 lakh shares or 0.5 percent equity at Rs 1535.15.
  • Sarda Energy and Minerals: Asia Mineral Ltd. sold 2.65 lakh shares or 0.3 percent equity at Rs 398.

Who’s Meeting Whom

  • Greenlam Industries to meet HDFC AMC, ICICI Pru Life, IIFL and Others from June 5-6.
  • TATA Chemicals to meet Baron Capital Management Inc on June 5.
  • Indian Hotels Co to meet Wells Capital MA, Value Partners Ltd and Others on June 6.
  • Allcargo Logistics to meet HDFC AMC, Pabrai Funds and L&T MF on June 6.

Insider Trades

  • West Coast Papers Mills promoter Veer Enterprise Ltd acquired 6,000 shares on 1st June.
  • Fiberweb (India) promoter and director Pravin V Seth acquired 10,000 shares on June 4.
  • Bhumika Desai of Future Consumer buys 51,000 shares on May 29.

(As reported on June 4)

Trading Tweaks

  • TCS bonus shares allowed to trade on exchanges.
  • Lanco Infratech and Monnet Ispat and Energy shifted to T group.
  • Leel Electricals, Caplin Point Laboratories circuit filter revised to 10 percent.
  • Avantel and Kwality circuit filter revised to 5 percent.
  • Indiabulls Real Estate buyback worth Rs 624 crores opens today.
  • Pitti Laminations Ltd. name changed to Pitti Laminations Ltd.
  • Gruh Finance last trading day before ex date for bonus .

Money Market Check

  • Rupee closed at 67.12 /$ on Monday versus 67.06/$ on Friday.

F&O Cues

  • Nifty June Futures closed trading at 10,598.7, discount of 29.8 points versus 12.3 points.
  • June series-Nifty open interest up 4 percent and Bank Nifty open interest down 4 percent.
  • India VIX ended 13.8, up 2.3 percent.
  • Max open interest for June series at 11,000 Call, open interest at 39.7 lakh, open interest up 7 percent.
  • Max open interest for June series at 10200 Put, open interest at 35.3 lakh, open interest up 11 percent.

F&O Ban

  • In Ban: None

Active Stock Futures

Brokerage Radar

Investec on Shriram Transport Finance

  • Downgraded to ‘Sell’ from ‘Buy’; raised price target to Rs 1,500 from Rs 1,340
  • Used commercial vehicles pool to see muted growth.
  • New BS-IV vehicles are structurally efficient.
  • Vehicle scrappage policy could drive growth.
  • Believe that fundamentals are weak, especially on growth, over longer term.

Morgan Stanley on InterGlobe Aviation

  • Maintained ‘Equal-weight’ with a price target of Rs 1,205.
  • Airfare tracker indicates yields to remain weak in the current quarter.
  • Airline not raising fares enough to offset rising fuel prices.
  • September quarter to be weak because of seasonally weak demand.
  • Industry hoping yield recovery to start in the second half of this financial year with start of festive season.

Credit Suisse on Indian IT

  • IT sector outperforming due to low institutional ownership, high valuations in other sectors, hope of growth pick-up and Rupee depreciation.
  • Fundamentals have not necessarily kept up for the larger companies.
  • Mid-sized companies have witnessed significant upward revisions in 2018-19 estimates.
  • Tech Mahindra, HCL Tech, Persistent and Cyient are key stock picks.
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