Stocks To Watch: Glenmark Pharma, United Spirits, Nalco, NMDC
Here are the stocks to watch out for in Wednesday’s trade.
- Glenmark Pharma gets U.S. FDA Form 483 with five observations: Bloomberg
- NMDC’s March-May iron ore output and sales at 4.53 million tonnes.
- United Spirits receives shareholders’ approval for 5:1 stock split.
- ADF Foods to buyback 10 lakh equity shares (4.71 percent equity) at Rs 300 each.
Indian equity benchmarks fell for third day in a row ahead of the Reserve Bank of India's monetary policy decision which is due today.
The S&P BSE Sensex fell 0.31 percent or 109 points to 34,903 and the NSE Nifty 50 index declined 0.33 percent or 35 points to 10,593.
Stocks To Watch In Wednesday’s Trade
- Ram Vilas Paswan says Cabinet will consider up to Rs 8,000 crore package for the sugar industry.
- NMDC’s March-May iron ore output and sales at 4.53 million tonnes.
- United Spirits receives shareholders’ approval for 5:1 stock split.
- Mcleod Russel to sell certain tea estates of the company in Assam to MK Shah Exports for Rs 331 crore.
- ADF Foods to buyback 10 lakh equity shares (4.71 percent equity) at Rs 300 each.
- Kirloskar Oil Engines to hike prices of power generator sets by 5-8 percent due to rising raw material costs.
- Nalco sets a capex target of Rs 1,100 crore for 2018-19.
RBI Decision-Day Guide
The Reserve Bank of India is expected to keep interest rates on hold today, but what’s more important is the accompanying statement that could give a signal to investors on future tightening as inflationary pressures rise.
Key taking points:
- The rate debate: Will the MPC be as divided as the economists?
- Monetary policy tightening: When and how much?
- How to manage conflicting choices and puzzling signals
- Advice from ex-Governor Raghuram Rajan
- Elevated borrowing costs may rise further if RBI hikes rates
Bulk Deals
- HCL Technologies: Promoter Vama Sundari Investments (Delhi) Pvt. Ltd bought 75 lakh shares or 0.5 percent equity at Rs 900 each.
- IEX: Morgan Stanley Mauritius Company Limited sold 1.78 lakh shares or 0.6 percent equity at Rs 1,595 each.
- Lakshmi Vilas Bank: India Infoline Investment Services Limited bought 1.05 crore shares or 4.1 percent equity at Rs 100.1 each.
- Career Point: KIFS Enterprise sold 1 lakh shares or 0.6 percent equity at Rs 102.64 each.
- Indiabulls Real Estate: Indiabulls Real Estate Ltd bought 27 lakh shares or 0.6 percent equity at Rs 175.58 each.
Who’s Meeting Whom
- Tata Global Beverages to meet several fund houses including Morgan Stanley, Goldman Sachs, Sundaram AMC etc on June 6.
- Cipla to meet several fund houses including Oaktree Capital Mgmt, Arohi Asset Mgmt etc from June 6 – 8.
- UFO Moviez to meet Paradise Investment Management and others on June 6 and 7.
Insider Trades
- Centrum Capital promoter BG Advisory Services LLP acquired 1.83 lakh shares on June 1.
- Trident Ltd promoter Trident Corp Ltd. acquired 15,789 shares on June 4.
- Alembic Pharma promoter Alembic Ltd acquired 15,000 shares from June 1–5.
- Trident Ltd. promoter group Trident Corp Ltd acquired 15,700 shares on June 4.
- Laurus Labs promoter Dr. Satyanarayana Chava acquired 49,448 shares on May 30.
(As reported on June 5)
Trading Tweaks
- HDFC Bank and Indusind Bank FII window open.
- Godawari Power & Ispat placed under additional surveillance measure by BSE.
- Viaan Industries, Fiberweb and Chartered Logistics circuit filter revised to 10 percent.
- Gruh Finance ex-date for 1:1 bonus.
- Akzo Nobel ex-date to determine buyback eligibility.
- Lumax Auto Technologies last trading day before ex-date for stock split.
Money Market Check
- Rupee closed at 67.15/$ on Tuesday from 67.11/$ on Monday
F&O Cues
- Nifty June Futures closed trading at 10,596.4, a premium of 3.3 points versus discount of 29.8 points
- June series-Nifty open interest up 0.6 percent & Bank Nifty open interest down 5 percent
- India VIX ended 13.3, down 4 percent
- Max open interest for June series at 11,000 Call, open interest at 45.6 lakh, open interest up 15 percent
- Max open interest for June series at 10200 Put, open interest at 35.5 lakh, open interest up 1 percent
F&O Ban
- In ban: Dewan Housing
- New in ban: Dewan Housing
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 positio
Active Stock Futures
Brokerage Radar
Morgan Stanley on Reliance Industries
- Maintained ‘Overweight’ with a price target of Rs 1,241.
- IMO regulation and ramp-up of petcoke gasifiers to add to higher margins.
- Expect $3/bbl rise in GRMs due to the above levers.
- Retail pump station expansion should also support growth.
- Most of the telecom capex done; Company aims to achieve 99 percent coverage by end of 2018.
Morgan Stanley on Godrej Consumer
- Maintained ‘Overweight’ with a price target of Rs 1,350
- Strong growth outlook for 2018-19.
- Gradual improvement in demand currently underway in India
- In Indonesia plan to seek growth by increasing distribution.
- In Africa, Godrej expects to benefit from local manufacturing.
Citi on JSPL
- Maintained ‘Buy’ with a price target of Rs 401
- Steel business is doing well in the current quarter
- Angul plant ramping up fast; DRI plant to start in July 2018.
- Coal supply situation has improved; Co. looking to sign short-term PPAs.
- Valuation with improving cash flows and EBITDA appear quite attractive.
Jefferies on HEG and Graphite India
- HEG: Maintained ‘Buy’ with a price target of Rs 4,400.
- Graphite: Maintained ‘Buy’ with a price target of Rs 1,275.
- Demand supply tightness continues leading to higher realisations.
- New contracts signed at higher prices hinting strong current quarter.
- Remain positive on graphite electrode sector.
- HEG and Graphite trading at cheap valuations providing good buying opportunity.