Stocks To Watch: Glenmark Pharma, United Spirits, Nalco, NMDC

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.