Men watch the electronic stock ticker at the Bombay Stock Exhange (BSE) in Mumbai, India. (Photographer: Adeel Halim/Bloomberg News)

Stocks To Watch: Electrosteel Castings, Indian Bank, Omax Auto, Shriram EPC

Summary
  • Electrosteel Castings says promoter holding reduced to 11.11 percent from 45.23 percent post allotment of shares to lenders.
  • Shriram EPC resolves customer dispute in Iraq; order of $230 million restored to its joint venture with Iraqi Co.
  • Indian Bank hikes MCLR by 10 basis points for different tenures.

Asian stocks edged lower Friday after a risk-off session in global markets where technology stocks retreated and Brazilian assets slumped.

Japanese, Australian and South Korean stocks showed modest losses. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.6 percent lower at 10,710 as of 7:45 a.m.

Stocks To Watch In Friday’s Trade

  • IIFL Real Estate Investment Trust receives certificate of registration from SEBI to undertake REIT activities.
  • Omax Autos approves expansion of existing capacity for an investment of Rs 100- 120 crore over 2-3 years.
  • Electrosteel casting says promoter holding reduced to 11.11 percent from 45.23 percent post allotment of shares to lenders.
  • Shriram EPC resolves customer dispute in Iraq; order of $230 million restored to its joint venture with Iraqi Co.
  • Indian Bank hikes MCLR by 10 basis points for different tenures.
  • Time Technoplast receives order worth Rs 40 crore.
  • McNally Bharat issues 1.20 lakh CCPS to promoters.

Bulk Deals

  • Ashiana Housing: Goldman Sachs India Fund sold 28.94 lakh shares or 2.8 percent equity at Rs 147 each.
  • Indoco Remedies: DSP Blackrock MF sold 15 lakh shares or 1.6 percent equity at Rs 190 each.
  • Sharda Cropchem: Goldman Sachs India Fund sold 13.70 lakh shares or 1.5 percent equity at Rs 400 each.

Future Retail

  • PI Opportunities Fund I bought 2.27 crore shares or 4.5 percent equity at Rs 560 each.
  • Pioneer Investment Fund bought 71.42 lakh shares or 1.4 percent equity at Rs 560 each.
  • Cedar Support Services sold 3.03 crore shares or 6 percent equity at Rs 560 each.

Who’s Meeting Whom Today

  • Thyrocare Technologies to meet Samatva Investments on June 8.
  • Endurance Technologies to meet Citigroup Global Markets India and American Century Investments on June 8.
  • Shriram Transport Finance to meet LionRock Capital, Columbia Wanger Asset Management on June 8.

Trading Tweaks

  • Kwality, Excel Realty and Oceanaa Biotek placed under ASM by BSE.
  • HDFC Bank, Indusind Bank and Cyient FII window open.
  • Soril Holdings And Ventures Ltd. name changed to Indiabulls Integrated Services Ltd.

Insider Trades

  • Piramal Enterprises promoter Piramal Corporate Services Ltd. sold 1.70 lakh shares from June 4 – 5.
  • Panama Petrochem promoter acquired 27,841 shares from June 5 – 6.
  • Asian Granito promoters acquired 17,649 shares on June 6.
  • Viaan Industries promoter Shilpa Shetty Kundra acquired 20,000 shares on June 6.
  • Alkem Laboratories promoters acquired 14,000 shares from June 4 – 5.
  • Laurus Labs promoter Dr. Satyanarayana Chava acquired 1.70 lakh shares from June 4 – 6.

F&O Cues

  • Nifty June Futures closed trading at 10,765.2 discount of 3.1 points versus premium of 1.6 points.
  • June series-Nifty open interest up 6 percent and Bank Nifty open interest up 3 percent
  • India VIX ended 12.7, up 1.8 percent
  • Max open interest for June series at 11,000 Call, open interest at 39.9 lakh, open interest down 4 percent
  • Max open interest for June series at 10600 Put, open interest at 43.2 lakh, open interest up 7 percent

F&O Ban

  • In ban: Dewan Housing, Balrampur Chini
  • New in ban: None
  • Out of ban: None

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 Stock Futures

Brokerage Radar

Morgan Stanley on Bajaj Finance

  • Maintained ‘Overweight’ with a price target of Rs 2,500.
  • Strong momentum in AUM growth and customer acquisition.
  • Liquidity environment challenging, but liability positioning is conservative.
  • New avenues of funding to help in challenging liquidity environment.
  • Mortgages to see 35-40 percent growth p.a. in medium term.

Ventura Securities on Byke Hospitality

  • Initiated ‘Buy’ with a price target of Rs 351; Potential Upside 106 percent over 24-30 months.
  • Expect industry to report much better performance than entire past decade.
  • Byke well positioned to benefit from hotel industry uptrend.
  • Positives: asset light model, strategic hotel locations and adequate new capacity.
  • Expect revenue to compound at 22 percent over the financial year 2018-2021.
  • Expect occupancy rate to rise to 71 percent by March 2021, despite aggressive room expansion.

JPMorgan on Asian Paints Annual Report Highlights

  • Maintained ‘Neutral’ with a price target of Rs 1,300.
  • Positive 2018-19 demand outlook.
  • Expects healthy domestic demand and better overseas performance.
  • Expanded distribution, new retail formats, product innovation and new segments to aid.
  • Rising raw material prices remains the key challenge.
  • FCF/Return ratios moderate owing to lower margins and higher capital deployment.

Nomura on M&M Financial

  • Maintained ‘Buy’ with a price target of Rs 600.
  • Management upbeat on growth trends.
  • Confident of normalisation of asset quality and credit costs in 2018-19.
  • RoE ramp-up to be faster with improving asset quality and strong growth trends.
  • Current valuations look undemanding.

JPMorgan on Vedanta

  • Maintained ‘Overweight’ with a price target of Rs 400.
  • Vedanta addresses key investor concerns related to copper smelter.
  • Vedanta says that plant follows Zero Liquid Discharge policy.
  • Past sample checks by regulator found no abnormalities in water.
  • Plant accounted for 33% of India’s copper market.

Brokerages On Tata Motors

Credit Suisse

  • Maintained ‘Outperform’ with a price target of Rs 460.
  • Second month of positive retail sales though the base has been favourable.
  • Demand in China should bounce back from July.
  • Jaguar portfolio continues to see sharp declines.
  • Discovery range have been steady; RR twins continue to be in ramp up mode.

Citi

  • Maintained ‘Buy’ with a price target of Rs 480.
  • Strong show in U.K. (low base) and North America.
  • Deferment of purchase in Chinese market post the reduction in import duties.
  • Demand environment subdued in Europe, partly reflecting anti-diesel trend.
  • E-Pace aids Jaguar; New models/refreshes drive Land Rover.
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