A financial trader looks at trading data on his screens at the Aurel BGC brokerage in Paris, France. (Photographer: Antoine Antoniol/Bloomberg)

Stocks To Watch: HDFC Bank, ICICI Prudential Life, Cipla, Oberoi Realty

Summary
  • HDFC Bank gets Cabinet nod for Rs 24,000 crore foreign direct investment.
  • Lupin launches generic Tobramycin Inhalation Solution USP in the U.S.
  • Cipla receives Final U.S.FDA approval for generic isuprel injection.
  • Oberoi Realty QIP opens; floor price fixed at Rs 509.29 per share.

Stocks in Asia followed U.S. equities lower as the Federal Reserve struck a hawkish tone in its latest policy statement. The dollar maintained losses and Treasury yields stabilised after briefly touching 3 percent. Equities fell in Japan, Australia and South Korea, which reopened after a holiday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,810.50 as of 7:10 a.m.

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

  • Cabinet approves raising of additional share capital of HDFC Bank up to a maximum of Rs 24,000 crore.
  • ICICI Bank to sell up to 2.87 crore shares or 2 percent equity in ICICI Prudential Life Insurance through stock exchange mechanism.
  • Lupin launches generic Tobramycin Inhalation Solution USP in the U.S.
  • Cipla says Ugandan unit CiplaQCI exploring IPO. Appoints Renaissance Capital Kenya as book runner.
  • Cipla received final U.S. FDA approval for generic Isuprel injection.
  • Kansai Nerolac starts commercial production at Gujarat unit.
  • Oberoi Realty QIP opens; floor price fixed at Rs 509.29 per share.
  • Ruchi Soya declared Adani Wilmar as highest bidder for company.
  • Hindustan National Glass to sell 11.23 percent stake in HNG Float Glass joint venture for $19.3 million.

Trading Tweaks

  • Jagran Prakashan ex date for determining buyback eligibility.
  • L.G. Balakrishnan & Bros ex date for 1:1 bonus.
  • United Spirits last trading day before 5:1 stock split.

Who’s Meeting Whom Today

  • Lemon Tree Hotels to meet investors.
  • Bodal Chemicals to meet investors.
  • Eicher Motors to meet Franklin Templeton, HSBC Securities and Motilal Oswal Asset Management.

Insider Trades

  • Maharashtra Seamless promoter acquired 41,950 shares on June 1.
  • KPR Mill promoters sold 30,000 shares from June 5-7.
  • Prozone Intu Properties promoter sold 27,500 shares from May 8-June 11.

(As reported on June 13)

Economic Data

  • India to report May wholesale price inflation data today.

Money Market Check

  • Rupee closed at 67.64/$ on Wednesday versus 67.49/$ on Tuesday.

Bulk Deals

  • Dish TV: Rare Enterprises bought 1.30 crore shares or 0.7 percent equity at Rs 71.3 each.
  • Supreme Industries: Small Cap World Fund Inc. sold 13 lakh shares or 1 percent equity at Rs 1,250.2 each.
  • Ruchi Soya: Promoter Evershine Oleochem sold 25 lakh shares or 0.7 percent equity at Rs 12.66 each.

F&O Cues

  • Nifty June Futures closed trading at 10,844.5 discount of 11.8 points versus 3.7 points
  • June series-Nifty open interest up 3.5 percent & Bank Nifty open interest up 4.5 percent
  • India VIX ended 12.6, down 0.7 percent
  • Max open interest for June series at 11,000 Call, open interest at 38.5 lakh, open interest up 1 percent
  • Max open interest for June series shifts to 10,700 Put, open interest at 51.6 lakh, open interest up 13 percent

F&O Ban

  • In ban: Dewan Housing, Balrampur Chini, Jet Airways, Just Dial
  • 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.

Fuel Price Update

  • Petrol and diesel prices were unchanged for the third day in a row. Petrol costs Rs 84.26 in Mumbai and diesel costs Rs 72.24, according to the data available on Indian Oil Corporation Ltd.’s website.

Brokerage Radar

Citi on Mindtree

  • Downgraded to ‘Sell’ from ‘Neutral’; raised price target to Rs 970 from Rs 875.
  • Mindtree’s business has seen a good turnaround.
  • Valuations at are sector-leading; Don’t leave any room for disappointment.
  • Raised EPS estimates by 6 percent primarily due to rupee depreciation.
  • Turnaround in the business priced in.

Credit Suisse on Westlife Development Investor Conference

  • Company targets doubling revenue and margins over the fiscal 2018-2022.
  • McCafe and Delivery to drive aggressive growth plans over the fiscal 2018-2022.
  • Store expansion to accelerate mostly in existing cities.
  • Margin expansion driven by SSSG leverage and gross margins.
  • Overall momentum for QSR industry intact.

Investec on BSE

  • Maintained ‘Buy’ with a price target of Rs 1,270.
  • Several levers to support revenue momentum.
  • Investments in last few years to contribute meaningfully in the current and the next financial year.
  • Cut core EBITDA estimates for 2018-19 by 4 percent to factor in higher expenses.

UBS on Infosys

  • Maintained ‘Buy’ with a price target of Rs 1,335.
  • Management commentary suggests growing confidence in margin outlook.
  • U.S. hiring less expensive than expected, pricing commentary stable.
  • Pace of investments could recede post 2018, helping earnings momentum.

CLSA on ICICI Securities

  • Initiated ‘Buy’ with a price target of Rs 520; implying a potential upside of 46 percent from the last regular trade.
  • Benefits from financialisation of household savings and parent’s brand and reach.
  • Distribution and margin financing will drive revenue expansion.
  • Expect revenue and net profit to compound at 17 percent and 21 percent respectively over the fiscal 2018-2021.
  • Dividend yield one of the highest among Nifty companies.
  • ICICI Sec trades at discount to global peers.

Motilal Oswal on India Strategy

  • Weight of Metals to increase 130 basis points to 2.6 percent post rejig.
  • Hike Sensex EPS estimates for the current and the next financial year by 1.7 percent and 1.8 percent respectively due to increase in free float net profit.
  • Expect Sensex EPS at Rs 1,870 and Rs 2,241 for the current and the next financial year respectively.
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