Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

Stocks To Watch: ICICI Bank, IDBI Bank, Titan, Borosil Glass Work

Summary
  • ICICI Bank’s MD and CEO Chanda Kochhar goes on leave.
  • Titan sells its entire stake in unit.
  • IDBI Bank hikes MCLR by 20 basis points across tenors.
  • Second tranche of Bharat-22 ETF opens today

The yen jumped Asian stocks dropped alongside U.S. equity futures after President Donald Trump threatened to slap tariffs on more Chinese goods.

Japanese and South Korean shares retreated and S&P 500 Index futures declined. Steeper slides were seen in Hong Kong, China and Taiwan as traders returned from holidays in those markets Monday, while shares in Australia outperformed.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent lower at 10,733 as of 7:40 a.m.

Stocks To Watch In Tuesday’s Trade

  • ICICI Bank MD and CEO Chanda Kochhar goes on leave; Sandeep Bakhshi named COO. (More on the story here)
  • Goa Carbon says operations at Paradeep unit temporarily halted due to labour issues.
  • Glenmark: FDA approves first sANDA for Atovaquone and Proguanil tablets.
  • M&M says Gipp Aero, Aerostaff Australia cease to be units.
  • TCS: Reaffirms commitment to France with new Paris delivery centre.
  • ICICI Prudential Life: Names NS Kannan MD and CEO.
  • Titan sells its entire stake in Titan Time Products to Danlaw Technologies for Rs 18.5 crore.
  • Borosil Glass Work approves 3:1 bonus issue.
  • IDBI Bank hikes MCLR by 20 basis points across tenors.

Offerings

  • Government plans to raise Rs 6,000 crore in second tranche of Bharat-22 ETF as issue opens

Bulk Deals

Siti Networks

  • Promoter Digital Satellite Media and Broadband Pvt. Ltd. sold 70.58 lakh shares (0.8 percent) at Rs 14.5 each
  • JSGG Infra Developers LLP bought 70.58 lakh shares (0.8 percent) at Rs 14.5 each

CIL Nova Petrochemicals: Asia Investment Corporation Mauritius Ltd. bought 1.70 lakh shares (0.6 percent) at Rs 29.94 each

F&O Setup

  • Nifty June futures closed trading at 10,789.6 discount of 10 points versus 3 points
  • June series: Nifty open interest up 1 percent and Bank Nifty open interest up 3 percent
  • India VIX ended at 12.3, up 2.5 percent
  • Max open interest for June series at 11,000 Call (open interest at 46.8 lakh, up 8 percent)
  • Max open interest for June series shifts to 10,700 Put (open interest at 49.6 lakh, up 3 percent)

F&O Ban

  • In ban: Dewan Housing, Infibeam, Jet Airways, Just Dial
  • New in ban: Infibeam

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.

Stocks Seeing High Open Interest Change

Brokerage Radar

PhillipCapital on Kotak Mahindra Bank

  • Initiated ‘Buy’ with a price target of Rs 1,545.
  • Digital strategy of ‘811’ has seen early success.
  • Kotak well‐positioned to capture loan market‐share.
  • Expect net interest margins to rise by 19 basis points over FY19‐21.
  • Expect loan to compound at 22 percent over the next three years.
  • See no downside to asset quality from here.
  • Expect earnings to compound at 28 percent through the financial years till March 2021, resulting in FY21 RoA to double.

Nomura on Tejas Networks

  • Maintained ‘Buy’ with a price target of Rs 410
  • The company upbeat on converged offerings and growth prospects in the U.S.
  • Tejas expects to recoup revenue loss in the U.S. in the previous financial year.
  • Management maintains revenue growth guidance to compound at 20 percent over the fiscal 2017-2020.

Citi on Tejas Networks

  • Maintained ‘Buy’ with a price target of Rs 430
  • Expect topline growth to revive in the current financial year.
  • Heavy investment in R&D has helped create competitive advantage.
  • Three macro trends in India would drive demand.
  • Early signs of investment in direct overseas selling is starting to pay off.

Motilal Oswal on Maruti Suzuki

  • Maintained ‘Buy’ with a price target of Rs 10,525.
  • Negligible impact of higher fuel prices.
  • Alternative fuel portfolio to benefit from higher fuel prices.
  • RM inflation impact managed by cost-cutting initiatives and price hikes.
  • Lower royalty, localization at Gujarat plant to drive margin expansion.

Angel Broking on Bata

  • Initiated ‘Buy’ with a price target of Rs 896.
  • Shift in trend towards the organized sector to propel growth.
  • Strong retail stores expansion plan to boost growth.
  • New launches and higher ad spends to boost women’s segment.
  • Expect revenue ad net profit to compound at 16 percent and 19 percetn respectively over the fiscal 2018-2020.

Morgan Stanley on TCS

  • Maintained ‘Overweight’ with a price target of Rs 2,010.
  • Recent success on large deals provide confidence on revenue growth.
  • Believe improving revenue growth and rupee depreciation to act as tailwinds.
  • Prefer TCS despite high valuations.
  • Believe TCS could remain an interesting idea for the next 6-12 months.

Morgan Stanley on Reliance Industries

  • Maintained ‘Overweight’ with a price target of Rs 1,241.
  • Expect 40 percent rise in refining margins by March 2021 from Diesel, IMO, gasifiers complexity.
  • Expect company to generate $3.5 billion as free cash flow over the next three years.
  • Expect return ratios to climb back to 15 percent levels in two years.
  • Believe Jio could see strong subscriber adds, as its tariffs have higher value proposition.
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