Stocks To Watch: Dr. Reddy’s, ICICI Bank, L&T, Tata Steel, TCS

Asian stocks declined amid investor concern the exchange of threats between China and the U.S. is the precursor of a full-blown trade war.

Stocks fell in Japan as the yen advanced, while S&P 500 Index futures pointed to losses. South Korean equities also slipped , while they fluctuated in Australia. China and Hong Kong, markets more sensitive to deepening trade tensions, were closed for holidays.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.5 percent lower at 10,775.50 as of 7:50 a.m.

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

• U.S. court restrains Dr Reddy’s from selling generic variant of Suboxone.
• Fortis Healthcare says NCLT approved withdrawal of Fortis-Fortis Malar-SEL merger plan.
• PNC Infratech says lowest bid for Purvanchal Expressway cancelled.
• NBCC expects 40 percent revenue growth in FY19; Eyes Africa contracts.
• Panacea Biotech along with partner Apotex settle patent dispute with Celgene Corp.
• Avana Logistek, an associate company of Shreyas Shipping, files DRHP with SEBI for IPO.
• HCL Infosystems concludes sale of entire stake in HCL Services to Karvy Data Management Services.
• Kanoria Chemicals and Industries to set up Formaldehyde plant with 1 lakh tonne per annum in Andhra Pradesh.
• ICICI Bank Board may name Sandeep Bakshi as ICICI Bank Interim CEO: (Economic Times)
• Telecom Department may clear Vodafone-Idea merger on Monday (PTI).
• Tata Steel: Thyssenkrupp shareholders are said to be sceptical of Tata deal

Bulk Deals

• Pokarna: Ashish Kacholia sold 3.60 lakh shares or 1.2 percent equity at Rs 177.9 each.
• Balrampur Chini: California Public Employees Retirement System bought 12.20 lakh shares or 0.5 percent equity at Rs 73.84 each.
• Torrent Pharma: Lavender Investments sold 9.01 lakh shares or 0.5 percent equity at Rs 1475 each.
• Indiabulls Real Estate: Indiabulls Real Estate bought back 26 lakh shares or 0.5 percent equity at Rs 172.79 each.
• Vakrangee: Baron Emerging Markets Fund sold 1.02 crore shares or 1 percent equity at Rs 41.5 each.
• CIL Nova Petrochemicals: Asia Investment Corporation Mauritius bought 1.40 lakh shares or 0.5 percent equity at Rs 29 each.

Insider Trades

• Panama Petrochem promoter acquired 20,211 shares from June 12-14.
• Century Plyboards promoter Vishnu Khemani acquired 10,505 shares from June 14-15.
• KM Sugar Mills promoter Uma Devi Jhunjhunwala sold 30,924 shares on June 15.
• Vardhman Special Steels promoter Sachit Jain acquired 10,000 shares from June 13-14.

(As reported on June 15)

Trading Tweaks

• Cigniti Technologies Ltd and MRO-TEK Realty Ltd removed from GSM and shifted to B group with 20 percent circuit filter.
• Arrow Greentech and Kretto Syscon placed under ASM.
• Adani Green Energy Limited to be listed on exchanges.

F&O Cues

• Nifty June Futures ended at 10,814.6, with a discount of 3 points versus premium of 5.9 points.
• June series- Nifty open interest up 3 percent and Bank Nifty OI down 3 percent.
• India VIX ended at 12.07, down 0.2 percent.
• Max OI for June series call at 11,000 strike price call option, OI at 43.5 lakh shares, up 5 percent.
• Max OI for June series put at 10,700 strike price put option, OI at 48 lakh shares, down 3 percent

F&O Ban

• In ban: Dewan Housing, Jet Airways, Just Dial
• Out of ban: Balrampur Chini
• New in 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.

Brokerage Radar

Motilal Oswal on TCS

• Maintained 'Neutral' with a price target of Rs 1,750
• Buyback slightly negative on EPS; positive on return ratios.
• To return 40 percent of cash to shareholders.
• 75 percent payout maintained historically.
• Acceptance likely to be high on retail.

CLSA on Midcap Strategy

• Prefer stocks with growth visibility.
• Consumer discretionary and building materials space have seen strongest earnings .
• Like hotels as a cyclical recovery play.
• Key Buy: Apollo, Arvind, Godrej properties, Havells, Jubilant, Lemon Tree, Prestige and Ramco Cement.
• Key Sell: Pidilite and Voltas.

Morgan Stanley on Dr. Reddy's Lab

• Maintained ‘Overweight’ with a price target of Rs 3,465.
• Received temporary restraining order from U.S. District Court on gSuboxone.
• Winning PI motion over the next few weeks will be important.
• Expect earnings recovery led by complex launches in the U.S., momentum in EM business, and scaling up IP portfolio.

Credit Suisse on L&T

• Maintained ‘Outperform’ with a price target of Rs 1,700.
• Exceptionally strong domestic inflows continue.
• Private sector ordering still continues to be low in single digits.
• Expect very strong inflows, execution pick up, steady profitability across segments.
• Valuations still look reasonable.
• Investment cycle is building up can add upside visibility.