Pedestrians holding umbrellas walk past an electronic ticker board displaying stock figures at the Bombay Stock Exchange (BSE), which stands partially covered by scaffolding, in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Jet Airways, Oil India, United Spirits

Summary
  • Ratnamani Metals & Tubes receives pipes order worth Rs 125.51 crore.
  • Jet Airways enters another agreement with the Boeing Company for 75 Boeing MAX Aircraft.
  • United Spirits acquires 26 percent stake in digital payments company Hip Bar for Rs 27 crore.

Asian equities extended a decline in global stocks, and the yen appreciated, as investors continued to worry about an escalating exchange of trade and investment restrictions, triggered by the Trump administration.

Shares opened lower in Japan and fell in Australia and South Korea, while futures signaled losses for Hong Kong equities after the S&P 500 Index had its biggest slide since April and European bourses declined.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent lower at 10,713 as of 7:40 a.m.

Stocks To Watch In Tuesday’s Trade

  • Ratnamani Metals & Tubes received pipes order worth Rs 125.51 crore.
  • Info Edge and Soft Bank arm to jointly invest $45 million each for 8.93 percent stake in Etechaces.
  • Jet Airways entered another agreement with the Boeing Company for 75 Boeing MAX Aircraft.
  • NOCIL commissioned phase 1 of expansion of rubber chemical plant in Navi Mumbai.
  • United Spirits acquired 26 percent stake in digital payments company Hip Bar for Rs 27 crore.
  • Oil India discovered second hydrocarbon reserve in KG Basin, Andhra Pradesh.
  • 5paisa Capital increased foreign portfolio investor limit to 100 percent, NRI investment limit up to 24 percent.
  • Fortis board meeting adjourned as the ongoing discussions on the annual accounts requires further deliberation. Meeting to be re-convened today.
  • Karur Vyasa Bank to issue bonus shares in the ratio 1:10. It has also fund raising of Rs 1,200 crore.
  • HPCL, MRPL: Boards may consider merger plan in two months, ONGC chairman says

Bulk Deals

Tube Investments of India

  • Promoter Ambadi Investments Ltd. sold 16.15 lakh shares or 0.88 percent equity at Rs 222 each.
  • Enam Securities Pvt Ltd. acquired 11.7 lakh shares or 0.64 percent equity at Rs 222 each.

Who’s Meeting Whom

  • Lemon Tree Hotels to meet investors from June 26-27.
  • Galaxy Surfacants to meet investors from June 26-29.
  • Future Lifestyle Fashions to meet investors from June 26-27.

Insider Trades

  • Raymond promoter JK Investors (Bombay) Ltd. acquired 16,000 shares from June 20-21.
  • Centrum Capital promoter group acquired 1.2 lakh shares on June 21.
  • Cosmo Films promoter acquired 6,700 shares from June 21-22.

(As reported on June 25)

Trading Tweaks

  • Avanti Feeds ex date for stock split to Re 1 from Rs 2 per share and 1:2 bonus issue.
  • Container Corporation Of India Ltd. ex date for stock split to Rs 5 from Rs 10 per share. F&O lot size revised to 1250.
  • The New India Assurance Company Ltd. last trading day before going ex bonus.
  • Filatex India last trading day before stock split.

New Offerings

  • Varroc Engineering IPO opens at an issue price of Rs 965-967 per equity share.

Also Read: Varroc Engineering IPO: Here’s All You Need To Know

Rupee

  • Rupee closed at 68.13/$ on Monday from 67.83/$ on Friday.

F&O Cues

  • Nifty futures end trade at 10758, discount of 4 points versus premium of 12 points earlier
  • Nifty futures add 11.8 lakh shares in open interest
  • Nifty Bank futures shed 1.6 lakh shares in open interest
  • Max open interest for June series at 11,000 Call, open interest at 54.9 lakh
  • Max open interest for June series at 10,700 Put, open interest at 46.9 lakh

F&O Ban

  • In ban: DHFL, JP Associates, Infibeam, CG Power, IDBI, Wockhardt
  • New in ban: Wockhardt

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

Jefferies on Shoppers Stop

  • Maintained ‘Buy’ with a price target of Rs 660.
  • Management looking at improvement in private label mix & increasing share of beauty products.
  • Strategy includes instore customer experience, customer service and omni channel.
  • Management maintains guidance of 100 basis points improvement in margins in current and the next financial year.
  • Company will be cutting down the sale season to six weeks from eight weeks in 2018-19.

Deutsche Bank on Axis Bank

  • Maintained ‘Buy’ with a price target of Rs 580.
  • Axis is entering a stronger and more durable growth environment.
  • Corporate, SMEs and retail will remain strong while NPLs have peaked.
  • Management confident that worst of asset quality is behind.
  • Slippages to decline sharply; normalised credit cost trends from April 2020 onwards.
  • Valuations are at lower than the past five-year average.

Motilal Oswal on Phoenix Mills

  • Maintained ‘Buy’ with a price target of Rs 757.
  • Mall additions brighten rental prospects.
  • Higher space allocation toward F&B by resizing/adding mall space.
  • Positives: strong operational performance, scalability and robust cash generation.

CLSA on Ultratech

  • Maintained ‘Buy’ with a price target of Rs 5,000.
  • Significant year due to acquisition and integration of JPA units.
  • Balance sheet turned net debt again but at comfortable levels.
  • Industry to focus on profitability after volume chase in the previous financial year.
  • Management expects 8 percent industry demand growth.

CLSA on Phoenix Mills

  • Maintained ‘Buy’; raised price target to Rs 771 from Rs 757.
  • Project acquisition spree provides path to doubling lease income.
  • More malls, office developments to double leasable area.
  • Expect 12 percent compounded growth rate in lease income over FY18-24
  • Growth well-funded with private equity JV likely to do the bulk of the spending.

Morgan Stanley on Info Edge

  • Maintained ‘Overweight’ with a price target of Rs 1,900.
  • Investment in Etechaces (Policybazaar) signifies company's appetite to go for larger deals.
  • Post this fund raising implied valuation of Etechaces would be over $1 billion.
  • Value assigned to Info Edge's stake goes up to Rs 63 per share from Rs 26.
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