A security guard stands behind a glass facade displaying the CNX Nifty logo at the National Stock Exchange in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Titan, Tata Steel, Adani Ports, Fortis, United Spirits

Summary
  • Thyssenkrupp AG and Tata Steel are said to have agreed on Europe steel merger: Bloomberg.
  • Rakesh Jhunjhunwala reduces stake in Titan Co by 1.4 percent to 7.37 percent since May 21.
  • Adani Ports completes acquisition of Kattupalli port from L&T.
  • United Spirits reports on restriction of transferability of shares.

Asian stocks had a muted start to the final day of what’s been the worst quarter in nearly three years -- characterised by trade tensions between the U.S. and China.

Shares in Japan were little changed while those in South Korea and Australia showed modest gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 10,587 as of 7:30 a.m.

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

  • Indivior said U.S. judge extends restraining order against Dr Reddy’s for gSuboxone for 14 more days.
  • Thyssenkrupp AG and Tata Steel are said to have agreed on Europe steel merger (Bloomberg).
  • Fortis Healthcare extended deadline for submission of binding bids to July 3.
  • Jindal Steel & Power extended the divestment of 1000 MW (4X250 MW) thermal power plant date by one year to June 30, 2019.
  • Indo Rama Synthetics (India)'s board approved issue of 90.9 lakh equity shares to EC Special Situations Fund and Edelweiss India Special Situations Fund.
  • Kalpataru Power Transmission received multiple orders worth Rs 1,235 crores.
  • United Spirits reported on restriction of transferability of shares.
  • Rakesh Jhunjhunwala reduces stake in Titan by 1.4 percent to 7.37 percent since May 21.
  • Bang Overseas to sell Bangalore land for Rs 20 crore.
  • Orient Abrasives said operations at Gujarat plant stopped due to worker’s unrest.
  • Wipro completed sale of hosted data center services operations to Ensono.
  • Zee Media to sell its entire stake in Ez-Mall Online for Rs 8.60 crore.
  • Newgen Software receives order worth Rs 63.93 crore.
  • Bharat Financial Inclusion completed first securitization transaction of Rs. 550.07 crore in 2018-19.
  • Clariant Chemicals permanently closed manufacturing unit in Gujrat, to sell land and sheds of the unit to related party for Rs 7.33 crore.
  • Adani Ports completed acquisition of Kattupalli port from L&T.

Economic Data To Watch

  • India to report fiscal deficit and eight infrastructure industries data for May.

Bulk Deals

  • RPP Infra Projects: Albula Investment Fund bought 1.15 l;akh shares or 0.5 percent equity at Rs 215 each.
  • Strides Shasun: Birla Sunlife MF bought 5 lakh shares or 0.6 percent equity at Rs 388.94 each.
  • V2 Retail: India 2020 Fund II Limited bought 2 lakh shares or 0.6 percent equity at Rs 405 each.
  • IDFC: JM Financial MF sold 83.29 lakh shares or 0.5 percent equity at Rs 46.48 each.
  • Manpasand Beverages: Nomura India Investment Fund Mother Fund sold 12.84 lakh shares or 1.1 percent equity at Rs 137.02 each.
  • PTC India: UBS Principal Capital Asia Ltd sold 16.24 lakh shares or 0.5 percent equity at Rs 73.08 each.
  • IEX: Societe Generale sold 3.68 lakh shares or 1.2 percent equity at Rs 1,586 each.

ICRA

  • IIFL Management Services Limited bought 3.30 lakh shares or 3.3 percent equity at Rs 3291 each.
  • Punjab National Bank sold 3.30 lakh shares or 3.3 percent equity at Rs 3291 each.

Uniply Industries

  • Arvind Khattar bought 8 lakh shares or 2.8 percent equity at Rs 76.2 each.
  • Premier Investment Fund Limited sold 8 lakh shares or 2.8 percent equity at Rs 76.2 each.

Who’s Meeting Whom

  • Lumax Auto Technologies & Lumax Industries to meet investors on June 29.
  • Amber Enterprises to meet investors on June 29.
  • Indian Hotels to meet HDFC AMC on June 29.
  • Kamdhenu Ltd to meet investors on June 29.

Insider Trades

  • Jain Irrigation promoter Jalgaon Investments Private Limited acquired 2 lakh shares on June 27.
  • Piramal Enterprises promoter sold 2.97 lakh shares from June 25 – 26.
  • Centrum Capital promoter BG Advisory Services LLP acquired 1.38 lakh shares on June 26.

(As reported on June 28)

Trading Tweaks

  • Gammon Infrastructure Projects, KRBL and NDTV circuit filter revised to 10 percent.
  • Adani Green Energy Limited last trading day before shifting to B group.

Nifty Midcap 50 Changes

  • DROP - Arvind, Tata Communications
  • ADD - Indian Bank, NALCO

Nifty Infrastructure Changes

  • DROP - Tata Communications
  • ADD - Torrent Power

Offerings/Listing

  • Varroc Engineering IPO subscribed 3.5 times on the final day.
  • Talwalkar's demerged gym business to list today.

Rupee

  • Rupee closed at 68.79/$ on Thursday versus 68.63/$ on Wednesday. This is lowest since August 28, 2013.

F&O Cues

  • Nifty July Futures closed trading at 10,571, discount of 18 points.
  • All series-Nifty open interest up 4 percent and Bank Nifty open interest up 5 percent.
  • Nifty rollover at 64 percent , Bank Nifty rollover at 72 percent.
  • India VIX ended at 13.9, up 3.2 percent.
  • Max open interest for July series at 11,000 Call, open interest at 29.9 lakh, open interest up 20 percent.
  • Max open interest for July series shifts to 10,600 Put, open interest at 35 lakh, open interest up 45 percent.

F&O 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

Nomura on Media

  • Zee's TV ratings remains strong; Remain positive on the stock.
  • Sun has continued to lose share.
  • On the subscription side, expect Sun to be the key beneficiary of digitisation.

Nomura on Exide

  • Maintained ‘Neutral’ with a price target of Rs 268.
  • Announcement of JV gives Exide a clear head-start over others in Lithium-ion batteries.
  • By 2020 when EVs launch, Exide would have a proven product ready for auto manufacturers.
  • Total investment could be CHF 80 million.
  • Exide's cash balance and cash flow sufficient for investment.

Nomura on Auto

  • Healthy demand and low base to lead to strong double-digit volume growth across segments.
  • Expect passenger vehicle industry to report 27 percent YoY growth.
  • Expect two wheeler industry growth to remain healthy at 15 percent YoY.
  • Expect medium and heavy commercial vehicle industry to report 37 percent YoY growth.

Deutsche Bank Research on BHEL

  • Maintained ‘Buy’ with a price target of Rs 130.
  • Four recent tie-ups to drive non-coal revenues.
  • Power deficit and replacement demand to drive coal projects related revenue.
  • Expect turnaround in orders and potential recovery of government receivables.

Macquarie on Graphite Electrode Sector

  • Graphite Electrode uplift is structural and not just an upcycle before a leg down.
  • Market tightness to keep electrode and needle coke prices firm.
  • Expect graphite electrode prices staying strong for three years, as utilisation remains on an uptrend.
  • Indian electrode makers have 22 percent global market share.
  • Graphite India: Initiated ‘Outperform’ with a price target of Rs 1,260; implying a potential upside of 63 percent from the last regular trade.
  • HEG: Initiated ‘Outperform’ with a price target of Rs 4,810; implying a potential upside of 58 percent form the last regular trade.

Brokerages On Accenture

Morgan Stanley

  • Accenture Q3 ahead of guided range and estimates.
  • Revenue beat and constructive commentary signals positive sentiment for India IT.
  • Upwards revision to full year revenue growth guidance positive.

CLSA

  • Growth acceleration led by consulting, U.S. and CMT.
  • Broad-based growth acceleration is a positive for all Indian IT firms.
  • Acceleration in U.S. positive for most firms, more for Infosys and Cognizant.
  • Acceleration in CMT positive for Tech Mahindra, Wipro and HCL Tech.
  • Nature of demand with stronger consulting and Apps better for Infosys and HCL Tech.
  • Relative softness in FS stays a concern for TCS, Cognizant and Infosys.
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