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Stocks To Watch: Reliance, Biocon, Som Distilleries, Future Lifestyle, Titan

Asian stocks traded mixed Thursday after holiday closures for U.S. equity and bond markets meant there were few leads overnight for traders.

Japanese shares slipped while those in Australia and South Korea pushed higher. U.S. futures pointed to gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent lower at 10,749.50 as of 6:50 a.m.

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

  • RIL to hold its annual general meeting today.
  • Titan said jewellery business will post muted growth in June-ended quarter.
  • Biocon’s sterile drug product facility received EU GMP certification.
  • Yes Bank received SEBI approval to launch mutual fund business.
  • Force Motors June total sales up 8.2 percent to 2,669 units.
  • Nath Bio Genes (India) promoters released pledge on shares held by ARCIL after clearing all outstanding loans.
  • Intellect Design Arena in pact with Banco Santander for implementation of its digital transaction banking platform.
  • FIEM Industries partnered with Toyodeso, Japan and Toyota Tsusho, Japan for manufacturing of bank angle sensor for motorcycles in the Indian market.
  • Future Lifestyle to acquire up to 29.9 percent in Koovs for Rs 140 crore.
  • Religare files plea under IBC against Bharat Road Network claiming a default of Rs 51.3 crore.
  • Va Tech Wabag to consider fund raising proposal on July 9.
  • Seamec, in consortium with Kreuz Subsea, enters into $22 million deal with ONGC for charter hire of vessel.
  • Som Distilleries & Breweries proposed arm acquires brewery in Odisha for Rs 46 crore.

Bulk Deals

Indiabulls Ventures

  • Cinnamon Capital sells 1.38 crore shares or 2.7 percent equity at Rs 471 each.
  • Jasmine Capital Investments PTE buys 1.38 crore shares or 2.7 percent equity at Rs 471 each.

Who’s Meeting Whom

  • Dilip Buildcon to meet investors on July 5.
  • Puravankara to meet LIC Mutual Fund and other investors on July 5.
  • Insecticides (India) to meet investors from July 5-6.
  • Indian Bank to meet investors from July 5-6.
  • Ramco Systems to meet HDFC Mutual Funds and other investors on July 5.

Insider Trades

  • DCM Shriram promoters acquired 2.61 lakh shares from July 2–3.
  • Menon Bearings promoters acquired 27,000 shares from June 21–29.
  • Infibeam Corporation promoters acquired 6.56 lakh shares from July 2–3.

(As reported on July 4)

Trading Tweaks

  • NDTV and Opto Circuits shifted to T group from B group.

F&O Cues

  • Nifty July futures closed trading at 10,771.3, premium of 1.4 points versus 24 points.
  • July series: Nifty open interest up 4 percent and Bank Nifty open interest up 5.4 percent.
  • India VIX ended at 12.6, down 2.6 percent.
  • Max open interest for July series at 11,000 Call (open interest at 36.7 lakh, up 1 percent).
  • Max open interest for July series at 10,600 Put (open interest unchanged at 51.7 lakh).

Put-Call Ratio

  • Nifty PCR at 1.53 versus 1.50
  • Nifty Bank PCR at 1.18 versus 0.78

Rupee

  • Rupee closed at 68.74/$ on Wednesday from 68.58/$ on Tuesday.

Brokerage Radar

Macquarie on United Spirits

  • Maintained ‘Underperform’ with a price target of Rs 443.
  • Route to market changes in U.P. led to surge in volume run-rate in last three months.
  • U.P. volumes to normalise going forward as share gains will be gradual.
  • Expect advertisement spend to remain high and price hikes to be limited.
  • United Spirits trade at a significant premium to peers.

Deutsche Bank on Shriram Transport Finance

  • Maintained ‘Buy’ with a price target of Rs 1,700.
  • Off balance sheet exposure to have limited impact on book value.
  • Proper management communication is now critical to assuage concerns over corporate governance.
  • Expect core operations to remain robust with strong growth momentum.

Daiwa Capital Markets on India Capital Goods

  • New investments continue to decline.
  • Private sector was key driver of new project announcements.
  • New announcements largely driven by transport, power and manufacturing.
  • See mixed signs of capex recovery.
  • L&T is preferred pick.

Brokerages On Titan Quarterly Update

CLSA

  • June quarter preview has a weak commentary after several quarters.
  • Jewellery was weak, but watches had a great quarter.
  • Focus on new launches and expansion in retail footprint continues.
  • Expect revenue and net profit to grow 12 percent and 10 percent respectively in April-June period.

Goldman Sachs

  • Maintained ‘Buy’ with a price target of Rs 1,061.
  • Jewellery segment's performance below targets due to weakness in gold demand.
  • Watches segment reported solid growth due to strength in modern retail and e-commerce.
  • Expect revenue and Ebitda to grow at 9 percent and 10 percent respectively in June quarter.

Brokerages On MSP

  • Elara: Government announces highest increase in MSP since the financial year-ended 2013; MSP hike to act as price signal and may boost output; CPI weighted rise at 1.6 percent, but actual impact could be lower at 50-60 basis points.
  • Kotak: Quantum of hike in line; Modality of MSP implementation is more important for rural demand; Statistical impact on inflation to be 90-95 basis points, but real impact to around 40-60 basis points; Fiscal impact to be minimal.
  • UBS: Price support to farmers bodes well towards improving rural demand; Expect 35-70 basis points impact on CPI inflation depending on procurement policy; Fiscal impact to be 0.1 percent of GDP in 2018-19.
  • Citi: Pre-election trend of large MSP increase continues; MSP increases could result in 90 basis points higher CPI; Large MSP increase coupled with elevated core and high oil prices to push RBI MPC to consider 25 basis points hike in August.
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