Stocks To Watch: HCL Tech, Gayatri Projects, TCS, IndusInd Bank

Stocks in Asia extended recent gains from a nine-month low, and followed U.S. shares higher, amid optimism the upcoming earnings season will be sufficiently robust to overshadow a rise in trade tensions.

Equities in Japan, South Korea and Australia rose after the S&P 500 Index climbed for a third day toward the upper end of its trading range.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent higher at 10,908 as of 7:10 a.m.

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

• HCL Tech to consider share buyback on July 12.
• GSFC says it expects to get Rs 693 crore subsidy from the Fertiliser Department.
• SRF plans to set up a BOPET manufacturing line and resin plant in Thailand for $60 million.
• Gayatri Projects declared lowest bidder for two packages of Purvanchal Expressway project worth Rs 2,759 crore.
• PNC Infratech declared lowest bidder for two packages of Purvanchal Expressway project worth Rs 2,520 crore.
• Sadbhav Infra said its first quarter toll revenue up 13.9 percent to Rs 275 crore.
• Bajaj Hindusthan to seek shareholders’ nod for sale of Lalitpur Power Generation to Bajaj Energy, a related party for Rs 1.097.53 crore.
• IVRCL appoints liquidator as NCLT orders start of liquidation process for subsidiary Hindustan Dorr Oliver.
• Rajshree Sugars says lenders declare the loan account of the company as NPA.
• Astral Polytechnik to acquire 51 percent stake in Rex Polyextrusion for Rs 75.22 crore.
• Shree Renuka said its Brazil unit’s lenders approved new recovery plan.
• PPAP Automotive started production at its Gujarat plant.

Earnings To Watch

• TCS
• Indusind Bank
• Prakash Industries

Earnings Reactions To Watch

Dish TV India (Q1, YoY)

• Revenue at Rs 1,656 crore
• Net profit at Rs 28 crore
• Ebitda at Rs 557.5 crore
• Margins at 33.7 percent
• Videocon D2H merged with Dish TV on March 22, thus Q results are not comparable.

Uttam Galva Steels (Q1, YoY)

• Revenue down 90 percent at Rs 92 crore.
• Net loss of Rs 366 crore versus net loss of Rs 192.5 crore.
• Ebitda down 29 percent at Rs 6 crore.
• Margins at 6.5 percent versus 0.9 percent.

Data To Watch

• 10:30am: India car sales data for month of June

Bulk Deals

Century Enka

• Aequitas Investment Consultancy bought 3.16 lakh shares or 1.4 percent equity at Rs 230.05 each.
• Camden Industries sold 6 lakh shares or 2.7 percent equity at Rs 230.02 each.
• Promoter Cygnet Industries sold 3.06 lakh shares or 1.4 percent equity at Rs 231.86 each.

Manappuram Finance

• Quinag Acquisition (FPI) Ltd bought 2.6 crore shares or 3.1 percent equity at Rs 105 each.
• WF Asian Reconnaissance Fund Limited sold 2.69 crore shares or 3.2 percent equity at Rs 105 each.

JBF Industries: IFCI Ltd sold 4.60 lakh shares or 0.6 percent equity at Rs 39.86 each.

Corporate Actions

• Talwalkars Better Value Fitness Ltd move out of ASM framework.
• Jagran Prakashan buyback period from July 10 to 23.
• City union Bank Limited ex-date for 1:1 bonus.
• Solara Active Pharma Sciences Ltd last trading day before shifting to B group.
• Minda Industries Limited last trading day before ex-date for 2:1 bonus.

Who’s Meeting Whom

• All Cargo Logistics to meet Jeetey Investments Pvt and Ambit Capital on July 10.
• MIRC Electronics to meet Reliance PMS and other investors on July 10.
• Magma Fincorp to meet Ramesh Damani Finance, Credit Suisse and other investors on July 10.

Insider Trades

• Omaxe Ltd promoter Nakul Goel sold 2.50 lakh shares from July 4–5.
• Man Infra promoter Vatsal Shah acquired 69,000 shares on July 6.

Rupee

• Rupee closed at 68.72/$ on Monday from 68.88/$ on Friday.

Trading Tweaks

• Talwalkars Better Value Fitness moves out of ASM framework.
• Jagran Prakashan’s buyback period from July 10 to 23.
• City Union Bank ex-date for 1:1 bonus.
• Solara Active Pharma Sciences’ last trading day before shifting to B group.
• Minda Industries’ last trading day before ex-date for 2:1 bonus.

F&O Cues

• Nifty July Futures closed trading at 10,859.8, premium of 6.9 points versus 5.8 points.
• July series: Nifty open interest up 5 percent and Bank Nifty open interest up 10 percent.
• India VIX ended at 12.3, down 0.4 percent.
• Max open interest for July series at 11,000 Call (open interest at 37.3 lakh, up 6 percent).
• Max open interest for July series at 10,600 Put (open interest at 52.3 lakh, up 2 percent).

F&O Ban

In ban: IDBI Bank

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

Put-Call Ratio

• Nifty PCR at 1.52 versus 1.51
• Nifty Bank PCR at 1.19 versus 0.99

Brokerage Radar

Credit Suisse on Reliance Industries

• Initiated ‘Outperform’ with a price target of Rs 1,180.
• Reliance Jio Infocomm may be worth $10.4 billion.
• Jio’s revenue can double in three years and contribute 10-40 percent of operating income by March 2025.
• New refining and petrochemical projects will drive over 20 percent earnings per share growth in 2018-19.
• Current softness in gross refining margins may subside in medium term.
• Petcoke gasification can add $2.4 per barrel to refining margin.

Macquarie on Indian Refiners

• IMO 2020 sulfur regulations a game-changer for oil industry.
• Expect middle distillate cracks doubling to $30 per barrel in 2020.
• Substantial demand from shipping industry to double the cracks.
• RIL: Upgrade to ‘Outperform’ from ‘Underperform’; hiked price target to Rs 1,240 from Rs 830.
• HPCL: Maintain ‘Outperform’; hiked price target to Rs 570 from Rs 500.
• BPCL: Maintain ‘Outperform’; hiked price target to Rs 555 from Rs 490.
• IOCL: Maintain ‘Outperform’ with a price target of Rs 270.

JP Morgan on DLF

• Maintained ‘Overweight’ with a price target of Rs 280.
• Near term investment thesis is predicated on pick up in residential sales.
• Monetisation for Phase 5 developments unsold inventory to be faster.
• Move towards completed accounting to aid net profits materially over the current and the next financial.

Morgan Stanley on HDFC Bank

• Maintained ‘Overweight’ with a price target of Rs 2,570.
• Initial updates is net positive.
• Updates highlight accelerating loan growth.
• Expect CASA ratio to improve in coming quarters.

BoA-ML on Dish TV

• Maintained ‘Buy’ with a price target of Rs 90.
• Strong results with revenue and operating income beating estimates after 3-4 quarters.
• Company well placed to deliver strong margins led by synergy benefits.
• Find valuations cheap in-context of growth.

Goldman Sachs on Dish TV

• Maintained ‘Neutral’ with a price target of Rs 76.
• Surprised by the magnitude of ARPU uptick; await more details.
• Despite strong ARPU, remain uncertain on sustainability of such ARPU.
• Availability of cheap data and launch of JioGigaFiber to put pressure on industry.

Goldman Sachs on Colgate

• Maintained ‘Buy’ with a price target of Rs 1,452.
• Lower prices indicate management's increased focus on re-gaining market share.
• Believe new products in natural segment will arrest its market share declines.
• Expect volume growth and market share performance to improve over the current financial year.

Kotak Securities on Oberoi Realty

• Upgraded to ‘Buy’ from ‘Reduce’; hiked price target to Rs 560 from Rs 535.
• Expect more promising 2018-19 on account of Thane launch and cash generation from Three Sixty West.
• Improving pace of execution and sales at Mulund will further bolster investor sentiment.
• Expect under-leveraged balance sheet to allow Oberoi secure new development prospects.

Deutsche Bank on Petronet LNG

• Maintained ‘Buy’ with a price target of Rs 310.
• Remain confident that there exists limited threat of competition for Dahej terminal.
• Regas margins at Dahej lowest due to lower capex costs.
• Expect demand growth from industrial sector, as industrial recovery picks up pace.
• Higher incremental LNG demand in FY19 to ensure high utilisation rate for Dahej terminal.

HSBC on Equitas and Ujjivan

• Risk/reward remains intact despite some encouraging signs.
• Continued focus on bank transition and loan book diversification to weigh on earnings.
• Ujjivan: Upgraded to ‘Hold’ from ‘Reduce’; hiked price target to Rs 370 from Rs 329.
• 2018-19 a crucial transition year from both asset diversification and liabilities base building perspective.
• Equitas: Maintained ‘Buy’; cut price target to Rs 152 from Rs 159.
• Equitas is positioned to accelerate its balance sheet growth from here on.