A financial trader looks at trading data on his screens (Photographer: Antoine Antoniol/Bloomberg)

Stocks To Watch: PNB, Tata Steel, Goa Carbon, Sterlite Tech

Asian stocks gained, building on a positive Friday session for global equities, as investors watched for developments in trade tensions between China and the U.S. before earnings season gets underway later this week.

Shares in Japan, South Korea and Australia nudged higher, while Hong Kong futures pointed to gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,769 as of 6:30 a.m.

Here Are The Stocks To Watch In Monday’s Trade:

  • PNB invites bids to sell 3 NPA accounts to recover over Rs 136 crore
  • Thyssenkrupp board accepts CEO resignation, backs Tata Steel JV
  • Maruti Suzuki June total production up 12 percent at 132,616 units versus 118,667 units
  • Tata Steel Q1 update: Crude steel sales up 8 percent at 2.97 MT, production up 7.8 percent at 3.17 MT
  • Sterlite Technologies to acquire Italian optical cable manufacturer company for 47 million euros
  • Goa Carbon Salcete’s Goa plant operations suspended for maintenance

NMDC

  • Total iron ore output up to June at 6.87 MT versus 8.52 MT (YoY)
  • Total iron sales (provisional) up to June at 6.84 MT versus 9.21 MT (YoY)

Also read: Fortis Board Can’t Determine If Fraud Happened, Auditor Says

Earnings To Watch

  • Dish TV
  • Uttam Galva Steels

Bulk Deals

  • Varroc Engineering: Nomura acquired 11.1 lakh shares at Rs 1,027.69 each

Trading Tweaks

  • City Union Bank last trading day before ex-date for 1:1 bonus.
  • Gitanjali Gems last trading day before shifting to 'Z' group.

F&O Setup

  • Nifty July futures closed trading at 10,778.4, premium of 5.8 points versus 2 points
  • July series: Nifty open interest up 1.5 percent, Bank Nifty open interest down 2 percent
  • India VIX ended at 12.44, down 1 percent
  • Max open interest for July series at 10,800 Call (open interest at 37.6 lakh, up 10 percent)
  • Max open interest for July series at 10,600 Put (open interest at 51.2 lakh, down 1 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

Brokerage Radar

On Sterlite Tech's New Buy

Emkay

  • Maintain Buy with target price of Rs 500.
  • New acquisition is a positive.
  • Earnings to grow at 22 percent CAGR over FY18-21.
  • Expect acquisition to add 5 percent/7 percent to FY19/20 earnings.

Edelweiss

  • Maintain Buy with target price of Rs 425.
  • Believe that this acquisition is attractive.
  • Acquisition will lead to 9 percent EPS accretion.

Goldman Sachs on Voltas

  • Maintain Buy with target price of Rs 640.
  • Stock declined on concerns of weak AC sales in Q1FY19.
  • Long term thesis remains intact.
  • Appealing opportunity to add to positions.
  • Voltas - Market leader to be biggest beneficiary of demand uptick.

Deutsche Bank on Oil & Gas

  • LNG demand robust despite rising prices.
  • New city gas auctions offer growth opportunities.
  • Sharp rise in demand, due to an increase in industrial activity.
  • Majority of new demand driven by switching of fuel to gas.

CIMB on Dilip Buildcon

  • Upgraded to Add from Hold; Cut target price to Rs 800 from Rs 988.
  • Concerns over high proportion of HAM projects factored in.
  • Core EPC business remain robust.
  • Strong order book provides visibility to earnings.
  • Increasing in-house projects warrants lower valuation multiple.

Nomura on India Roads Sector

  • Robust execution and orderbook implies strong revenue visibility at least until FY20/21.
  • Rising macro risk perception is leading to sharp correction.
  • Concerns: rising interest rates and crude oil prices, rupee depreciation, risk of an unstable government and declining appetite of public sector banks for infrastructure funding.
  • PNC Infratech: Maintain Buy; cut target price to Rs 210 from Rs 272.
  • KNR Construction: Maintain Buy; cut target price to Rs 302 from Rs 390.
  • Dilip Buildcon: Maintain Buy; cut target price to Rs 815 from Rs 1,322.