Investors watch the trading board at the Colombo Stock Exchange. (Photographer: Luis Enrique Ascui/Bloomberg News)

Stocks To Watch: TCS, Axis Bank, Glenmark Pharma, KEC International, Shalimar Paints

Stocks in Asia declined with U.S. equity futures after the Trump administration released the biggest list yet of Chinese goods it may hit with tariff increases.

Stocks in Tokyo and Seoul were lower as futures on the S&P 500 Index tumbled, ending the positive tone to equities enjoyed at the start of the week thanks to optimism about the corporate-earnings season.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,921 as of 7:15 a.m.

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

  • Axis Bank board shortlisted three candidates for the position of Managing Director and Chief Executive Officer.
  • Punjab National Bank and Carlyle Group to sell minimum 51 percent stake in PNB Housing Finance to potential buyers.
  • Officials indicate that LIC-IDBI deal may trigger an open offer, according to Bloomberg.
  • Glenmark Pharmaceuticals launched Helsinn’s Akynzeo drug in India and Nepal.
  • Shalimar Paints approved issue of rights issue draft order up to Rs 240 crore and will re-establish its Nashik Plant.
  • Tata Motors unit picked up 26 percent stake in freight-aggregator company Truckeasy.
  • KEC International secured multiple orders worth Rs 1,357 crore.
  • BigBloc Construction to acquire Hilltop Concrete for Rs 20 crore.
  • Kridhan Infra won order worth Rs 74.2 crore.
  • MCX, NSE in talks to team up for bigger exchange play (Economic Times).
  • Vedanta to team up with Anglo American to bid for Indian Coal Mines (Economic Times).

Earnings To Watch

  • Reliance Industrial Infrastructure

Earnings Reaction To Watch

TCS (Q1, QoQ)

  • Revenue up 6.8 percent at Rs 34,261 crore
  • Net profit up 6 percent at Rs 7,340 crore
  • Ebit up 5.3 percent at Rs 8,578 crore
  • Ebit margin at 25 percent versus 25.4 percent

Bulk Deals

  • Solara Active Pharma Sciences: MSD India Fund sold 1.75 lakh shares at Rs 159.42 each.

Bhageria Industries

  • Promoter Suresh Bhageria bought 5.25 lakh shares or 2.4 percent equity at Rs 301 each.
  • HI FI Trading sold 5.25 lakh shares or 2.4 percent equity at Rs 301 each.

Indiabulls Ventures

  • Jasmine Capital Investments PTE bought 1.7 crore shares or 3.3 percent equity at Rs 480 each.
  • Cinnamon Capital sold 1.7 crore shares or 3.3 percent equity at Rs 480 each.

Who’s Meeting Whom

  • VRL Logistics to meet CGS-CIMB Securities India Pvt on July 11.
  • Shriram City Union Finance to meet Somerset Capital Management on July 11.
  • Coal India to meet investors for divestment of shares from July 11-20.

Insider Trades

  • Singer India promoters sold 93260 shares from July 6–9.
  • Man Infraconstruction promoter Vatsal Shah acquired 41,000 shares on July 9.

Trading Tweaks

  • Ramky Infra and V-Mart placed under ASM framework.
  • Minda Industries ex date for 2:1 bonus.
  • Solara Active Pharma Sciences shifted to B group with circuit filter of 10 percent.
  • General Insurance Corporation of India last trading day before ex date for 1:1 bonus.
  • Ashoka Buildcon last trading day before ex date for 1:2 bonus.

Rupee

  • Rupee closed at 68.82/$ on Tuesday from 68.72/$ on Monday.

F&O Setup

  • Nifty July futures closed trading at 10,947.8 premium of 0.6 points versus 6.9 points.
  • July series-Nifty open interest up 4 percent & Bank Nifty open interest up 10 percent.
  • India VIX ended flat at 12.4 percent.
  • Max open interest for July series at 11,000 Call (open interest at 36.8 lakh, OI down 1.4 percent).
  • Max open interest for July series at 10,600 Put, (open interest at 51.9 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, incase of rollover of these intraday positions there is a penalty

Active Stock Futures

Brokerage Radar

Credit Suisse On Bharti Airtel

  • Maintained ‘Neutral’; cut price target to Rs 400 from Rs 440.
  • Competitive intensity staying high with Jio continues its aggressive strategy.
  • Jio moving towards high-end postpaid and low-end feature phone segments.
  • No smaller players left to give away market share to Jio.

HSBC On M&M

  • Maintained ‘Buy’; raised price target to Rs 1020 from Rs 950.
  • Stock now looks highly dependent on new utility vehicle launches.
  • Tractor business appears to be solid on rural strength.
  • MPV launch now likely by end-2Q, Rexton in 3Q and Tivoli in 4Q.
  • Tivoli launch is the single most critical event over the next 2-3 years.
  • Rexton could be up to 10 percent Auto revenue accretive.

DB On Asian Paints

  • Raised price target to Rs 1600 from Rs 1500.
  • Concensus believes GST for oaints will reduce to 18 percent from 28 percent.
  • Do not agree that GST reduction will increase paint consumption and sales.
  • Optimism on the paints sector is due to expected cyclical recovery in the economy.
  • See pent-up demand and initiatives taken by the government to drive housing.

Brokerages On IndusInd Bank

UBS

  • Maintianed ‘Neutral’; raised price target to Rs 2060 from Rs 1950.
  • In line results as rising rates curbed profitability.
  • Sharp rise in cost of funds seem to have driven the margin dip.
  • Stable asset quality and steady earnings growth seem priced in.

JP Morgan

  • Maintained ‘Overweight’ and a price target Rs 1,975.
  • Strong net income growth with underlying operating trends remain solid.
  • Looks well positioned to deliver medium-term loan growth of 25 percent.
  • Believe the Bharat Financial merger will be accretive to earnings.

Edelweiss

  • Maintained ‘Buy’ with a price target of Rs 2,080.
  • Bank is structurally poised to achieve Phase IV targets and achieve scale.
  • Broad based growth momentum suggesting secular growth trends.
  • Asset quality stable and shift to better rated corporate sustained.

Axis Capital

  • Maintained ‘Buy’ with a price target of Rs 2,200.
  • Growth strong in Q1 with asset quality stable.
  • Management continues to guide for a growth of 25-30 percent YoY.
  • Does not intend to raise capital in the near term given that it is adequately capitalised.

Brokerages On TCS

UBS

  • Maintained ‘Neutral’ with a price target Rs 2,000.
  • BFSI pickup powers a strong start to 2018-19.
  • Maintained aspirations to achieve 26-28 percent constant currency margins.
  • Management remained upbeat on demandand called out a turnaround in BFS.
  • Expect positive reaction to strong Q1 numbers and positive commentary.

Nomura

  • Maintained ‘Reduce’ with a price target of Rs 1440.
  • Results better than expected with recovery in BFSI being a key positive.
  • Company reiterated its margin aspirations of 26-28 percent EBIT margins.
  • Expect the stock to react positively to the results beat and recovery in BFSI.