A toy bull figurine sits on a trader’s desk as the DAX index curve is displayed beyond inside the Frankfurt Stock Exchange in Frankfurt, Germany, (Photographer: Krisztian Bocsi/Bloomberg)

Stocks To Watch: Axis Bank, Idea Cellular, HDFC Bank, Tata Motors

Asian stocks opened lower Tuesday after the biggest technology shares led a retreat in U.S. stocks amid signs of investor fatigue with the sector.

Equity indexes fell in Japan and South Korea, while futures signaled a softer open in Hong Kong. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade at 11,336.50 as of 7:35 a.m.

Short on time? Well, then listen to this podcast for all you need to know before the opening bell.

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

  • HDFC Bank QIP opens with a floor price at Rs 2179.13 per share. To raise about $2.3 billion through sale of shares, ADRs
  • Texmaco Rail and Engineering arm signs MoU for upgrading 150 armor vehicles.
  • Hindustan Aeronautics now making 11 light combat planes for Air Force.
  • Dr. Reddy's request to sell generic Suboxon rejected.
  • Bharti Airtel’s Ugandan unit to absorb rival K2’s subscribers.

Economic Data To Watch

  • India to report fiscal deficit data for April-June quarter and eight infrastructure industries data for June.

Nifty Earnings To Watch

  • Power Grid
  • Tata Motors
  • UPL
  • Vedanta

Other Earnings To Watch

  • Ajanta Pharma
  • Astral Poly Technik
  • Bank Of India
  • BASF
  • Bharat Electronics
  • Blue Dart Express
  • Castrol India
  • Dabur India
  • DCM Shriram
  • EIH
  • GSFC
  • Jagran Prakashan
  • IIFL
  • Mahanagar Gas
  • Raymond
  • Redington India
  • Triveni Tribune
  • Supreme Industries
  • V-Guard Industries

Earnings Reaction To Watch

Axis Bank (Q1, YoY)

  • Net interest income up 12 percent at Rs 5167 crore.
  • Net profit down 46 percent at Rs 701 crore.
  • Provisions down 54 percent at Rs 3338 crore.
  • GNPA at 6.52 percent versus 6.77 percent (QoQ)
  • NPA at 3.09 percent versus 3.40 percent (QoQ)

Also read: Q1 Results: Axis Bank’s Profit Beats Estimates

Avenue Supermarts (Q1, YoY)

  • Revenue up 27 percent at Rs 4559 crore.
  • Net profit up 43 percent at Rs 251 crore.
  • Ebitda up 39 percent at Rs 422 crore.
  • Margin at 9.3 percent versus 8.4 percent.

IDFC Bank (Q1, YoY)

  • NII grew 26.3 percent to Rs 490 crore.
  • Net profit down 58 percent at 181 crore.
  • Provisions at Rs 34 crore versus Rs 242 crore (QoQ)
  • GNPA at 3.24 percent versus 3.31 percent.
  • NNPA at 1.63 percent versus 1.69 percent.

Oberoi Realty (Q1, YoY)

  • Revenue at Rs 888 crore versus Rs 261 crore.
  • Net profit at Rs 309 crore versus Rs 91 crore.
  • Ebitda at Rs 462 crore versus Rs 136 crore.
  • Margin at 52.0 percent versus 52.1 percent.

Texmaco Rail and Engineering (Q1, YoY)

  • Revenue up 44.4 percent at Rs 322.6 crore.
  • Net profit at Rs 6.5 crore versus net loss at Rs 8.7 crore .
  • Ebitda at Rs 23.4 crore versus Ebitda loss of Rs 4.8 crore.

Tech Mahindra (Q1, QoQ)

  • Dollar revenue down 1.6 percent at $1224 million.
  • Income from operations up 2.8 percent at Rs 8277 crore.
  • Ebit down 3.3 percent at Rs 1077 crore.
  • Ebit margins at 13 percent versus 13.8 percent.
  • Profit down 27 percent at Rs 899 crore.

Also read: Q1 Results: Tech Mahindra’s Profit Declines But Meets Estimates

GSPL (Q1, YoY)

  • Revenue up 32 percent at Rs 391 crore.
  • Net profit down 5 percent at Rs 144.5 crore.
  • Ebitda up 25 percent at Rs 344 crore.
  • Margin at 87 percent versus 93.2 percent.

Mahindra Lifespace Developers (Q1, YoY)

  • Revenue up 13 percent at Rs 154 crore.
  • Net profit up 93 percent at Rs 27 crore.
  • Other Income up 69 percent at Rs 22 crore.
  • Ebitda up 3 percent at Rs 16.5 crore.
  • Margin at 10.7 percent versus 11.8 percent.

Sharda Cropchem (Q1, YoY)

  • Revenue up 34 percent at Rs 457 crore.
  • Net profit down 21 percent at Rs 34 crore.
  • Other income down 77 percent at Rs 3.5 crore.
  • Ebitda up 15 percent at Rs 71 crore.
  • Margin at 15.5 percent versus 18 percent.

Gujarat Gas (Q1, QoQ)

  • Revenue up 2 percent at Rs 1765.5 crore.
  • Net profit up 83 percent at Rs 121 crore.
  • Ebitda up 12 percent at Rs 249.5 crore.
  • Margin at 14.1 percent versus 12.9 percent.

InterGlobe Aviation (Q1, YoY)

  • Revenue up 13 percent to Rs 6,512 crore.

Also read: Q1 Results: IndiGo’s Profit Misses Estimates As Forex Losses, Fuel Costs Soar

  • Net Profit down 97 percent to Rs 28 crore.
  • Ebitdar down 47 percent to Rs 1,031 crore.
  • Ebitdar margin at 15.8 percent versus 33.9 percent.

Idea Cellular (Q1, QoQ)

  • Revenue down 4 percent to Rs 5,889 crore.
  • Ebitda down 54 percent to Rs 659 crore.
  • Ebitda margin at 11.2 percent versus 23.6 percent.
  • Net Profit of Rs 257 crore versus loss of Rs 962 crore.
  • ARPU at Rs 100.

Also read: Q1 Results: One-Off Gain Helps Idea Cellular Report Profit

IDFC (Q1, YoY)

  • Revenue down 11.6 percent at Rs 14.5 crore.
  • Net profit down 18.9 percent at Rs 3 crore.

Jaiprakash Associates (Q1, YoY)

  • Revenue down 32.1 percent at Rs 1,690.8 crore.
  • Net loss at Rs 285 crore.
  • Ebitda down 75.4 percent at Rs 186.4 crore.
  • Margin at 11 percent versus 30.5 percent.

Bulk Deals

Modi Rubber

  • Morgan Stanley Asia (Singapore) Pte bought 2.28 lakh shares (0.9 percent) at Rs 51.45 each.
  • Quantum (M) Limited sold 2.28 lakh shares (0.9 percent) at Rs 51.45 each.

TCNS Clothing: Steinberg India Emerging Opportunities Fund Ltd bought 3.27 lakh shares at Rs 655.06 each.

Talwa lakhars Lifestyles: Smaller Cap World Fund Inc sold 2.25 lakh shares (0.7 percent) at Rs 138.5 each.

Who’s Meeting Whom

  • Balarampur Chini Mills to meet Sundaram Asset Management on August 2.
  • Tata Steel to meet HDFC Mutual Funds, DSP Black Rock and other investors on July 31.

Insider Trades

  • Chambal Fertilizers promoter acquired 1.41 lakh shares on July 27.
  • Infibeam promoter acquired 63,725 shares on July 26.

Trading Tweaks

  • Andhra Petrochemicals placed under ASM framework.
  • Adani Green Energy circuit filter revised to 5 percent.

Rupee

Rupee closed at 68.68/$ from 68.66/$ on Friday

F&O Cues

  • Nifty August futures closed trading at 11,338.5 premium of 19 points versus 28 points.
  • August series: Nifty open interest up 4 percent; Bank Nifty open interest up 7 percent.
  • India VIX ended at 12.5, up 2.2 percent.
  • Max open interest for August series at 11,500 Call (open interest at 28 lakh, up 2 percent)
  • Max open interest for August series at 11,000 Put (open interest at 41.4 lakh, up 8 percent)

Active Stock Futures

Brokerage Radar

JP Morgan on Avenue Supermarts

  • Maintained ‘Underweight’; raised price target to Rs 1,175 from Rs 1,050.
  • Good operating performance was reported in June quarter.
  • Lower interest costs further boosted net profit growth.
  • Raise earnings estimates on the back of higher revenue growth assumptions.
  • Valuations expensive; Already factor in optimism.

Credit Suisse on Escorts

  • Maintained ‘Outperform’; raised price target to Rs 1,230 from Rs 1,170.
  • June quarter results were operationally better than expected.
  • Tractor margins on adverse product mix, higher commodity costs and one-off provisioning.
  • Outlook on both CE and railways is encouraging.
  • Continue to prefer Escorts as top mid-cap pick.

BoFAML on Titan

  • Maintained ‘Buy’ with a price target of Rs 1,080.
  • Correction offers particularly attractive entry levels.
  • Well-established brands to offer continuous outperformance across segments.
  • Operating leverage and asset light growth to aid margins.
  • Expect 28 percent EPS CAGR to back premium valuation.

Brokerages On HDFC

JP Morgan

  • Maintained ‘Overweight’ with a price target of Rs 2,300.
  • Stable performance with 18 percent loan growth.
  • Spreads and asset quality remain well controlled.
  • Best play to capture property upcycle which could start in 2018.

Credit Suisse

  • Maintained ‘Outperform’; raised price target to Rs 2,350 from Rs 2,250.
  • NII growth was robust led by strong AUM growth.
  • Asset quality remained stable; Credit costs dropped on transition to IND-AS.
  • Stock trading at attractive valuations given loan growth and sustained profitability.

Brokerages On Axis Bank

CLSA

  • Maintained ‘Buy’; raised price target to Rs 690 from Rs 650.
  • Top-line ahead: Retail continues to lead.
  • June quarter’s net profit ahead of estimates led by better NII and NPL recoveries.
  • Slippages moderates, but stress still rises.
  • De-risking underway; Expect RoE of 15 percent from April 2020.

Kotak

  • Maintained ‘Add’ with a price target of Rs 600.
  • Net Interest Margin was reasonably stronger than expected.
  • Decline in NPLs is quite meaningful.
  • Higher upgrades, write-off and lower slippages led to decline.
  • Need clarification on movement of sub-investment grade portfolio.

Brokerages On Tech Mahindra

CLSA

  • Upgraded to ‘Underperform’ from ‘Sell’; raised price target to Rs 650 from Rs 635.
  • Revenue beat led by enterprise as telecom stays soft.
  • Margin recovery comes to a halt.
  • Need to watch for growth recovery.
  • See limited earnings growth potential and margin upside.

Macquarie

  • Maintained ‘Neutral’; raised price target to Rs 700 from Rs 670
  • June quarter results were mixed bag with miss on revenue and small beat at EBIT margin.
  • Telecom business continues to be a drag.
  • 5G-related spend is still some time away.
  • Raise EPS estimates to factor in weaker rupee.

Investec

  • Maintained ‘Buy’ with a price target of Rs 786.
  • June quarter’s revenue and EBIT were ahead of estimates.
  • Decline in revenues in telecom segment has been sharper than expected.
  • Expect EBIT Margin performance to improve through 2018-19.
  • Expect long awaited improvement in telecom appears to be finally here.

Brokerages On InterGlobe Aviation

JP Morgan

  • Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 900 from Rs 1,150.
  • June quarter earnings impacted on all fronts.
  • Expect industry to either take up pricing or cut back on capacity addition.
  • Lower pricing due to competitive intensity to pressure the stock near term.
  • Sufficient levers to improve its cost base over medium to long term.

UBS

  • Maintained ‘Sell’; cut price target to Rs 940 from Rs 1,040.
  • June quarter’s net profit declines significantly on high fuel and other expenses.
  • Continue to expect 2018-19 yield growth to be weak.
  • Maintenance spend to remain high going forward in the near term.
  • Cut our EPS estimates for the current and the next financial year by 34 percent and 5 percent respectively.

Brokerages On Godrej Consumer

Macquarie

  • Maintained ‘Outperform’; raised price target to Rs 1,465 from Rs 1,285.
  • Strong turnaround in HI business leading to operational beat in June quarter.
  • India volume growth at 14 percent was ahead of estimate.
  • Believe growth momentum in HI business will continue.
  • Godrej Consumer remains our top pick.

CLSA

  • Maintained ‘Outperform’; raised price target to Rs 1,425 from Rs 1,150.
  • June quarter’s consolidated Ebitda was ahead of estimates.
  • Strong domestic growth with healthy margins.
  • Management commentary was fairly positive on growth.
  • 2018-19 could be busiest year (new launches) for India business.

Brokerages On Shree Cement

Macquarie

  • Maintained ‘Outperform’ with a price target of Rs 21,500.
  • Adjusted June quarter’s Ebitda was in line; Margins recovery ahead.
  • Strong volumes partially offsets costs.
  • Capacity growth to drive market share gain in FY19-20.
  • Cost headwinds persists but peaking out.
  • Volume growth to remain ahead of industry on timely expansion.

Nomura

  • Maintained ‘Buy’ with a price target of Rs 22,900.
  • June quarter was a miss driven by higher costs, MTM loss.
  • Blended realisation was marginally lower than expected.
  • Continue to believe that cement sector is on cusp of an upturn.
  • Volume growth will likely get better.

Brokerages On Idea Cellular

CLSA

  • Downgraded to ‘Sell’ from ‘Buy’; cut price target to Rs 51 from Rs 70.
  • June quarter’s revenue was in-line, but Ebitda came below estimates.
  • Operating metrics were also weak.
  • Merged Co. funded, but gearing still out of hand.
  • Expect net debt to be 6.6 times Ebitda by March 2021, will still remain uncomfortable.

Kotak Securities

  • Maintained ‘Reduce’ with a price target of Rs 75.
  • June quarter’s earnings were weaker then expected.
  • Also much weaker than Bharti’s on most operating metrics.
  • Equity infusion, a meaningful one, could be needed sooner than expected.