A visitor sits and watches stock price information displayed on a digital screen inside the Saudi Stock Exchange in Riyadh, Saudi Arabia. (Photographer: Abdulrahman Abdullah/Bloomberg)

Stocks To Watch: Reliance Infra, Apollo Tyres, HCL Tech, CG Power

Asian stocks traded mixed after muted gains in U.S. equities. Equities fell in Japan and Australia and were higher in South Korea, while Hong Kong’s futures fell and China’s rose.

The Shanghai Composite Index will be closely watched after its rebound Monday, as state-backed funds were seen buying stocks to stabilise the market.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent lower at 11,572.50 as of 7:20 a.m.

Short on time? Well, then listen to this podcast for a quick summary before the opening bell!

Here Are The Stocks To Watch Out For On Tuesday

  • Reliance Infrastructure’s Anil Ambani denied Rahul Gandhi’s allegation that Reliance Defence was set up just before the Rafale deal announcement with French government.
  • HCL Technologies fixed Aug. 31 as a record date for buyback.
  • Apollo Tyres said Kerala state factories estimate losses at 1,500 tons till yesterday, due to floods.
  • Goa Carbon said Indian Petcoke import ban to impact production.
  • FDC received eight observations under Form 483 for its Aurangabad unit from U.S. FDA. The observations pertain to the ophthalmic products being exported to the U.S.
  • CG Power inaugurated its first high-voltage and extra high-voltage air insulated switchgear factory at Indonesia.
  • NR Agarwal Industries’ plant is to be temporarily shut down for 15 days with effect from Aug. 27 for annual maintenance and technological upgradation.
  • ICICI Lombard launched AI-based technology to facilitate instant health insurance claim approvals.
  • Kellogg and Reckitt Benckiser are latest entrants in the race to acquire GSK Healthcare joining Nestle, Unilever, Mondelez and Coca-Cola (Economic Times).
  • Manali Petro is looking to adopt strategy to accelerate growth, revamps management (Business Standard).
  • Max Estates (realty arm of Max Ventures) set to invest Rs 1,500 crore in office realty (Economic Times).

Aviation Data For July 2018

  • Strong passenger growth for aviation sector at 20.8 percent (YoY) In July 2018.
  • IndiGo’s passenger growth at 31.5 percent (YoY) - highest in last 18 months.
  • SpiceJet’s passenger growth at 5.1 percent (YoY) - lowest in last 33 months.
  • Jet Airways’ passenger growth at 4.2 percent (YoY).

Telecom Data For June 2018

  • Bharti Airtel added 10,689 subscribers (MoM)
  • Vodafone India added 2,75,219 subscribers (MoM)
  • Idea Cellular added 63,69,785 subscribers (MoM)
  • Reliance Jio added 97,13,047 subscribers (MoM)

Also Read: Can We Celebrate High GDP Growth Alone?

Earnings To Watch

  • HDFC AMC
  • Motilal Oswal Financial Services

Bulk Deals

  • TVS Motor Company: Europacific Growth Fund sold 34.06 lakh shares, or 0.72 percent equity at Rs 519.49 each.

Vadilal Industries

  • EQ India Fund acquired 48,000 shares, or 0.67 percent equity at Rs 590.24 each.
  • Ashish Ramchandra Kacholia sold 3.62 lakh shares, or 5.04 percent equity at Rs 611 each.

Teamlease Services

  • Franklin Templeton Investment Funds acquired 4.8 lakh shares, or 2.82 percent equity at Rs 2,645 each.
  • Kuwait Investment Authority acquired 94,800 shares, or 0.55 percent at Rs 2,645 each.
  • Gaja Capital Fund India sold 1.06 lakh shares, 0.612 percent equity at Rs 2,645 each.
  • GPE (India) sold 4.6 lakh shares, or 2.66 percent equity at Rs 2645.01 each.

Newgen Software Tech

  • Malabar India Fund acquired 9.7 lakh shares, or 1.41 percent equity at Rs 239 each.
  • Birla Sun Mutual Fund sold 9.7 lakh shares, or 1.4 percent equity at Rs 239 each.

Who’s Meeting Whom

  • FIEM Industries to meet SAIF Partners and Kitara Capital on Aug. 21 and Aug. 27 respectively.
  • Narayana Hrudayalaya to meet ICICI Prudential Life Insurance, Tattva Capital and other investors on Aug. 21.
  • Godrej Agrovet to meet Invesco, Nomura and other investors from Aug. 21-24.

Insider Trades

  • Singer India promoter sold 2.4 lakh shares on Aug. 16.
  • Srikalahasthi Pipes promoters acquired 26,000 shares from Aug. 16-17.
  • DCM Shriram Industries promoters acquired 2.7 lakh shares from July 2 to Aug. 17.
  • Skipper promoter Devansh Bansal acquired 2.5 lakh shares on Aug. 20.

Rupee

  • Rupee ended at 69.83/$ versus 70.16/$ on Thursday.

F&O Cues

  • Nifty August Futures closed trading at 11,578.9 premium of 27 points versus 17.7 points.
  • August series-Nifty Open Interest up 1.5 percent and Bank Nifty Open Interest up 0.5 percent.
  • India VIX ended at 13.0.3, down 1 percent.
  • Maximum Open Interest for August series at 11,600 Call, Open Interest at 33.8 lakh, Open Interest down 6 percent.
  • Maximum Open Interest for August series at 11,400 Put Open Interest at 43.5 lakh, Open Interest up 9 percent.

F&O Ban

  • In Ban: Adani Power, Jain Irrigation, Raymond
  • Out Of Ban: Adani Ent, Jet Airways

Put-Call Ratio

  • Nifty PCR at 1.72 versus 1.66
  • Nifty Bank PCR at 1.41 versus 1.38

Brokerage Radar

Credit Suisse on Avenue Supermarts

  • Initiated ‘Underperform’ with a price target of Rs 1,150.
  • Very well-run business with a proven track record.
  • Store expansion to keep margins capped.
  • Food & grocery retailing is a tough business and valuations need to account for the same.
  • Valuations are factoring in a bull case scenario with low margin for safety.
  • Current price implies 40 percent organised retail market share for DMart by March 2040, which is highly unlikely.

BofAML on Tech Mahindra

  • Upgraded to ‘Buy’ From ‘Underperform’; Raised price target to Rs 800 from Rs 600.
  • Telecom revival to boost both top-line & margin outlook.
  • Expect operating profit to grow at a compounded annual growth rate of 18 percent over FY18-21.
  • Such growth to provide more qualitative stock rally.

UBS on Tata Motors

  • Maintained ‘Neutral’; cut price target to Rs 280 from Rs 370.
  • Deterioration in JLR’s performance is likely to result in rapid re-leveraging.
  • Risk-reward not compelling as JLR volume growth falters and negative FCF expands.
  • Domestic business improving but profitability could peak in the next financial year.

Citi on IndiGo

  • Maintained ‘Sell’ with a price target of Rs 850.
  • Strong growth partly aided by weak base.
  • Believe lower fares could have also helped overall demand.
  • Recent uptick in IndiGo primarily reflects market share gain expectations.

UBS on Federal Bank

  • Maintained ‘Buy’; cut price target to Rs 105 from Rs 115.
  • Flooding in Kerala could impact repayments; 25 percent of the loan book from Kerala.
  • Target cut to factor in higher credit cost.
  • Maintain Buy due to inexpensive valuation.

Macquarie on Asian Paints

  • Maintained ‘Neutral’ with a price target of Rs 1,300.
  • GST cut to aid premiumisation and growth in the medium term.
  • Rising input prices will weigh on margin in the near term.
  • Like dominant position in Indian paint sector; Advise long-term investors to buy on dips.

HSBC on DLF

  • Maintained ‘Hold’ with a price target of Rs 217.
  • Expect sales momentum to remain moderate and dependent purely on market conditions.
  • Fund raising and receivables settlement are last leg of restructuring.
  • Operating business stabilising; Material pick-up still several quarters away.

Deutsche Bank on Indian Real Estate

  • Worst of demand slowdown has passed.
  • Pace of industry consolidation has accelerated.
  • Margins unlikely to see further compression.
  • Expect cash flow momentum to improve in coming quarters.
  • Top picks are: Sobha, Godrej Properties and Oberoi Realty.

Deutsche Bank on NTPC

  • Maintained ‘Buy’ with a price target of Rs 200.
  • Near-term issues undermine attractive stock valuations & medium-term story.
  • Strong potential of two times and 2.3 times growth in regulated equity and profit respectively by March 2022.
  • Scenario analysis on tariff regulations suggest more positives than negatives.