Stocks To Watch: L&T, M&M, Bajaj Auto, Reliance Naval

Asian stocks are ending the worst week since March with further declines amid ongoing concerns about global trade and emerging markets.

Equities fell in Japan, Australia and South Korea, while futures in China and Hong Kong pointed to losses. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded rose 0.1 percent to 11,564 as of 7:20 a.m.

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

• The U.S. drug regulator issued Sun Pharma six observations to its Halol plant for inspections done during Aug. 27-31. BloombergQuint accessed the Form 483, which was issued by the U.S. FDA to the drug maker.
• Welspun Corp entered an agreement for supply of 220 KMT of Pipes for Oil & Gas project in the Americas region. With this addition, company’s current order book stands at 1,776 KMTs valued at Rs 15,000 crore.
• Bajaj Auto will enhance its production capacities of three-wheeler and quadricycles to one million per year. This announcement comes on grounds of Minister for Transport Nitin Gadkari’s announcement at the SIAM convention to move to a “no-permit” regime for auto rickshaws powered by alternate fuels. The company said that it is the market leader with 86 percent market share in the alternate fuel three-wheelers.
• L&T Technology Services to acquire 100 percent stake in in Graphene Semiconductor Services Pvt Ltd. for Rs 93 crore. The acquisition includes all the three subsidiaries of the semiconductor company located in Singapore, Malaysia and Taiwan. This will enable L&T’s technology arm to strengthen its footprint in the VLSI chip design and embedded software services, and to cross-sell to the marquee client base of Graphene Semiconductor Services.
• L&T Financial Services clarified that it had submitted necessary details to the Registrar of Companies regarding its IPO in July 2011 and has still not received any further communication. This clarification comes after media reports alleging the misuse of IPO proceeds by the company.
• IDBI Bank filed insolvency application with NCLT, Ahmedabad against Reliance Naval and Engineering seeking debt arbitration.
• Gufic Biosciences received NCLT nod for merging Gufic Stridden Bio-Pharma Private Limited with self.

Also Read: Sun Pharma Gets Six Observations From U.S. FDA For Halol Plant

Media Reports

• Mahindra & Mahindra’s Managing Director, Pawan Goenka said that the company will launch two SUVs and one premium car by the end of the year. He also added that 1,000 electric cars will be manufactured per month by May next year versus 500 units produced now. The automaker sees an addition of up-to 9,000 units of monthly sales from the new launches (Bloomberg).
• L&T's ex-employee moves NCLT alleging mismanagement by firm. According to Uday Dixit’s petition, employees were verbally informed in a general meeting of the union that some amount would be deducted from their salaries and equity shares of L&T for the deducted amount would be issued to them. However, employees were given shares of the Employee Welfare Pvt. Ltd. company (PTI).
• Jet Airways' pilots warn of "non-cooperation" as salary payment gets delayed for the second consecutive month. (PTI)

Also Read: Excess Capacity Makes Airfares Cheaper Than Rail Tickets To These Indian Cities

Bulk Deals

One Point One Solutions

HSBC Asset Management (I) Pvt. Ltd. sold 1.26 lakh shares at Rs 58.06 apiece. The company is an SME listed on NSE Emerge Exchange.

Who’s Meeting Whom

• Blue Star to meet T Rowe Price and Portfolia Japan on Sept. 7.
• Dr Lal PathLabs to meet Alder Capital on Sept. 7.
• Magma Fincorp to meet Goldman Sachs on Sept. 7.

Insider Trades

• Oriental Hotels promoter acquired 60,000 shares on Sept. 4.
• Nava Bharat Ventures promoter group acquired 9,000 shares on Sept. 5.
• Kitex Garments promoter acquired 16,800 shares on Sept. 5.
• Confidence Petroleum India promoter acquired 1.1 lakh shares on Sept. 5.
• Balaji Amines promoters acquired 9,000 shares on Sept. 5.

Trading Tweaks

• Garware Polyester placed under additional surveillance measures.
• Out of ASM: Amrutanjan Health Care, Borosil Glass Works, International Paper, JK Paper, Kirloskar Oil Engines, Lincoln Pharmaceuticals, Pfizer, Tamil Nadu Newsprint.

Money Market Update

• The rupee on Thursday closed at an all-time low of Rs 71.99 per dollar after it breached the 72-mark versus a dollar in trade earlier.

F&O Cues

• Nifty Sept. futures closed trading at 11,567 premium of 30 points versus 41.3 points.
• September series: Nifty open interest up by 3 percent; Bank Nifty open interest down by 8 percent.
• India VIX ended at 13.7, up 0.5 percent.
• Max open interest for September series call at 11,800 strike price call option (open interest at 41.6 lakh, open interest down 0.5 percent) .
• Max open interest for September series put at 11,400 strike put price option (open interest at 44.6 lakh, open interest up 15 percent).

Put-Call Ratio

• Nifty PCR at 1.39 versus 1.37.
• Nifty Bank PCR at 0.83 versus 0.64.

Brokerage Radar

IDFC Securities on Aurobindo Pharma

• Maintained ‘Outperformer’ with a price target of Rs 900.
• Sandoz business acquisition is positive strategically as well as financially.
• Niche dermatology segment has significant long-term competitive advantage.
• Aurobindo is our preferred pharma pick.

Nomura on Bharat Forge

• Maintained ‘Neutral’ with a price target of Rs 700.
• August North America Class 8 orders breaks July’s record.
• Expect 25 percent and 15 percent growth in commercial vehicles in the current and the next financial year respectively.
• Adverse U.S. regulations could impact earnings.

Nirmal Bang on Sanofi India

• Initiated ‘Buy’ with a price target of Rs 7,570
• Earnings to outpace revenue growth led by high-margin portfolio.
• Key growth drivers: insulin portfolio, Allegra and Combiflam topical pain relief gel/spray.
• Expect revenue and net profit to grow at a compounded annual growth rate of 11 percent and 24 percent respectively over 2017-2020.