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All You Need To Know Going Into Trade On Aug. 13

Stocks in the news, big brokerage calls of the day, complete trade setup and much more!  

An employee looks at trading information on a computer screen at the LMAX Exchange offices in this arranged photograph in London, U.K. (Photographer: Simon Dawson/Bloomberg)
An employee looks at trading information on a computer screen at the LMAX Exchange offices in this arranged photograph in London, U.K. (Photographer: Simon Dawson/Bloomberg)

Asian stocks followed their U.S. counterparts lower Tuesday as political unrest in Hong Kong and Argentina added to trade concerns and knocked sentiment.

Shares fell back in Japan, South Korea and Australia. Hong Kong futures were lower after protesters brought the city’s airport to a standstill on Monday. U.S. contracts ticked higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.26 percent to 11,119.50 as of 7:05 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

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Earnings Reaction To Watch

NTPC (Q1, YoY)

  • Revenue rose 6.5 percent to Rs 24,192 crore. (estimate Rs23,503 crore)
  • Net profit rose 0.5 percent to Rs 2,602 crore. (estimate 2830 crore)
  • Ebitda rose 8 percent to Rs 6,452 crore. (estimate Rs 6,587.8 crore)
  • Margin at 26.7 percent versus 26.2 percent. (estimate 28 percent)
  • Finance cost rose 28 percent to Rs 1,565 crore.
  • Revenue from generation rose 7 percent to Rs 23,516 crore.
  • EBIT from generation rose 0.5 percent to Rs 5,486 crore.
Opinion
Q1 Results: NTPC Profit Misses Estimates On Higher Finance Costs

Balkrishna Industries (Q1, YoY)

  • Revenue fell 11 percent to Rs 1,198 crore.
  • Net profit fell 22 percent to Rs 176 crore.
  • Ebitda fell 24 percent to Rs 268 crore.
  • Margin stood at 22.3 percent versus 26.2 percent.

Suprajit Engineering (Q1, YoY)

  • Revenue was flat at Rs 363.3 crore.
  • Net profit fell 14 percent to Rs 24.8 crore.
  • Ebitda fell 7 percent to Rs 51.6 crore.
  • Margin stood at 14.2 percent versus 15.3 percent.

Chambal Fertilizers (Q1, YoY)

  • Revenue rose 30 percent to Rs 2,871 crore.
  • Net profit rose 6 percent to Rs 164 crore.
  • Ebitda rose 92 percent to Rs 447.9 crore.
  • Margin stood at 15.6 percent versus 10.6 percent.
  • Finance cost stood at Rs 134 crore versus Rs 42 crore.
  • Paid deferred Tax of Rs 33 crore.

Godfrey Philips (Q1, YoY)

  • Revenue rose 40 percent to Rs 841 crore.
  • Net profit rose 2.1 times to Rs 118 crore.
  • Ebitda rose 2 times to Rs 201 crore.
  • Margin stood at 23.9 percent versus 16.5 percent.
  • Other expenses as a percent of sales stood at 15 percent versus 21 percent.
  • Ad expenses rose 49 percent to Rs 40 crore.
  • Cigarette Revenue rose 41 percent to Rs 750 crore.
  • Cigarette EBIT rose 119 percent to Rs 188.6 crore.

Divis Lab (Q1, YoY)

  • Revenue rose 17 percent to Rs 1,163 crore.
  • Net profit rose 2 percent to Rs 272 crore.
  • Ebitda rose 10 percent to Rs 387 crore.
  • Margin stood at 33.3 percent versus 35.4 percent.

Godawari Power & Ispat (Q1, YoY)

  • Revenue rose 16 percent to Rs 833 crore.
  • Net profit fell 1 percent to Rs 56.9 crore.
  • Ebitda fell 5 percent to Rs 174 crore.
  • Margin stood at 20.9 percent versus 25.5 percent.

Reliance Naval (Q1, YoY)

  • Revenue fell 25 percent to Rs 26 crore.
  • Net loss stood at Rs 370.9 crore versus net loss of Rs 361.3 crore.
  • Ebitda profit of Rs 3.6 crore versus Ebitda loss of Rs 1 crore.

Lumax Auto (Q1, YoY)

  • Revenue rose 3 percent stood to Rs 287 crore.
  • Net profit fell 25 percent to Rs 11.5 crore.
  • Ebitda fell 11 percent to Rs 24.5 crore.
  • Margin stood at 8.5 percent versus 9.9 percent.

Future Enterprises (Q1, YoY)

  • Revenue rose 5.2 percent to Rs 1,414.7 crore.
  • Net loss stood at Rs 10.5 crore versus net loss of Rs 21.1 crore.
  • Ebitda rose 27.2 percent to Rs 384.6 crore.
  • Margin stood at 27.2 percent versus 22.5 percent.

NIIT (Q1, YoY)

  • Revenue fell 1.9 percent to Rs 210.3 crore.
  • Net profit stood at Rs 1,090.4 crore versus Rs 17.9 crore.
  • Ebitda rose 21.8 percent to Rs 21.2 crore.
  • Margin stood at 10.1 percent versus 8.1 percent.
  • Exceptional gain of Rs 1,291.2 crore in current quarter due to gain on the sale of investment in associate.

Finolex Industries (Q1, YoY)

  • Revenue rose 14 percent to Rs 943.8 crore.
  • Net profit fell 34.8 percent to Rs 73.2 crore.
  • Ebitda fell 36.3 percent to Rs 123.6 crore.
  • Margin stood at 13.1 percent versus 23.4 percent.

APL Apollo Tubes (Q1, YoY)

  • Revenue rose 28.1 percent to Rs 2,071.6 crore.
  • Net profit rose 10.6 percent to Rs 52 crore.
  • Ebitda rose 2.5 times to Rs 125 crore.
  • Margin stood at 6 percent versus 3 percent.

Munjal Auto (Q1, YoY)

  • Revenue was flat at Rs 301 crore.
  • Net profit fell 53.3 percent to Rs 4.3 crore.
  • Ebitda fell 46.4 percent to Rs 14.2 crore.
  • Margin stood at 4.7 percent versus 8.8 percent.
  • Employee expenses rose 38 percent to Rs 25.6 crore.

Atul Auto (Q1, YoY)

  • Revenue rose 7.6 percent to Rs 147.7 crore.
  • Net profit rose 9.7 percent to Rs 11.3 crore.
  • Ebitda rose 23 percent to Rs 18.2 crore.
  • Margin stood at 12.3 percent versus 10.8 percent.

BPCL (Q1, QoQ)

  • Revenue rose 3.1 percent to Rs 76,317.9 crore. (estimate Rs 76,935 crore)
  • Net profit fell 65.6 percent to Rs 1,075.1 crore. (estimate Rs 988 crore)
  • Ebitda fell 54.6 percent to Rs 2,179.8 crore. (estimate Rs 2,001 crore)
  • Margin stood at 2.9 percent versus 6.5 percent. (estimate Rs 2.6 percent)
  • GRM stood at $2.81/bbl versus $2.74/bbl (estimate $2.96/bbl).
  • Other income fell 49 percent to Rs 538.5 crore.
Opinion
Q1 Results: Bharat Petroleum’s Profit More Than Halves On Inventory Loss

SAIL (Q1, YoY)

  • Revenue fell 6.8 percent to Rs 14,820 crore. (estimate 15,010 crore)
  • Net profit fell 87.3 percent to Rs 68.8 crore. (estimate net loss at Rs 140 crore)
  • Ebitda fell 38.6 percent to Rs 1,582 crore. (estimate Rs 1,397.7 crore)
  • Margin stood at 10.7 percent versus 16.2 percent.

Oil India (Q1, YoY)

  • Revenue were flat at Rs 3,373.4 crore. (estimate Rs 3400 crore)
  • Net profit fell 11.1 percent to Rs 624.8 crore. (estimate Rs 716.7 crore)
  • Ebitda fell 3.9 percent to Rs 1,353.2 crore. (estimate Rs 1387.3 crore)
  • Margin stood at 40.1 percent versus 41.5 percent.

NHPC (Q1, YoY)

  • Revenue rose 12.5 percent to Rs 2,610 crore.
  • Net profit rose 17.7 percent to Rs 930.9 crore.
  • Ebitda rose 14.2 percent to Rs 1629 crore.
  • Margin stood at 62.4 percent versus 61.5 percent.

Arvind Fashions (Q1, YoY)

  • Revenue fell 10.5 percent to Rs 900.9 crore.
  • Net loss stood at Rs 97.6 crore versus net loss of Rs 15.9 crore.
  • Ebitda fell 50.7 percent to Rs 19.8 crore.
  • Margin stood at 2.2 percent versus 4 percent.

Bharat Heavy Electricals (Q1, YoY)

  • Revenue fell 23.7 percent to Rs 4,531 crore. (estimate Rs 6,345.4 crore)
  • Net loss stood at Rs 216.3 crore versus net profit of Rs 155.6 crore. (estimate Rs 175 crore profit)
  • Ebitda loss stood at Rs 266.7 crore versus Ebitda gain of Rs 287.2 crore. (estimate Ebitda gain of Rs 327.4 crore)

Sun TV Networks (Q1, YoY)

  • Revenue fell 1.7 percent to Rs 1,101.4 crore. (estimate Rs 1,099.7 crore)
  • Net profit fell 6.6 percent to Rs 381.9 crore. (estimate Rs 394.6 crore)
  • Ebitda fell 7 percent to Rs 683 crore. (estimate Rs 698 crore)
  • Margin stood at 62 percent versus 65.6 percent.
  • Operating expenses double, But IPL Franchisee fees and other expenses fall.

Himatsingka Seide (Q1, YoY)

  • Revenue rose 9.8 percent to Rs 639.5 crore.
  • Net profit rose 1.6 percent to Rs 45.3 crore.
  • Ebitda rose 19.5 percent to Rs 138.1 crore.
  • Margin stood at 21.6 percent versus 19.8 percent.
  • Other income of Rs 18.8 crore in base quarter.

Prataap Snacks (Q1, YoY)

  • Revenue rose 23.23 percent to Rs 331 crore.
  • Net profit fell 6.7 percent to Rs 9.7 crore.
  • Ebitda rose 50.8 percent to Rs 27.3 crore.
  • Margin stood at 8.2 percent versus 6.7 percent.

Inox Wind (Q1, YoY)

  • Revenue fell 39.7 percent to Rs 259.6 crore.
  • Net loss at Rs 14.3 crore versus net profit of Rs 10.4 crore.
  • Ebitda fell 49.3 percent to Rs 34.5 crore.
  • Margin stood at 13.3 percent versus 15.8 percent.

Reliance Communications (Q1, QoQ)

  • Revenue fell 10.1 percent to Rs 865 crore.
  • Net loss at Rs 366 crore versus net loss of Rs 7,767 crore.
  • Ebitda profit at Rs 59 crore versus Ebitda loss of Rs 1 crore.
  • High provisions and impairments recorded in base quarter.

TTK Prestige (Q1, YoY)

  • Revenue rose 2.8 percent to Rs 461 crore.
  • Net profit rose 0.9 percent to Rs 35.8 crore.
  • Ebitda rose 0.8 percent to Rs 56.2 crore.
  • Margin stood at 12.2 percent versus 12.4 percent.

Graphite India (Q1, YoY)

  • Revenue fell 50.8 percent to Rs 967 crore.
  • Net profit fell 77 percent to Rs 220 crore.
  • Ebitda fell 79.5 percent to Rs 295 crore.
  • Margin stood at 30.5 percent versus 73.1 percent.

Embassy Office Parks REIT (Q1, YoY)

  • Revenue rose 19 percent to Rs 535.1 crore.
  • Net Income rose 19 percent to Rs 452.8 crore.
  • Declared distribution of Rs 5.4 unit for June quarter (Record Date Aug. 21).
  • Occupancy as on June at 94.3 percent on 24.8 million square feet completed office portfolio.

Shankara Building Products (Q1, YoY)

  • Revenue fell 18.6 percent to Rs 639.3 crore.
  • Net profit fell 65.1 percent to Rs 6.8 crore.
  • Ebitda fell 36.3 percent to Rs 31.1 crore.
  • Margin stood at 4.9 percent versus 6.2 percent.

Muthoot Finance (Q1, YoY)

  • Net interest income rose 9.2 percent to Rs 1,293.5 crore.
  • Net profit rose 8.4 percent to Rs 556 crore.
  • Gross loan assets rose 18 percent to Rs 40,228 crore.

Alkem Labortoories (Q1, YoY)

  • Revenue rose 11.5 percent to Rs 1,849.5 crore.
  • Net profit rose 36.1 percent to Rs 185.4 crore.
  • Ebitda rose 29.7 percent to Rs 264.4 crore.
  • Margin stood at 14.3 percent versus 12.3 percent.

Motherson Sumi (Q1, YoY)

  • Revenue rose 14 percent to Rs 16,557 crore.
  • Net Profit fell 25 percent to 332 crore.
  • Adjusted Ebitda fell 16.5 percent to Rs 1,188 crore.
  • Margin stood at 7.2 percent versus 9.8 percent.

Century Textiles and Industries (Q1, YoY)

  • Revenue fell 10 percent to Rs 874 crore.
  • Net profit rose 11 percent to Rs 180.6 crore.
  • Ebitda fell 30 percent to Rs 181 crore.
  • Margin stood at 20.7 percent versus 26.7 percent.
  • Profits from discontinued operations rose 2.7 times to Rs 113.5 crore.

JBM Auto (Q1, YoY)

  • Revenue fell 5 percent to Rs 398 crore.
  • Net profit fell 26 percent to Rs 15.1 crore.
  • Ebitda fell 6.5 percent to Rs 48 crore.
  • Margin stood at 12.1 percent versus 12.2 percent.

Safari Industries (Q1, YoY)

  • Revenue rose 29 percent to Rs 203 crore.
  • Net profit fell 29 percent to Rs 8.6 crore.
  • Ebitda fell 5 percent to Rs 20.7 crore.
  • Margin stood at 10.2 percent versus 13.8 percent.

Nifty Earnings To Watch

  • Coal India
  • ONGC
  • Sun Pharma

Other Earnings To Watch

  • Power Finance Corporation
  • NALCO
  • NMDC
  • Rain Industries
  • Godrej Industries
  • Manappuram Finance
  • Apollo Hospitals
  • Glenmark Pharmaceuticals
  • Bosch
  • Chalet Hotels
  • Dr. Lal Path Labs
  • Info Edge
  • IPCA Laboratories
  • Bharat Forge
  • Blue Star
  • RITES
  • A2Z Infra Engineering
  • Aarti Industries
  • Dixon Technologies
  • Alembic
  • Amrutanjan Health Care
  • Kaveri Seed Company
  • Essel Propack
  • Hindustan Aeronautics
  • MSTC
  • Hotel Leela Venture
  • Amtek Auto
  • Apex Frozen Foods
  • Ashoka Buildcon
  • Redington
  • Balmer Lawrie & Company
  • Bharat Road Network
  • Bodal Chemicals
  • D B Realty
  • Dai-Ichi Karkaria
  • Dcm Shriram Industries
  • Dishman Carbogen Amcis
  • Electrosteel Castings
  • Everest Kanto Cylinder
  • Excel Industries
  • Federal-Mogul Goetze (India)
  • Reliance Home Finance
  • Reliance Infrastructure
  • Fine Organic Industries
  • Gabriel India
  • Gallantt Ispat
  • Gic Housing Finance
  • GMM Pfaudler
  • Gujarat Narmada Valley
  • JB Chemicals & Pharmaceuticals
  • Fertilizers and Chemicals
  • Hi-Tech Pipes
  • Indian Terrain Fashions
  • Indoco Remedies
  • Kwality
  • Majesco
  • Man Infraconstruction
  • MEP Infrastructure Developers
  • Mercator
  • Nagarjuna Fertilizers and Chemicals
  • Neuland Laboratories
  • Omax Autos
  • Orient Refractories
  • Sanghi Industries
  • Saregama India
  • Setco Automotive
  • Shilpa Medicare
  • Sintex Industries
  • Solara Active Pharma Sciences
  • Sundaram Brake Linings
  • Talwalkars Better Value  Fitness
  • Tamil Nadu Newsprint & Papers
  • Texmo Pipes and Products
  • UFLEX
  • UFO Moviez
  • Tide Water Oil
  • Vakrangee
  • WABCO India

Brokerage Radar

On Shree Cement

CLSA

  • Downgraded to ‘Underperform’ from ‘Outperform’; maintained price target to Rs 20,800.
  • Q1 results were ahead.
  • Smart rise in realisation but very weak volumes
  • Offers limited value and is therefore lower in preference in the sector

Nomura

  • Maintained ‘Neutral’ with a price target of Rs 21,500.
  • Cement volumes were much weaker than expectations and peers.
  • Demand was weak on account of elections as construction activity slowed down.
  • See more price cuts/discounts are likely over the next few months.

On Sun TV

CLSA

  • Maintained ‘Buy’; cut price target to Rs 600 from Rs 730,
  • June quarter results were below estimates; content investments driving up costs.
  • Divergent outlook for subscription and ad-revenues.
  • Buy on strong subscription outlook and inexpensive valuations.

Nomura

  • Maintained ‘Buy’; cut price target to Rs 644 from Rs 711.
  • June quarter was inline; attractive valuations.
  • See near-term ad slowdown, but subscription growth story intact.
  • Cut valuation multiple to factor in the weaker economic growth.

On Cadila Healthcare

CLSA

  • Upgraded to ‘Buy’ from ‘Sell’; hiked price target to Rs 285 from Rs 250.
  • U.S. sales declined 23 percent on a sequential basis, but was inline with estimate.
  • Complex U.S. generics, biologics/vaccines for EMs and NCE are long-term drivers.
  • Valuations attractive considering long-term prospects.

HSBC

  • Downgraded to ‘Hold’ from ‘Buy’; maintained price target at Rs 260.
  • India business continues to see impact of restructuring.
  • U.S. sales can see single-digit growth on a reset base in 2019-20.
  • Resolution of pending FDA issues, recovery of India growth and U.S. base sales are key catalysts.

On Britannia Industries

Citi

  • Maintained ‘Buy’; cut price target to Rs 3,000 from Rs 3,250.
  • June quarter misses expectations; cut estimates by 5-7 percent factoring results and recent trends.
  • Increase in market shares and reduction in ICDs positive.

Axis Capital

  • Downgraded to ‘Reduce’ from ‘Add’; cut price target to Rs 2,600 from Rs 3,000.
  • Delivered weak Q1 led by revenue weakness, weak leverage and moderation in margins.
  • Cut EPS estimates by 9-10 percent to factor in revenue moderation, lower margins, higher interest costs from debt for commodity covers and redeemable bonus debentures.

On GAIL

Nomura

  • Maintained ‘Buy’ with a price target of Rs 208.
  • June quarter results, but September quarter outlook seems better for transmission and petchem.
  • Key beat was on gas marketing and key miss was on petrochemicals.
  • Combined HVJ tariff likely a trigger.

Kotak Securities

  • Maintained ‘Buy’; cut price target to Rs 190 from Rs 220.
  • Higher gas marketing contribution offsets weak performance of petchem segment.
  • Large EBIT loss from petchem amid shutdown.
  • Robust LPG EBIT driven by higher realisations.

Jefferies

  • Maintained ‘Buy’; cut price target to Rs 190 from Rs 200.
  • June quarter helped by surprisingly strong trading and E&P earnings.
  • Most other segments were weak with lower volumes and lower realisations.

On BPCL

Nomura

  • Maintained ‘Buy’ with a price target of Rs 520.
  • June quarter beat on better marketing, lower expenses and tax write-back.
  • Refining was weaker driven by lower throughput and higher inventory losses.
  • Valuation attractive with potential dividend yield of 5-6 percent and RoE of 20-24 percent.

Jefferies

  • Maintained ‘Hold’ with a price target of Rs 375.
  • June quarter review: headline beat but soft core performance.
  • Encouraged by the rise in refining performance.
  • Marketing margins are rising again and valuations are undemanding.

More Calls

CLSA on Sobha

  • Maintained ‘Buy’ with a price target of Rs 645.
  • Results above estimates on revenue beat.
  • Pre-sales steady, launch pipeline widened.
  • Hike revenue estimates by 3-5 percent and earnings estimates by 2-4 percent on faster completion of projects

Nomura on Hexaware

  • Maintained ‘Neutral’; hiked price target to Rs 355 from Rs 340.
  • June quarter review: Positive surprise on margins, though 2019 growth guidance lowered.
  • See high exposure to capital markets & mortgage business in BFS and margin risks.

Citi on Thermax

  • Maintained ‘Sell’; hiked price target to Rs 900 from Rs 887.
  • June quarter’s net profit ahead of expectations.
  • Modest margin improvement despite robust sales growth.
  • Inflows down 26 percent year-on-year; modest near-term outlook.

Nomura on Cummins India

  • Upgraded to ‘Neutral’ from ‘Reduce’; cut price target to Rs 605 from Rs 700.
  • Significantly weakened outlook; valuations factoring in negatives, but lacks clear near-term catalysts.
  • Cut EPS estimates for the current and the next financial year by 12 percent and 11 percent respectively on weak exports and gross margin outlook.
  • Positive catalyst can emerge from March quarter but uncertainties remain.

Citi on Hindalco

  • Maintained ‘Buy’; cut price target to Rs 235 from Rs 240.
  • June quarter results: India – weak prices and stable costs; Novelis Resilient.
  • Aluminium: cost of production under control.

Kotak Securities on MRF

  • Maintained ‘Reduce’; cut price target to Rs 49,000 from Rs 50,000.
  • Decent quarter; sustainability is the key.
  • Cut FY20-22 EPS estimates by 8-10 percent due to cut in Ebitda margin assumptions.
  • Valuations are expensive and don’t factor in risks related to profitability over the medium term.

Investec on Varroc Engineering

  • Maintained ‘Buy’; cut price target to Rs 570 from Rs 750.
  • Muted growth but margins improve.
  • Valuation attractive considering opportunity size and expertise in electric vehicles.

Macquarie on Reliance Industries

  • Upgraded to ‘Outperform’ from ‘Neutral’; hiked price target to Rs 1,370 from Rs 1,230.
  • Aramco transaction will serve to allay concerns on RILs growing net debt.
  • Leverage does fall, however don’t see zero net debt.
  • Transformation of RIL to the likes of Alibaba/Amazon/Softbank etc is well underway.
  • Cautious stance on RIL’s FCF outlook remains, but this is moot in view of growing optionality.

Nomura on Balkrishna Industries

  • Maintained ‘Reduce’ with a price target of Rs 711.
  • June quarter’s operating performance disappoints.
  • See further downside risks to management’s target of 3-5 percent volume growth in 2019-20.
  • Await clarity on the demand outlook across EU and America.

HSBC on Tata Chemicals

  • Maintained ‘Buy’ with a price target of Rs 700.
  • June quarter review – a few positives but soda ash performance muted.
  • Business transformation in progress with capex in new ventures.
  • Expansions in anchor businesses to drive growth.

CLSA on MGL

  • Maintained ‘Buy’ with a price target of Rs 1,275.
  • Miss on volumes more than offset by big beat on margins.
  • Over 10 percent cut in domestic gas price in Oct’19 could be a margin tailwind.
  • Pick-up in volume growth even as margins remain robust to support earnings growth trajectory.

Indian ADRs

All You Need To Know Going Into Trade On Aug. 13

Stocks To Watch

  • NDTV Promoters Prannoy Roy and Radhika Roy prevented from leaving India on Aug. 9 by the Central Bureau of Investigation due to ongoing legal proceedings.
  • Sadbhav Infraprojects’ board agreed to explore merger option between the company and Sadbhav Engineering. The board will study valuation report and will discuss to set the future course of action.
  • Balkrishna Industries’ board has decided to put $100 million investment in its green field tyre project in U.S. in abeyance due to challenging business environment.
  • NIIT’s board approved the proposal for share buyback of 16 percent of equity capital or 2.68 crore shares at Rs 125 per share aggregating to Rs 335 crore. Also, the company plans to increase stake in NIIT Institute of Process Excellence from 75 percent to 100 percent for Rs 5.5 crore.
  • DHFL Promoters created an encumbrance as collateral for 39.2 percent of share capital in the company, until the implementation of the resolution plan.
  • Sintex Plastics Technology plans to sell its entire stake in its arm to Xtech Invest SAS for Euro 155 million.
  • Atul Auto’s board decided not to enter the joint venture agreement with JBM Industries due to uncertainties in Electric Mobility policies.
  • Natco Pharma: U.S. FDA completed the inspection of Natco’s Mekaguda API facility. It has received six observations mostly procedural in nature. The company believes that none of observations are related to data integrity and that all the observations can be addressed within a short period of time.
  • Unichem Lab received ANDA approval from the U.S. FDA for Unichem’s Chlorthalidone Tablets. The product will be commercialised from Unichem’s Ghaziabad plant.
  • Reliance Infra, Reliance Power Statutory auditors BSR and Co. resigned citing reason stated in the qualified opinion of their audit report dated June 8, 2019 for the previous financial year. They have expressed their inability to continue as statutory auditors of the company. Pathak HD & Associates – the other joint auditor will continue as the sole auditor of the company.
  • JSW Steel July crude steel production down 4 percent to 13.17 lakh tonne. Flat rolled products down 8 percent to 9.08 lakh tonne. Long rolled products up 3 percent to 3.16 lakh tonne.
  • Tata Motors: Jaguar Land Rover’s long-term rating was affirmed by S&P at ‘B+’, with rating removed from credit watch and outlook kept as negative due to high cash burn and geopolitical risk.
  • Strides Pharma Science Received zero form 483 observations by the U.S. FDA on inspection of its Alathur Facility.
  • Andhra Bank reduced MCLR across various tenors with effect from Aug. 16. One month MCLR at 8 percent and one year MCLR at 8.45 percent.
  • Bank of India lowered One-year MCLR by 25 basis points. More than 80 percent of Bank of India's loan book is linked to 1-year MCLR which has been brought down to 8.35 percent with effect from Aug. 10.
  • Union Bank of India plans to link home and auto loans to repo rate. The bank has expected its MCLR to soften by further 15 basis points.
  • Indian Overseas Bank Reduced MCLR by 10-15 basis points across various tenors with effect from Aug. 10. One month MCLR at 8.2 percent and one year MCLR at 8.5 percent.
  • NIIT Technologies: White Oak Capital Management decreased its stake in the company from 7.52 percent to 1.04 percent via off market transaction on Aug. 8. HDFC MF decreased its stake from 7.04 percent to 4.33 percent on Aug. 8 via open market.
  • Sagar Cements: Coal-based power plant commenced operations on Aug. 9 for the company’s cement plant in Mattampally.
  • Gujarat Alkalies and Chemicals: The company has restored all the operation of balance plants at Dahej Plant. On Aug. 5, the company shut down its plants in Dahej Complex on account of heavy rain.
  • Avenue Supermarts Promoter Radhakishan Damani has completed the sale of 62.3 lakh equity shares on Aug. 9 to achieve minimum public shareholding as per Securities and Exchange Board of India norms.
  • Varroc Engineering plans to acquire 74 percent stake in Telematics solution provider CarIQ.
  • PC Jeweller said that it will not pursue demerger of export business and this segment is on a decline and in another two to three years the weightage of the same in the total turnover will get limited to single digit figure only. During 2018-19, this segment contributed 17.2 percent to the total turnover of the company.
  • Capri Global Capital Issued and allotted non-convertible debentures worth Rs 150 crore on Aug. 8.
  • Cox and Kings has achieved standstill for 180 days as per inter creditor agreement. The company’s U.K. arm has declared insolvency. The travel company has also withdrawn the proposal to give dividend of Rs 1 per share citing the current financial conditions of the company.
  • Minda Corp: The board approved signing of technical assistance agreement with South Korea’s Infac Elecs to manufacture Automotive Antenna Systems.
  • Praj Industries has entered into a co-operative agreement with Dedini to provide ethanol production technologies to the Brazilian market.
  • AU Small Finance Bank: Redwood Investment acquired 6 percent stake in the company via encumbrance of share pledge.
  • AIA Engineering’s trial of mill lining process in Africa’s gold mine has been successful. The company has started commercial production under second phase greenfield project in Gujarat. With this expansion, the total installed capacity of wear parts of the Group will be augmented from 340,000 million tonnes to 390,000 million tonnes per year.
  • Alembic Pharmaceuticals promoter Nirayu Pvt. Ltd. increased its stake in the company from 62.99 percent to 71.97 percent.
  • Indoco Remedies’ Clinical Research Organization received zero form 483 observations from U.S. FDA.
  • Shriram Transport Finance: Fidelity Group increased stake in the company from 7.05 percent to 7.1 percent.
  • Premier Explosives received orders worth Rs 13.5 crore from Ministry of Defence.
  • IRB Infra Developers arm completed concession period of Mumbai Pune project on Aug. 10
  • Torrent Pharma: U.S. FDA classified inspection conducted at company’s Indrad facility in April as Official Action Initiated.
  • Bharti Infratel: Board approved dividend for Rs 3.65 per share with record date set as Aug. 23.
  • Jet Airways: Vedanta’s Anil Agarwal said he will not pursue Jet Airways.

RIL AGM: Key Announcements

  • Reliance Industries and Saudi Aramco signed non-binding letter of intent to acquire 20 percent stake in company’s oil to chemicals division, which is value at $75 billion.
  • The company aims to be debt-free over the next 18 months by raising funds and selling stake in its various businesses.
  • RIL’s telecom unit—Reliance Jio Infocomm Ltd. has agreed to ally with Microsoft Inc. to accelerate digital transformation with the launch of new cloud data centres.
  • The company’s Chairman and Managing Director Mukesh Ambani announced the roll out of Jio GigaFiber from Sept. 5, that will offer free voice calls for life from landline phones, high speed broadband of minimum speed of 100 MB per second and free high definition TV and dish with minimum monthly subscription of Rs 700.
  • Reliance Jio and Microsoft announced 10 year alliance to accelerate digital strategic program for technology based services.
  • British energy giant BP Plc will pay about Rs 7,000 crore for acquiring a 49 percent stake in Reliance Industries Ltd.’s fuel retailing network.

Read the full text to Mukesh Ambani’s speech to shareholders at RIL’s AGM here.

Trading Tweaks

  • Praxis Home Retail to move into ASM Framework.
  • Eveready Industries to move out of ASM Framework.
  • SMS Lifesciences India to move into short-term ASM Framework.
  • Religare Enterprises Ltd. to move out of short-term ASM Framework.
  • NRB Industrial Bearings, Rolta India price band revised to 5 percent.

Insider Trading

  • NIIT Technologies promoter Hulst BV acquired 1.3 lakh shares on Aug. 8.
  • JSW Steel promoter group JSW Holdings acquired 7.15 lakh shares from Aug. 7-8.
  • Wockhardt promoter Themisto Trustee created pledge of 8 lakh shares on Aug. 6.
  • Hubtown promoter Falguni Shah invoked pledge of 55.32lk shares on Aug. 6.

Who’s Meeting Whom

  • Tata Motors to meet DSP Merrill Lynch and Lloyd George Management on Aug. 14.
  • KEC International to meet SBICAP Securities on Aug. 13.

Money Market Update

The consumer-price inflation data will be the key focus for sovereign bonds to assess whether the central bank will extend its monetary easing. CPI probably quickened to 3.09 percent year on year last month from 3.18 percent in June, as per a Bloombeg survey.

Yield on the 10-year note climbed nine basis points in the last session as geo-political tensions rose. For today, it is likely to trade between 6.45-6.52 percent.

In the currency market, implied opening from forwards suggest the pair may start trading around 71.1633 a dollar. Asian indexes are deep in the red while South Korean won too is down 0.2 percent. Dealers see the pair in a range of 71-71.50 a dollar in the day.

F&O Cues

August Futures

  • Nifty futures closed at 11,122.9, premium of 13 points versus 31 points.
  • Nifty futures open interest down 3 percent, sheds 5.7 lakh shares in open interest.
  • Bank Nifty futures closed at 28,474, premium of 42 points versus 129 points.
  • Bank Nifty futures open interest down 12 percent, sheds 2 lakh shares in open interest.

Options

  • Nifty PCR at 1.24 versus 1.21 (across all series).

Nifty Weekly Expiry Aug. 14

  • Max open interest on call side at 11,200 (20.2 lakh shares).
  • Max open interest on put side at 11,000 (16.4 lakh shares).
  • Max open interest addition seen in 11,100P (+12.3 lakh shares), 11,200C (+10.8 lakh shares).
  • open interest shedding seen at 11,000C (-4.6 lakh shares), 10,900C (-1.3 lakh shares).

Nifty Monthly Expiry Aug. 29

  • Max open interest on call side at 11,500 (23.9 lakh shares).
  • Max open interest on put side at 11,000 (33 lakh shares).
All You Need To Know Going Into Trade On Aug. 13