All You Need To Know Going Into Trade On Dec. 19

Indian ADRs

Stocks To Watch

• Tata Group Stocks: Tata Sons stated in a statement that it has received and is analysing the order of National Company Law Appellate Tribunal. The parent company of Tata Group said that is not clear as to how the NCLAT order seeks to over-rule the decisions taken by shareholders of Tata Sons and listed Tata operating companies at validly constituted shareholder meetings. The NCLAT order appears to even go beyond the specific reliefs sought by the Appellant. Tata Sons plans to take appropriate legal recourse.
• NMDC has received approval for modified mining plan of Kumaraswamy Iron Mines from 7 million tonne per annum to 10 MTPA from India Bureau of Mines. Effective Date for Approval is till 2022. NMDC operates these mines at its facility in the state of Karnataka.
• Patanjali Ayurved has completed its acquisition of Ruchi Soya Industries under the Insolvency and Bankruptcy Code, according to two people in the know. The ayurvedic products maker paid Rs 4,111 crore to financial creditors of Ruchi Soya as part of this transaction, the people told BloombergQuint on the condition of anonymity. The total payment for the assets now stands at Rs 4,350 crore, which included payments to operational creditors, statutory dues and resolution cost. Ruchi Soya’s assets will be formally handed to Patanjali Ayurved tomorrow, the people said.
• Goa Carbon will commence operations at Paradeep Unit, Odisha from Dec. 20. Said plant was closed for maintenance work.
• Texmaco Rail & Engineering: NCLAT has given a stay order on NCLT Kolkata’s order. On Dec. 16, The operational creditor Veekay General has filed an application under insolvency proceedings for an alleged operational debt of Rs 63 lakh, which has been admitted by NCLT Kolkata. Company has filed its appeal against the order before NCLAT.
• Delta Corp: Government to levy 28 percent Goods and Services Tax on state-run and private lottery from March 1.
• ICICI Bank: The Reserve Bank of India told the Bombay High Court that its decision to grant approval to the Bank for termination of appointment of Chanda Kochhar as managing director and chief executive officer was fair and not arbitrary, according to a PTI report.
• Lemon Tree Hotels signed a license agreement for a 44-room Hotel. This will be company’s fifth hotel in Goa. The hotel is expected to be launched in April 2020.
• NBCC secured business worth Rs 8,861.05 crore for the month of November.
• NIIT promoters increased their stake from 31.39 percent to 34.35 percent via tendering of share-buyback on Dec. 16.
• NALCO: Shridhar Patra has been appointed as Chairman and MD with effect from Dec. 17.
• Gujarat State Petronet: Anil Mukim was appointed as MD with effect from Dec. 13.
• Embassy Parks REIT: Allianz-Shapoorji Pallonji collaboration acquires 100 percent stake in TSI Business Parks which owns WaveRock, as SEZ development in Hyderabad at a valuation of $250 million, according to its media statement.
• Andhra Cements said that company’s plant operations were temporarily disrupted due to power disconnection and way-bill blocking by the GST Authorities.
• South Indian Bank said that Base Rate will be reduced by five basis points to 9.95 percent and MCLR will also be reduced across various tenors with effect from Dec. 20.
• Sequent Scientific: Kotak Mahindra Investments increased their stake from 3.61 percent to 6.42 percent in the company on Dec. 16.

Offerings

• Rossari Biotech filed DRHP for its IPO worth Rs 700 crore. The company is specialty chemical maker. IPO comprises of fresh issuance of shares to the tune of Rs 150 crore and sale of 1.05 crore shares through OFS.
• Prince Pipes & Fittings’ IPO was subscribed 28 percent on day 1.

Brokerage Radar

UBS on Chennai Petroleum Corporation

• Maintained ‘Buy’; cut price target to Rs 200 from Rs 370.
• Lower refining margins for the current and the next financial year but remain optimistic on IMO 2020 upside.
• Geared to reap IMO 2020 benefits with BS-VI projects and residual upgrade.

Credit Suisse on Dr. Reddy’s Laboratories

• Maintained ‘Outperform’; hiked price target to Rs 3,235 from Rs 3,055.
• NuvaRing NPV now likely below acquisition cost, but overall story still strong.
• Now model DRL to be the fourth player in NuvaRing with potential launch in the fourth quarter of the next financial year.
• Cut EPS estimates for the current and the next two financial years by 7 percent, 4 percent and 4 percent respectively but raise target on roll forward to 2021-22.

CLSA on Havells India

• Maintained ‘Outperform’; cut price target to Rs 730 from Rs 770.
• Structural changes in Lloyd to start bearing fruit from 2020-21 only.
• Core categories performance strong over the years.

Morgan Stanley on Jindal Steel and Power

• Maintained ‘Overweight’; raised price target to Rs 174 from Rs 139.
• Positives not yet fully priced in and risk reward is attractive.
• Domestic steel spreads to improve on lower input costs, improving domestic realisations.
• JSPL to grow faster than the market as capacity utilization rate is still about 85 percent.

JPMorgan on Maruti Suzuki

• Maintained ‘Overweight’; raised rice target to Rs 8,200 from Rs 7,900.
• Volume prints have bottomed out while levers for margin rebound falling in place.
• S-Presso has potential to create new Mini UV segment.
• Discounting has started to come off since November.

Trading Tweaks

• Indiabulls Ventures record date for share-buyback.
• BLB, Vishwaraj Sugar Industries to move into short term ASM Framework.
• TCI Finance, Stampede Capital, Accel to move out of short term ASM Framework.
• Thomas Cook price band revised to 20 percent.
• Lyka Labs price band revised to 10 percent.
• Jaypee Infratech price band revised to 5 percent.

Who’s Meeting Whom

• Eicher Motors to meet Taiyo Pacific Partners on Dec. 19.
• J Kumar Infra to meet DSP MF and ICICI Pru Life Insurance on Dec. 19.
• Balrampur Chini Mills to meet Dolat Capital on Dec. 19.
• Mahindra & Mahindra to meet Cidel Asset Management on Dec. 19.
• Shriram Transport Finance to meet Fidelity International, Hamilton Capital Partners and other investors from Dec. 19-23.
• Narayana Hrudayalaya to meet I Wealth India Management and Sunidhi Securities on Dec. 20.

Insider Trading

• Electrosteel Castings promoter group Electrocast Sales acquired 2.25 lakh shares from Dec. 13-16.
• Filatex India promoters acquired 2.5 lakh shares from Dec. 13-16.

F&O Cues

Index Futures

• Nifty December futures closed at 12,243.1, premium of 21.5 points versus 22 points.
• Nifty December futures series open interest down 2 percent, sheds 2.5 lakh shares in open interest.
• Nifty Bank December futures closed at 32,279.3, premium of 35 points versus 66 points.
• Nifty Bank December futures series open interest up 0.5 percent, adds 5,000 shares in open interest.

Options

• Nifty PCR at 1.72 versus 1.67 (across all series).

Nifty Weekly Expiry: Dec. 19

• Max open interest on call side at 12,200 (18.2 lakh shares).
• Max open interest on put side at 12,100 (25.5 lakh shares).
• Open interest addition seen in 12,200P (+15.6k shares), 12,200C (+5.3 lakh shares).
• Open interest shedding seen in 12100C (-6.5 lakh shares).

Nifty Monthly Expiry: Dec. 26

• Max open interest on call side at 12,000 (21.2 lakh shares).
• Max open interest on put side at 12,000 (41.9 lakh shares).