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All You Need To Know Going Into Trade On Nov. 25
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
25 Nov 2019, 07:10 AM IST 
A book vendor reads a newspaper in Mumbai, India. (Photographer: Brent Lewin/Bloomberg)
Stocks in Asia rose along with American equity futures as investors monitored the latest move by China to ease trade tensions.
Equities in Japan, South Korea and Australia advanced and S&P 500 futures edged up. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.07 percent to 11,926.50 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.
Here’s a quick look at all that could influence equities today.
- U.S. equities edged higher on Friday after President Donald Trump said he was “very close” to a trade pact with China even as he warned that Beijing wanted a deal more than he did.
- Oil resumed gains as investors monitored developments in the back-and-forth trade talks between the U.S. and China.
Get your daily fix of global markets here.
Indian ADRs
Stock To Watch
- IDBI Bank has entered into a share purchase agreement with Muthoot Finance to its entire stake of 66.67 percent in IDBI Asset Management and entire 100 percent stake in IDBI MF Trustee Company for Rs 215 crore. The transaction is proposed to be completed by the end February 2020. Under the agreement, the bank and its arm IDBI Capital Markets & Securities have also agreed to sell its entire stake of 33.33 percent in IDBI Asset Management.
- State Bank of India: Board approved allotment of bonds aggregating to Rs 3813.6 crore.
- Bharti Airtel, Vodafone Idea filed review petitions on top court fees ruling, according to Bloomberg report.
- RITES offer for sale to non-retail investors sees 111 percent demand. Government to exercise over-subscription option and to sell up to 11.07 percent stake via offer for sale, according to Bloomberg report.
- DHFL said that Vaijinath M Gavarshetty has assumed his office as CEO of the Company with effect from Nov. 21 by reporting to R Subramaniakumar, the Administrator appointed by RBI. Board Meeting for quarterly results has been postponed from Nov. 25.
- Kridhan Infra’s Singapore arm has received a written order for its liquidation by the regulatory authorities. The company stated that is has already fully impaired its investments and loans in its standalone financials.
- Punjab & Sind Bank has allotted 9.9 crore shares aggregating to Rs 787 crore to the Government of India.
- Unichem Laboratories received an abbreviated new drug application approval for Atenolol Tablets from U.S. FDA. These tablets are used for treatment of hyper-tension and will be commercialised from company’s Ghaziabad plant.
- Shoppers Stop has opened a new store in Navi Mumbai. The company now has 85 stores.
- Vodafone Idea: Care Ratings has downgraded its rating for long-term bank facilities, NCDs from BBB- to A-. The downgrade is on account of significant erosion in the overall risk profile of the company while taking into cognisance of the financial impact of unfavourable ruling of Supreme Court, significant losses in Q2FY20 due to provision related to AGR dues, recognition of deferred assets and provision for additional depreciation/impairment of assets and consequently resulting in the significant deterioration in the tangible net worth and overall debt protection metrics. Crisil downgraded NCDs rating to BBB- from BBB+.
- Ashapura Minechem has entered into a rupee denominated secured term loan agreement of Rs 78 crore with Elara Finance for repayment of existing obligations of banks/financial institutions.
- Power Grid Corporation of India declared successful bidder into two intra-state transmission projects in Uttar Pradesh.
- Nestle India to consider interim dividend on Dec. 11.
- ARSS Infra Projects has received work order worth Rs 45.8 crore for construction of a road and bridge in Sonepur.
Offerings
- CSB Bank IPO fully subscribed on day 1 with with retail portion oversubscribed over five times.
Telecom Q2FY20 Data
- Reliance Jio’s revenue market share increased by 353 basis points to 35.2 percent on the back of strong subscriber additions.
- Bharti Airtel’s revenue market share increased by 70 basis points to 30.6 percent on the back of increase in data subscribers, stable ARPU and lower customer churn
- Vodafone Idea’s revenue market share fell by 70 basis points to 27.3 percent on the back of higher customer churn and lowest ARPU in the industry
- BSNL’s revenue market share dropped by 350 basis points to 4.9 percent on the back of sharp 71-percent drop in national long-distance revenues
Bulk Deals
- Reliance Capital: Yes Bank sold 13.21 lakh shares (0.52 percent) at Rs 16.39 each.
- Satin Creditcare Network: Goldman Sachs Singapore sold 2.66 lakh shares (0.51 percent) at Rs 218.62 each.
Safari Industries
- Ashish Kacholia acquired 2.18 lakh shares (0.98 percent) at Rs 550 each.
- Saif India Holdings acquired 5.78 lakh shares (2.59 percent) at Rs 540 each
- Tano India Private Equity Fund sold 10.7 lakh shares (4.79 percent) at Rs 544.07 each
Brokerage Radar
BofAML on Bharat Electronics
- Downgraded to ‘Underperform’ from ‘Buy’; cut price target to Rs 92 from Rs 136.
- Muted order inflow growth with no large orders in sight.
- Margins to compress due to rising imports and non-defense mix.
- Working capital to remain stretched; earnings growth trigger muted.
CLSA on Indian Telecom
- Bharti Airtel: Maintained ‘Buy’; hiked price target to Rs 515 from Rs 415.
- Vodafone Idea: Maintained ‘Sell’; cut price target to Rs 5.5 from Rs 7.
- Sell on Vodafone Idea on continued revenue share loss and inadequate cashflows.
- Even after 30 percent tariff hike, for Vodafone Idea, it will be difficult to service annual spectrum payments from 2022-23.
On DLF
Morgan Stanley
- Upgraded to ‘Overweight’ from ‘Equal-weight’; hiked price target to Rs 269 from Rs 201.
- Balanced portfolio of development and yielding assets.
- Power to monetise land bank is rising led by neighborhood development.
- DLF is now top pick in the industry; valuations seems reasonable.
UBS
- Maintained ‘Buy’ with a price target of Rs 240.
- Residential business turnaround on track; strong annuity portfolio set to re-rate.
- Medium-term catalysts: improved pace of inventory sale, land bank monetization and project addition.
Pledged Shares Details
- Sadbhav Infra Projects promoter Sadbhav Engineering created pledge of 2.32 crore shares from Nov. 14-15.
- Sadbhav Engineering promoter Shantaben Patel created pledge of 72.4 lakh shares on Nov. 15
- Future Retail promoter Future Corporate Resources created pledge of 49.2 lakh shares on Nov. 20
(As Reported On Nov. 22)
Trading Tweaks
- Alphageo, Unitech, Zee Media Corporation, Kridhan Infra to move out of ASM Framework.
- Gayatri Projects, Cerebra Integrated Technologies, Biofil Chemicals & Pharmaceuticals, Forbes & Company to move into short term ASM framework.
- Banswara Syntex, Edelweiss Financial Services, Sintex Plastics Technology, BSL, Winsome Yarns to move out of short term ASM Framework.
- Mukand Engineers, IND Renewable Energy price band revised to 10 percent.
Who’s Meeting Whom
- Tata Motors to meet Hara Global, Nomura and other investors from Nov. 25-29
- Shriram City Union Finance to meet Somerset Capital Management on Nov. 25
- Mahindra Logistics to meet Phillip Capital on Nov. 28
- Majesco to meet Airavat Capital Advisors on Nov. 25
Insider Trading
- Grasim Industries promoter ECE Industries sold 1.37 lakh shares on Nov. 21
(As Reported On Nov. 22)
Money Market Update
- The Indian rupee depreciated 0.7 percent in the previous week to end at 71.71 against the U.S. dollar. The home currency was the second-worst performer this week among Asian peers.
F&O Cues
Futures
- Nifty November futures closed at 11,914.5, premium of 0.1 points versus 6 points
- Nifty November Futures OI down 8.6 percent sheds 12.4 lakh shares in OI
- Nifty Bank November futures closed at 31,114.7, premium of 3 points versus discount of 33 points
- Nifty Bank November futures series OI down 8.4 percent, sheds 1.4 lakh shares in OI
Options
- Nifty PCR at 1.30 versus 1.52 (across all series)
Nifty Monthly Expiry: Nov 28
- Max OI on call side at 12,000 (48.7 lakh shares)
- Max OI on put side at 11,500 (29.7 lakh shares)
- OI addition seen at 11,900C (+11.8 lakh shares) 12,000C (+10.8 lakh shares), 11.950P (+9.8 lakh shares)
