Stocks To Watch: Allahabad Bank, Future Retail, NCC, Oriental Bank of Commerce
Stocks in Asia nudged higher as a weaker yen lifted Japan’s stocks and attention turned to that country’s monetary policy meeting.
Japan’s Topix opened higher after the yen hit the weakest level since early August, with gains more modest for equities in South Korea and Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 10,861.50 as of 6:45 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 are the stocks to watch in today’s trade.
- Reliance Capital and Reliance Nippon: No pledged shares of Reliance Nippon have been invoked by any lender. The borrowings covered under the pledged Reliance Nippon Life Asset Management shares are matched by cash amounting to approximately Rs 1,600 crore lying in escrow under tripartite agreements signed between the parties.
- Allahabad Bank to link retail and ministry of micro, small and medium enterprises loans with repo rate and three-month Mumbai Interbank Offer Rate as benchmark rates. Savings Bank deposit of Rs 40 lakh and above, Long Tenure Fixed Deposit, Bulk Deposit and Flexi-Fix Deposit to be linked with Repo Rate. Changes to be made effective from Oct. 1.
- Oriental Bank of Commerce: ICRA has revised its rating on bonds from stable to rating watch with positive implications in view of the proposed amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank.
- Jindal Stainless allotted 80 lakh shares to promoter group entity at Rs 35.65 aggregating to total of Rs 28.6 crore. Promoter holding in the company will increase to 67.8 percent versus 67.3 percent.
- Himachal Futuristic Communications clarified that no pledge has been created on any additional share. The existing pledge of 3 crore shares has been now extended in favour of ICICI Bank along existing pledgees to secure the enhanced and sanctioned working capital facilities to extent of Rs 1,130 crore and in favour of project specific lenders of the company, Union Bank of India and Yes Bank to secure project specific facilities to extent of Rs 370 crore.
- Central Bank of India to consider raising Tier II Capital on Sept. 21.
- Future Retail: Pledged additional 0.4 percent stake with Edelweiss Finvest and ECL Finance.
- NCC: Aditya Birla Sun Life MF acquired additional 2.16 percent stake in the company on Sept. 13.
- Madhav Infra Projects received letter of acceptance for orders worth Rs 161.3 crore from Maharashtra Government for improvement of road and was awarded a contract worth Rs 96.4 crore from Energy Efficiency Services for building and maintaining 35 MW of solar power generating system.
- South Indian Bank revised its MCLR across various tenors with effect from Sept. 20. One-month MCLR at 8.6 percent and one-year MCLR at 9.25 percent.
- J Kumar Infraprojects: Porinju Veliyath led Equity Intelligence increased the stake from 4.89 percent to 5.02 percent.
- IIFL Wealth Management to be listed on the bourses.
- IFL Wealth Management to be listed on the bourses.
- HDFC Bank ex-date for face value split from Rs 2 to Re 1 per share.
- Automobile Corporation of Goa ex-date for share buyback.
- DCM, Kridhan Infra, Man Industries, IL&FS Investment Managers to move into short term ASM Framework.
- Prabhat Dairy, Prakash Industries, Puravankara, Bliss GVS Pharma to move out of short term ASM Framework.
- Madhav Infra Projects price band revised to 20 percent.
Who’s Meeting Whom
- Narayana Hrudayalaya to meet Bellevue Asset Management, Premji Investments and other investors on Sept. 19.
- Finolex Industries to meet IDBI Capital Markets on Sept. 20.
- Thyrocare Technologies to meet India Ratings & Research (Fitch Group) on Sept. 20.
- Shriram City Union Finance to meet Motilal Oswal Financial Services on Sept. 19 and TR Capital on Sept. 20.
- Polycab India to meet Macquarie Capital Securities, Nirmal Bang Institutional and other investors on Sept. 19.
- Marico to meet AXA Investment Management, Mirae Asset Global Investments and other investors on Sept. 19.
- Essel Propack to meet Prabhudas Lilladhar on Sept. 20.
- Godrej Industries promoter group Anamudi Real Estates acquired 44,000 shares from Sept. 11-12.
- Tata Power promoter Tata Sons acquired 3.4 crore shares from Sept. 12-16.
- HEG promoter RSWM sold 3.7 lakh shares from Sept. 16-17.
- Anant Raj promoter Amar Sarin acquired 1.15 lakh shares on Sept. 13.
Money Market Update
- The rupee closed at 71.24/$ versus 71.79/$ on Tuesday.
- Nifty Sept. futures closed at 10,855, premium of 14.8 points versus 15.9 points.
- Nifty futures open interest down 3.3 percent, sheds 5.9 lakh shares in open interest.
- Bank Nifty Sept. futures closed at 27,193, premium of 20.4 points versus 8.4 points.
- Bank Nifty futures open interest down 2.9 percent, sheds 44,000 shares in open interest.
- Nifty PCR at 1.02 versus 0.98 (across all series).
Nifty Weekly Expiry: Sept. 19
- Max open interest on call side at 11,000 (29.5 lakh shares).
- Max open interest on put side at 10,800 (18.8 lakh shares).
- open interest addition seen at 10,700P (+4.4 lakh shares), 10,900C (+3.8 lakh shares).
Nifty Monthly Expiry: Sept. 26
- Max open interest on call side at 11,000 (34.8 lakh shares).
- Max open interest on put side at 10,800 (37.3 lakh shares).
BofAML on Biocon
- Maintained ‘Buy’; cut price target to Rs 310 from Rs 353.
- Expect higher costs in Biologics which has led to cut in earnings estimates.
- Buy on bHerceptin launch, ramp-up of bNeulasta, address Malaysia concerns and secure bLantus.
- Expect strong free cash flow and increasing contribution of small molecule business.
CLSA on Info Edge
- Maintained ‘Buy’ with a price target of Rs 2,400.
- Naukri – IT to drive growth.
- 99acres – underlying market may have bottomed as share gains continue.
- Zomato – near term course correction but see long term strength.
Morgan Stanley on Telecom
- Jio continued to outgrow its peers and increase its market share.
- Trend similar to last quarter for incumbents.
- Airtel added 25 lakh broadband users, while adds for Vodafone Idea were negligible.
Jefferies on Havells India
- Maintained ‘Buy’; cut price target to Rs 790 from Rs 820.
- View Havells as a multi-year growth story.
- Positive: varied products, strong market share, new launches, distribution, nil debt, robust free cash flow, high cash and sturdy return ratios.
- Cut EPS estimates to factor the current demand slowdown and tight liquidity in domestic.
Axis Capital on Brigade Enterprises
- Maintained ‘Buy’ with a price target of Rs 230.
- Focus remains on scaling up both the annuity and residential business.
- Proceeds from divestment of stake in hospitality SPV will aid growth and reduce debt.
- Management acknowledges growth opportunity due to industry consolidation, but remains cautious.
Kotak Securities on IIFL Wealth
- Reinitiate ‘Neutral’ rating with a price target of Rs 1,050.
- IIFL Wealth poised for strong growth.
- Transitions to more stable and recurring revenue streams.
- Strong presence in the niche UHNI space.
- Near-term pressure on earnings owing to business transition.
- Maintained ‘Buy’ with a price target of Rs 717.
- No meaningful consumption slowdown in products business.
- Difficult to take price hikes due to prolonged monsoons.
- Projects business inflows could see a pick-up; payment situation remains weak.
- Maintained ‘Buy’; hiked price target to Rs 685 from Rs 650.
- Management said it has not seen a slowdown in demand in the room AC industry in the second quarter.
- Project business outlook continues to be a mixed bag.
- See execution headwind combined with improving order inflows.