A woman rests in front of an electronic board displaying share prices at a securities brokerage in Beijing (Photographer: Qilai Shen/Bloomberg)

Stocks To Watch: Allahabad Bank, HUL, Jet Airways, SpiceJet, TCS, Yes Bank

An equity rally spread from the U.S. into Asia after a dovish tone from the Federal Reserve Chairman Jerome Powell fueled speculation the central bank may pause lifting interest rates next year.

Stocks in Japan, South Korea and Australia gained after the S&P 500 Index surged the most since March. Emerging-market equities hit a three-week high and the Nasdaq 100 jumped 3.2 percent. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose over 1 percent to 10825 as of 7 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 Out For In Today’s Trade

  • A jury in California rejected claims that Tata Consultancy Services has discriminated for years against American workers in favour of staffing its U.S. offices with Indians, according to a Bloomberg report. Besides, the company acquired U.S.-based consulting firm BridgePoint Group, which caters to the financial services industry and retirement services.
  • Unilever edged out Nestle SA in contest for GlaxoSmithkline PLC’s $4 billion Indian consumer-health unit. Unilever has offered to roughly pay $3 billion for about 70 percent of the division. GSK owns the popular milk drink brand Horlicks. Sources say both sides are working towards reaching an agreement in coming weeks, though talks may yet fall apart.  (Bloomberg News)
  • Jet Airways said report on company’s Chairman Naresh Goyal’s exit is speculative in nature.
  • Cosmo Films decided to postpone the delivery and commissioning for a new production line for BOPET Film in Maharashtra by 8-10 quarters. The company says the line has already been ordered but the delay is happening due to adverse market conditions and no impact will be there on current operations of the company.
  • SpiceJet clarified on report on non-payment of dues to Airports Authority of India, stating that the article has sensationalised a routine operational matter and it is making payments as per stipulated timelines. The company also says in its press release that it remains committed to all of its contractual obligations.
  • Mahanagar Gas board approved appointment of GAIL’s Chairman and Managing Director, Bhuwan Chandra Tripathi as the Chairman and Additional Director of the company with effect from Nov. 29.
  • Sical Logistics awarded contracts worth Rs 363.38 crore by Mahanadi Coalfields for extraction of coal and allied transport services in Odisha. A total of 16.2 million cubic meters of coal will be extracted over a period of 3 years by the company.
  • Indoco Remedies commissioned new API manufacturing facility in Maharashtra. This new facility will enhance existing manufacturing capacity from 150 tons per annum to 600 tons per annum.
  • Allahabad Bank increased MCLR by 10 basis points across various tenors. Overnight MCLR at 8.15 percent and one year MCLR at 8.65 percent.

Also read: ICRA Joins Moody’s In Downgrading Yes Bank On Corporate Governance Concerns

Bulk Deals

  • Shankara Building Product: Amansa Holdings acquired 2.9 lakh shares or 1.28 percent equity at Rs 676.24 each.

Fortis Healthcare

  • UBS Principal Capital Asia acquired 1.52 crore shares or 2.01 percent equity at Rs 146 each.
  • York Asian Strategic sold 1.27 crore shares or 1.68 percent equity at Rs 146 each.

Trading Tweaks

  • NHPC ex-date for share buyback.
  • Britannia Industries ex-date for stock split from Rs 2 to Rs 1.
  • Dalmia Bharat ex-date for amalgamation of two entities with self.
  • Shankara Building Products price band revised to 10 percent.

Who’s Meeting Whom

  • Kaya to meet Sundaram MF on Nov. 29.
  • Pidilite Industries to meet TT International, General Investment Management and other investors from Nov. 30 to Dec. 10.
  • Ramco Cements to meet UTI MF, SBI MF and other investors on Dec. 5.
  • Tata Chemicals to meet Reliance MF, SIMPL and Tata AIG General Insurance from Nov. 29-30.

Insider Trading

  • Nava Bharat Ventures promoter group acquired 20,000 shares from Nov. 26-27.
  • Skipper promoter Skipper Polypipes acquired 60,000 shares from Nov. 26-27.
  • Talwa lakher Lifestyles promoter acquired 35,000 shares on Nov. 27.

(As reported on Nov. 28)

Money Market Update

  • Rupee on Wednesday closed at 70.61/$ versus 70.79/$ on Tuesday.

Also read: Asian Currencies Are Winning Over Fund Managers

F&O Cues

  • Nifty November futures closed trading at 10718, discount 11 points.
  • Nifty November open interest down 28 percent; Nifty Bank November open interest up 9 percent.
  • Max open interest for November series at 10,800 call (open interest at 28.6 lakh shares)
  • Max open interest for November series at 10,800 call (open interest at 28.6 lakh shares).
Stocks To Watch: Allahabad Bank, HUL, Jet Airways, SpiceJet, TCS, Yes Bank

Stocks In F&O Ban

  • In ban: Adan Enterprises, Adani Power, DHFL
  • Out of ban: Jet Airways

Put-Call Ratio

  • Nifty PCR at 1.81 from 1.74.
  • Nifty Bank PCR at 1.26 from 1.37.

Brokerage Radar

Macquarie on Hindustan Unilever

  • Maintained ‘Outperform’ with a price target of Rs 1,870.
  • Food and Refreshments segment can get a big boost if acquired GSK Consumer.
  • HUL can bring strong distribution and cost synergy to the table.
  • HUL remains top pick in India and a high conviction idea.

Macquarie on Tata Steel

  • Maintained ‘Outperform’ with a price target of Rs 730.
  • Aims to grow only in India market with a target of 30 MT by 2025.
  • Focus on B2C to enrich product mix, increase cost efficiency and drive margin expansion.
  • Not keen on a price war for Bhushan Power; high focus on deleveraging.

Nomura on Axis Bank

  • Maintained ‘Buy’ with a price target of Rs 750.
  • Asset quality – Nearing the end of the credit cycle.
  • ROE improvement and pre-provisioning operating profit could surprise.
  • Expect new CEO to focus on costs and systems/processes and bring in more accountability.

Morgan Stanley on Indian Metals

  • Domestic steel profitability and valuations at peak
  • Domestic steel demand risk and high leverage add to near-term concerns
  • JSW Steel: Downgraded to ‘Underweight’ from ‘Equalweight’; cut price target to Rs 278 from Rs 369
  • Steel stocks looks vulnerable given the sharp correction in steel prices in China.
  • Steel imports have become viable.
  • Landed cost of HRC Imports from China is Rs 42,000 per tonne versus Domestic price of Rs 46,000 per tonne.
  • Anti-dumping duty price threshold is Rs 35,000 per tonne.
  • Analyst expect prices to correct by Rs 3,000-4,000 per tonne over next two months
  • Tata Steel confirmed that the correction seen in China steel prices have put domestic prices under pressure.