Stocks To Watch: Allahabad Bank, JSW Steel, Snowman Logistics, Sun Pharma

Asian stocks drifted lower on Monday from the highest level in a year and a half, with few financial-market catalysts going into the year-end.

Equities in Tokyo opened weaker, while they fell in Sydney and were little changed in Seoul. U.S. futures edged up. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.19 percent to 12,317 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.

• Gateway Distriparks Adani Logistics Ltd., a wholly owned subsidiary of Adani Ports and Special Economic Zone Ltd., signed definitive agreements to acquire 40.25 percent stake in Snowman Logistics from the company, the company said in a statement.
• JSW Steel: The company's Netherlands-based subsidiary will offload 39 percent stake in joint venture firm Geo Steel LLC for $23.08 million.
• Gujarat Narmada Valley Fertilizers & Chemicals has advanced its planned shutdown by around three weeks after temporarily suspending the production of TDI at its TDI-II plant at Dahej. The said plant will remain under shutdown from Dec. 27- Jan. 15 due to challenging external environment and market conditions of TDI.
• BEML signed a memorandum of understanding with Ircon International to explore and address opportunities in the overseas market for large infrastructure projects in the transportation sector. This MoU is aimed at promoting supply of BEML manufactured rolling stock as well as construction equipment for Railway projects outside India wherein Ircon will carry out civil and construction work as well as facilitate design validation for rolling stock of BEML.
• Rites: Board declared interim dividend of Rs 6 per share and fixed the record date fixed on Jan. 10. Besides, the board also approved to acquire 24 percent stake in Indian Railway Station Development Corporation for Rs 48 crore.
• Sun Pharma: The National Company Law Tribunal has blocked scheme of arrangement between the company and its U.S. and Netherlands units. The company is reviewing the order in detail and the scheme is an internal restructuring exercise.
• Tata Global Beverages said that date of reviewing terms of joint venture with PepsiCo has been extended from Dec. 31 to June 30.
• SRF said that demand raised by Collector of Stamps amounting to Rs 29 crore in relation to acquisition of captioned division from CEAT, has been paid in the current quarter. This adjustment was already provided for in the second quarter of the current financial year.
• SBI Life Insurance: Statutory Auditor GMJ and Co resigned, as on the senior partners has been nominated by the Central Government as a non-official director on the Central Board of State Bank of India.
• Cadila Healthcare clarified that the company has no plans of selling the company’s two divisions.
• IIFL Wealth Management: IIFL Wealth Advisors amalgamation scheme with the company has become effective from Dec. 27.
• Allahabad Bank has raised Tier 2 Capital fund via bonds aggregating to Rs 1500 crore.
• Seamec: Contract with ONGC for deployment of a vessel has been extended till May 3, 2020.
• Quess Corp: Aditya Birla Sun Life MF increased stake from 1.5 percent to 5.55 percent in the company as the result of the demerger.
• Piramal Enterprises Board approved issue of non-convertible debentures worth Rs 2,750 crore. NCDs will be issued in one or more tranches.

New Listing Alert

• Prince Pipes & Fittings’ shares to start trading on the exchanges after the IPO received 2.2 times demand at Rs 178 apiece.

Pledge Share Details

• Emami promoter Diwakar Viniyog created pledge of 14.65 lakh shares on Dec. 23.
• Omaxe promoters Guild Builders created pledge of 12 lakh shares on Dec. 23.

Trading Tweaks

• Prince Pipes and Fittings to be listed on bourses.
• Jindal Polyfilms ex-date for spin-off (demerger).
• Piramal Enterprises ex-date for rights issue at 11:83 at premium of Rs 1298 per share.
• Sundaram Brake Linings, Rane (Madras), Rane Brake Lining, Rane Engine Valve, PG Electroplast, Waa Solar price band revised to 10 percent.
• Birla Precision Technologies, Toyam Industries, Uniply Decor, Sundaram Brake Linings, GTL Infrastructure to move into short term ASM Framework.
• Advance Metering Technology, Vishwaraj Sugar Industries to move out of short term ASM Framework.
• Gini Si lakhMills, Refex Industries to move out of ASM Framework.

Who’s Meeting Whom

• Care Ratings to meet BNP Paribas on Dec. 30.
• Mahindra Lifespace Developers to meet SKS Capital Research and Verba Financial on Jan. 3.
• Eris Lifesciences to meet Kotak Offshore Fund on Dec. 30.
• Torrent Power to meet Kotak Offshore Fund on Dec. 30.
• Mahindra Logistics to meet Sundaram MF on Dec. 30.

Insider Trading

• Navneet Education promoter Shaan Realtors acquired 1.8 lakh shares on Dec. 24.
• Filatex India promoters acquired 3.25 lakh shares from Dec. 17-20.
• Max Ventures and Industries promoter Analjit Singh acquired 1.3 lakh shares from Dec. 23-24.
• Satin Creditcare Network promoter Trishashna Holdings acquired 1 lakh shares on Dec. 26.

Money Market Update

• The rupee closed at 71.35/$ verus 71.31/$ on Thursday.

F&O Cues

Index Futures

• Nifty January futures closed at 12,319.2, premium of 73.4 points
• Nifty January futures open interest up 7 percent, adds 8.3 lakh shares in open interest
• Nifty Bank January futures closed at 32,604.7, premium of 192.4 points
• Nifty Bank January futures open interest up 24 percent, adds 2.9 lakh shares in open interest

Options

• Nifty PCR at 1.45 Vs 1.30 (across all series)

Nifty Monthly Expiry: Jan. 2

• Max open interest on call side at 12,300 (16.4 lakh shares)
• Max open interest on put side at 12,200 (27 lakh shares )
• open interest addition seen at 12,220P (+18.9 lakh shares), 12,250P (+7.8 lakh shares), 12,300C (3.9 lakh shares)

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (19.2 lakh shares)
• Max open interest on put side at 12,000 (34 lakh shares)

Brokerage Radar

CLSA on Adani Ports

• Maintained ‘Buy’ with a price target of Rs 485.
• Snowman M&A increased Adani Ports consolidated Ebitda by 0.7 percent for 2020-21.
• Acquisition at an EV/Ebitda of 11.8 times FY21 – premium due to high growth potential
• Funding is not a problem as its post-acquisition leverage shall rise 1.8 percent.

Morgan Stanley on Bharti Airtel

• Maintained ‘Overweight’ with a price target of Rs 530
• Price hike on minimum recharge plan.
• Do not expect the incremental benefit of this price hike to be meaningful.
• There could be some churn involved with the move as well.

Equirus on NMDC

• Initiated ‘Long’ with a price target of Rs 158.
• Supply disruptions to spike domestic iron ore prices.
• NMDC is the biggest beneficiary of Odisha mining disruption.
• Improving iron ore domestic demand; no visible cost pressures.

Prabhudas Lilladher on Auto Sector

• See decline in two-wheeler retails intensified in Dec-19 resulting in inventory increase to 40-45 days versus 30-35 days in Nov-19
• Inventory levels for CVs declined to 15 days versus ~30 days in Nov-19.
• TVS has taken price increase of Rs300-400 per unit for entire scooter range while BS6 related price increase for mopeds is likely at Rs3,000 per unit.
• Channel partners indicate subdued demand momentum continues across all the segments.
• Expect Dec-19 wholesales to remain weak led by inventory management ahead of BS6 transition.
• Maruti Suzuki retails outpacing peers in Passenger Vehicle segment; discounts failed to drive up sales for tractors.

Emkay on Auto Sector

• Dec-19 volume performance to be better than earlier months.
• Domestic PV industry growth expected to be marginally positive at 2 percent YoY.
• See muted performance in two-wheeler; mixed bag for tractors.
• Expect auto sales cycle to see a gradual recovery due to mix of various factors.