Stocks To Watch: Apollo Hospitals, CG Power, Manappuram Finance, Thomas Cook

Asian stocks had a muted open on Tuesday after U.S. shares ended flat on a mixed day for global economic data.

Benchmarks were higher in Japan and Korea, and little changed in Australia. Futures rose in Hong Kong. U.S. contracts climbed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.75 percent to 11,688 as of 7:10 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.

• Manappuram Finance said it will raise up to Rs 465 crore by issuing bonds on a private placement basis.
• L&T Finance Holdings: Securities Exchange Board of India dropped charges against Factorial Master Fund relating to a matter in 2014 regarding trading in share of the company.
• Wipro launched digital platform of Brazil’s industry association Febraban.
• CCI approved acquisition of up to 25.02 percent stake in Federal-Mogul Goetze by Icahn Enterprises, American Entertainment and IEH FMGI Holdings.
• CG Power & Industrial Solutions: Registrar of Companies has granted extension of 2.5 months from Sept. 30 onwards for holding annual general meeting of the company.
• SEBI imposed Rs 22 crore fine on Aurobindo Pharma, its promoter PV Ramprasad Reddy and other connected entities for violating insider trading norms.
• CCI approved restructuring of Apollo Hospitals’ pharmacy unit. The unit will be subsequently acquired by Enam Securities, Jhelum Investments and Hemendra Kothari.
• Thomas Cook clarified that it has not received any intimation from the Ministry of Corporate Affairs and has no existing relationship with Aarush Forex on the news of suspicious transaction made by the company.
• Rattan India Power to consider various debt reduction options on or after Sept. 26.

Petronet LNG: Conference Call Highlights

• The LNG off take could be in the range of 1-5 MTPA and not necessarily 5 MTPA.
• Being an equity investor, we will get LNG at cost plus minimal margin basis compared to any other buyer.
• Will walk away from the deal if we do not have customers to buy the LNG. There won't be any pricing risk on these contracts.
• Even affiliate companies might participate in $2.5 billion equity investment.

Trading Tweaks

• Texmaco Rail & Engineering ex-date for Rights Issue at 19:100 , at a premium of Rs 45.7 per share.
• Eveready Industries, Alembic, National Peroxide to move into short term ASM Framework.
• Arshiya, GATI, Khadim, Tejas Networks, Jaypee Infratech, TRF, Walchandnagar Industries, Waterbase to move out of short term ASM Framework.

Pledge Share Details

• Shilpa Medicare created pledge of 6.15 lakh shares on Sept. 11.
• Max Financial Services promoter Max Ventures and Holdings released pledge of 12.3 lakh shares on Sept. 21.
• Apollo Hospitals promoter group PCR Investments revoked pledge of 79.4 lakh shares from Sept. 19-20.
• Future Lifestyle Fashions promoters revoked pledge of 77 lakh shares on Sept. 20.
• Future Retail promoter Future Corporate Resources created pledge of 95 lakh shares from Sept. 19-20.

Insider Trading

• GFL promoter Inox Leasing & Finance acquired 71,000 shares on Sept.18.
• Tata Power promoter Tata Sons acquired 2.7 crore shares from Sept.18-19.
• Panama Petrochem promoter groups acquired 99,000 shares from Sept.19-20.
• Filatex India promoter Azimuth Investments acquired 2.5 lakh shares from Sept.19-20.
• Motilal Oswal Financial Services promoter Passionate Investment Management acquired 75,000 shares on Sept.20.
• SH Kelkar promoter Ramesh Vaze acquired 2.15 lakh shares from Sept.18-20

Who’s Meeting Whom

• Music Broadcast to meet Equirus Securities on Sept. 24.
• Polycab to meet ICICI Pru MF, Bajaj Holdings and other investors from Sept. 24-27.
• Shriram Transport Finance to meet Cartica on Sept. 24.
• SpiceJet to meet Kotak MF, UTI and other investors on Sept. 24.

Money Market Update

Bond traders are awaiting the government’s second half borrowing plan amid concern that the $20 billion tax break may weigh on the fiscal deficit.

Investors will also watch if the borrowing calendar includes an overseas sale of bonds after the government said it will refrain from extra borrowing. The 10-year yield is seen trading between 6.70-6.80 percent in the day.

In the currency market, implied opening from forwards suggest the pair may start trading around 70.84 a dollar. Most Asian markets are trading in the green while the local tax break should help keep the risk appetite strong. Pair may stay in the range of 70.40-71.20 a dollar.

F&O Cues

Futures

• Nifty Sept. futures closed at 11,607, premium of 7 points versus 21.5 points.
• Nifty futures open interest across series down 1.4 percent, sheds 3.2 lakh shares in open interest.
• Bank Nifty Sept. futures closed at 30,539, discount of 26.6 points versus premium of 8 points.
• Bank Nifty futures open interest across series up 2.5 percent, adds 42,000 shares in open interest.
• Nifty Rollover at 27 percent, Bank Nifty Rollover at 28 percent.

Options

• Nifty PCR at 1.50 versus 1.38 (across all series)

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,500 (21 lakh shares).
• Max open interest on put side at 11,000 (41.6 lakh shares).
• open interest addition seen at 11,500P (+20.2 lakh shares), 11,400P (+19.7 lakh shares), 11,600P (+16 lakh shares).

Brokerage Radar

HSBC on Asset Management Companies

• Inflow of equity mutual funds for the industry continues to be robust.
• AMC stand to benefit from lower corporate tax rate.
• Downgrade HDFC AMC on expensive valuations.
• HDFC AMC: Downgraded to ‘Hold’ from ‘Buy’; hiked price target to Rs 2,682 from Rs 2,280.
• Reliance Nippon Life AMC: Maintained ‘Buy’; hiked price target to Rs 285 from Rs 212.

Morgan Stanley on MCX

• Upgraded to ‘Overweight’ from ‘Equal-weight’; hiked price target to Rs 1,260 from Rs 870.
• See strong structural multiyear business uptrend at MCX.
• Strong cyclical tailwinds to trading volumes could hasten the structural upside.
• Like industry position, regulation led structural tailwinds to earnings, asset light business, near term visibility driven by cyclical factors and attractive valuations.

UBS on Phoenix Mills

• Maintained ‘Buy’; hiked price target to Rs 1,000 from Rs 810.
• Slowing trading density not reflective of underlying demographic quality.
• Though trading density has slowed, rent growth has remained robust.
• Phoenix’s current assets have strong demographic catchment, implying robust growth.

Morgan Stanley on Reliance Industries

• Maintained ‘Overweight’; hiked price target to Rs 1,469 from Rs 1,349.
• Confidence in earnings should rise with higher refining margins.
• Lower taxes and cheaper gas feed costs should de-risk outlook and boost earnings
• Expect 17 percent earnings CAGR over FY19-21.

Macquarie on Embassy Office Parks REIT

• Initiated ‘Outperform’ with a price target of Rs 420.
• Well balance portfolio in tier-1 office market.
• Strong NOI growth even without asset injection.
• Low leverage on balance sheet provides room for growth.
• Rising yields and faster growth than Asian peers warrant attention.

On Hexaware

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 480.
• Focusing heavily on three pillars of strategy for growth.
• BFS segment likely to return to stronger growth path in 2020.
• Sustaining superior performance in IMS, BPS and healthcare.

Morgan Stanley

• Maintained ‘Equal-weight’ with a price target of Rs 390.
• Despite client specific challenges, company confident of double-digit growth in medium term.
• Cross selling opportunities with Mobiquity is key growth engine and is seeing positive signs.