Stocks To Watch: Ashok Leyland, Bank Of India, Bharti Infratel, Canara Bank, ICRA, IDFC, RIL, United Breweries

Asian stocks dropped after a tumble on Wall Street, where worries about a surge in virus cases in multiple U.S. states spurred a flight from riskier assets. The dollar extended Wednesday’s gains. Japan’s Topix index opened about 1% lower and Australian shares slid after the S&P 500 declined 2.6%. Treasuries kept an overnight advance.

Here are the stocks to watch in trade today:

• Bharti Infratel has extended long stop date for Indus Towers deal till August 31.Board said that conditions precedent to be fulfilled for the Indus Tower merger to become effective cannot be completed by June 24.Each party retains the right to terminate and withdraw from the scheme.
• Reliance Industries: CCI has approved acquisition of 9.99% stake in Jio Platforms by Facebook’s arm Jaadhu Holdings.
• BPCL to raise Rs 3,000 crore during fiscal 2021 via NCDs.
• IOC said that Paradip refinery will be shut for maintenance and the company expects refineries to achieve 100% utilization by year end.
• Andhra Paper’s promoter International Paper Investments to sell 39.77 lakh shares (10% equity) via offer for sale, with an option to sell additional 28.64 lakh shares (7.2% equity) at a floor price of Rs 186 per share, which is at a discount of 20% to closing price as June 24. International Papers Investments can come down from 20% to 2.8%, if the over subscription option is used. Trade date for non-retail investors is June 25 and for retail investors it is June 26.
• Page Industries on Covid-19 impact: Company’s manufacturing operations, in all 15 facilities,have resumed work on different dates from May 4. The response from the market has been healthy. As restrictions get lifted in the market, expect to get back the momentum and accelerate in the coming quarters.
• Fitch Ratings has revised the Outlook on Power Finance Corporation, REC to Negative from Stable, and has affirmed the Long-Term Foreign-Currency Issuer Default Rating at BBB-.
• Embassy Parks REIT: Blackstone Group has raised $302 million via a minority stake sale in an Indian real estate investment trust mostly to pay back its investors. The U.S. private equity firm sold 6.7 crore units in Embassy Office Parks REIT at Rs 341 each, according to terms obtained by Bloomberg News. It will continue to remain the largest shareholder in the REIT, even as its stake drops to 46.6% from 55.3%. The Capital Group, Canada-based CI Investments and ICICI Prudential Asset Management added to their holdings, while Nomura Asset Management., Brookfield Asset Management, Norges Bank and Prusec are some of the new investors in Embassy Parks REIT. (Bloomberg News)
• India Glycols: Board approved raising Rs 250 crore via equity.

Other Earnings

United Breweries Q4 (Standalone, YoY)

• Revenue down 12.6% at Rs 1,424.2 crore (Est Rs 1,502 crore)
• Net profit down 39.3% at Rs 41.2 crore (Est Rs 48.6 crore)
• Ebidta down 22.8% at Rs 132.3 crore (Est Rs 142 crore)
• Margins at 9.29% versus 10.5%
• Deferred tax reversal of Rs 12 crore in current quarter
• Other Income of Rs 10.6 crore in base quarter
• Raw material cost as % of sales at 49.1% versus 49.5%
• Gross margin increased marginally due to a combination of positive price/mix and more stable input costs.
• Volume has been negatively impacted due to Covid-19

Canara Bank Q4 (Standalone, YoY)

• Net Interest Income down 5.19% at Rs 3,318.5 crore
• Net loss at Rs 3259.3 crore versus Net loss at Rs 551.5 cr ore
• Provisions at Rs 4,875.3 crore versus Rs 5,120.9 crore
• GNPA at 8.21% versus 8.36% QoQ
• NNPA at 4.22% versus 5.05% QoQ
• Bank has availed an option to defer provisions for frauds amounting to Rs 2,350 crore, which will require the bank to set aside Rs 1,990 crore to cover the losses.
• Employee costs almost doubled to Rs 2,175.2 crore
• Tax reversal of Rs 2,000 crore in base quarter

General Insurance Corporation Q4 (Standalone, YoY)

• Gross Premium up 14% at Rs 9,217.8 crore
• Net profit at Rs 1,197.4 crore versus Net loss at Rs 1,556.5 crore
• Solvency ratio at 1.53 versus 2.06
• GNPA at 4.42% versus 3.01%
• NNPA at 0.63% versus 1.12%
• The reduction in profit is on account of provisioning for investments and increase in agriculture losses

Earnings Today

• Apollo Hospitals
• Somany Ceramics
• Hindustan Aeronautics
• TTK Prestige
• Apar Industries
• Ashok Leyland
• Bank of India
• Container Corporation of India
• Endurance Technologies
• Engineers India
• Fertilizers and Chemicals Travancore
• Galaxy Surfactants
• Gravita India
• ICRA
• IDFC
• Insecticides
• JB Chemicals & Pharmaceuticals
• IOB
• KIOCL
• Prince Pipes And Fittings
• Shyam Century Ferrous
• Star Cement
• Surya Roshni
• Taj GVK Hotels & Resorts
• V2 Retail
• Indiabulls Ventures
• Zuari Global
• Varroc Engineering

Bulk Deals

• Sunteck Realty: Kotak Mahindra International acquired 16.8 lakh shares (1.15%) at Rs 180 per share and FIAM Emerging Markets Pool sold 10.71 lakh shares (0.73%) at Rs 181.3 per share, Fidelity Group sold 29.48 lakh shares (2.01%) at Rs 181.3 per share
• Embassy Office Parks REIT: Blackstone-sponsor entities sold 3.3 crore units (4.28%) at Rs 341 per unit, American Balanced Fund acquired 92.28 lakh units (1.27%), Nomura India Fund acquired 63.43 lakh units (0.82%) and Signature High Income Fund acquired 39.95 lakh units (0.52%), at Rs 341 per unit, respectively.
• Metropolis Healthcare: Promoter Duru Sushil Shah sold 30.54 lakh shares (6.03%) at Rs 1,383.4 per share and Aditya Birla Sun Life Mutual Fund acquired 3.12 lakh shares (0.62%) at Rs 1,382.1 per share

Pledged Share Details

• Eveready Industries promoters invoked pledge of 6 lakh shares on June 16
• DB Corp promoter DB Consolidated revoked pledge of 19 lakh shares on June 22
• Strides Pharma promoter Lifecell International released pledge of 14 lakh shares on June 24

(As Reported On June 24)

Who’s Meeting Whom

• Shriram City Union Finance to meet WestBridge Capital Management on June 25
• India Energy Exchange to meet Bajaj Life, Samsung AMC and other investors from June 25-30
• Castrol India to meet GIC on July 6
• CARE Ratings to meet FPA Funds on June 25
• Cummins India to meet Threadneedle Investments, SBI MF and other investors on June 26
• Century Textiles & Industries to meet Nippon India MF and Elara Capital on June 26

Trading Tweaks

• Price Band Revised From 10% To 5%: Ashiana Housing, Indo Rama Synthetics, The Jammu & Kashmir Bank, Morepen Laboratories
• Price Band Revised From 20% To 10%: Asian Granito, Ginni Filaments
• Move Into ASM Framework: Seya Industries, Skipper, Sical Logistics, Indo Rama Synthetics, Bombay Rayon Fashions.
• Move Into Short-Term ASM Framework: Nahar Poly Films, Astec LifeSciences, JBM Auto, Nitin Spinners, Greenpanel Industries, Kirloskar Industries, Indo-National, Magadh Sugar & Energy, The South Indian Bank
• Move Out Of Short-Term ASM Framework: Aurionpro Solutions, GPT Infraprojects.

Insider Trades

• Apollo Tyres promoter PTL Enterprises acquired 40,000 shares on June 19
• Trident promoters acquired 85,000 shares on June 23
• Quess Corp promoter Ajit Isaac acquired 69,560 shares on June 23
• Waterbase promoter KCT Management Services acquired 2.27 lakh shares on June 18
• IndusInd Bank promoter IndusInd International Holdings acquired 50,425 shares from June 22-23

(As Reported On June 24)

F&O Cues

• Nifty June futures closed at 10296, discount of 9 points versus discount of 4 points
• Nifty June futures open interest down 29%, sheds 21.6 lakh shares in open interest
• Nifty Rollovers at 58.9%
• Nifty Bank June futures closed at 21401, discount of 25 points discount of 35 points
• Nifty Bank June futures open interest down 20%, sheds 3.2 lakh shares in open interest
• Nifty Bank rollovers at 54.3%

Options

• Nifty PCR at 1.29 versus 1.63 (across all series)

Nifty Monthly Expiry: June 25

• Max open interest on call side at 10500 (46.5 lakh shares)
• Max open interest on put side at 10000 (39.8 lakh shares)
• Active options: 9700 Put (-11.6 lakh shares), 10500 Call (+13.9 lakh shares)

Securities In Ban

• Glenmark, Just Dial, Idea