Stocks To Watch: Ashok Leyland, InterGlobe Aviation, Reliance Capital, Sun Pharma, Thomas Cook, Zee Entertainment  

Asian stocks gained Tuesday amid optimism over U.S.-China trade talks and a fresh wave of merger and acquisition activity.

Shares climbed in Tokyo and Sydney, and were little changed in Seoul. U.S. futures were flat. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.12 percent to hit an all-time high at 12,121 as of 6:50 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.

• Zee Entertainment Enterprises: Media baron Subhash Chandra stepped down as chairman of the company a week after debt-ridden promoters’ holding in the broadcaster fell to 5 percent after selling additional stake. The company’s board accepted Chandra’s resignation as chairman with immediate effect, according to an exchange filing. He, however, stays as a non-executive director.
• Sun Pharma: Teva, generics makers said to be in talks to end U.S. probes. (BN)
• Dish TV, NBCC, Tata Motors DVR, Castrol to be excluded from F&O Segment. No contract to be made available for trading from Jan. 31, 2020.
• Goodyear said that it will close its manufacturing operations at Faridabad plant from Nov. 25-30 to align production with market demand.
• InterGlobe Aviation: India’s aviation regulator has directed the country’s largest airline to ground one Airbus A320neo plane with unmodified Pratt & Whitney engines for every new A320neo it inducts to its fleet, according to PTI report.
• Ashok Leyland signed a memorandum of understanding with lClCl Bank to enter into strategic financing partnership for two years to offer customised financial solutions to customers across lndia with focus on semi-urban and rural geographies.
• Thomas Cook said that it has completed its corporate restructuring process, and demerged its human resources business in to Quess Corp. Each shareholder of Thomas Cook India will accordingly be issued 1,889 shares of Quess Corp of Rs 10 for every 10,000 fully paid up equity shares of Re 1 each. Record date set for the afore-mentioned scheme at Dec. 6. Company also completed Demerger of the inbound business undertaking of Travel Corporation India into SOTC Travel Management and amalgamation of residual Travel Corporation India, TC Travel Services and TC Forex Services with Thomas Cook India.
• Ugro Capital has signed SME loan co-origination agreement with State Bank of India.
• Reliance Communications received resolutions plans from VFSI Holdings Pte. Ltd., Bharti Airtel Ltd. and UV Asset Reconstruction Company Ltd. which were presented to committee of creditors of the corporate debtor in the meeting held on Nov. 25.

New Offerings

• CSB Bank IPO gets 4.35 times demand on the second day of sale; offer to close today.

Pledge Share Details

• Gati promoter TCI Finance created pledge of 80,000 shares from Nov. 19-20.
• MEP Infra-Developers promoter AJ Tolls revoked pledge of 7 lakh shares from Nov. 21-22.

Trading Tweaks

• MOIL ex-date for share buyback
• Mukand Engineers, Nitco to move into short term ASM Framework
• AU Small Finance Bank, Indo-National, Milkfood to move out of short term ASM Framework

Who’s Meeting Whom

• Tata Steel to meet Somerset Capital on Nov. 26.
• Eicher Motors to meet DNB AMC, Elara Capital and other investors from Nov. 26-28.
• CG Consumer Electricals to meet Goldman Sachs, Yes Securities, Nomura Securities from Nov. 26-28.
• Balrampur Chini Mills to meet Kotak Fund Management on Nov. 26.
• MCX to meet Sundaram MF on Nov. 27.
• TVS Motor to meet Wellington Management Group on Nov. 28.
• Magma Fincorp to meet Nippon Asset Management and Goldman Sachs from Nov. 26-27.
• Mahindra Holiday & Resorts to meet Quest Investments and Enam on Nov. 26.
• IIFL Finance to meet SAIF Partners on Nov. 26.

Insider Trading

• Nava Bharat Ventures promoter & director Ashwin Devineni acquired 78,000 shares from Nov. 19-20.
• Filatex India promoter Azimuth Investments acquired 2 lakh shares from Nov. 20-22.
• Ultratech Cement promoter IGL Holdings sold 5.82 lakh shares on Nov. 20.

Money Market Update

• The rupee closed at 71.73/$ versus 71.71/$ on Friday.

F&O Cues

Index Futures

• Nifty November futures closed at 12,096.3, premium of 22.6 points versus 0.1 points.
• Nifty November Futures across series open interest up 6 percent adds 8.7 lakh shares in open interest.
• Nifty Bank November futures closed at 31,568.2, premium of 12.3 points versus 3 points.
• Nifty Bank November futures across series open interest up 2 percent, adds 40,000 shares in open interest.
• Rollover-Nifty 26 percent, Nifty Bank 29 percent.

Options

• Nifty PCR at 1.71 versus 1.30 (across all series).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (27.1 lakh shares).
• Max open interest on put side at 12,000 (48.6 lakh shares).
• open interest addition seen at 12,000P (+28.6 lakh shares) 12,050P (+10.6 lakh shares), 11.900P (+9.4 lakh shares).
• open interest shedding seen in 12,000C (-21.5 lakh shares), 11,900C (-13.7 lakh shares).

Brokerage Radar

Macquarie on Gujarat Gas

• Maintained ‘Outperform’; hiked price target to Rs 240 from Rs 210.
• Hike FY21/22 EPS estimates by 13-15 percent on better margins and steady volumes.
• See steady sales in Morbi sales as mgmt. plans to augment throughput capacity over the next five years.
• Expect LNG prices to remain soft due to excess supply.

Macquarie on Mahanagar Gas

• Maintained ‘Outperform’; hiked price target to Rs 1,150 from Rs 1,050.
• Hike FY21/22 EPS estimates by 7-11 percent on better margins and steady volumes.
• Lower domestic gas and LNG prices in near to medium term to support premium margins.
• See material upside to dividend payout given robust cash flow and net cash position.

Goldman Sachs on Nestle India

• Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 10,642 from Rs 11,622.
• See increased competition in Nestle’s biggest category.
• See limited room for further improvement in growth trajectory in other segments.
• Expect Nestle to underperform driven by slowing growth in milk products and nutrition segment.

Goldman Sachs on United Breweries

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 1,423 from Rs 1,280.
• Expect margins to rise in near term on lower cost, revenue mix and higher utilisation.
• See long-term secular volume growth remaining intact.
• Recent pullback is an opportunity to accumulate the market leader in beer.

Nomura on Sun Pharma

• Maintained ‘Buy’; cut price target to Rs 525 from Rs 536.
• Remain positive on Specialty sales ramp up, but take conservative stance on Generics.
• Think the valuation multiple could increase with visibility on specialty ramp-up.
• Despite sales ramp-up, Specialty business presents a marginal drag on earnings even in 2021-22.

Axis Capital on SBI

• Maintained ‘Buy’; hiked price target to Rs 400 from Rs 375.
• NPL concerns have receded; earnings to benefit.
• See strong traction in subsidiary businesses and valuations, which now account for 40 percent of SBI’s value.
• Core business remains steady with better NIM, declining operating and credit costs.