Stocks To Watch: Aurobindo Pharma, Coal India, Hero MotoCorp, PNB, Wipro

Asian equities started the week on a mixed footing as investors assessed the impact of American tariffs on the global economy and the euro fluctuated as vote counting began in the Italian election.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.6 percent to 10,374.50 as of 6:55 a.m.

Indian equity benchmarks fell for third day in a row on Thursday as banking heavyweights extended selloff. The S&P BSE Sensex fell 0.4 percent or 137 points to 34,046.94 and the NSE Nifty 50 Index declined 0.3 percent or 34 points to 10,458.35.

Here Are The Stocks To Watch Out For In Monday’s Trade

Stocks To Watch

• Hero MotoCorp February sales up 20 percent year-on-year to 6,29,597 units.
• TVS Motors February sales up 37 percent year-on-year to 2,90,673 units-.
• Power Tillers sales up 65 percent YoY to 2,525 units.
• Aurobindo Pharma received Form 483 from the U.S. FDA for its Unit 4 with 9 observations.
• Coal India’s coal production stood at 54.46 million tonnes in February, while the coal offtake was 49.97 million tonnes. It failed to achieve its set target.
• Manipal Health Enterprises set to buy Fortis Healthcare for Rs 6,500 crore, reported DNA.
• NMDC cut lump ore prices by 3.2 percent, and fine prices by 3.62 percent.
• Wipro to acquire 33.33 percent stake in the U.S. based application security solution provider, Denim group for $8.8 million.
• Poly Medicure started commercial production at its Haryana plant.
• Punjab National Bank raised interest rates by 10-45 basis points on various tenures.
• Dilip Buildcon received Letter of Award by NHAI for two new hybrid annuity projects in Karnataka worth Rs 4,473 crore.
• JBM Auto board approved scheme of amalgamation of JBM Auto Systems and JBM MA Automotive with self.
• Laurus Labs said that the U.S.FDA completed inspection of its Unit 2 with zero observations under Form 483, and received maiden approval from the drug regulator for TDF tablets used in the treatment of HIV-1 infection.
• L&T Finance to consider issue price for preferential issue to L&T on March 7.
• HealthCare Global Enterprises entered into an agreement with promoter to buy a cancer care hospital for Rs 52 crore.
• Reliance Naval: According to RBI circular, company loans will be either classified as irregular or sub-standard.
• Fortis Healthcare gets notice from Serious Fraud Office seeking information and documents.

Also Read: Low Base Helps Auto Sales Rise In February

F&O Setup

• Nifty March Futures closed trading at 10,456.5, discount of 1.4 points.
• All series-Nifty Open Interest up 5 percent, Bank Nifty Open Interest down 2 percent.
• India VIX ended at 14.07, up 1.9 percent.
• Maximum Open Interest for March series at 10,800 call strike, Open Interest at 44.2 lakh, up 54 percent.
• Maximum Open Interest for March series at 10,400 Put, Open Interest at 36.7 lakh, down 1 percent.

F&O Ban

• HDIL
• IDBI Bank
• Oriental Bank of Commerce

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.

Active Stock Futures

Trading Tweaks

• All Fortis Healthcare F&O contracts will expire on March 29.
• Venkys circuit filer revised to 10 percent.
• BEL buyback period between March 5-16.
• Balrampur Chini ex-date for determining buyback eligibility.

Bulk Deals

• Indian Terrain Fashions: Limiar Fund (Master) LP bought 6.50 lakh shares or 1.7 percent equity at Rs 202 each.

Brokerage Radar

Edelweiss on Fortis Healthcare

• Maintained ‘Buy’; cut price target to Rs 180 from Rs 230.
• Earnings under pressure; Quality of business remains intact.
• Fortis can unlock significant value by demerging SRL.
• SRL valued at 30 percent of consolidated enterprise value.
• Expect revenue and Ebitdac to compound at 16 percent and 23 percent respectively over the fiscal 2018-2020.
• Expect free cash flow generation from April to drive re‐rating.

JPMorgan on Axis Bank

• Maintained ‘Overweight’; cut price target to Rs 650 from Rs 700.
• Price target cut to capture impact of new RBI provisioning guidelines and front-end the legacy provisioning to the current fiscal.
• This clean-up to act as a near-term headwind for stock.
• Core pre-provisioning operating profit momentum to resume from April.
• Refinancing of NCLT cases to represent an opportunity to jumpstart loan growth.
• Axis remains top pick among value stocks.

Morgan Stanley on Coal India

• Maintained ‘Underweight’ with price target of Rs 221.
• Production was flat and dispatches moderated in Feb. 18.
• Expect growth rates to remain moderate.
• Higher costs to constrain earnings and dividend payouts.

Jefferies on Voltas

• Maintained ‘Buy’ with price target of Rs 795.
• Dealer interactions indicate AC pricing normalised post discounts in December 2017.
• Weather linked demand is yet to reflect in volumes.
• Rating changes see smooth implementation.
• Voltas to benefit from summer onset in current and next fiscal from low GST base.
• Remain positive on Voltas.

Nomura on Dr Reddy’s Laboratories

• Maintained ‘Buy’ with price target of Rs 3,238.
• Expects to file proprietary migraine drug in next three months under 505b(2) route.
• Company guides of $100-300 million from the product.
• Dr Reddy’s is play on potential of complex generic and specialty opportunities in U.S.

Nomura on KNR Construction

• Maintained ‘Buy’ with price target of Rs 383.
• Order win of Rs 1,020 crore revives momentum.
• Potentially another order worth Rs 1,380 crore in pipeline.
• Some of L1 positions may witness delays in confirmation and spill over to next quarter
• Order largely addresses investor concerns on orderbook depletion.

Nomura on Dilip Buildcon

• Maintained ‘Buy’ with price target of Rs 1,265.
• Recent series of order wins exceed top end of its order inflow guidance for the current fiscal.
• Dilip has secured more recent EPC contracts at aggressive bids.
• HAM project bids seems competitive.
• Overall bidding appearing reasonable.
• Do not expect Dilip to face major hurdles in financial closure of new HAM projects.

Media Reports

• Airtel, Idea challenge Trai’s tariff order (Economic Times).
• IOC bids for stake in Vietnam’s Binh Son Refining (Economic Times).