Stocks To Watch: Axis Bank, Bharat Forge, DHFL, HDFC, NMDC, Reliance Home Finance, Yes Bank

Asia stocks saw modest gains on reduced volumes after a lackluster session for U.S. shares.

Japan’s Topix Index is heading for a fifth straight weekly advance, benefiting from a global turn toward stocks viewed as more cheaply valued. Australian stocks climbed amid rising expectations of another interest-rate cut. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.17 percent to 10,723 as of 7 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.

• Mahanagar Gas: The gas supplier, which supplies piped gas in Mumbai, said in a statement that it had been receiving complaints of gas smell from various parts of Mumbai, according to a PTI report. Many residents in Mumbai's western and eastern suburbs reported an unknown odour, prompting rumours of a gas leak at the Rashtriya Chemical Fertiliser's plant in the Chembur suburb, PTI reported quoting officials.
• Yes Bank: Promoter Rana Kapoor today sold a 2.3 percent stake in the bank for Rs 337.3 crore, bringing down his family’s stake in the bank to 7.4 percent. The Yes Bank shares sold today were held by Morgan Credits Pvt. Ltd., a promoter entity that does venture funding, according to a statement issued by the company.
• Axis Bank launched qualified institutional placement issue. The QIP base price was fixed at Rs 661.5 per share and up to 5 percent discount can be offered on the base price. The lender’s board will meet again on Sept. 25 to approve QIP issue to investors. The bank has started taking orders for an institutional share sale that’s seeking to raise $1.4 billion according to terms for the deal obtained by Bloomberg. It is offering new shares at an indicative issue price of Rs 629 apiece, representing a 4.9 percent discount to last close and has the upsize option to sell as much $351 million of additional shares on strong demand, according to Bloomberg report.
• Bharat Forge acquired 50 percent stake in its German company Refu Electronik for 11.35 million euros.
• DHFL said that it is in receipt of proposals from reputed developers to act as development managers in respect of certain large projects including projects under Slum Rehabilitation Scheme wherein the company has extended loans in the past.
• Reliance Home Finance: Brickwork Ratings has downgraded the company’s rating to D (Default) for company’s debt program, primarily due to non-payment of commercial paper.
• India Energy Exchange: Board has approved incorporation of an arm to undertake business of developing a gas exchange with an initial investment up to Rs 10 crore.
• NMDC sets fines prices at Rs 2,460 per tonne and lump ore prices at Rs 2,700 per tonne, with effect from Sept. 19.
• Sintex Industries clarified that the news that lenders of the company are in talks with three players to sell the firm is merely market speculation.
• Morepen Laboratories: Board approved allotment up to 3.7 crore warrants aggregating to Rs 74 crore to the promoters.
• Power Finance Corporation transferred a Rajasthan transmission unit to the highest bidder Adani Transmission.
• JSW Steel to meet on or after Sept. 24 to open an issue of securities.
• Godrej Consumer Products increased its stake in two arms domiciled in Mauritius from 90 percent to 95 percent.
• NIIT: SBI MF increased stake from 4.83 percent to 6.29 percent in the company.
• Rattan India Power: Board approved Letter of Intent for thermal project in Maharashtra for purpose of resolution of debt for the lenders.
• Oberoi Realty: Clarified that the media article on IT department unearthing cash transactions in searches at Oberoi Realty which appeared in MoneyControl is factually incorrect, malicious and false. The company said that it absolutely has no cash dealings with any of clients.

Trading Tweaks

• IIFL Securities to be listed on bourses.
• HDFC Bank record date for face value split from Rs 2 to Rs 1 per share.
• Automobile Corporation of Goa record date for share buyback.
• Gujarat Apollo Industries to move out of short term ASM Framework.

Pledge Share Details

• Sintex Industries promoter BVM Finance invoked pledge of 7 lakh shares on Sept. 16.
• Future Enterprises promoter group Central Departmental Stores revoked pledge of 28.2 lakh shares on Sept. 18.
• Reliance Power promoter Reliance Infra invoked pledge of 1.5 crore shares on Sept. 9.
• Orient Cement promoter Central India revoked pledge of 12 lakh shares on Sept. 17.
• Future Retail promoter Future Corporate Resources created pledge of 36.4 lakh shares on Sept. 18.

Who’s Meeting Whom

• Symphony to meet KR Choksey Shares & Securities on Sept. 20.
• Cholamandalam Investment & Finance to meet Ambit Capital on Sept. 24.
• Shriram City Union Finance to meet Motilal Oswal Financial Services on Sept. 20.
• Shriram Transport Finance to meet Route One Investment on Sept. 20.
• Syngene International to meet Steinberg Asset Management and Partners Bay on Sept. 24.
• Mahindra Logistics to meet Quantum Securities on Sept. 20.

Insider Trading

• Godrej Industries promoter group Anamudi Real Estates acquired 50,000 shares from Sept. 16-17.
• GFL promoter Inox Leasing & Finance acquired 85,000 shares from Sept. 16-17.
• Alembic promoter Nirayu acquired 1.5 lakh shares from Sept. 17-18.
• Usha Martin promoters acquired 4.9 lakh shares on Sept. 16.
• Sun Pharma promoter Shanghvi Finance acquired 4 lakh shares on Sept. 19.

Money Market Update

• The rupee closed at 71.33/$ versus 71.24/$ on Wednesday.

F&O Cues

September Futures

• Nifty September futures closed at 10,711, premium of 6.5 points versus 14.8 points.
• Nifty futures open interest up 3 percent, adds 4.7 lakh shares in open interest.
• Bank Nifty Sept. futures closed at 26,781.8, premium of 24.2 points versus 20.4 points.
• Bank Nifty futures open interest up 1 percent, adds 16,000 shares in open interest.

Options

• Nifty PCR at 1.03 versus 1.02 (across all series).

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,000 (44.6 lakh shares).
• Max open interest on put side at 10,800 (31.4 lakh shares).
• open interest addition seen at 10,800C (+19.4 lakh shares), 10,700C (+10 lakh shares).

Brokerage Radar

CLSA on ITC

• Maintained ‘Buy’ with a price target of Rs 365.
• Weak macro has impacted GST collections.
• Tobacco may see tax increase given collection worries.
• Step-up in transfers to states raises concerns.

CLSA on MGL

• Maintained ‘Buy’ with a price target of Rs 1,275.
• Promoter stake sale overhang gone, but discount to IGL remains high.
• Domestic natural gas prices to fall after two years of rise is a tailwind.
• See several policy linked triggers in less than 12 months.

Macquarie on Page Industries

• Maintained ‘Underperform’ with a price target of Rs 16,000.
• Cotton prices in India have fallen by 15 percent from May 2019 – key raw material.
• Concerns on market share and demand in men’s innerwear still exists.
• Expect strong growth in women’s innerwear, athleisure and Kidswear.

Citi on NMDC

• Maintained ‘Neutral’ with a price target of Rs 80.
• Expect pricing weakness to continue.
• Iron ore rally to fade in 2020.

Goldman Sachs on Avenue Supermarts

• Maintained ‘Buy’ with a price target of Rs 1,816.
• Removed from conviction list post outperformance, but still Buy as structural drivers intact.
• Positives:- network expansion, lowest consumer prices and highest growth potential.

HSBC on Banks

• Government’s latest measures to push credit at critical junction.
• Focus is to doggedly push liquidity to end-consumers during the seasonally critical festive period.
• Raises asset quality challenges and risk of credit culture dilution among MSME and rural loans.