Stocks To Watch: Bajaj Finance, BGR Energy, CSB Bank, Eris Lifesciences, NBCC, Yes Bank  

The risk-off tone that’s engulfed global markets built on Wednesday as stocks in Asia opened lower in the wake of heightened uncertainty over this month’s upcoming tariff deadline.

Australia’s main share index fell more than 1.5 percent, with losses more modest for equities in South Korea and Japan. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.44 percent to 11,998 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:

• Bajaj Finance said that company’s current exposure to Karvy Stock Broking is approximately Rs 312 crore, which is against the pledge of listed shares. The company had filed an appeal before the Securities Appellate Tribunal against the unilateral action taken by NSDL for release of valid pledge created by Karvy Stock Broking pursuant to order of Securities and Exchange Board of India. SAT had directed SEBI to grant a personal hearing to the Company on the basis of the representation made earlier. The tribunal also directed that any transfer of remaining securities from DP Account of Karvy Stock Broking shall remain suspended.
• Eris Lifesciences acquired trademark ‘Zomelis’ from Novartis for Indian pharma market for $13 million.
• Piramal Enterprises: Piramal Pharma Solutions announced collaboration with BerGenBio on the development of FDA fast track designated Leukemia treatment, according to Bloomberg report.
• Natco Pharma completed the acquisition 12.81 percent stake in OMRV Hospital for Rs 5 crore.
• Punjab & Sind Bank: Board will meet on Dec. 6 to revalidate the approval for a further period of twelve months for QIP Issue of Rs 500 crore.
• Steel Strips Wheels November total wheel rim sales fell 2 percent to 12.52 lakh units versus 12.78 lakh units.
• Equitas Holdings: Equitas Small Finance Bank hiked interest rate up to 8.25 percent on fixed deposit with effect from Dec. 2.
• Nestle: Board declared an interim dividend of Rs 55 per share. Record date set at Dec. 11.
• IRB Infra will consider raising funds via non-convertible debentures on Dec. 6.
• RBL Bank: Shareholders will meet on Dec. 27 to issue and allot equity shares on preferential basis.
• Ricoh India delisting exit offer price set at Rs 50 per share.
• NBCC submitted revised resolution plan for Jaypee Infratech on Dec. 3
• One Point One Solutions: Yes Bank sold its entire stake of 13.77 lakh shares, equal to 5.49 percent, in the company.

Offerings/Listings

• Ujjivan Small Finance Bank IPO, gets 486 percent demand on the second day of sale. The offer closes today.
• CSB Bank shares to start trading on stock exchanges after IPO gets 86.9 times demand at Rs 195 per share.
• HDFC AMC's promoter Standard Life Investments proposed to sell 47.5 lakh shares or 2.23 percent equity, with an option to sell additional 38.5 lakh shares or 1.81 percent equity. The floor price has been set at Rs 3,170 per share, which is at a discount of 8 percent to current closing price of Dec. 3. Standard Life Investments has 29.94 percent stake in the company as per recent exchange filing.

Pledge Share Details

• Capacite Infraprojects promoter Rohit Ramnath Katyal created pledge of 50 lakh shares on Dec. 3.
• Hatsun Agro Product promoters created pledge of 29.4 lakh shares on Dec. 2.
• Infibeam Avenues promoters 03 Developers released pledge of 20 lakh shares from Dec. 2-3.
• MEP Infra Developers promoter AJ Tolls created pledge of 38.15 lakh shares on Nov. 29.
• JSPL promoter Danta Enterprise revoked pledge of 32.26 lakh shares from Nov. 29-Dec. 3.
• JSW Energy promoter Glebe Trading revoked pledge of 12.06 lakh shares from Dec. 2-3.
• Future Retail promoter Future Corporate Resources revoked pledge of 28.65 lakh shares on Nov. 29.

Trading Tweaks

• CSB Bank to be listed on bourses.
• GTL Infrastructure to move into short term ASM Framework.
• Mukand Engineers, Nitco, Zee Learn, NHC Foods to move out of short term ASM Framework.
• Mahamaya Steel, Jaiprakash Associates, Jaiprakash Power Ventures, Sterling and Wilson Solar price band revised to 5 percent.

Who’s Meeting Whom

• Container Corporation of India to meet Fidelity International, Quantum Advisors and other investors from Dec. 5-12.
• Shriram City Union Finance to meet Credit Suisse AG, Quantum AMC and other investors from Dec. 5-14.
• Narayana Hrudayalaya to meet Capital Group, CDC Group and Macquarie Capital Securities from Dec. 3-4.
• Care Ratings to meet Pine Bridge Investments on Dec. 4.
• IIFL Securities to meet Hara Global Capital Management on Dec. 4.

Insider Trading

• Nava Bharat Ventures promoter Ashwin Devineni acquired 7,76,000 shares from Nov. 28-29.
• Filatex India promoter Nouvelle Securities acquired 1.27 lakh shares on Nov. 29.

Money Market Update

• The rupee closed at 71.69/$ versus 71.66/$ on Monday.

F&O Cues

Index Futures

• Nifty December futures closed at 12,046.4, premium of 52 points versus 43.2 points.
• Nifty December futures series open interest up 1 percent, adds 78,000 shares in open interest.
• Nifty Bank December futures closed at 31,711, premium of 97.9 points versus 49.9 points.
• Nifty Bank December futures series open interest down 3 percent, sheds 45,000 shares in open interest.

Options

• Nifty PCR at 1.30 versus 1.44 (across all series).

Nifty Weekly Expiry: Dec. 5

• Max open interest on call side at 12,100 (31.2 lakh shares).
• Max open interest on put side at 12,000 (20.9 lakh).
• open interest addition seen in 12,000C (+11 lakh shares), 11,950P (+4.3 lakh shares).

Nifty Monthly Expiry: Dec 26

• Max open interest on call side at 12,500 (18.7 lakh shares).
• Max open interest on put side at 12,000 (31.7 lakh shares).

Brokerage Radar

On Mindtree

Morgan Stanley

• Maintained ‘Underweight’ with a price target of Rs 725.
• Believes uncertainty arising from management changes is now past.
• Growth outlook over the next few quarters also depends on the external environment.
• Margin improvement is a focus area at this point.

Kotak Securities

• Maintained ‘Reduce’ with a price target of Rs 725.
• Retained entire client base following L&T takeover; deal activity has picked up.
• Attrition at senior leadership level has been managed through external hires and internal promotions.
• Growth drivers include large deals, improvement in client mining and rationalization of tail accounts.
• Reliance on operational efficiencies and regulation of investment programs will help expand margins.

On ICICI Bank

UBS

• Maintained ‘Buy’; hiked price target to Rs 620 from Rs 570.
• All divisions focusing on risk calibrated pre-provisioning operating profit.
• Digital helping gain market share with better cost efficiency.
• Improving profitability will lead to further rerating for the stock.

Nomura

• Maintained ‘Buy’; hiked price target to Rs 645 from Rs 610.
• Bank is building sustainable income avenues.
• Increased granular income streams across businesses, de-risked its corporate asset book and focus remains on growing core pre-provisioning operating profit.
• Expect core PPOP to record +19 percent CAGR over FY19-22.

More Calls

CLSA on Lupin

• Maintained ‘Sell’; cut price target to Rs 640 from Rs 650.
• U.S. revenue highly dependent on 3 products and clearance of U.S. plants.
• Any slip on execution pose downside risk to earnings.
• Cut U.S. revenue estimates which drives 2-4 percent EPS cut over FY20-22.

JPMorgan on Pidilite

• Maintained ‘Neutral’ with a price target of Rs 1,285.
• Cautious on uncertain near-term growth outlook and rich valuations.
• Raw material tailwinds priced-in; new initiatives need to step-up.

Citi on L&T Infotech

• Maintained ‘Buy’ with a price target of Rs 1,855.
• Expecting strong September quarter as some of the client-specific issues are now behind us and ramp-up of large deals.
• Momentum of deal wins has continued to be decent and should provide visibility.
• Continues to execute well versus other midcap peers.