Stocks To Watch: Bharti Airtel, Central Bank of India, Infosys, RIL, Shree Cement, Siemens, Vodafone Idea, Yes Bank  
The Bombay Stock Exchange (BSE) logo is displayed in front of a bronze bull statue at the Bombay Stock Exchange in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Bharti Airtel, Central Bank of India, Infosys, RIL, Shree Cement, Siemens, Vodafone Idea, Yes Bank  

Asian stocks and American equity futures retreated after the U.S. Senate passed legislation supporting Hong Kong protesters, potentially complicating U.S.-China trade talks. Treasuries edged up.

Japanese and South Korean shares saw moderate declines at the open, while Australian equities did even worse after allegations of financial crimes at Westpac Banking Corp. hit financial stocks. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.22 percent to 11,955.50 as of 6:55 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.

  • Reliance Industries: Reliance Jio announced tariff hikes a day after peers Bharti Airtel and Vodafone Idea said they would charge subscribers more from next month.
  • Yes Bank informed the exchanges that the Reserve Bank of India found under-reporting of bad loans at the bank in 2018-19. The regulator had previously detected a divergence in the assessment of bad loans in FY16 and FY17 but none in FY18. In FY19, according to the private lender’s exchange notification, the RBI assessed the level of gross non performing assets at Rs 11,159 crore. The bank had disclosed gross NPAs of Rs 7,882 crore, implying a divergence of Rs 3,277 crore or 41 percent. The divergence in reporting of net NPAs for the year stood at Rs 2,299 crore or 51 percent of the net NPA amount reported by the bank, the notification said.
  • Infosys clarified on media reports on fresh whistleblower complaints stating that same allegations were made in the undated whistleblower complaint which was disclosed to the exchanges on Oct. 22.
  • Shree Cement has launched its QIP issue with Floor Price set at Rs 19806.46 per share. Floor Price is a discount of 1 percent to the closing price on Nov. 19. Board to consider the issue price on Nov. 22 for the afore-mentioned QIP issue.
  • Reliance Capital Reliance Capital said its shareholding in Reliance General Insurance Company Ltd., has been transferred to IDBI Trustee Services upon invocation of pledge by the latter.
  • Central Bank of India Divergence in Provisioning of Rs 788 crore. Divergence in Gross Non-Performing Assets of Rs 2,565 crore in 2018-19. Net loss reported as of March 31, 2019 was Rs 5,641 crore. Adjustment to net-loss as of March 31 stands at Rs 6,430 crore.
  • NBCC will provide project consultancy for the development of National Museum of Natural History at New Delhi for Rs 500 crore.
  • Ultratech Cement will consider raising funds up to Rs 250 crore on Nov. 22.
  • IRCTC signed a concession agreement with Karnataka State Tourism Development Corporation for taking over the operations, marketing and day to day maintenance of Golden Chariot Train.
  • Axiscades Engineering Technologies promoter Jupiter Capital increased the stake from 49.52 percent to 51.3 percent.
  • Wipro partnered with MuleSoft to provide digital solutions.
  • United Bank of India allotted 164 crore shares aggregating to Rs 1,666 crore to the Government of India.
  • Allahabad Bank: Ministry of Finance gave in-principle approval to the proposed amalgamation of Allahabad Bank into Indian Bank.
  • Bank of Baroda: The Reserve Bank of India imposed penalty of Rs 2.5 crore for non-compliance with the directions issued by the RBI in various accounts of Srijan Mahila Vikas Sahyog Samiti at Bhagalpur Branch.
  • South Indian Bank revised MCLR across various tenors with effect from Nov. 20. One-month MCLR at 8.45 percent and one-year MCLR at 9.1 percent.
  • Birla Corporation acquired 26 percent stake in AMPSolar Clean Power for Rs 7.6 crore.
  • McNally Bharat Engineering said that two investors have submitted Binding Term Sheets to the lenders for the Debt Resolution of the Company subject to the approval of the lenders.

September TRAI Data

  • Reliance Jio added 6.98 million mobile users.
  • Bharti Airtel lost 2.38 million mobile users.
  • Vodafone Idea lost 2.58 million mobile users.

Meanwhile, Reliance Industries Ltd. will be in focus after its Global Depository Receipts surged 6.7 percent to close at an all-time high.

Stocks To Watch: Bharti Airtel, Central Bank of India, Infosys, RIL, Shree Cement, Siemens, Vodafone Idea, Yes Bank  

Earning Reactions To Watch

Siemens (Q4FY19, YoY)

  • Revenue rose 4.8 percent to Rs 4,128.8 crore. (Estimate Rs 4,230.8 crore).
  • Net profit rose 18.3 percent to Rs 333.9 crore. (Estimate Rs 369.8 crore).
  • Ebitda fell 3.1 percent to Rs 405.6 crore. (Estimate Rs 457.4 crore).
  • Margins stood at 9.8 percent versus 10.6 percent. (Estimate 10.8 percent).
  • Dividend of Rs 7 per share.

Pledge Share Details

  • JSW Energy promoter JSW Investments released pledge of 4 crore shares on Nov. 16.
  • JSW Steel promoter Glebe Trading created a pledge if 26 lakh shares on Nov. 15.
  • Adani Power promoter SB Adani Family Trust created pledge of 1.68 crore shares on Nov. 16.
  • Future Retail promoter Future Corporate Resources created pledge of 29.6 lakh shares on Nov. 18.

Trading Tweaks

  • Prime Focus to move into ASM Framework.
  • Ausom Enterprise, Shree Digvijay Cement, Tanla Solutions to move into short term ASM Framework.
  • Arrow Textiles, Indo Count Industries, Waterbase to move out of short term ASM Framework.
  • Corporation Bank, HCL Infosystems, Pokarna price band revised to 10 percent.
  • NGL Fine Chem price band revised to 5 percent.

Who’s Meeting Whom

  • Granules India to meet Farley Capital on Nov. 20.
  • Escorts to meet Yes Securities, Alquity Investment Management and other investors from Nov. 21- Dec. 4.
  • Brigade Enterprises to meet Somerset Capital on Nov. 21.
  • PI Industries to meet Valequest Research, Neuberger Berman International and Emerging Markets Fund from Nov. 21- Dec. 10.

Insider Trading

  • AVT Natural Product promoter group acquired 92,000 shares from Nov. 15-18.

Money Market Update

  • The rupee closed at 71.72/$ versus 71.84/$ on Monday.

F&O Cues

Index Futures

  • Nifty November futures closed at 11,969, premium of 29 points versus 36.4 points.
  • Nifty November Futures open interest up 0.6 percent, adds 88,000 shares in open interest.
  • Nifty Bank November futures closed at 31,259.6, premium of 23.4 points versus 25.7 points.
  • Nifty Bank November futures series open interest up 6 percent, adds 1.1 lakh shares in open interest.

Options

  • Nifty PCR at 1.45 versus 1.31 (across all series).

Nifty Weekly Expiry: Nov. 21

  • Max open interest on call side at 12,000 (22.8 lakh shares).
  • Max open interest on put side at 11,900 (25.3 lakh shares).
  • Open interest addition seen at 11,900P (+9.4 lakh shares) 11,850P (+4.7 lakh shares).

Nifty Monthly Expiry: Nov. 28

  • Max open interest on call side at 12,000 (22 lakh shares).
  • Max open interest on put side at 11,900 (22.2 lakh shares).
Stocks To Watch: Bharti Airtel, Central Bank of India, Infosys, RIL, Shree Cement, Siemens, Vodafone Idea, Yes Bank  

Brokerage Radar

Morgan Stanley on Indian Telecom

  • All three private operators have signaled intention to increase tariffs.
  • Industry may be going into self-repair faster than expected.
  • Big positive surprise; has potential to significantly alleviate stress in the industry.

SBICAP on Dr. Reddy’s Laboratories

  • Upgraded to ‘Buy’ from ‘Hold’; hiked price target to Rs 3,200 from Rs 2,650.
  • Transforming into more efficient organization with razor sharp focus on capital productivity.
  • Broad based growth and continued cost efficiencies will drive capital productivity.
  • Best U.S. pipeline with good visibility; India business could triple in the next five years.

Morgan Stanley on Yes Bank

  • Maintained ‘Underweight’ with a price target of Rs 40.
  • FY19 GNPA divergence was elevated at 1.3 percent of loans.
  • Expect slippages at Yes Bank to remain high.
  • Underweight rating given lack of strong visibility into quick turnaround in asset quality.

HSBC on Maruti Suzuki

  • Maintained ‘Hold’ with a price target of Rs 7,200.
  • Decision to discontinue diesel portfolio in 2020 is a concern for CAFE requirements in 2022.
  • Petrol portfolio is efficient; traction in CNG and Hybrid to help achieve target comfortably.
  • CAFE II norms in their initial draft propose a reduction of 17 percent in CO2 emissions.

Morgan Stanley on Reliance Industries

  • Maintained ‘Overweight’ with a price target of Rs 1,469.
  • Most of the factors considered in bull case price target of Rs 2,000 are coming into play.
  • Factors: higher telecom tariffs, monetisation of telecom ecosystem, higher GRM, recovery in petrochemical cycle.
  • Rising clarity on debt reduction should help multiples.

Nomura on Apollo Hospitals

  • Maintained ‘Buy’; hiked price target to Rs 1,787 from Rs 1,693.
  • Sustained turnaround in earnings momentum to drive stock performance.
  • Stake sales would not have any negative impact on our target price.
  • Free cash flow generation should improve significantly in FY21-22.
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