Stocks To Watch: Bharti Airtel, Cipla, JSW Energy, Sun Pharma, Tata Global, Thermax, TVS Motor, Vedanta

The rally in risk assets gathered pace Wednesday with stocks across Asia climbing with bond yields amid optimism the global economy can weather the impact of the coronavirus. Treasuries held losses.

Japanese equities opened 1percent higher and Australian stocks rose. Futures in Hong Kong were firmer, indicating a second day of gains for Asian shares. Earlier, the S&P 500 Index soared the most since August, by 1.5 percent. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.19 percent to 11,950.50 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 Out For In Today’s Trade

• Sun Pharma launched Absorica LD capsules in the U.S. Market, which is used for the treatment of acne.
• Cadila Healthcare received zero Form 483 observations from U.S. FDA, for its Ahmedabad Plant which manufactures oncology injectables for the regulated markets.
• Vedanta: NCLT Kolkata has approved amalgamation of the company’s arm Vedanta Star with Electrosteel Steels. Post the amalgamation Vedanta will hold 95.48 percent stake in the target company.
• REC: The board approved amalgamation of company’s two arms REC Transmission Projects and REC Power Distribution.
• Orissa Mineral Development said that it has received an extension of the validity period of mining lease for Iron and Manganese over an area of 1276.79 hectares.
• Central Bank of India: Board approved raising up to Rs 500 crore via bonds.
• Team Lease Services has increased its stake in IMSI from 72.7 percent to 93.94 percent.
• Sundaram Finance to consider increasing the borrowing limit from the existing limit of Rs 30,000 crore on Feb. 10.
• Mahindra Logistics: Board approved the appointment of Rampraveen Swaminathan as managing director and chief executive officer till February 2025. He has also been appointed as additional director.
• DCB Bank revised MCLR across various tenors with effect from Feb. 6. One Month marginal cost of lending at 8.62 percent and One Year MCLR at 10.22 percent.
• Manappuram Finance to consider issue on on Feb. 7.
• IFCI said that it has completed its stake sale in National Stock Exchange and further received an amount of Rs 178.7 crore.
• Century Textiles & Industries allotted NCDs worth Rs 400 crore.
• Hind Rectifiers secured an order of Rs 54.62 crore for the month of January.
• Simplex Infra defaulted in payment of working capital loan worth Rs 24.33 crore which was due on Jan. 31 in the name of Bank of India.
• J&K Bank: Board to consider raising capital by up to Rs 500 crore via issue of preference share to the Government on Feb. 7.

Earnings Reaction To Watch

Bharti Airtel (Q3, QoQ)

• Revenue up 3.9 percent to Rs 21,947 crore.
• Net loss at Rs 1,035 crore versus net loss at Rs 23,045 crore.
• Ebitda up 4.6 percent to Rs 9,267 crore.
• Margin stood at 42.2 percent versus 41.9 percent.
• Average revenue per user stood at Rs 135.

TVS Motor (Q3, YoY)

• Revenue fell 11.5 percent to Rs 4,125.5 crore.
• Net profit fell 32.3 percent to Rs 121.1 crore.
• Adjusted net profit rose 10.2 percent to Rs 197.1 crore.
• Ebitda fell 3.3 percent to Rs 363.3 crore.
• Margin stood at 8.8 percent versus 8.1 percent.
• Raw material cost as percent of sales at 72.2 percent.

Tata Global Beverages (Q3, YoY)

• Revenue rose 2.6 percent to Rs 1,961.9 crore.
• Net profit rose 21.5 percent to Rs 120.6 crore.
• Ebitda rose 22.1 percent to Rs 239.6 crore.
• Margin stood at 12.2 percent versus 10.3 percent.
• Raw material costs as a percent of sales at 53.8 percent.
• Tea business revenue rose 2 percent to Rs 1,412.2 crore.
• Coffee business revenue fell 4 percent to Rs 313.9 crore.

Thermax (Q3, YoY)

• Revenue fell 1.8 percent to Rs 1,410.1 crore.
• Net profit rose 13.3 percent to Rs 85 crore.
• Ebitda rose 5.5 percent to Rs 113.2 crore.
• Margin stood at 8 percent versus 7.5 percent.

Apollo Pipes (Q3, YoY)

• Revenue rose 15 percent to Rs 100 crore.
• Net profit rose 26.4 percent to Rs 6.7 crore.
• Ebitda rose 24.4 percent to Rs 10.7 crore.
• Margin stood at 10.7 percent versus 9.9 percent.

CSB Bank (Q3, YoY)

• Net Interest Income rose 31.3 percent to Rs 155.3 crore.
• Net profit stood at Rs 28.1 crore.
• Provisions up 31 percent to Rs 35.3 crore.
• GNPA at 3.22 percent versus 2.86 percent (QoQ).
• NNPA at 1.98 percent versus 1.96 percent (QoQ).
• NIMs at 3.4 percent versus 3.1 percent (QoQ).

Avanti Feeds (Q3, YoY)

• Revenue up 10.5 percent to Rs 922.7 crore.
• Net profit down 34.9 percent to Rs 47.9 crore.
• Ebitda down 42.2 percent to Rs 63.4 crore.
• Margin stood at at 6.9 percent versus 13.1 percent.
• Raw material cost as percent of sales at 82.6 percent.
• Other expenses rose 23 percent to Rs 72.5 crore.
• Margins dragged due to higher raw material costs and other expenses.
• Shrimp feed revenue rose 8 percent to Rs 657.5 crore.
• Processed shrimp revenue rose 16 percent to Rs 265 crore.

Oracle Financial Services Software (Q3, QoQ)

• Revenue flat at Rs 1,160.2 crore.
• Net profit rose 27.3 percent to Rs 456.8 crore.
• EBIT rose 1.4 percent to Rs 499.5 crore.
• Margin stood at 43.1 percent versus 42.4 percent.
• Other Income rose 35 percent to Rs 62.1 crore.
• Tax as a percent of profit before tax at 18.3 percent.
• Reversal of tax expense of Rs 35.4 crore.
• Product business revenue fell 1 percent to Rs 1,028 crore.
• Services business revenue fell 15 percent to Rs 101 crore.
• BPO services revenue rose 14 percent to Rs 31.1 crore.
• Signed license deals of $12.2 million during the quarter.

Nifty Earnings To Watch

• Cipla

Earnings To Watch

• Hindustan Petroleum Corporation
• Indiabulls Housing Finance
• Berger Paints
• Brigade Enterprises
• DLF
• Adani Enterprises
• Adani Gas
• Ajanta Pharma
• Andhra Bank
• Apollo Tyres
• Avadh Sugar & Energy
• Bosch
• Cadila Healthcare
• Caplin Point Laboratories
• Century Enka
• Cera Sanitaryware
• Divi's Laboratories
• Engineers India
• GE Power India
• Godrej Agrovet
• Gravita India
• Greaves Cotton
• Gujarat Gas
• GTL Infrastructure
• Hikal
• Jyothy Labs
• Kaveri Seed
• MAS Financial Services
• Matrimony.Com
• Max Financial Services
• NIIT
• Nirlon
• PNC Infratech
• Prataap Snacks
• PTC India
• Quick Heal Technologies
• Sanghi Industries
• Schneider Electric Infrastructure
• Shalimar Paints
• Shankara Building Products
• Sudarshan Chemical Industries
• Sundaram Clayton
• TCPL Packaging
• V-Mart Retail
• Xelpmoc Design And Tech
• Zuari Agro Chemicals
• Zydus Wellness.
• Tata Teleservices
• Waterbase

Bulk Deals

Manappuram Finance

• Baring India Private Equity Fund sold 4.15 crore shares (4.91 percent) at Rs 174 each
• Key Square Master Fund acquired 80 lakh shares (0.95 percent) at Rs 174 each
• Copthall Mauritius Investment acquired 86.5 lakh shares (1.02 percent) at Rs 174 each
• Societe General acquired 60 lakh shares (0.71 percent) at Rs 174 each

Bharat Wire Ropes

• Motilal Oswal acquired 9.42 lakh shares (2.1 percent) at Rs 26.25 each
• Raamdeo Agrawal acquired 9.42 lakh shares (2.1 percent) at Rs 26.25 each
• Osag Enterprises LLP sold 18.85 lakh shares (4.2 percent) at Rs 26.25 each

Reliance Power

• Yes Bank sold 1.7 crore shares (0.6 percent) at Rs 1.65 each

Indian Energy Exchange

• Nippon India MF acquired 77 lakh shares (2.57 percent) at Rs 166.5 each
• LSVP VIII Mauritius sold 90.9 lakh shares (3.04 percent) at Rs 166.5 each

Motilal Oswal

• Passion Investment Management acquired 8.54 lakh shares (0.58 percent) at Rs 773 each

Trading Tweaks

• Bajaj Electricals ex-date for Rights Issue 13:118 (Rights Issue Price At Rs 310 per share)
• Vinati Organics ex-date for stock split from Rs 2 to Rs 1 (FV)
• Uttam Value Steels, Zeal Aqua to move into short term ASM Framework
• Adani Green Energy, Weizmann, GFL, GVK Power & Infrastructure, Sundaram Multi Pap to move out of short term ASM Framework

Who’s Meeting Whom

• Narayana Hrudayalaya to meet Jordan Park Group LLC and Wellington Management from Feb. 6-7
• Dr Lal Path Labs to meet Goldman Sachs on Feb. 6
• PNB Housing Finance to meet Axis Capital on Feb. 5
• Blue Star to meet Emkay Global Securities on Feb. 5
• CCL Products to meet Birla Life, ICICI Pru AMC and other investors on Feb. 5
• Escorts to meet Axis Capital, SBI Life and other investors from Feb. 5-14

Insider Trading

• CCL Products promoters acquired 54,000 shares from Jan. 30-31.
• KRBL promoters acquired 79,500 shares on Feb. 4.

(As Reported On February 4)

Money Market Update

• The rupee strengthened to Rs 71.27 on Tuesday versus Rs 71.35 against the dollar on Monday.

F&O Cues

Index Futures

• Nifty February futures closed at 11,964.2 discount of 15 points versus 4.7 points
• Nifty February futures open interest was down 0.7 percent, sheds 90,000 shares in open interest
• Nifty Bank February futures closed at 30,718.4, premium 31.7 points versus of 8.9 points
• Nifty Bank futures open interest was down 24 percent, sheds 3,200 shares in open interest

Options

• Nifty PCR at 1.24 versus 0.95 (across all series)

Nifty Weekly Expiry: Feb 6

• Max open interest on call side at 12,200 (25.2 lakh shares)
• Max open interest on put side at 11,800 (30.4 lakh shares)
• Open interest addition seen at 11,900P (+20.7 lakh shares), 11,800P (+17.2 lakh shares)
• Open Interest shedding seen at 11.800C (-14 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,500 (19.2 lakh shares)
• Max open interest on put side at 12,000 (24.3 lakh shares)