Stocks To Watch: 63 Moons Tech, Container Corp, Future Retail, Sun Pharma

Stocks in Asia were mixed Friday as traders adopted a cautious stance before Federal Reserve Chair Jerome Powell’s address at the Jackson Hole summit.

Shares in Japan and Australia were flat, while equities in South Korea dipped. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,705.50 as of 8:00 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

• Sun Pharma’s ANDA for Dapagliflozin gets U.S. Food and Drug Administration approval.
• HDFC Bank: Board appointed Srinivasan Vaidyanathan as the Chief Financial Officer of the bank.
• Pidilite Industries commissioned a manufacturing plant in Bangladesh. The is the second addition to already existing plant in Munshigonj, Bangladesh.
• DLF clarified that allegations are in media are false and matter referred in the articles pertains to a notice issued by Supreme Court on July 22. Aforesaid litigation did not meet materiality threshold and the company will respond to Supreme Court’s notice in due time.
• Dabur’s arm acquired management control of Excel Investments.
• Infosys entered into a strategic partnership with University of Illinois Urbana-Champaign to develop new technologies and systems in precision medicine.
• Capacite Infraprojects clarified that IT Authorities are carrying out search proceedings at company premises from Aug. 20 and no impact is there on routine operations.
• 63 Moons Technologies has won Maharashtra Protection of Interest of Depositors case in Bombay High Court, attachment of the properties of the company will be vacated. (Press release)
• BHEL: Crisil revised outlook on long term bank facilities to ‘Negative’ from ‘Stable’, while re-affirmed the rating at ‘AA+’.
• Gujarat State Petronet: Dr. T Natarajan, Joint Managing Director has resigned from the Board with effect from Aug. 22.
• Somany Ceramics: Board approved merger of Schablona with the company.
• Amazon will acquire 49 percent stake in Future Coupons, a Future Group entity that holds minority stake in Future Retail. As part of the agreement, Amazon has been granted a call option which allows it to acquire all or part of the promoters' shareholding in Future Retail. It is exercisable between the third and tenth years, in certain circumstances, subject to applicable law, the company said.

Bulk Deals

LIC Housing Finance

• Goldman Sachs acquired 71 lakh shares (1.41 percent) at Rs 427.61 each.
• Fidelity Group sold 1.92 crore shares (3.8 percent) at Rs 428.36 each.

A lakhem Laboratories

• Aditya Birla Sun Life Mutual Fund acquired 7.5 lakh (0.63 percent) at Rs 1708.45 each.
• SBI Mutual Fund acquired 24 lakh shares (2.01 percent) at Rs 1708.45 each.
• Prasid Uno Family Trust sold 36.6 lakh shares (3.06 percent) at Rs 1708.45 each.

CG Power & Industrial Solutions

• Reliance MF sold 1.23 crore shares (1.97 percent) at Rs 10.7 each.

Reliance Capital

• Jupiter India Fund sold 27.5 lakh shares (1.09 percent) at Rs 35.88 each.

Tamil Nadu Newsprint

• Emerging Markets Value Fund sold 5 lakh shares (0.72 percent) at Rs 176 each.

Trading Tweaks

• Britannia Industries record date for bonus of one debenture for one share.
• Swelect Energy Systems record date for bonus issue at 1:2.
• CG Power and Industrial Solutions, HDIL to move into ASM Framework.
• Essel Propack, INEOS Styrolution, Den Networks Limited to move into short term ASM Framework.
• Hubtown, IFB Agro Industries, Nandan Denim, Rolta to move out of short term ASM Framework.
• HDIL, Vakrangee, Hathway Cable & Datacom, Essel Propack price band revised to 10 percent.
• Omax Autos price band revised to 5 percent.

Who’s Meeting Whom

• Shoppers Stop to meet Sundaram MF, Credit Suisse and Budhrani Finance from Aug. 23-27.
• Mahindra Logistics to meet Steinberg India Advisors, India Capital and Morgan Stanley from Aug. 23-27.

Insider Trading

• Orient Paper Industries promoter Shekhavati Investments acquired 4.6 lakh shares from Aug. 20-21.
• Jindal Stainless promoter Ratan Jindal acquired 1.4 lakh shares from Aug. 19-20.
• Music Broadcast promoter Jagran Prakashan acquired 1.2 lakh shares on Aug. 20.
• Spencer’s Retail promoter Group Castor Investments acquired 89,500 shares on Aug. 21.

Money Market Update

• The Indian rupee fell to its lowest level since December 2018 on Thursday, dragged down by a weaker Chinese currency and continued foreign investor selling in the domestic equity markets.

F&O Cues

August Futures

• Nifty futures closed at 10,732, discount of 8.9 points versus premium of 13.9 points.
• Nifty futures open interest up 0.3 percent, adds 47,000 shares in open interest.
• Bank Nifty futures closed at 27,021.8, discount of 12 points versus premium of 20.8 points.
• Bank Nifty futures open interest up 11 percent, adds 1.6 lakh shares in open interest.

Options

• Nifty PCR at 1.02 versus 0.94 (across all series).

Nifty Monthly Expiry Aug. 29

• Max open interest on call side at 11,000 (44.9 lakh shares).
• Max open interest on put side at 11,000 (27.3 lakh shares).
• Open interest addition seen at 11,000C (+11.6 lakh shares), 10,800C (+9.6 lakh shares).
• Open interest shedding seen at 11,000P (-7.9 lakh shares), 10.800P (-4 lakh shares).

Brokerage Radar

CLSA on IndusInd Bank

• Maintained ‘Buy’ with target price of Rs 2,160.
• Strengthening of deposit franchise key.
• Operationally steady, but asset quality drags earnings.
• Capital intensity high.

Adani Ports

CLSA

• Maintained ‘Buy’ with target price of Rs 500.
• Solid vision in tough global trade.
• Gasification to accelerate revenues.
• Expect 16 percent growth in port Ebitda over financial years 2019-21

Macquarie

• Maintained ‘Outperform’ with target price of Rs 470.
• Container growth in Mundra and Dhamra is key to fulfilling growth ambitions.
• Control on leverage and shareholder reward are key priorities.
• Stricter internal rate of return of 16 percent is positive for future allocation.

UBS on Max Financial

• Upgraded to ‘Buy’ from ‘Neutral’; hiked target price to Rs 550 from Rs 500.
• Possible negative developments in the price.
• Share price building in non-renewal of Axis partnership.
• Operational performance remains sound.

JPMorgan on Metals

• Government sell down an overhang, but priced-in.
• Coal India: Upgraded to ‘Overweight’ from ‘Neutral’; maintained target price at Rs 225. (as 10 percent dividend yield is difficult to ignore)
• NMDC: Downgraded to ‘Neutral’ from ‘Overweight’; cut target price to Rs 95 from Rs 145. (on mine lease renewal overhang)

BofAML on India Financials

• HDFC: Reinstated ‘Buy’ with target price of Rs 2,570.
• LIC Housing: Reinstated ‘Underperform’ with target price of Rs 425.
• PNB Housing: Reinstate ‘Underperform’ with target price of Rs 650.
• Prefer HDFC given its strong liability franchise, time-tested resilience in spreads and market share gains.
• Underperform on LIC Housing and PNB Housing due to asset quality concerns.

Morgan Stanley on Container Corp

• Initiated ‘Overweight’ with target price of Rs 566.
• Dedicated Freight Corridor initiative should benefit Container Corp – a dominant player.
• Rail to gain share post DFC commissioning, fostering quicker and more predictable movement of goods.
• Expect 12 percent earnings compounded annual growth rate over financial years 2019-22.