Stocks To Watch: Central Bank, HCL Technologies, Prestige Estates, Reliance Capital, Yes Bank

Asian stocks eked out modest gains at the open Wednesday as investors monitored developments on U.S.-China trade talks.

Benchmarks in Japan, Australia and South Korea headed higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 12,094.50 as of 6:38 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.

• Prestige Estates Projects signed an agreement with Marriott International to open six new hotels across India, representing nearly 1,000 rooms. All hotels are expected to open between 2021-2025, according to its media statement.
• Yes Bank to consider raising funds on Nov. 29. Bank approved as accredited entity by Green Climate Fund to help mobilize Climate Finance in India.
• Central Bank allotted 158.4 crore shares at issue price of Rs 21.17 per share to Government of India aggregating to Rs 3353 crore, subsequent to receiving shareholder’s approval. The shareholding of government after the allotment to increase from 89.46 percent to 92.39 percent.
• HCL Technologies record date for bonus share issue fixed at Dec. 7.
• Government of India asks REC, PFC and Indian Renewable Energy Development Agency to lend more than $1 billion to state distribution utilities to help them clear their dues to renewable power generators, according to Bloomberg report.
• Seamec has deployed its vessel to Posh Subsea for a charter value of $4.86 million.
• Max India has completed the sale of its material subsidiary Pharmax to its another arm Max Estates for Rs 60.73 crore.
• Tata Communications: Amur Swaminathan Lakshminarayanan appointed as MD and CEO for five years with effect from Nov. 26.
• Rites: Post OFS Government’s stake reduced from 87.4 percent to 77.4 percent.
• Container Corporation of India has signed a settlement agreement with Kohinoor India by making a total payment of Rs 9.18 lakh. Parties have also undertaken that they shall not file any other claim/ suit/ petition in any Court with respect to the dispute.
• L&T Finance Holdings: Board approved raising Rs 60 crore via non-convertible debentures.
• Reliance Capital said there has been a delay in servicing obligations of NCDs due on Nov. 25-26.

Offerings

• CSB Bank IPO gets 86.9 times demand for the shares offered.

Pledge Share Details

• Sadbhav Engineering promoter Sadbhav Finstock released pledge of 1.03 crore shares on Nov. 25.
• Max Financial Services promoter Max Ventures Investment Holdings revoked pledge of 11 lakh shares from Nov. 21-22.
• Wockhardt promoter Themisto Trustee created pledge of 8.5 lakh shares on Nov. 20.
• Max Financial Services promoter Max Ventures Investment Holdings revoked pledge of 11 lakh shares on Nov. 21.
• Future Retail promoter Future Corporate Resources revoked pledge of 15.79 lakh shares on Nov. 22.

Trading Tweaks

• Moil record date for share buyback.
• TIPS Industries, Stampede Capital to move into short term ASM Framework.
• Sterling And Wilson Solar, BF Utilities to move out of short term ASM Framework.
• Hindustan Construction Company, Tips Industries price band revised to 10 percent.

Who’s Meeting Whom

• HPCL to meet Jefferies India and IIFL on Nov. 28.
• Tamil Nadu Newsprint and Papers to meet HDFC MF, SBI MF and other investors on Nov. 29.
• TVS Motor to meet on DNB Asset Management and Spark Capital on Nov. 27.
• Rallis India to meet Sundaram AMC, UTI AMC and other investors from Nov. 28-29.
• Heidelberg Cement to meet Alquity Indian Subcontinent Fund on Nov. 28.
• Astral Poly Technik to meet Abu Dhabi Investment Authority on Nov. 27.

Insider Trading

• JSW Steel promoter JSW Holdings acquired 4 lakh shares from Nov. 20-21.
• Confidence Petroleum India promoters acquired 1.44 lakh shares from Nov. 19-22.
• Wockhardt promoters sold 15 lakh shares from Nov. 20-22.

Money Market Update

• The rupee closed At 71.49/$ versus 71.73/$ on Monday.

F&O Cues

Index Futures

• Nifty November futures closed at 12,075.2, premium of 37.5 points versus 22.6 points.
• Nifty Futures across series open interest up 17 percent adds 27.8 lakh shares in open interest.
• Nifty Bank November futures closed at 31,648.9, discount of 69 points versus premium of 12.3 points.
• Nifty Bank futures across series open interest up 11 percent, adds 2.2 lakh shares in open interest.
• Rollover-Nifty 45 percent, Nifty Bank 40 percent.

Options

• Nifty PCR at 1.59 versus 1.71 (across all series)

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,100 (28.7 lakh shares).
• Max open interest on put side at 12,000 (47.1 lakh shares).
• open interest addition seen at 12,200C (+4.9 lakh shares) 12,100C (+4.1 lakh shares), 12.100P (+2.7 lakh shares).
• open interest shedding seen in 11,900P (-7.8 lakh shares), 12,000C (-2.5 lakh shares).

Brokerage Radar

CLSA on Autos

• Decent festive season for passenger vehicles and two wheelers, but OEM commentary still muted
• Hyundai gained in passenger vehicles, Honda in two-wheelers and Ashok Leyland losing in trucks.
• Luxury auto growth improving off a low base; JLR lagging though.

Morgan Stanley on ICICI Bank

• Maintained ‘Overweight’; hiked price target to Rs 775 from Rs 665.
• Large lenders are at the start of a super-normal profit cycle.
• Macro is tough but steps have been taken to support the system and drive up profits for good lenders.
• EPS and RoE are set to improve.
• ICICI is particularly well-placed given earnings upside and valuations.

Morgan Stanley on HDFC

• Maintained ‘Overweight’; hiked price target to Rs 2,900 from Rs 2,600.
• RoE and EPS growth are poised to stage a multi-year recovery.
• See pickup in loan growth over the next 12 months as key inflection point.
• Structurally stronger positioning among non-bank lenders; valuation is attractive.

HSBC on Mahindra CIE

• Maintained ‘Buy’; cut price target to Rs 230 from Rs 300.
• End-market demand declined steeply, but key segments likely to recover in near term.
• Focus on cost optimization and product cross-selling implies earnings CAGR of over 22 percent for CY19-21.
• Retain Buy given undemanding valuations and strong long-term story.

HSBC on SpiceJet

• Maintained ‘Hold’; cut price target to Rs 115 from Rs 130.
• Subdued yield and cost pressure risks H2 profitability; cut 2019-20 profit estimates by 27 percent.
• 737Max return by March 2020 to benefit cost but accelerate competition to hurt industry yield.
• Quality of capacity, liquidity tightness and possible risk to yield concern us.