Stocks To Watch: Delta Corp, ICICI Bank, IndusInd Bank, Jaiprakash Power, NMDC, United Spirits, Wipro  

Asian stocks followed their U.S. counterparts higher Tuesday on optimism over this week’s signing of the Sino-American trade deal.

Stocks rose in Japan, South Korea and Australia, while U.S. futures ticked higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.28 percent to 12,392 as of 6:47 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.

• JSW Steel: The National Company Law Appellate Tribunal has directed the Enforcement Directorate and Serious Fraud Investigation Office to verify if JSW Steel is protected from Bhushan Steel and Power Ltd.’s past criminal liabilities. It has also directed the agencies to file an affidavit to confirm whether JSW Steel would be covered under the newly added section 32A of the Insolvency Code and provide reasons if no such immunity is granted.
• Linde India: Board approved sale of company’s Belloxy Divestment Business on a slump sale basis for Rs 54.9 crore to Inox Air Products.
• NMDC completed the execution of mining lease agreements of four mines in Chhattisgarh. Mining lease of the aforementioned deposits is valid up to 2035.
• Infosys partnered with GEFCO for digital solutions for a period of five years.
• United Spirits: The Securities and Exchange Board of India has asked three individuals to disgorge wrongful gains from transactions in 2014, according to Bloomberg report.
• Piramal Enterprises issued 1.16 lakh compulsorily converted debentures to Caisse De Depot Et Placement Du Quebec on Dec. 19, which has increased its total diluted shareholding from 3.68 percent to 8.99 percent. Debentures are convertible into equity shares in the ratio of 1:100.
• IRCTC: Ministry of Railways gave approval to the company to operate Ahmedabad-Mumbai Central Tejas Express. Inaugural run on Jan. 17 and the commercial run starts from Jan. 19.
• JaiPrakash Power Ventures: ICICI Bank withdrew its application from insolvency proceedings from National Company Law Tribunal against the company.
• Manappuram Finance raised $300 million by allotment of fixed-rate senior secured notes.
• Sadbhav Infra: Nippon India MF increased stake to 6.88 percent from 4.03 percent in the company.
• Simplex Infra: Nippon India MF reduced stake to 6.88 percent from 5.37 percent in the company.
• HUDCO planned to raise up to Rs 1,400 crore via debentures.
• Syndicate Bank reduced Marginal Cost of Funds based Lending Rate across various tenors with effect from Jan. 15. One-month MCLR at 7.6 percent and one-year MCLR at 8.25 percent .
• Allahabad Bank reduced MCLR of one-month Tenor by 5 basis points to 7.85 percent with effect from Jan. 14.

Earnings Reaction To Watch

Delta Corp (Q3, QoQ)

• Revenue remained flat at Rs 205.1 crore.
• Net profit rose 9.1 percent to Rs 55.1 crore.
• Ebitda fell 7.7 percent to Rs 79 crore.
• Margin stood at 38.5 percent versus 41.7 percent.

Nifty Earnings To Watch

• Wipro
• IndusInd Bank

Other Earnings To Watch

• Bandhan Bank
• MindTree
• Network18 Media & Investments
• TV18 Broadcast
• Tata Steel Bsl
• Shiva Cement

Pledge Share Details

• Gayatri Projects promoter T.Indira Reddy revoked pledge of 77.71 lakh shares on Jan. 10.

Trading Tweaks

• Bhagyanagar, Somany Home Innovation, India Nippon Electricals to move into short term ASM Framework.
• LGB Forge, Sharda Cropchem, SORIL Infra Resources to move out of short term ASM Framework.
• Artson Engineering, Oswal Greentech price band revised to 10 percent.
• Suzlon Energy, Emami Paper Mills, Gyscoal Alloys, Jiya Eco-Products price band revised to 5 percent.

Who’s Meeting Whom

• Mahindra Logistics to meet Kotak MF, MetLife Insurance and Ocean Dial Management on Jan. 16.

Money Market Update

• The rupee closed at 70.86/$ versus 70.93/$ on Friday.

F&O Cues

Index Futures

• Nifty January futures closed at 12,362, premium of 32.6 points versus 33.2 points
• Nifty January futures shed 2.5k contracts in open interest.
• Nifty Bank January futures closed at 32,242.2, premium of 64.6 points versus 25.3 points.
• Nifty Bank January futures open interest down 6 percent, sheds 83.7k shares in open interest.

Options

• Nifty PCR at 1.63 versus 1.54 (across all series).

Nifty Weekly Expiry: Jan. 16

• Max open interest on call side at 12,500 (16.2 lakh shares).
• Max open interest on put side at 12,200 (22.3 lakh shares).
• open interest addition seen at 12,300P (+11.7 lakh shares), 12,250P (+6.8 lakh shares), 12,600C (+4.2 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (26.5 lakh shares).
• Max open interest on put side at 12,000 (45.8 lakh shares).

Brokerage Radar

HSBC on Motherson Sumi

• Downgraded to ‘Hold’ from ‘Buy’; hiked price target to Rs 135 from Rs 120.
• Stock outperformed the underlying performance improvement and broader market on EU uptick.
• Believe it now prices in some recovery but ignores the near-term risk.
• Risk arises from European market disruption on upcoming carbon dioxide norms.

UBS on Oil & Gas

• Oil product demand growth slips in Dec-2019 as transportation fuel demand slows down.
• Gasoline and LPG demand growth moderated, while diesel demand declined.
• ATF possibly on the way to recovery, while lubes demand emerge stronger.
• OMCs to benefit as demand for gasoline and LPG remains strong.

Axis Cap on Telecom

• Despite M&As India wireless still among less concentrated markets globally.
• Lesser concentration warrants higher Ebitda margin.
• With all three private players commanding equal market share and recent price hikes to improve margins on the lines of global peers.

IIFL on ICICI Lombard General

• Maintained ‘Buy’ with a price target of Rs 1,500.
• Expect acceleration in YoY earnings growth from the third quarter.
• See higher loss in motor segment driven by greater pricing pressures.
• Fire and health to drive growth.