Stocks To Watch: Adani Power, Bandhan Bank, DHFL, Godrej Properties, NTPC

Asian stocks were mixed at the open on Wednesday after U.S. Federal Reserve Chairman Jerome Powell warned the downside risks to the U.S. economy have increased and doubts emerged on progress toward a U.S.-China trade deal.

Japanese shares retreated, while equities in South Korea and Australia opened flat.

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Stocks To Watch

• Reliance Power: ICRA downgraded the long-term and short-term ratings of Sasan Power (100 percent subsidiary of the company) to ICRA ‘BB+’ and ICRA ‘A4’ from ICRA ‘BBB’ and ICRA ‘A2’ respectively. Outlook changed to negative from stable. ICRA downgraded rating due to deterioration in financial risk profile of Reliance Power and the uncertainty regarding regulatory approval of tariff matters relating to change in law during construction and forex variation. The company disagrees with the revised ratings.
• Confidence Petroleum: Allotted 10,96,153 convertible warrants to M/S Gaspoint Petroleum (promoter group), carrying an option to subscribe a share at a premium of Rs 51 for every warrant held within 18 months from the date of allotment.
• GVK Power: GVK Deoli Kota Expressway Pvt. Ltd., a step-down subsidiary of GVK, issued notice of termination to National Highways Authority of India on account of material breach and defaults on the part of NHAI.
• Transpek: Company to gradually start operations in Gujarat factory and production shall be ramped up to capacity in the next 7-10 days as the closure letter received from Gujarat Pollution Control Board has been revoked.
• NTPC: Wins 40 MW of Solar capacities in UPNEDA’S 500 MW Tender. Wins bid at Rs.3.02/KwH levelized tariff. The projects shall be set up by NTPC under EPC mode and shall add to the installed capacity of NTPC.
• Godrej Properties: The company plans to raise $300 million via a Qualified Institutional Placement at a price range of Rs 912-928 per share. The issue price will come up for approval on June 28.
• Punjab & Sind Bank: Basel-III compliant Tier-II bonds aggregating up to Rs 500 crore (base issue size of Rs 200 crore with a green shoe option of Rs 300 crore) was opened for bidding on June 25. The issue was subscribed and bids for Rs 237.30 crore with coupon of 9.50 percent were accepted.
• DHFL: The company has made proportionate payment of 40 percent, or Rs.150 crore, towards maturity of the commercial papers of aggregate value of Rs 375 crore and the balance of Rs 225 crore will be paid once the surplus cash flow position improves over the next couple of days. The default has occurred on the gross principal of Rs 225 crore.
• Healthcare Global Enterprises: The company plans to raise Rs 20 crore by issuing 7,10,526 equity shares on preferential basis at Rs 285 each (71 percent premium to CMP).
• Bandhan Bank: A shareholder’s meeting for considering and approving merger of of GRUH Finance Ltd. with Bandhan Bank to be held on July 30.
• IFCI: Seeks to sell non-core assets and investments.
• Adani Power: A consortium of lenders, led by Axis Bank, has approved Adani Power’s resolution plan to acquire controlling stake and restructure debt of GMR Chhattisgarh Energy Ltd. Adani Power shall hold 100 percent equity stake of which 52.38 percent stake is to be acquired from lenders and 47.62 percent from GMR.
• Reliance Capital: Brickwork Ratings downgraded long-term debt programme and market linked debenture’s rating to BBB from A. Short-term debt programme has been downgraded to A3 from A2+.
• TV Today Network: HDFC Mutual Fund increased stake to 7.14 percent from 5 percent after acquiring an additional 2.14 percent from open market on June 24.
• Asian Paints: Life Insurance Corporation of India sold 2 percent stake in Asian Paints, reducing its stake to 3 percent in total.
• Emami: Diwakar Viniyog (promoter group) sold 2 percent stake in the company on June 24 in an open market operation, current holding stands at 10.9 percent. Suntrack Commerce (promoter group) sold 2 percent stake in company on June 24 via open market, holding stands at 10.8 percent.

Offerings

• SBI Life Insurance's offer-for-sale opens for retail investors; sale to non-retail investors got 3.81 times demand on Tuesday.

• L&T Technology's Offer For Sale opens for retail investors; sale to non-retail investors got 5.41 times demand on Tuesday.
• IndiaMart InterMesh IPO was subscribed on the second day of share sale, receiving 104 percent subscription for total shares on offer. The IPO closes today.

Insider Trade

• Bombay Burmah promoters pledged 2.2 lakh equity shares.
• Himachal Futuristic promoters pledged 3.38 crore equity shares.
• Future Retail promoters pledged 2,35,620 equity shares.
• Zuari Agro Chemicals pledged 5 lakh equity shares.
• Wockhardt promoters pledged 3 lakh equity shares.
• Reliance Infrastructure released pledge on 1,80,995 equity shares.
• Future Lifestyle promoters released pledge on 3.5 lakh equity shares

Bulk Deals

ICICI Lombard GIC Ltd.

• Societe Generale buys 29.69 lakh shares (0.7 percent) at Rs 1,100 each.
• Red Bloom Investment sold 1.43 crore shares (3.2 percent) at Rs 1,100.19 each.

Aptech Ltd.

• Washington University sold 5.30 lakh shares (1.3 percent) at Rs 137.5 each.

Cox & Kings Ltd.

• IFCI Ltd. sold 10.80 lakh shares (0.6 percent) at Rs 50.56 each.

PC Jeweller Ltd.

• Carlina Ltd. sold 41.20 lakh shares (1 percent) at Rs 48.69 each.
• Idria Ltd. sold 40.8 lakh shares (1 percent) at Rs 48.68 each.

Reliance Power Ltd.

• Yes Bank Ltd sold 5.29 crore shares (1.9 percent) at Rs 4.14 each.

Supershakti Metaliks Ltd

• Aviator Emerging Market Fund buys 1.59 lakh shares (2.8 percent) at Rs 407 each.
• Asia Investment Corporation Mauritius Ltd. sold 1.60 lakh shares (2.8 percent) at Rs 407 each.

F&O Cues

Futures

• Nifty June futures closed at 11,810, premium of 13.9 points versus 18 points.
• Nifty futures across series open interest up 0.6 percent, adds 1.3 lakh shares in open interest.
• Bank Nifty June futures closed at 30,878.6, premium of 31.6 points versus 29 points.
• Bank Nifty futures across series open interest up 6.6 percent, adds 1.4 lakh shares in open interest.
• Nifty Rollover 40 percent, Bank Nifty Rollover 37 percent.

Options

• Nifty PCR at 1.51 versus 1.30 (across all series).

Nifty Monthly Expiry June 27

• Max open interest on call side at 12,000 (34.8 lakh shares).
• Max open interest on put side at 11,700 (40.2 lakh shares).
• Open interest addition seen at 11,700P (+11.6 lakh shares), 11,750P (+7 lakh shares).
• Open interest shedding seen at 11,800C (-9.7 lakh shares), 11,900C (-6.3 lakh shares).

Stocks In Ban

In Ban:

• Adani Power
• IDBI Bank
• Jet Airways
• Reliance Capital

Out Of Ban:

• Reliance Infra

Brokerage Radar

JPMorgan on Axis Bank

• Maintained 'Neutral'; hiked target price to Rs 850 from Rs 720.
• Franchise has levers to deliver on RoE guidance; execution remains keys.
• Credit cost normalization likely to be gradual.
• Margin improvement can be difficult.

Macquarie on Axis Bank

• Upgraded to 'Outperform' from 'Neutral'; hiked target price to Rs 925 from Rs 760.
• Bank focusing on de-risking balance sheet, improving relationship with corporates.
• Hiked target price to factor in fundraising and higher valuation multiple on lower credit costs.

IIFL on Balkrishna Industries:

• Maintained 'Add'; cut target price to Rs 860 from Rs 900.
• Near-term demand outlook muted.
• RoE has come off; capex phase may keep it subdued.
• Cut EPS estimates by 4 percent to factor in lower growth and higher rubber prices.

Edelweiss on BHEL

• Downgraded to 'Reduce' from 'Buy', cut target price to Rs 60 from Rs 85.
• Unlikely to generate revenue growth beyond 6-8 percent over next five years.
• Balance sheet and cash flow unlikely to revive with SEBs accounting for 50 percent of receivables.
• New opportunities unlikely to be a game changer.

Goldman Sachs on Jubilant Foodworks

• Maintained 'Sell' with target price of Rs 1,129.
• Increasing competition and input costs not factored in valuations.
• Domino’s Pizza will find it challenging to deliver double digit same-store sales growth in FY20/21.
• Sees risk from aggressive expansion of Swiggy and Zomato in smaller Indian cities.

UBS on Quess Corp.

• Maintains 'Buy', cuts target price to Rs 865 from Rs 1,080.
• Management strategy misfired, but course-correction is being ignored.
• Believes concerns are priced in as Quess is trading at 50 percent discount to three-year average.
• Management temporarily halted inorganic growth, is focusing on improving working capital and on reducing losses at Monster.

CLSA on Sun Pharma

• Maintained 'Buy' with target price of Rs 520.
• Sun has lost 50-basis-point market share in India over the past two years.
• Lost share can be largely attributed to slow growth in anti-infectives.
• Strong double-digit growth in top 100 brands, but tail brands are a drag.
• Though India growth has slowed, we believe profitability has improved.