Stocks To Watch: Eicher Motors, HUL, ICICI Bank, RBL Bank, SBI, Tata Motors

U.S. equity futures declined while Asian shares pushed higher as traders mulled a surge in crude oil and a grim milestone in the coronavirus outbreak. Bonds slipped.

Here are the stocks to watch going into trade today.

• RBL Bank Q4 Update: Net Interest Margin rose to an all-time high and Net Interest Income grew higher than advances and balance sheet growth. The Liquidity Coverage Ratio was 127 percent for March. Some run-offs of deposits in this quarter (under 8 percent), since the last quarter. Bulk deposits from government entities/corporations reduced. The asset quality position in the legacy book was consistent with the guidance given in Q3 FY20; no material change.
• Hindustan Unilever-GSK Healthcare Merger Concall: This is an all-equity merger, GSK PLC will hold 5.7 percent in HUL and Unilever’s stake will fall to 61.9 percent from 67.2 percent. The merger is effective from April 1 and April 17 will be the record date for fresh shares to be issued. HUL will be the owner, so it not be paying any brand royalty.
• Tata Motors March Data: Domestic sales fell 84 percent to 11,012 units. Commercial vehicle sales fell 87 percent to 7,123 units. Passenger vehicle sales fell 68 percent to 5,676 units. Tata Motors will henceforth stop reporting monthly wholesale numbers from next month (i.e. April 2020) and instead report quarterly wholesale and retail numbers.
• Eicher Motors March Data: Total Sales fell 41 percent to 35,814 units. Exports rose 33 percent to 3,184 units.
• SBI’s MD CS Shetty said that he has given an assessment of Covid-19 emergency credit lines to operational level executives. In working capital facilities, the deferred dues will be collected immediately after the three month period. The one-time settlement scheme and Rin Samadhan scheme were ending by March 31 has been extended these schemes by another 3 months.
• ICICI Bank has reduced interest rates on the savings bank account and term deposits of value, which is less than Rs 2 crore. For the savings bank account, below Rs 50 lakh interest rate reduced by 25 basis points to 3.25 percent per annum and for Rs 50 lakh and above interest rate reduced by 25 basis points to 3.75 percent with effect from April 9.
• KIOCL stated for the fiscal year 2020, the company’s production of pellets increased by 6 percent to 2.375 million tons and dispatches increased by 7 percent to 2.356 million tons.
• Honda Siel Power Products: The board approved the resignation of Siddharth Shriram as chairperson and independent director of the company. The company has terminated a joint venture agreement entered amongst Japan’s Honda Motor and Usha International. Takahiro Ueda appointed as chairperson of the company.
• ONGC: Moody's Investors Service has downgraded the company’s local and foreign currency issuer ratings to Baa2 from Baa1. The outlook on all ratings remains negative.
• Competition Commission of India approved a formation of the joint venture between Adani Green Energy and Total S.A. in solar power generation business in India.
• Tata Power has completed a sale of its entire 50 percent stake in its South African joint venture for Rs 659.7 crore or ZAR 1,550 million.
• CreditAccess Grameen increased its stake in Madura Micro Finance by 0.42 percent to 76.06 percent.
• Shilpa Medicare’s finished dosage formulation facility at Telangana received EU GMP by Austrian Authority for the inspection held during Jan. 13-17. The company’s affiliates have registered their products (Oral solids & Injections) with European authorities for commercial distribution.
• Welspun Enterprises has named Ved Mani Tiwary as deputy CEO, with effect from April 1.
• CSB Bank decreased repo linked lending rate from 5.15 percent to 4.4 percent with effect from April 1.
• J&K Bank: RBI extended term of R.K. Chhibber as chairman and Managing Director of the bank for a period of three months with effect from April 10, or till the appointment of a successor, whichever is earlier.
• Atul Auto: March sales down 76 percent to 1,091 units.
• Ashiana Housing: ICICI Prudential MF has increased stake by 0.29 percent to 7.27 percent on March 27.
• IIFL Finance: CDC Group acquired a 15.46 percent stake in the company on March 30, post the corporate arrangement scheme for IIFL group companies. It has bought back its own secured notes listed at Singapore Exchange Securities Trading Limited (SGX-ST), amounting to $15 million (nominal value) through open market and further initiated for cancellation of notes.
• Indiabulls Ventures to acquire a 58 percent stake in Transerv for Rs 76.06 crore. The target company is in the business of issuing pre-paid instruments. The remaining 42 percent stake in the afore-mentioned company is held by Indiabulls Consumer Finance.
• Aurobindo Pharmaceuticals said the deal to acquire Sandoz’s U.S. generic oral solids and dermatology business has been mutually terminated. The decision was taken as approval from the U.S. Federal Trade Commission for the transaction was not obtained within the anticipated timeline.
• Moody’s Investor Service slashed the outlook for the Indian banking system to negative from stable as disruptions to economic activity from the coronavirus outbreak worsened the slowdown, the rating agency said.
• Hero MotoCorp: Total sales in March fell 42 percent year-on-year to 3,34,647 units.
• Gateway Distriparks said the proposed sale of the company’s entire holding in Snowman Logistics to Adani logistics was not completed by March 31. Both parties are in discussion for the completion of the transaction
• Cipla announced the successful completion of the Phase-3 clinical study for a generic version of GSK's Advair Diskus®. According to IQVIA (IMS Health), Advair Diskus® and its generic equivalents had U.S. sales of approximately $2.9 billion for the 12 months through February 2020.
• Reliance Infra has defaulted on the payment of interest obligation amounting to Rs 29.89 crore. The company said its total financial indebtedness stood at Rs 6,190 crore as on March 1, 2020.
• Cadilla received the final approval from the U.S. FDA to market Lamotrigine Extended-Release Tablets USP. This medication is indicated for the treatment of certain types of seizures and will be manufactured at the group’s manufacturing facility at SEZ, Ahmedabad.
• Jubilant FoodWorks has partnered with ITC Foods to deliver everyday grocery essentials offered by ITC Foods
• TVS Motor March total sales fell 55.5 percent year-on-year to 1,44,739 units.
• Fitch cut Future Retail’s long-term Issuer Default Rating to “B-“ and placed it under Rating watch negative.
• Cyient said that it has been providing Telangana State Police with drone-based surveillance technology to implement the Covid-19 lockdown.
• Pharmaceutical companies in focus: U.S. FDA has issued letters to all manufacturers of Ranitidine across dosage forms requesting withdrawal of all prescription and over-the-counter ranitidine drugs from the U.S. market.

Covid-19 Impact

• Sterlite Technologies stated in its con-call that the company’s China plant is at operating at pre-Covid utilisations. The Brazil plant has been operational, while the Italian is expected to restart by April 6. The company is not carrying a significant amount of inventory and services projects in India are on a temporary pause. The company reported an additional order book of Rs 1,500 crore during mid-Feb. from clients.
• Indian Oil Corporation has invoked force majeure to defer some cargoes for the month of April. It has sought to defer 4 VLCC cargoes from the Middle-East.
• Apollo Tyres stated that its Hungarian plant has been closed down.
• Seamec stated in its press release that contract with Posh Subsea for the company’s vessel concluded on March 31 due to Covid-19, causing difficulties in operation in the offshore field.

Bulk Deals

• Paisalo Digital: Antara India Evergreen Fund acquired 2.65 lakh shares (1.04 percent) at Rs 159 per share and Davos International Fund sold 2.65 lakh shares (1.04 percent) at Rs 159 per share.

Who’s Meeting Whom

• Tata Steel to meet Legal & General Investment Management on April 3
• Great Eastern Shipping to meet UTI MF, Pramerica and One Up Financial on April 3

Trading Tweaks

• Ircon International ex-date for share split (from face value at Rs 10 to Rs 2 per share)
• Sadhna Nitrochem ex-date for share split (from face value at Rs 5 to Rs 1 per share)
• Price Band Revised From 20 Percent To 10 Percent: Cholamandalam Financial Holdings, Blue Star
• Price Band Revised From 10 Percent To 5 Percent; Mangalam Organics, KRBL, AAVAS Financiers, Finolex Cables, Indo Rama Synthetics, Himatsingka Seide

Insider Trading

• Sobha promoter Ravi Menon acquired 1.13 lakh shares from March 30-31
• GMR Infra promoter GMR Enterprises acquired 1 crore shares from March 26-30
• HFCL promoter Anant Nahata acquired 21.75 lakh shares on March 31
• NOCIL promoter Suremi Trading acquired 5 lakh shares from March 30-31
• Mahindra CIE Automotives promoter P.I.A. Dos acquired 1.25 lakh shares from March 30-31
• JMC Projects promoter Kalpataru Power Transmission acquired 6.05 lakh shares on March 31

(As Reported On April 1)

Money Market Update

• The rupee ended weaker at Rs 75.54 against the dollar on Tuesday versus Rs 75.42 against the dollar on Monday. (Currency markets closed from April 1-2)