Stocks To Watch: Fortis Healthcare, IDBI Bank, IFCI, Infosys, VRL Logistics

Asian stocks fluctuated at the open amid a lack of fresh impetus after an apparent easing of trade tensions between the U.S. and China triggered a buoyant session Tuesday for global equities and a renewed vigor in favor of risk appetite.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded flat at 10,426 as of 7:05 a.m.

Here Are The Stocks To Watch Out For In Wednesday’s Trade

• Fortis Health get revised offer from Manipal Health Group after opposition from minority shareholders.
• MGL promoter BG Asia Pacific Holdings Pte to sell 74 lakh shares (7.5 percent stake) at floor price of Rs 905.
• Infosys Ltd. partnered with communications services provider Calix to develop and deliver new software modules and services.
• Lemon Tree Hotels signed contract to operate 120 room hotel in Vijaywada that is expected to be operational by March 2021.
• AU Small Finance bank increased deposit rate on savings account for balances between Rs 1 lakh–10 lakh by 50 basis points and Rs 10 lakh–10 crore by 25 basis points.
• IFCI revised benchmark rate to 9 percent from 8.8 percent effective from April 12.
• Dolly Khanna bought 1.04 percent stake in Associated Alcohols as per March 2018 shareholding pattern.
• Binani Industries received shareholders’ approval to sell assets.
• IDBI Bank said Shree Renuka Sugar stake at 9.5 percent after conversion of debt to equity.
• Canada Pension Fund invested additional Rs 938 crore in Phoenix Mills unit; raises stake to 49 percent.
• HFCL won order worth Rs 579 crore from BSNL.
• Star Cement says received Rs 80.26 crore towards subsidies from central government.
• Oricon enterprises partnered with Indiabulls Real Estate subsidiary for joint development of Worli property.

F&O Setup

• Nifty April futures closed trading at 10,421.5 with a premium of 19.3 points from 14.6 points.
• April series: Nifty open interest up 1 percent, Bank Nifty open interest up 14 percent.
• India VIX ended at 14.5, down 2.3 percent.
• Max open interest for April series at 10,500 call strike (open interest at 41.6 lakh, up 5 percent).
• Max open interest for April series at 10,000 Put (open interest at 45.6 lakh, down 1 percent).

F&O Ban

• In ban: Jet Airways, Balrampur Chini
• New in ban: Balrampur Chini

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Bulk Deals

• APL Apollo Tubes: WF Asian Reconnaissance Fund bought 5 lakh shares or 2.1 percent equity at Rs 2,140 each.
• Supreme Industries: SmallCap World Fund sold 17.99 lakh shares or 1.4 percent equity at Rs 1,205 each.
• VRL Logistics: Morgan Stanley Mauritius Co sold 5.26 lakh shares or 0.6 percent equity at Rs 389.22 each.

Brokerage Radar

Macquarie on Indian Aluminium

• Expect Aluminium and Alumina prices to rise on Norsk Hydro shutdown and U.S. sanction on Rusal.
• Continue to assess developments, but a positive impact in short term is apparent.
• Hindalco, NALCO and Vedanta to benefit.
• NALCO is most sensitive to prices; Hindalco is top pick on these events.

Jefferies on NTPC

• Maintained ‘Buy’ with a price target of Rs 205.
• Ended previous fiscal on a strong capacity note.
• Coal availability issues of third quarter are resolving; Expect normalcy by September.
• Regulated ROE during the fiscal 2020-2024 could positively surprise.
• Expect 11 percent compounded growth rate in earnings over the fiscal 2017-2020.
• Capacity driven earnings growth to re-rate stock over next 12 months.

Investec on Finolex Industries

• Maintained ‘Buy’; cut price target to Rs 737 from Rs 763.
• Earnings depends on resin spreads.
• Management pursuing volume growth at cost of margins.
• No price hike unlike peers as focus still on market share gains.
• Finolex trading at a discount to peers.

Macquarie on Eicher Motors

• Maintained ‘Outperform’ with a price target of Rs 37,000.
• Enfield dealer checks confirm strong demand.
• Royal Enfield demand to remain higher than production in the current financial year.
• Waiting period of 15-90 days on key models.
• Expect 25% net profit CAGR over next two years.

UBS on Dr. Reddy’s

• Maintained ‘Neutral’; cut price target to Rs 2,420 from Rs 2,550.
• Expect revenue growth to be subdued in the near term.
• Opportunity size in gSuboxone might be constrained due to introduction of more generics.
• Dr. Reddy’s needs more than one big product approval for stock to move up.
• Increased competition and delays in approvals to weigh on the current fiscal’s earnings.
• Stock already pricing in a recovery in the current financial year.

HSBC on SAIL

• Upgraded to ‘Hold’ from ‘Sell’; hiked price target to Rs 88 from Rs 84.
• Demand recovery and benign pricing environment to result in another strong quarter.
• Completion of modernisation and expansion projects to improve profitability.
• Expect average volume growth of 11 percent and operating income growth of 46 percent over the fiscal 2019-2020.
• Expect SAIL to return to profitability in the current fiscal for the first time in four years.
• Lower margins and inefficient capital allocation remain concerns.

Edelweiss on Future Consumer

• Initiated ‘Buy’ with a price target of Rs 77.
• Future Consumer is a long-term play on India’s evolving consumption segment.
• Future Consumer has efficiently leveraged Future Retail’s retail muscle.
• Tapping emerging categories with innovative offerings.
• Differentiated and prudent pricing strategy ensuring desired traction.
• Expect revenue CAGR of 42.5 percent and operating margin to expand by 379 basis points over the fiscal 2017-2020.
• Expect the company to turn profitable from the current financial year.

HSBC on Future Retail

• Maintained ‘Buy’ with a price target of Rs 730.
• Implemented ‘everyday low price’ strategy emulating its rival Avenue Supermarts.
• Future aims to match or better its prices relative to DMart.
• Future has significantly upped its game in value retailing.
• Expect this move to improve store throughput and augment SSSG growth.

Morgan Stanley on Bharti Airtel

• Maintained ‘Overweight’ with a price target of Rs 535.
• Media reports suggest Airtel to sell Kenya operations.
• Airtel in the past has stated that Kenya operations need to be fixed.
• If news is correct then regulatory approvals would be key.

Credit Suisse on Amber Enterprises

• Amber is room-AC manufacturer for leading brands.
• Company expanding footprint in non-AC and more components.
• 9MFY18 bodes well; Better returns on growth/leverage.
• Chinese imports have lost ground; India exporting now.