Stocks To Watch: Auto Stocks, Edelweiss, GMR Infra, HDFC Bank, NMDC 
A bird flies past an electronic ticker board indicating stock figures for ITC Ltd. at the Bombay Stock Exchange (BSE) building in Mumbai, India, on Thursday. (Photographer: Dhiraj Singh/Bloomberg)

Stocks To Watch: Auto Stocks, Edelweiss, GMR Infra, HDFC Bank, NMDC 

Treasury yields jumped after Jerome Powell said the Federal Reserve will remain accommodative and shift to a more relaxed approach on inflation. Asian stocks were mixed at the open after their U.S. counterparts eked out modest gains. Stocks rose in Japan and South Korea, but dipped in Australia.

Here are the stocks to watch in trade today:

  • GMR Infra has announced strategic group restructuring to separate non-airport business into a separate unit. Board approved amalgamation of GMR Power Infra with self, followed by demerger of energy, EPC and urban infra business) from the company to its wholly owned arm GMR Power and Urban Infra. Rationale for this reorganization is to separate the Airport business (GMR Infra), with energy, urban infra and EPC business. For every ten equity shares of face value of Rs 1 held in GMR Infra, one equity share of face value of Rs 5 in GMR Power and Urban Infra to be issued to the equity shareholders of GMR Infra. There will be separate listing for both companies. Board approved raising Rs 5,000 crore via issue of securities. Appointed date for this scheme is April 1, 2021.
  • Due to falling FII headroom FTSE will not include/add HDFC Bank, Kotak Mahindra Bank and IndusInd Bank in its indices as earlier planned.
  • Edelweiss Financial Services: Board approved divesting majority stake (51%) in company’s wealth management business to private investment firm PAGAC. The wealth management arm will issue compulsory convertible debentures to PAGAC for Rs 2,204 crore and simultaneously primary issuance of securities by the company worth Rs 140 crore to the wealth management arm, PAGAC Ecstasy and other shareholders in the company. Board has also given in principle approval to whole or part of asset management business of the Group to a strategic investor and to explore fund raising opportunities, including option to raise capital from strategic investors for the general insurance business of the Group. Wealth management business (along with merchant banking business) will be demerged from the company and subsequently listed, subject to approvals.
  • Sun Pharma’s chairman Israel Makov stated in company’s annual general meeting that the company is evaluating the potential of some existing products which can be useful in Covid-19 treatment. These include Nafamostat Mesilate and the phyto-pharmaceutical, AQCH. Both these products are currently undergoing Phase-2 trials in India. Company is targeting new markets like Japan and Greater China for specialty products.
  • Allcargo Logistics: Board has considered the delisting proposal and has appointed Inga Ventures as as merchant banker. After receipt of the due diligence report from the merchant banker, the board will meet again to discuss the delisting proposal in detail.
  • NMDC: Board has given in-principle approval for the proposal to demerge its NMDC Iron & Steel Plant in Nagarnar, Chhattisgarh.
  • ACC has appointed Yatin Malhotra as the new CFO with effect from Sept. 1. He was the ex-CFO of Whirlpool India.
  • Ambuja Cements has appointed Rajani Kesari as the new CFO with effect from Sept. 1. She is currently the CFO of the company’s arm ACC.
  • Repco Home Finance: Aditya Birla Sun Life MF increased stake from 4.87% to 6.14%.
  • V2 Retail said that it has opened 4 new retail stores and closed 4 retail stores. Currently 74 retail stores are operational.
  • HCC won three projects worth Rs 7,402 crore which were won in a joint venture in the months of July and August. Company’s share in these orders are Rs 3,337 crore.
  • Atul Auto: Aditya Birla Sun Life MF reduced stake from 5.01% to 2.74% on Aug.25
  • General Insurance Corporation: Atanu Kumar Das, MD and CEO of Bank of India has been appointed as director on board of the Corporation.

Other Earnings

NMDC Q1 (Standalone, YoY)

  • Revenue down 40.6% at Rs 1,937.5 crore (Est Rs 2,075 crore)
  • Net profit down 54.8% at Rs 532.9 crore (Est Rs 640 crore)
  • Ebidta down 59.6% at Rs 754.9 crore (Est Rs 826 crore)
  • Margins at 39% versus 57.2%
  • 23.94 LT of sale of iron ore impacted by Covid-19
  • Sales down 28% at 62.75 LT

Edelweiss Financial Services Q1 (Consolidated,YoY)

  • Net interest income down 87% to Rs 53.3 crore
  • Net loss of Rs 245 crore versus Net profit of Rs 132 crore

Earnings Today

  • Apex Frozen Foods
  • Filatex
  • Khadim
  • SJVN

Pledged Share Details

  • Shilpa Medicare promoter Ramkant Inani released pledge of 9 lakh shares on Aug.27
  • Adani Enterprises promoter SB Adani Family Trust created pledge of 76 lakh shares on Aug.26
  • Motherson Sumi promoter Samvardhana Motherson International revoked pledge of 90 lakh shares on Aug.21
  • JSW Energy promoters created pledge of 86 lakh shares from Aug.25-26
  • Astron Paper & Board Mill promoter Kirit Patel created pledge of 21 lakh shares on Aug.21

(As Reported On Aug.27)

Who’s Meeting Whom

  • Shriram City Union Finance to meet Motilal Oswal Private Equity Advisors on Aug.28
  • Credit Access Grameen to meet Nomura, Kotak MF and investors from Aug.31-Sept.4
  • Mahanagar Gas to meet Bank of America on Aug.28
  • Lasa Supergenerics to meet Abakkus AMC, Motilal Oswal Securities and Equentis Wealth on Aug.28
  • Polycab to meet Spark Capital and Philip Capital on Aug.28

Bulk Deals

  • Wendt: Plutus Wealth Management acquired 13,040 shares (0.65%) at Rs 3,800.12 per share.
  • Ceat: Westbridge Crossover Fund sold 4.07 lakh shares (1.01%) at Rs 950 per share.
  • Liberty Shoes: Equity Intelligence India sold 1.91 lakh shares (1.12%) at Rs 172.55 per share.
  • Saint Gobain Sekurit: Plutus Wealth Management acquired 12.47 lakh shares (1.37%) at Rs 65.71 per share.
  • Thejo Engineering: Equity Intelligence India acquired 50,000 shares at Rs 675.11 per share and India Opportunities Fund sold 1.71 lakh shares at Rs 679.81 per share. Alert: Company is listed in NSE Emerge (SME Platform).

Trading Tweaks

  • AGM Date: Ashok Leyland, Ramco Industries, Ramco Systems, Abbott India, Fermenta Biotech.
  • Fund Raising: Birla Tyres, J&K Bank, Indiabulls Venture.
  • Listing: Max India.
  • Delisting (Board Meeting): Xchanging Solutions.
  • Record Date For Share Buyback: Triveni Engineering.
  • Price Band Revised From 10% To 5%: Dish TV, Bharat Wire Ropes.
  • Price Band Revised From 20% To 10%: Wendt, Usha Martin.
  • Price Band Revised From No Band To 20%: Century Textiles, Equitas Holdings, Ujjivan Financial Services.
  • Move Into ASM Framework: CIL Nova Petrochemicals, Affle, Bharat Wire Ropes, Intrasoft Technologies, JHS Svendgaard Laboratories, Arrow Greentech.
  • Move Into Short Term ASM Framework: Allsec Technologies, Wendt, SORIL Infra Resources, Shanthi Gears, A2Z Infra Engineering.
  • Move Out Of Short Term ASM Framework: Entertainment Network, Aries Agro, Trigyn Technologies, Jaiprakash Associates, Future Enterprises, Maan Aluminium, Intrasoft Technologies, Paushak.

Insider Trades

  • Godrej Industries promoter Godrej Seeds & Genetics acquired 73,000 shares from Aug.21-28
  • Alembic promoter Nirayu acquired 3.28 lakh shares on Aug.26
  • Jamna Auto promoter Map Auto acquired 53,000 shares on Aug.25
  • Somany Ceramics promoters acquired 3 lakh shares from Aug.25-26
  • Ultratech Cement promoter Pilani Investment sold 1.3 lakh shares on Aug.21
  • KEC International Instant Holdings acquired 61,650 shares on Aug.26

(As Reported On Aug.27)

F&O Cues

  • Nifty August futures closed at 11,580; premium of 21 points versus premium of 5 points
  • Nifty August futures Open Interest up 39%, adds 44,000 shares in Open Interest
  • Nifty Bank August futures closed at 23,602; premium of 2 points versus premium of 27 points
  • Nifty Bank August futures Open Interest up 33%, adds 13,000 shares in Open Interest
  • Nifty Put Call Ratio at 1.47

Nifty Weekly Expiry: Sept 3

  • Max Open Interest on call side at 12,000 strike (15.5 lakh shares)
  • Max Open Interest on put side at 11,500 strike (19.3 lakh shares)
  • Active options: 11,500 Put (7.9 lakh shares), 12,000 Call (12.1 lakh shares)

Nifty Monthly Expiry: Sept 24

  • Max Open Interest on call side at 12,000 strike (18.9 lakh shares) Max Open Interest on put side at 11,000 strike (27.6 lakh shares)
Stocks To Watch: Auto Stocks, Edelweiss, GMR Infra, HDFC Bank, NMDC 
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