Stocks To Watch: Goodyear India, Lakshmi Vilas Bank, Phoenix Mills, Tata Motors, Yes Bank

Stocks in Asia opened mixed after a dip in U.S. equities, with investors assessing the latest on trade and American politics.

Shares in Tokyo and Seoul fell, while Australian equities gained. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.26 percent to 11,599.50 as of 7:30 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 Out For In Today’s Trade

• Yes Bank promoter Rana Kapoor sold more stake in the company to repay debt of his privately held firm, bringing down the family’s ownership in the private lender he co-founded. Yes Capital (India) Pvt. Ltd. on Thursday sold a 1.82 percent stake in the bank for Rs 241.52 crore, according to a statement. The firm sold 4.65 crore shares at Rs 51.94 apiece, according to the bulk deals data on the National Stock Exchange’s website. It now holds 1.15 percent in the private lender. According to BloombergQuint calculations, Kapoor family’s holding in the Yes Bank now stands at 5.58 percent.
• Phoenix Mills: Promoters are planning to sell 38 lakh shares, or 2.5 percent stake, in the company in via secondary placement, according to terms for the deal obtained by Bloomberg. The deal has option to upsize the offering to 55 lakh shares, or 3.6 percent stake in company. The offering floor price set at Rs 665/share. Base deal size at $36 million with an option to upsize up to additional $16 million. (Bloomberg News)
• Tata Motors: Jaguar Land Rover plans to close its U.K. factories for a week in November to guard against disruption from a possible no-deal Brexit, Chief Executive Officer Ralf Speth said. The shutdown will go ahead whether or not Britain seeks an extension to the Oct. 31 deadline for leaving the European Union. The decision means the unit of Tata Motors Ltd. will lose production after its usual August maintenance closure was brought forward to April as part of preparations for the original March 29 Brexit date.
• Lakshmi Vilas Bank said that Economic Offences Wing has registered FIR under "complaint for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy upon the Directors of the Board.” The FIR is based on a complaint filed by Religare Finvest pertaining to adjustment of their deposits to the dues of RHC Holding & Ranchem. The bank is considering appropriate measures to counter the same.
• Sastasundar Ventures: Mitsubishi Corporation to invest Rs 100 crore in the company’s arm.
• Goodyear India to close its manufacturing operations in Haryana from Sept. 27-Oct. 2.
• Quess Corp allotted 7.54 lakh shares at Rs 676 per share aggregating to Rs 51 crore Amazon.com arm via preferential allotment.
• Morepen Laboratories has put its meeting on hold to consider preferential issue of fully convertible warrants to the promoter group.
• Minda Corp: Sanjay Aneja resigned from post of Chief Financial Officer with effect from Sept. 25. Laxman Ramnarayan appointed as the new CFO.
• ITI launched cloud services and digital solutions for public entities, SME and Startups in India.
• Unitech stated that it has received show cause notice from Noida Authority.
• Tobacco Stocks: DGFT said import of electronics cigarettes is prohibited. (Bloomberg News)
• MMTC has invited bids to import 2,000 tonnes of onions. (Bloomberg News)
• Greenply Industries: SBI MF decreased stake to 3.29 percent from 4.37 percent in the company.
• Sterling and Wilson Solar dissolved its Brazilian arm.
• Reliance Capital: Brickwork downgraded rating on company’s secured NCDs program, market linked debentures and subordinated debt to ‘D’ due to delay in interest payment for NCDs. According to the company, the payment could not go through due to technical glitch in bank servers and was delayed by one day.

Pledge Share Details

• PVR promoters released pledge of 73 lakh shares on Sept. 23.
• Max Financial Services promoter Max Ventures Investment Holdings created pledge of 1.7 lakh shares on Sept. 24.
• Gati promoter TCI Finance revoked pledge of 1 lakh shares on Sept. 23.
• Adani Enterprises promoter Gautam Adani created pledge of 46.75 lakh shares on Sept. 24.
• Kalpataru Power Transmission promoters revoked pledge of 4 lakh shares on Sept. 24.
• JSW Energy promoter Danta Enterprises created pledge of 10 lakh shares on Sept. 23.
• Emami promoters created pledge of 1cr shares from Sept. 23-24.
• Adani Transmission promoter group Gautam Adani created pledge of 1.79cr shares on Sept. 24.

Trading Tweaks

• Supershakti Metaliks record date for bonus share issue at 1:1.
• Aarti Industries ex-date for bonus share issue at 1:1.
• Monsanto ex-date for amalgamation.
• Precision Camshafts to move into short term ASM Framework.
• DCM, Kridhan Infra, Man Industries, IL&FS Investment Managers to move out of short term ASM Framework.
• Reliance Infrastructure, Reliance Capital, Arvind, Birlasoft, Engineers India, Hindustan Zinc, IDBI Bank, Kajaria Ceramics, MCX, Oracle Financial Services Software, Raymond, DHFL price band revised to 20 percent.
• V2 Retail price band revised to 10 percent.

Who’s Meeting Whom

• Tata Steel to meet IDFC Securities on Sept. 27
• India Energy Exchange to meet Affirma Capital on Sept. 27.
• Shriram Transport Finance to meet MFC International, Aberdeen Asset Management Asia and other investors on Sept. 27.
• Speciality Restaurants to meet Seers Advisors on Sept. 27.
• Thyrocare Technologies to meet Sundaram Asset Management and Fundsmith LLP from Sept. 30-Oct. 1.
• Lemon Tree Hotels to meet Goldman Sachs, UTI AMC and other investors from Sept. 30-Oct. 1.

Insider Trading

• Tata Power promoter Tata Sons acquired 1.1 crore shares from Sept. 20-23.
• HEG promoter RSWM sold 62,000 shares from Sept. 24-25.
• Greenply Industries promoter SM Management acquired 2.4 lakh shares on Sept. 26.

Money Market Update

• The rupee closed at 70.88/$ versus 71.03/$ on Wednesday.

F&O Cues

Futures

• Nifty October futures closed at 11630.8, premium of 59.6 points.
• Nifty futures across series open interest up 5 percent, adds 10.3 lakh shares in open interest.
• Nifty Bank October futures closed at 30,225, premium of 222 points.
• Nifty Bank futures across series open interest down 7.6 percent, sheds 1.3 lakh shares in open interest.
• Nifty Rollover at 73 percent, Bank Nifty Rollover at 58 percent.

Options

• Nifty PCR at 1.32 versus 1.50 (across all series).

Nifty Monthly Expiry: Oct. 3

• Max open interest on call side at 11,600 (10.6 lakh shares).
• Max open interest on put side at 11,500 (10.7 lakh shares).

Nifty Monthly Expiry: October

• Max open interest on call side at 11,200 (17.2 lakh shares).
• Max open interest on put side at 11,000 (16.8 lakh shares).

Brokerage Radar

BofAML on Container Corp

• Maintained ‘Underperform’ with a price target of Rs 504.
• Structurally sound business with economic moat.
• But strategic sale uncertain and near-term outlook weak.
• Channel check suggest weakness in container volumes in the second quarter.

Morgan Stanley on Maruti Suzuki

• Maintained ‘Overweight’; hiked price target to Rs 8,205 from Rs 7,181.
• PV volumes look to be at trough and should turn from FY21.
• Return of operating leverage to push up margins.
• Maruti best placed for this upcycle.

Morgan Stanley on Jindal Steel and Power

• Maintained ‘Overweight’; cut price target to Rs 139 from Rs 188.
• Profitability in 2019-20 to be resilient despite weak demand.
• Cash flows should meet repayment obligations in 2019-20.
• Cut net profit estimates owing to high operating and financial leverage.

UBS on Yes Bank

• Maintained ‘Sell’; cut price target to Rs 45 from Rs 70.
• Asset quality clean up may take longer than market expectations.
• Share of credit rating downgrades remained high in Jan to mid-Sept 2019.
• Increase credit cost estimates to 2.7 percent and 2.5 percent for the current and the next financial year respectively.
• Reduce EPS estimates by 63 percent and 15 percent for the current and the next financial year respectively.

UBS on Bharti Infratel

• Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 275 from Rs 355.
• Uncertain environment going into 5G.
• 5G will be deployed gradually; do not expect an immediate pick-up in tower demand.
• Lower medium-term tenancy ratios will alter RoIC profile.

UBS on Bharti Airtel

• Maintained ‘Buy’; hiked price target to Rs 415 from Rs 390.
• Solid market share defence positions well for medium term.
• Well positioned for an eventual market recovery.
• New tax rates as announced, which will have limited near-term earnings impact.

UBS on Vodafone Idea

• Maintained ‘Neutral’; cut price target to Rs 6.1 from Rs 19.
• Challenges continue to increase.
• Lower EBITDA estimates by 22-23 percent led by market share loss.
• Barring regulatory or structural change, company's ability to sustain 5G investments is doubtful.

UBS on Reliance Industries

• Maintained ‘Buy’ with a price target of Rs 1,500.
• Believe Jio can transition to 5G in a time-efficient manner.
• Capex for Jio would be lower, due to larger tower footprint and higher proportion of fibre backhaul.
• Fixed broadband – bundled offering attractive, but not disruptive.

Credit Suisse on Indian Telecom

• Mobile pricing unsustainable, but unlikely to change.
• Mobile pricing unlikely to improve meaningfully over the next 18 months.
• Vodafone Idea will need more equity capital to sustain.
• Jio's entry to expand the fixed broadband market.
• Bharti Airtel: Assumed ‘Neutral’; hiked price target to Rs 370 from Rs 294.
• Vodafone Idea: Assumed ‘Underperform’; cut price target to Rs 4.5 from Rs 12.
• Bharti Infratel: Assumed ‘Outperform’ with a price target of Rs 330.

Jefferies on Consumer

• Demand been surprisingly resilient so far, but expect some moderation.
• Input cost to help 2019-20 margins, but bottoming out.
• Recent sharp run-up in select stocks have stretched valuations and made risk-reward less attractive.
• Asian Paints: Downgraded to ‘Hold’ From ‘Buy’; hiked price target to Rs 1,760 from Rs 1,575.
• Britannia: Maintained ‘Hold’; hiked price target to Rs 2,950 from Rs 2,550.
• Colgate: Maintained ‘Hold’; hiked price target to Rs 1,580 from Rs 1,365.
• Dabur: Downgraded to ‘Hold’ from ‘Buy’; maintained price target at Rs 480.
• HUL: Maintained ‘Hold’; hiked price target to Rs 2,020 from Rs 1,900.
• ITC: Maintained ‘Buy’; cut price target to Rs 325 from Rs 360.
• Marico: Maintained ‘Hold’; hiked price target to Rs 400 from Rs 390.
• Nestle India: Downgraded to ‘Hold’ from ‘Buy’; hiked price target to Rs 13,400 from Rs 12,000.
• United Spirits: Maintained ‘Buy’; hiked price target to Rs 770 from Rs 685.