Stocks To Watch: HDFC, Godrej Consumer, Dr. Reddy’s, IDFC First Bank, GSFC, SRF, Cement Companies

Asian equity markets began the new trading week on a negative note as investors brace for the onset of the corporate earnings season and the uncertainty surrounding the Covid-19 impact on the same.

Markets in Japan and South Korea are retreating in early trade as are futures in the United States. Markets in Hong Kong are shut on account of the Easter Holiday.

Here are the stocks to watch in today’s trade

• Dr. Reddy’s Laboratories: Gets Establishment Inspection Report (EIR) from the U.S. FDA for its API manufacturing facility in Telangana indicating closure of the audit. The inspection classification of this facility is determined as Voluntary Action Indicated (VAI).
• HDFC: People's Bank of China hikes stake in the company to more than 1 percent as per the company's March quarter shareholding pattern.
• Zee Entertainment Enterprises: Board to invest a sum of Rs 522 crore in SugarBox over a period of time and will provide operational support including providing performance and corporate guarantees as appropriate and necessary. The company has also authorized SugarBox to finalize the terms of a 10-year contract with RailTel Corporation of India. Company had acquired 80 percent stake in SugarBox in 2017.
• Godrej Consumer: The company in its March quarter update has stated that it will report a revenue decline of high teens during the quarter. The international business is likely to see a mid-single digit sales decline in rupee terms. Distributors will see a low double-digit decline in sales, indicating a fall in stock at the dealership level. The later part of March has seen significant issues with manufacturing, transportation and distribution of essential items, according to its press statement. The company expects the situation to improve in the coming days.
• IDFC First Bank: The private lender's CASA deposits grew 28 percent sequentially, while retail assets rose 32.4 percent year-on-year, according to its March quarter update. On the other hand, wholesale funded assets fell 29 percent to Rs 40,415 crore compared to last year.
• Kotak Mahindra Bank: Top leadership team takes 15 percent salary cut for fiscal year 2021. Uday Kotak has opted to forgo his salary and will receive Re. 1.
• ITI: Defence Research and Development Organisation and the company are likely to ink a deal soon to produce portable ventilators.
• Piramal Enterprises: Board accepted the resignation of Arundhati Bhattacharya as an Independent Director with effect from April 16. She has indicated that the reason for her resignation is her decision to accept a full time role as Chairperson and CEO in another company and accordingly she needs to discontinue her existing non-executive assignments.
• Havells: During the fiscal year 2020, 1.36 crore shares of the company were settled by promoter entity ARG Family Trust. Settlement of shares of promoter group QRG Investments, which is an NBFC has also been completed upon RBI approval, in compliance of SEBI order.
• Gujarat State Fertilizers & Chemicals: Various plants are expected to start production between April 13-30. Methanol plant is expected to start the first week of June.
• SRF: Few plants belonging to the essential goods value chain in the Dahej Chemicals Complex have resumed operations, in-line with permissions from local authorities.
• India Grid Trust: Board approved the acquisition of Gurgaon Palwal Transmission from Sterlite Power for up to Rs 1,080 crore. Assets Under Management of the trust is expected to grow by 9 percent to Rs 13,300 crore. Board also approved amendment of the trust deed to enable the its foray into solar energy.
• Cadila Healthcare: Zydus gets tentative U.S. FDA approval for Empagliflozin tablets. The medicine is used to improve blood sugar and reduce cardiovascular risk.
• SMS Lifesciences: The U.S. FDA ban on Ranitidine drugs from the U.S. market and the lockdown due to Covid-19 can impact the revenue of the company.
• SMS Pharma: Not sold any Ranitidine API for commercial distribution in the U.S. Whatever quantities sold are for drug product development. Commercial supplies of Ranitidine HCI drug substance to the U.S. market is delayed by 9-10 months and may start by the end of Calender year 2020.
• Camlin Fine Sciences: Resumes trial production at its manufacturing unit in Dahej.
• National Fertilizers: ICRA downgraded long-term cash credit limits and term loans worth Rs 6,167.75 crore to AA- from AA. Outlook is revised to stable from negative. The rating downgrade factors in the weakening cost competitiveness of the company in urea operations, arising from a sharp rise in energy consumption levels in the current fiscal, which was brought about by unscheduled plant outages.
• VST Tillers Tractors: Power Tillers sales in March down 59 percent to 1,585 units while Tractors sales fall 61 percent to 390 units.
• AU Small Finance Bank: RBI has approved appointment of Raj Vikash Verma as part-time chairman with effect from April 8. RBI has also approved re-appointment of Sanjay Agarwal as MD and CEO for period of three years with effect from April 19.
• Gujarat Fluorochemicals: Plants at Ranjitnagar and Dahej resumed operations on April 8 after necessary permissions from Government authorities.
• Jubilant Lifesciences: Company's bank loan facilities are placed under rating watch by CRISIL. Rating on the company's commercial programme is reaffirmed as A1+.

Bulk Deals

• Mangalam Cement: India Capital Fund sold 8.32 lakh shares (3.12 percent) at Rs 150.03 per share.
• MCX: Club Millionaire Financial Service PMS sold 3.34 lakh shares (0.66 percent) at Rs 999.35 per share.
• Sequent Scientific: Infinity Holdings acquired 1 crore shares (4.03 percent) at Rs 78.01 per share while TIMF Holdings sold 75 lakh shares (3.02 percent) and CVR Enterprises sold 25.19 lakh shares (1.01 percent) at Rs 78 per share, respectively.

Pledged Share Details

• Embassy Office Parks REIT: Sponsor Embassy Property Developments released pledge of 1 crore units on April 7 in favour of Kotak Mahindra Investments.
• Jindal Steel & Power: Promoters revoked pledge of 8.6 crore shares between April 1-8.

(As Reported On April 9)

Trading Tweaks

• Price Band Revised To 5 Percent From 10 Percent: Karur Vysya Bank, Sharda Cropchem
• Price Band Revised To 10 Percent From 20 Percent: GVK Power, Sicagen India, Alembic
• Move Into Short-Term ASM Framework: PI Industries, RPG Life, Solara Active, IIFL Securities, Aarti Drugs, SMS Pharma, GVK Power, Dhanuka Agritech
• Moves Out Of Short-Term ASM Framework: Indian Terrain Fashions.

F&O Cues

• Nifty April futures closed at 9,086.7, a discount of 25 points as against a premium of 1.8 points on Wednesday
• Nifty April futures add 8 percent in Open Interest and 7.1 lakh shares
• Nifty Bank April futures closed at 19,768.3, a discount of 145 points as against a discount of 57 points on Wednesday
• Nifty Bank April futures add 15 percent in open interest and 1.4 lakh shares
• Nifty Put-Call Ratio at 1.48 Versus 1.3 across all series

Nifty: April 16 Expiry

• Maximum Open Interest on Call side at 9,500 strike (8.5 lakh shares)
• Maximum Open Interest on Put side at 8,000 strike (10.8 lakh shares)
• 8,500 Put (6.5 lakh shares), 8,000 Put (6 lakh shares) and 9,000 Put (4.5 lakh shares) see Open Interest addition.

Nifty: April 30 Expiry

• Maximum Open Interest on Call side at 10,000 strike (15.1 lakh shares)
• Maximum Open Interest on Put side at 8,000 strike (25.5 lakh shares)