Stocks To Watch: Hindalco, JSW Steel, Motherson Sumi, Zee, Future Group

Asian stocks are mixed on Wednesday morning as investors look at earnings to gauge the economic impact of the Covid-19 outbreak. The dollar has held its losses while the Yen has edged higher.

Markets in Japan are declining while those in Australia trade with modest gains. Futures in the U.S. are retreating after benchmark indices surged to a one-month high on Tuesday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was flat at 9,206 as of 7:20 a.m.

Here are the stocks to watch in today’s trade:

• Hindalco: Completes acquisition of Aleris at an Enterprise Value of $2.8 billion.
• Zee Entertainment: The company in a conference call stated that the acquisition of Sugarbox will help its digital initiative Zee-5. Overall cash outflow is for capex is seen at Rs 300 crore. The remaining Rs 222 crore is royalty and operating expenditure. The company has guided for an average revenue of Rs 10-12 per user per month. On its peak, the company expects Rs 12-15 per user per month. The company has also stated that its free cash flow guidance may change due to the current scenario.
• Diagnostic Players: Metropolis, Thyrocare and Dr Lal Pathlabs in focus after Bloomberg News reports that the Supreme Court has allowed private labs to charge a fee to conduct Covid-19 tests. The court clarified that Covid-19 tests at private labs will only be free to the poor.
• JSW Steel: Moody's reviews the rating for a downgrade. Outlook has been revised to ratings under review from stable.
• Motherson Sumi: The company does not see any change in contracts or program with most customers wanting to catch up on the lost production time due to pent up demand. The company in a press release stated that production levels in China have risen to pre-Covid-19 levels. The release further stated that it has received positive reopening dates for vast majority of its plants in India, Europe and the United States which are currently shut temporarily. The company's net debt is the lowest in the last 11 quarters at Rs 7,150 crore on a consolidated basis. The Board of Directors has accorded an in-principle approval to raise up to Rs 1,000 crore. It also does not have any major debt maturities in the next 12 months.
• Hero MotoCorp: Operations to remain suspended till May 3
• Maruti Suzuki: Suzuki Motor Gujarat extends production suspension till further notice.
• Dr Reddy's Laboratories: Launches Amphetamine Sulfate Tablets USP and a generic version of NitroDur in the U.S. Market.
• Biocon: The company along with Mylan has launched Fulphila, a biosimilar to Neulasta in Australia. The drug is approved by the Therapeutic Goods Administration for the treatment of cancer patients post Chemotherapy.
• Tata Motors: Bloomberg News reports that the Tata Group has asked JLR's outgoing CEO Ralf Speth to delay his retirement to help the company get through the pandemic. Speth had earlier announced his retirement in September after his contract ends.
• UPL: The company in a press release has stated that all factories around the world remain in operation following enhanced internal safety guidelines.
• IRCTC: The Ministry of Railways says that the cancellation of passenger train services has been extended to May 3. For the canceled trains, full refund of fares shall be arranged to passengers. No more advance reservations hall be made and online booking of e-tickets have also been suspended until further advice.
• DCB Bank: The lender in its quarterly update has reported a two percent growth on a sequential basis during the March quarter. While CASA deposits declined six percent, gross advances remained flat at Rs 25,677 crore. As of March 31, the Liquidity Coverage Ratio of the bank is over 130 percent.
• Mishra Dhatu Nigam (MIDHANI): The company shared its FY20 update where variation order proposal rose 21 percent to Rs 985 crore while sales turnover remained flat at Rs 711.37 crore.
• Apollo Tyres: To consider issue of Non-Convertible Debentures (NCDs) at its board meeting on April 17.
• Future Enterprises: Brickwork places credit rating of NCDs on credit watch with negative implications on account of ongoing challenges faced in maintaining liquidity buffers due to significant decline in operational cash flows due to severe impact on the company / group operations due to Covid-19.
• Future Retail: Brickwork downgraded credit rating on NCDs to A+ with credit watch with negative implications from AA- on account of ongoing challenges faced in maintaining liquidity buffers due to significant decline in operational cash flows due to severe impact on the company / group operations due to Covid-19.
• SpiceJet: Chairman Ajay Singh says that the company is engaging with the government for help on a daily basis. He has urged to include Jet fuel under the GST and said that current airport contracts raise total costs for aviation players, as per a Bloomberg News report.
• Aviation Stocks: Interglobe Aviation and SpiceJet will be in focus after the government banned all domestic and international flights until May 3 in view of the prevailing lockdown to combat the Covid-19 outbreak.
• Maruti Suzuki: Has extended free service, warranty and extended warranty services scheduled to expire between March 15-April 30 to June 30.
• Indian Oil Corporation: Says that it is importing crude oil to strengthen India's strategic petroleum reserves while taking advantage of the prevailing low prices as guided by the Oil Ministry.
• Indian Hotel: To consider raising Rs 150 crore via NCDs on April 17
• Trident: The company said that it will start manufacturing medical textiles like face masks, hazmat suits and medical stationery. It said that it has received interest from Government agencies and foreign buyers.
• Galaxy Surfactants: The company stated that a blast took place in a small intermediate feed tank at its M-3 plant in Tarapur on April 13 leading to two fatalities and three injuries. The company had requisite approval to operate during the lockdown and was adhering to all guidelines.
• V-Mart Retail: Overall operations of the company have been adversely impacted due to the temporary lockdown. Only three retail stores are operational, as per the press release.
• Muthoot Finance: Moody's has revised the company's outlook to negative from stable. The ratings agency has attributed the widening spread of the coronavirus, deteriorating global economic outlook, volatile oil prices and decline in asset prices, leading to a severe and extensive credit shock across many sectors as the reasons behind the downgrade.

Companies Resuming Operations

• Dalmia Bharat: Starts manufacturing hand sanitisers at its distillery units in Uttar Pradesh and Maharashtra
• Asahi Songwon: Resumes operations at manufacturing plants from April 13.
• Vardhman Textiles: Starts partial operations at its spinning units in Punjab, Himachal Pradesh and Madhya Pradesh
• DFM Foods: Resumes partial operations at Uttar Pradesh plants
• Welspun Corp: Has partially started operations at its Anjar plant. It has also resumed coating operations at its Saudi Arabia unit.

Pledged Share Details

• JSW Energy: Promoters revoked pledge of 30 lakh shares on April 9
• Zee Learn: Promoters invoked pledge of 1.6 crore shares between April 8-9
• Ashok Leyland: Promoter Hinduja Automotive created pledge of 2.42 crore share on April 7.
• Sun Pharma: Promoter Raksha Valia released pledge of 36.5 lakh shares between April 7-9

(As Reported On April 13)

Trading Tweaks

• Price Band Revised To 5 Percent From 10 Percent: Astron Paper & Board Mill, GE T&D India, HEG, Prism Johnson, Ramkrishna Forgings, Tata Steel Long Products
• Price Band Revised To 10 Percent From 20 Percent: ITI, Neuland Laboratories
• Move Into ASM Framework: Artemis Medicare Services, Sintex Industries, CG Power
• Move Into Short-Term ASM Framework: Filatex India, Excel Industries, IOL Chemicals and Pharma, Skipper, Apex Frozen Foods, Andhra Cements, Sequent Scientific
• Move Out Of Short-Term ASM Framework: IFB Agro, Ajanta Pharma, NIIT, Vardhman Textiles, Indoco Remedies.

F&O Cues

• Nifty April futures end at 9,011; a premium of 17 points against a discount of 25 points.
• Nifty April futures shed 3 percent in Open Interest and shed 2.9 lakh shares
• Nifty Bank April futures end at 19,484; a discount of 3.9 points againt a discount of 145 points
• Nifty Bank April futures shed 4 percent in Open Interest and shed 45,000 shares
• Nifty Put-Call Ratio at 1.39 Versus 1.48 across all series

Nifty: April 16 Expiry

• Maximum Open Interest on Call side at 9,500 strike (14.3 lakh shares)
• Maximum Open Interest on Put side at 8,000 strike (18.5 lakh shares)
• 8,000 Put (7.7 lakh shares), 10,000 Call (7.3 lakh shares) and 9,500 Call (5.7 lakh shares) see addition in Open Interest

Nifty: April 30 Expiry

• Maximum Open Interest On Call side at 9,000 strike (16.1 lakh shares)
• Maximum Open Interest on Put side at 8,000 strike (24.5 lakh shares)

Active Stock Futures