Brokers watch their screens during trading hours inside a dealing room at a bank in Mumbai. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Stocks To Watch: Axis Bank, Hindalco, GSK, HPCL, IOC, Indraprastha Gas, NTPC

Asian stocks built on the best weekly rally since September, stoked by hopes for trade talks and China stimulus. That offset underwhelming news from Apple Inc. that weighed on Nasdaq futures.

South Korean stocks led the advance, and along with rising Japanese shares took this week’s rally close to 3 percent. Gains came after a phone call between Presidents Donald Trump and Xi Jinping showed the door is still open for U.S.-China trade talks.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, gained 0.8 percent to 10,495 as of 7:15 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 In Today’s Trade:

  • Hindustan Petroleum Corporation said it will shut its crude unit in Mumbai refinery in January-March 2019 for 10 days. The company will take shut downs at both Mumbai and Vizag refinery in financial year starting from April 2019 for Euro 6 Hookups. The state-run refiner may consider importing Iran oil if U.S. grants waivers. It also plans to merge Mangalore Refinery and Petrochemicals with self under integration plan. The deal will take place in six months after board approvals (Bloomberg News)
  • Indraprastha Gas: Supreme Court suggested the company to take over the supply of natural gas in Gurgaon district from Haryana City Gas Distribution Ltd. as an ongoing concern so that the entire dispute can be resolved amicably. Deloitte Haskins and Sells LLP appointed to submit the valuation within four weeks from today or by Nov. 30. Next hearing is on Dec. 6.
  • Goodyear India said it will be shutting down its manufacturing plant in NCR and the boiler operations of the plant from Nov. 4 to Nov. 10 in response to Environment Pollution Authority’s public notice for all industrials regarding pollution control.
  • Deepak Nitrite commenced operations at its phenol and acetone plant. The plant has the capacity to manufacture 200,000 MTPA of phenol and 120,000 MTPA of its co-product acetone.
  • Inox Leisure board approves to issue 64 lakh shares equity shares on a preferential basis to its promoter Gujarat Fluorochemicals at a floor price Rs 241.71 per share.
  • Reliance Industries and its four arms announced an open offer in acquisition of up to 2.88 crore shares, representing 25.64 percent of total voting capital of GTPL Hathway at Rs 82.65 per share aggregating to Rs 238.4 crore.
  • Triveni Turbine board approved share buyback proposal of 66.7 lakh shares representing 2.02 percent of the paid-up equity share capital at Rs 150 per share, aggregating to Rs 100 crore.
  • Tata Consultancy Services acquired London-based digital design studio ‘W12 Studios’. This deal will strengthen digital and creative design capabilities and will be part of TCS Interactive division, the company said.
  • Aarti Industries board approved raising capital by way of equity/debentures to the tune of Rs 750 crore.
  • Daiichi seeks India court stay on Fortis Health Care: Bloomberg News
  • Aegis Logistics statutory auditors—P. D. Kunte & Co. resigned stating they are merging professional practice with another firm of chartered accountants ‘CNK & Associates LLP’ on Oct. 31. The board meeting for the financial results are scheduled for Nov. 5. On this day new statutory auditors will also be chosen.
  • NBCC India: High Court cleared 3 out of 7 developments in Delhi: (Bloomberg News)
  • Network18 Media and Investments received the NCLT nod for merger of 13 arms with itself.

Also read: Eicher Motors’ Royal Enfield Sales Remain Flat In October; Tata Motors Up 18%

Nifty Earnings To Watch

  • Axis Bank
  • Hindalco
  • Indian Oil Corporation
  • NTPC

Other Earnings To Watch

  • Alkem Laboratories
  • Allahabad Bank
  • Bata India
  • Bharat Forge
  • BSE
  • Equitas Holdings
  • Godrej Consumer Products
  • JSW Energy
  • Oracle Financial Services Software
  • Petronet LNG
  • Power Finance Corporation
  • Punjab National Bank
  • Steel Authority of India
  • Sun TV Network
  • Tata Chemicals
  • Whirlpool

Earnings Reactions To Watch

HPCL Standalone (Q2, QoQ)

  • Revenue down 0.2 percent to Rs 67,518 crore
  • Ebitda down 33.5 percent to Rs 2,122 crore
  • Ebitda margin at 3.1 percent versus 4.7 percent
  • Net profit down 36.5 percent to Rs 1,092 crore

GlaxoSmithKline Consumer Healthcare (Q2, YoY)

  • Revenue up 14.4 percent at Rs 1,272 crore
  • Net profit up 43.2 percent at Rs 275.5 crore
  • Ebitda up 36.6 percent at Rs 353.7 crore
  • Margin at 27.8 percent versus 23.3 percent

Aarti Industries (Q2, YoY)

  • Revenue up 46.4 percent at Rs 1,299.5 crore
  • Net profit up 56.6 percent at Rs 122.9 crore
  • Ebitda up 51 percent at Rs 242.1 crore
  • Margin at 18.6 percent versus 18.1 percent

Trent Standalone (Q2, YoY)

  • Revenue up 18 percent at Rs 615.9 crore
  • Net profit up 13.4 percent at Rs 32.9 crore
  • Ebitda up 19.9 percent at Rs 59.1 crore
  • Margin at 9.6 percent versus 9.4 percent

Tata Communications (Q2, YoY)

  • Revenue down 4.2 percent at Rs 4,068.2 crore
  • Net profit at Rs 1.7 crore versus net loss at Rs 248.4 crore
  • Ebitda up 6 percent at Rs 630.2 crore
  • Margin at 15.5 percent versus 14 percent

SRF Consolidated (Q2, YoY)

  • Revenue up 48.9 percent at Rs 1,915.4 crore
  • Net profit up 47.1 percent at Rs 151.2 crore
  • Ebitda up 63.4 percent at Rs 332.7 crore
  • Margin at 17.4 percent versus 15.8 percent

Bulk Deals

8K Miles Software Services: IFCI sold 14.1 lakh shares (4.61 percent) at Rs 67.89 each

Active Stock Futures

  • Nifty October Futures closed trading at 10,413, premium of 33 points
  • Nifty November open interest down 0.2 percent; Nifty Bank November open interest up 7.1 percent
  • Max open interest for November series at 10,700 Call (open interest at 24.7 lakh shares)
  • Max open interest for November series at 10,000 Put (open interest at 50.8 lakh shares)

Brokerage Radar

On HPCL

Deutsche Bank Research

  • Maintained ‘Hold’; hiked target price to Rs 240 from Rs 230, indicating a potential upside of 5 percent from last regular trade.
  • Second-quarter net profit and Ebitda below estimates.
  • Headwinds ahead in the marketing business.

IDBI Capital

  • Downgraded to ‘Accumulate’ from ‘Buy’; Maintain target price at Rs 248; indicating a potential upside of 8 percent from last regular trade.
  • Second-quarter below expectation led by lower than expected sales volume, weaker GRM and higher forex losses.
  • Lower crude price and regular price hike to improve marketing margins.
  • Expect crude oil price to soften and election year would continue to act as an overhang.

Morgan Stanley On HDFC

  • Maintained ‘Overweight’ with target price of Rs 2,400; indicating a potential upside of 36 percent from last regular trade.
  • Net profit below estimates driven by lower net interest income and higher provisions.
  • Loan spread was stable at 2.28 percent

Morgan Stanley On Marico

  • Maintained ‘Equal-weight’ with target price of Rs 320.
  • Second-quarter steady; in-line with estimates.
  • Rise in input cost material impacted Q2 margins.
  • Positives: Steady performance in domestic coconut oil segment and new launches in hair care segment.

IDFC Securities on Indraprastha Gas

  • Maintained ‘Outperform’ for target price of Rs 345; Potential Upside 24 percent.
  • Finally, Gurgaon to come under IGL control.
  • Material growth opens for IGL.
  • IGL’s volume visibility extending comfortably till FY25 by this move.

Deutsche Bank Research on October Auto Sales

  • Heavy truck growth moderates, light truck remain strong.
  • Passenger vehicles growth continues to moderate.
  • Maruti - volume growth muted as expected.
  • Mahindra - SUV growth improves marginally; Expect revival in remainder of FY19.

Nomura on Somany Ceramics

  • Maintained ‘Buy’ with target price of Rs 610; indicating a potential upside of 67 percent from last regular trade.
  • Weak Q2FY19 driven mainly by weak volume growth.
  • Remain positive on growth outlook/pricing/profitability.
  • Think worst of price correction in tiles is now behind.

Nomura on AIA Engineering

  • Maintained Neutral; Cut target price to Rs 1,945 from Rs 1,955.
  • Q2FY19 witnessed strong volume growth.
  • Margins to improve as volume picks up.
  • Stock rally appears to price in the growth; valuations expensive.