Stocks To Watch: JSW Steel, Bharti Airtel, Vedanta, Lakshmi Vilas Bank, Nalco
Asian stocks were off to a muted start Wednesday as investors assessed the latest developments on the Trump administration’s trade policies.
Equity benchmarks climbed in Japan and drifted in Australia and South Korea, while futures showed shares in Hong Kong were poised to decline. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent lower at 11,744 as of 7:05 a.m.
Short on time? Well, then listen to this podcast for a quick summary before the opening bell!
Here Are The Stocks To Watch Out For In Today’s Trade
- LIC will meet on Sept. 04 to consider acquiring 36 percent stake in IDBI Bank. That’s in addition to an approval it won to subscribe to preferential issue of IDBI Bank’s shares.
- Bharti Airtel plans to roll out 9,000 new sites and 4,150 kilometres of optic fiber for financial year 2018-19 in Rajasthan. This announcement is the part of the company’s network expansion plan LEAP.
- Tech Mahindra’s certificate of authorisation for pre-paid card issuance gets cancelled by RBI. The cancellation of the company as Payment System Operator is on account of voluntary surrender of authorisation by the company.
- State Bank of India said that the appropriate authority has accorded approval to explore and initiate the process of divestment of its 3.9 percent stake in National Stock Exchange of India through secondary sale.
- Tata Motors to showcase five new public transport vehicles at the bus and coach exhibition, Busworld India starting from Aug. 29. Under its new turnaround strategy, the company is “aggressively” focusing on introducing new range of products with improved features and modern technological advancements said Rohit Srivastava, product line head.
- Lakshmi Vilas Bank received approval from IRDA to offer general insurance products. The bank had executed a corporate agency agreement with HDFC Ergo General Insurance Company to sell non-life insurance products under open architecture.
- Vedanta awarded 41 out if the 55 oil and gas blocks which were auctioned by the government-under Open Acreage Licensing Policy, according to notice on Directorate General of Hydrocarbons’ website.
- Wipro gets multi-year services deal from Denmark's Falck.
- Alok Industries Q1 net loss Rs 1,198 crore versus loss of Rs 6,630 crore YoY
- Mahindra takes Fiat to court alleging breach of contract (NDTV).
- Jet Airways-Godrej land deal under I-T scanner (Business Standard).
- Temasek-owned Fullerton Financial has pulled out of the acquire PNB Housing Finance (Times of India).
AGMs To Watch
- Indian Oil
Earnings To Watch
- Amtek Auto
Who’s Meeting Whom
- Kalpataru Power Transmission to meet HDFC Asset Management on Aug. 31.
- Mahindra Holidays & Resorts to meet JHP Securities on Aug. 29.
- Mahindra Logistics to meet TA Associates and Edelweiss Securities from Aug. 29-31.
- Birla Cable Limited and JK Paper Ltd. placed under ASM framework.
- Nocil promoters sold 1 lakh shares on Aug. 24.
- Deccan Gold Mines promoter sold 60,500 shares from Aug. 23-27.
- Srikalahasthi Pipes promoter acquired 10,000 shares from Aug. 23-24.
- Asian Oilfield Services promoter Ritu Garg acquired 60,000 shares from Aug. 23.
Money Market Update
- Rupee ended up 6 paise at 70.10/$, recovered from record closing low
- 10-year benchmark bond yield ended steady at 7.9 percent after rising to 7.92 percent intraday, highest level in two months.
- Nifty August Futures closed trading at 11,752.4 premium of 14 points.
- Nifty September Futures closed trading at 11,789.3 premium of 50 points.
- Rollover-Nifty 37 percent , Bank Nifty 32 percent.
- Across series-Nifty open interest down 2 percent & Bank Nifty open interest unchanged.
- India VIX ended at 12.4, up 1.5 percent.
- Max open interest for August series at 11,800 Call (open interest at 26.5 lakh, open interest up 9.5 percent)
- Max open interest for August series at 11,000 Put (open interest at 38.4 lakh, open interest down 6 percent)
- In ban: Dewan Housing, IDBI Bank, Jain Irrigation, Punjab National Bank
- New In ban: Dewan Housing, IDBI Bank, Jain Irrigation, Punjab National Bank
- Out Of Ban: Hexaware, Jet Airways
Put Call Ratio
- Nifty PCR at 1.94 versus 1.84
- Nifty Bank PCR at 1.35 versus 1.44
Active Stock Futures
CLSA on TTK Prestige
- Maintained ‘Buy’; raised price target to Rs 7,725 from Rs 7,010.
- A play on improving rural consumption and government spending.
- ‘Ujjwala’ implementation to drive demand in core categories.
- Cleaning solutions and exports are potential growth drivers.
Credit Suisse on M&M
- Maintained ‘Outperform’ with a price target of Rs 1,100.
- Remain constructive on both tractor and pick-up volumes for the next financial year as well.
- Near term stock performance will now depend on how its three new utility vehicle launches fare.
- Utility vehicle success key to further rerating of the stock.
HSBC on NALCO
- Initiated ‘Buy’ with a target price of Rs 90.
- Higher earnings to be driven by volume growth in alumina.
- Cost reductions in aluminium production will aid earnings.
- Aluminium may see some support from a relatively tight market balance.
HSBC on Indian Hotels
- Maintained ‘Buy’ with a price target of Rs 165.
- Company is focusing on capacity addition and margins expansion.
- Management constructive on the growth as demand-supply dynamics remain favourable.
- Management sees strong growth in both luxury and mid-market.
Deutsche Bank on Bharat Forge
- Maintained ‘Buy’ with a price target Rs 830.
- Defence revenue opportunity begins to materialise.
- Ability to add new revenue streams to offset the cyclicality of core business.
- Earnings and cash-flow volatility has declined despite the cyclical nature over past 15 years.