Stocks To Watch: IndusInd Bank, Kotak Bank, Future Group, Aurobindo, CDSL

Asian markets are mixed at the start of the new trading week. Benchmark indices have slipped in China and Japan, while those in South Korea are fluctuating. Hong Kong markets are shut today due to holiday.

Futures on the Dow Jones are trading lower by 150 points. The index ended flat on Friday.

Stocks To Watch

• Kotak Mahindra Bank & IndusInd Bank: Bloomberg News reports that Kotak Mahindra Bank is exploring a takeover of IndusInd Bank, citing people with knowledge of the matter. Sources said that Uday Kotak, the bank's founder & CEO is looking at the possibility of an all-stock acquisition. While Kotak Mahindra Bank's spokesman declined to comment, IndusInd "completely denied the rumour and considered it malicious, untrue and baseless."
• Future Group: Directed to put its transaction with Reliance Retail on hold for now after the Singapore International Arbitration Centre passed an interim order. However, Reliance Retail has said that it will still proceed with the acquisition as it is 'fully enforceable under Indian law and has been done with proper legal advice.' Amazon has welcomed the order.
• Aurobindo Pharma: Wholly-owned step-down subsidiary, Natrol LLC, USA has entered into a definitive agreement with New Mountain Capital LLC and its affiliate to dispose of its business assets as a going concern with related assets, liabilities, products, brands and employees. The deal will be done for a cash consideration of $550 million and is expected to close by January 2021. Natrol's annual sales for the 12-months ending March 31, 2020 stood at $157 million.
• Vedanta: Declares first interim dividend of Rs 9.5 per share. Record date for the same set at October 31.
• Larsen & Toubro: To consider and approve special dividend at its board meeting on October 28. The record date for the same has been set at November 5.
• Tata Motors: PTI reports that the company has bagged a supply order of 6,413 Tata Ace Gold Mini Trucks from the Andhra Pradesh Government.
• Mahindra & Mahindra: Ssangyong Motor reported a net loss of 102.44 billion won while sales were down 16% to 705.7 billion won for the third quarter. The company reported an operating loss of 93.19 billion won.
• Ashoka Buildcon: Wholly-owned subsidiary gets letter of financial closure from the NHAI for the Kandi-Ramsanpalle four-laning project. The bid project cost is Rs 1,000 crore.
• Tech Mahindra: Wholly-owned subsidiary Tech Mahindra (Singapore) to acquire 100% equity shares in Auckland-based Tenzing Group. The acquisition is to be done for a cash consideration of $29.5 million and is likely to close by November 30,2020. The acquisition will bring strong capabilities, primarily in the insurance vertical along with expanding its footprint in the Australia and New Zealand market. The acquisition is subject to approval from Overseas Investment Office, New Zealand. It will also acquire 100% stake in Momenton, for a total sum of 14.3 million Australian Dollars.
• GE Shipping: Took delivery of a secondhand very large gas carrier 'Jag Vishnu' of about 77,922 Cubic Meter (cbm). The company had contracted to buy the vessel in Q2FY21. Current fleet stands at 46 vessels.
• Ambuja Cements: Imposes a penalty of Rs 1 lakh on Chief Commercial Officer (West & South), Pankaj Mota over inadvertently trading in the company's shares during the window closure period. Mota bought 5,000 shares and subsequently sold them without obtaining pre-clearance. The penalty amount and profits from the trade will be remitted to the Investor Protection Education Fund (IPEF).
• L&T Technology Services: The company in its conference call stated that decision making has picked up pace from September. Smaller projects and awards have accelerated. However, seeing delays and longer decision cycles on larger deals. Confident of all sectors, including telecom and hi-tech continuing the growth path sequentially.
• Bank of Baroda: Capital raising committee approved issuance of Basel-III compliant additional tier-I bonds for a total size not exceeding Rs 2,755 crore in single or multiple tranches.
• Edelweiss: To consider a proposal for public issue of NCDs for an amount not exceeding Rs 500 crore to be made in one or more tranches at its board meeting on October 30.
• Punjab & Sind Bank: Has declared NPA account of IL&FS Financial Services as fraud and reported to the Reserve Bank of India as per regulatory requirement. The account has dues of Rs 561.13 crore and the bank has made 100% provisioning for the same.
• Shankara Building Products: Decides to close retail stores in Trivandrum, Secunderabad and Kurnool as it does not find substantial scale-up opportunities in the medium-term. Net store count post closing down will stand at 112.
• Asian Granito: Fixed November 10 as the record date for dividend.
• Chalet Hotels: Has decided to re-commence works on the construction of the office building in Whitefield Bengaluru and necessary instructions to the works contractors will be issued in due course.
• Redington India: Stepdown subsidiary Redington Gulf FZE will acquire the remaining 15.2% stake in Citrus Consulting Services, taking the total stake to 100%. The acquisition will be done for 1,52,000 United Arab Emirates Dirhams and has the approval of the Dubai Developmental Authority.
• Nifty Earnings Today: SBI Life Insurance, Kotak Mahindra Bank
• Non-Nifty Earnings Today: Torrent Pharma, M&M Financial, Poly Medicure, Swaraj Engines, Finolex Industries, GHCL, Max Ventures, Angel Broking

Earnings Reported After Market Hours

CDSL Q2FY21

• Revenue up 69% to Rs 89.2 crore
• Net profit up 66% to Rs 48.75 crore
• Ebitda more than doubles to Rs 54.4 crore
• Ebitda margin at 61% from 46.7%
• Number of new active beneficial owner accounts up 29 lakhs to 2.61 crore
• All numbers are consolidated and compared on a year-on-year basis

Aarti Drugs Q2FY21

• Revenue up 21% to Rs 578.1 crore
• Net profit up 133% to Rs 75.2 crore
• Ebitda up 71% to Rs 116.5 crore
• Ebitda margin at 20.2% from 14.3%
• Declares interim dividend of Rs 2.5 per share
• Record date for payment of dividend set at November 4, 2020
• Board approves raising of funds up to Rs 350 crore through various methods
• All numbers are consolidated and compared on a year-on-year basis

Persistent Systems Q2FY21

• U.S. Dollar revenue up 3.9% to $136.09 million
• Revenue up 2% to Rs 1,007 crore
• Net profit up 13% to Rs 101.9 crore
• Ebit up 19% to Rs 121.7 crore
• Ebit margin at 12.1% from 10.4%
• Revenue crosses Rs 1,000 crore for the first time ever
• Contribution from top client at 19.4% of revenue
• Contribution from top five clients at 41.6% of revenue
• Contribution from top 10 clients at 50.5% of revenue
• All numbers are consolidated and compared on a quarter-on-quarter basis

Polycab India Q2FY21

• Revenue down 6% to Rs 2,113 crore
• Net profit up 14% to Rs 221.5 crore
• Ebitda up 15% to Rs 311.8 crore
• Ebitda margin at 14.8% from 12.1%
• Higher other income contributes to net profit
• Other income nearly triples to Rs 32.7 crore from Rs 12.4 crore
• Wires and cables revenue down 5% to Rs 1,826 crore
• FMEG revenue up 25% to Rs 243.9 crore
• Copper business revenue at Rs 130.3 crore
• Consumer facing businesses have started seeing growth compared to last year
• All numbers are consolidated and compared on a year-on-year basis

Sudarshan Chemicals Q2FY21

• Revenue up 1% at Rs 428.9 crore
• Net profit down 34% to Rs 30.3 crore
• Ebitda up 2% to Rs 67.7 crore
• Ebitda margin at 15.8% from 15.6%
• Deferred tax reversal of Rs 10.2 crore in the base quarter
• All numbers are consolidated and compared on a year-on-year basis

ICICI Lombard Q2FY21

• Net profit up 35% to Rs 415.7 crore
• Total income up 5% to Rs 2,883.4 crore
• Net premium up 4.4% to Rs 2,462.5 crore
• Gross Direct Premium Income up 8% to Rs 3,189 crore
• Combined ratio at 99.7% from 102.6%
• All numbers compared on a year-on-year basis

Yes Bank Q2FY21

• Net Interest Income down 9.7% to Rs 1,973 crore
• Net profit of Rs 129 crore from net loss of Rs 600 crore
• Gross NPA at 16.9% from 17.3% in the June quarter
• Net NPA at 4.71% from 4.96% last quarter
• Provisions at Rs 1,187 crore from Rs 1,087 crore last quarter
• Total provisions for Covid-19 at Rs 1,918 crore
• Total loan amount which would have slipped into NPA category if the Supreme Court order was not in place would be Rs 2,391 crore
• Total loan repayments which were overdue for more than 60 days stood at Rs 4,060 crore
• Net profit and NII compared on a year-on-year basis

Trading Tweaks

• AGM: Privi Speciality Chemicals
• Price Band Revised From 10% To 5%: Himatsingka Seide, Indiabulls Integrated Services, Suzlon Energy, Vishal Fabrics
• Move Into ASM Framework: Orient Bell
• Move Out Of ASM Framework: Sintex Industries, Shakti Pumps (India), Balaji Amines, Jindal Stainless (Hisar), Rolta India, Vivimed Labs, S Chand And Company, MIRC Electronics, Shalimar Paints, Aksh Optifibre, IRB Infrastructure Developers, Autoline Industries, Rossell India
• Move Into Short Term ASM Framework: Magma Fincorp, Tejas Networks, Websol Energy, PC Jeweller.
• Move Out Of Short Term ASM Framework: Maheshwari Logistics

F&O Cues

• Nifty October futures end at 11,934; premium of 4 points from 3 points
• Nifty October futures add 0.2% and 22,000 shares in Open Interest
• Nifty Bank October futures end at 24,528; premium of 50 points from 69 points
• Nifty Bank October futures add 3% and 46,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.11
• Enters F&O Ban: Escorts, Vodafone Idea, Vedanta
• Out of F&O Ban: Mindtree
• Stocks in F&O Ban: BHEL, Canara Bank, Escorts, Nalco, Punjab National Bank, Vodafone Idea, Vedanta

Nifty: October 29 Expiry

• Maximum Open Interest on call side at 12,500 strike (45.9 lakh shares)
• Maximum Open Interest on Put side at 10,500 strike (37.7 lakh shares)
• Active Options: 11,800 Put (7.5 lakh shares) and 12,500 Call (10 lakh shares)