Stocks To Watch: Infosys, InterGlobe Aviation, SpiceJet, Thomas Cook

Asian stocks saw modest losses Thursday as investors weighed earnings reports from large U.S. banks and fading signs of a stimulus deal before next month’s election. The dollar steadied after an overnight decline. Shares slipped in Japan and South Korea, and futures pointed lower in Hong Kong.

Here are the stocks to watch in trade today:

• Infosys: Sudha Murty’s term as Chairperson of Infosys Foundation extended till Dec.31, 2021. Salary hikes and promotions to be given out from Jan. next year.
• Government approved demerger of the under-construction Nagarnar steel plant from NMDC, and its strategic disinvestment by selling the entire stake of the government to a strategic buyer. (PTI)
• CRISIL has downgraded its ratings on the long term bank facilities of Thomas Cook to CRISIL A+ from CRISIL AA- with outlook remaining negative. The rating action reflects weakening of the company’s business and financial risk profiles owing to the adverse impact of the Covid-19 pandemic on the travel and tourism industry. Continued travel restrictions and negative customer sentiments have severely impacted leisure and corporate travel, and the foreign exchange (forex) business. This may lead to operating losses during fiscal 2021 and substantially reduce the net free cash (over Rs 200 crore reported as on March 31, 2020).
• India Ratings and Research has upgraded Punjab National Bank's long-term issuer rating to 'IND AAA' from 'IND AA+' while resolving the rating watch evolving. The outlook is stable.
• Andhra Pradesh Industrial Development Corporation has withdrawn its nominee director Dr. Rajat Bhargava from the board of Avanti Feeds.
• Indiabulls Housing Finance: National Housing Bank has levied a penalty of Rs 3.5 lakh on non-disclosure of related party transaction.
• United Spirits has entered into a definitive agreement to sell its entire shareholding in its non-operative arm Tern Distilleries for Rs 30 crore.

Nifty Earnings

Infosys Q2 (Consolidated, QoQ)

• $ Revenue up 6.12% at $3,312 million (Est $3,210 million)
• Revenue up 3.82% at Rs 24,570 crore (Est Rs 24,131 crore)
• Net profit up 13.72% at Rs 4,858 crore (Est Rs 4,474 crore)
• EBIT up 16.1% at Rs 6,228 crore (Est Rs 5,369 crore)
• Margins at 25.3% versus 22.7% (Est 22.2%)
• Raised FY21 revenue guidance to 2-3% (from 0-2%)
• Raised FY21 operating margin guidance to 23-24% (from 21-23%)
• Declared dividend of Rs 12 per share
• Constant currency growth for the current quarter at 4% (Est 2.5%)

Earnings

Goa Carbon Q2 (Standalone, YoY)

• Revenue down 13.3% at Rs 88 crore
• Net loss at Rs 5 crore versus Net loss at Rs 13.8 crore
• Ebidta loss at Rs 2.4 crore versus Ebidta loss at Rs 9.6 crore
• Operating losses narrow due to lower raw material costs and other expenses

Tata Elxsi Q2 (Standalone, QoQ)

• Revenue up 7.42% at Rs 430.2 crore
• Net profit up 14.5% at Rs 78.9 crore
• Ebidta up 27.4% at Rs 118.1 crore
• Margins at 27.5% versus 23.1%
• Margins improve due to lower employee expenses and revenue growth
• Software development revenue up 7.71% at Rs 420.5 crore
• System integrations and support revenue down 4% at Rs 9.7 crore

Den Networks Q2 (Consolidated, YoY)

• Revenue up 1.59% at Rs 337.7 crore
• Net profit up 2.5 times at Rs 36.8 crore
• Ebitda up 28.9% at Rs 62.5 crore
• Margins at 18.5% versus 14.6%
• Margins improve due to lower content costs and employee expenses
• Lower taxes aid bottom line number

Earnings Today

• Cyient
• Hathway Cable & Datacom
• MindTree
• Rane Brake Lining
• South Indian Bank
• Trident
• Vimta Labs

Pledged Share Details

• Emami promoters released pledge of 63 lakh shares from Oct.9-13
• JSW Energy promoter Indusglobe Multiventures released pledge of 74.9 lakh shares on Oct.9

(As Reported On Oct.14)

Bulk Deals

• Transport Corporation of India: HDFC MF acquired 9.8 lakh shares (1.27%) at Rs 228 per share and Canara Robeco MF sold 9.92 lakh shares (1.29%) at Rs 228 per share.
• Acrysil: Abakkus Group acquired 18.67 lakh shares (7%) at Rs 101.3 per share and Schock GMBH sold 20.31 lakh shares (7.61%) at Rs 101.35 per share.

Who’s Meeting Whom

• Bhansali Engineering to meet Enam Holding, Amsec PMS and other investors on Oct.15

Trading Tweaks

• Ex-Date Stock Split: Som Distilleries and Breweries (Face value from Rs 10 to Rs 2 per share)
• Buyback Announcement: Rane Brake Lining.
• Fund Raising: Lakshmi Vilas Bank.
• Price Band Revised From 10% To 5%: Future Supply Chain Solutions.
• IPO Listing: Likhitha Infra.
• Move Into ASM Framework: Sagardeep Alloys, Rasandik Engineering.
• Move Into Short Term ASM Framework: Prabhat Dairy, Saven Tech.
• Move Out Of Short Term ASM Framework: Federal-Mogul Goetze, Alembic, Gujarat Themis Biosyn.

Insider Trades

• HFCL promoter MN Ventures acquired 20 lakh shares on Oct.14.

(As Reported On Oct.14)

F&O Cues

• Nifty October futures closed at 11,973; premium of 2 points vs premium of 2 points
• Nifty October futures Open Interest up 1.7%, adds 1.9 lakh shares in Open Interest
• Nifty Bank October futures closed at 23,945; premium of 70 points vs premium of 8 points
• Nifty Bank October futures Open Interest up 2%, adds 38,000 shares in Open Interest

Options

• Nifty PCR at 1.54

Nifty Monthly Expiry: Oct. 15

• Max Open Interest on call side at 12,000 (35.3 lakh shares)
• Max Open Interest on put side at 11,500 (26.9 lakh shares)
• Active options: 11,300 Put (-7.2 lakh shares), 12,500 Call (-8.4lakh shares)

Nifty Monthly Expiry: Oct. 29

• Max Open Interest on call side at 12,500 (23.4 lakh shares)
• Max Open Interest on put side at 10,500 (33.7 lakh shares)