Stocks To Watch: IOC, RIL, SBI, Sun Pharma, Tata Motors, UPL

U.S. equity futures climbed after stellar earnings from technology giants, while the dollar extended this month’s slide amid renewed concern about the strength of the American recovery. Asian shares traded mixed. S&P 500 and Nasdaq contracts climbed as Apple Inc., Amazon.com Inc., and Facebook Inc. jumped in after-hours trading. Stocks slipped in Japan and Australia, and edged higher in South Korea.

Here are the stocks to watch in trade today:

• Lakshmi Vilas Bank has extended the exclusivity period for the proposed amalgamation of Clix Capital Service and Clix Finance into the bank till Sept. 15, due to delay in the mutual due diligence and preparation of documents for regulatory requirements due to Covid-19 situation and travel restrictions.
• HDFC: Public shareholders give nod to raise up to Rs 1.25 lakh crore via NCDs, approval for sale of shares held in HDFC Life Insurance an HDFC Ergo General Insurance (pursuant to RBI guidelines/approval)
• InterGlobe Aviation: Board has decided to further deliberate on the matter relating to raising of funds at a subsequent meeting.
• Jet Airways said that pursuant to NCLT Order, and in exercise of its buyout option, the company has made payment of $13 million to the lessors of the six aircrafts.
• UltraTech Cement has completed the divestment process of Shandong Binani Rongan Cement upon receipt of all regulatory approvals.
• Dixon Tech: Government of India puts import of TV sets in restricted list. Importers will have to approach DGFT to apply for licence before importing TV sets.
• Bata: LIC increased its stake from 4.46% to 6.47% in the company from Aug. 2019 till July 29
• Satin Creditcare Network: Board approved issue of 2 crore rights shares at Rs 60 per share aggregating to Rs 120 crore. Rights entitlement ratio at 48 Rights Equity Shares for every 125 existing fully paid shares. Record date set as Aug. 5. Rights issue price is at a discount of 24% to closing prices on July 30.
• CCI has approved acquisition of 49% stake of Odisha Power Generation Corporation by Adani Power.
• Indian Overseas Bank: Board approved issuing equity share to a maximum extent of 500 crore equity shores by way of public offer, rights issue and also approved to raise tier II capital up to Rs 1,500 crore.
• Tata Power: Shareholders give nod to issuance of equity shares to promoter Tata Sons on a preferential basis.
• REC said that it is reviewing power contracts to comply with import curbs and stated in an email that a Chinese firm has been removed from J&K smart meter contract. (Bloomberg News)
• Wipro awarded multi-year contract by U.K.-based Metro Bank for IT solutions.
• Kesoram Industries: Board approved raising Rs 2,000 crore via debt and equity.
• Future Supply Chain Solutions: Care Ratings has downgraded long-term banking facilities, NCDs and long term loans to CARE BB+ from CARE A-, due to weakening of business and financial risk profile on account of extended lockdown due to Covid-19. Credit watch changed from negative implications to developing implications.
• Rashtriya Chemicals & Fertilizers: Board to consider raising Rs 500 crore via NCDs on Aug. 5.
• Amber Enterprises to consider raising funds on Aug. 7
• Sagar Cements on Covid-19 impact: Opted to avail the RBI Covid-19 relief package under which moratoriumof 3 months towards servicing of interest and instalments on the working capital and term loan facilities. However, the company has serviced its interest and repayment commitment to IFC against the outstanding debentures in the books of its 100% subsidiary Sagar cements (R) Limited.
• Can Fin Homes: Board approved appointment of Canara Bank’s MD and CEO Lingam Venkata Prabhakar as the company’s additional director (non-executive) till Dec. 2022.
• CSB Bank reduced MCLR by 30-40 basis points across various tenors with effect from Aug.1. One month MCLR at 7.9% and six month MCLR at 8.6%.

Nifty Earnings

Reliance Industries Q1 (Consolidated; YoY)

• Revenue down 43.8% at Rs 88,253 crore (Est Rs 1,03,988 crore)
• Net profit up 31 % at Rs 13,233 crore (Est Rs 7,755 crore)
• Ebidta down 20.8% at Rs 16,875 crore (Est Rs 18,178 crore)
• Margins at 19.1% versus 13.6 % (Est 17.5 %)
• GRM at $6.3/bbl versus $8.1/bbl (Est $6.46/bbl)
• Inventory losses, exceptional gains, lower refining margins, lower sales, higher finance cost and lower tax rate impacted numbers
• Incurred an inventory loss of 1,637 crore due to sharp drop in crude prices
• Exceptional gain of Rs 4,966 crore on transfer of petrol marketing business to Reliance-BP Joint Venture (Alert: BP invested Rs 7,629 crore for a 49% stake in the Company’s fuel retailing business)
• Gross Refining Margins was impacted by lower product cracks and narrower light-heavy crude differential

Reliance Jio Q1 (Standalone; QoQ)

• Revenue up 11.6% at Rs 16,557 crore (Est Rs 15,859 crore)
• Net profit up 8.1% at Rs 2,520 crore (Est Rs 2,589 crore)
• Ebidta up 13.4% at Rs 7,005 crore (Est Rs 6,813 crore)
• Margins at 42.3% versus 41.6% (Est 43%)
• ARPU at Rs 140.3 versus Rs 130.6 (Est Rs 135.5)
• Reliance to hold 66.48% in Jio Platforms on a fully diluted basis
• ARPU growth higher due tariff hike benefits and sustained subscriber momentum

Other Earnings

Torrent Pharma Q1 (Consolidated,YoY)

• Revenue up 1.68% at Rs 2,056 crore (Est Rs 1,932 crore)
• Net profit up 48.6% at Rs 321 crore (Est Rs 247 crore)
• Ebitda up 22.2% at Rs 661 crore (Est Rs 538 crore)
• Margins at 32.1% versus 26.8% (27.8%)
• Margins improve due to lower other expenses, employee and raw material costs

Lakshmi Vilas Bank Q1 (Standalone, YoY)

• Net interest income down 27% at Rs 90 crore
• Net loss at Rs 112.3 crore versus Net loss of Rs 237.25 crore
• Provisions at Rs 72.6 crore versus Rs 154.6 crore
• GNPA: 25.4% versus 25.39% QoQ
• NNPA: 9.64% versus 10.04% QoQ
• Total Covid-19 related provisions is Rs 20.26 crore, of which Rs 10.25 crore was provided current quarter

Earnings Today

• Indian Oil Corporation
• State Bank of India
• Sun Pharma
• UPL
• Tata Motors
• BF Utilities
• Blue Dart Express
• Capri Global Capital
• Dalmia Bharat Sugar and Industries
• Deepak Fertilizers and Petrochemicals
• Dr. Lal Path Labs
• Godrej Agrovet
• Future Lifestyle Fashions
• IOL Chemicals and Pharmaceuticals
• Jagran Prakashan
• JSW Energy
• Just Dial
• Kilpest
• Mahindra Holidays & Resorts
• Motilal Oswal Financial Services
• Manpasand Beverages
• MMTC
• Munjal Showa
• NELCO
• NIIT
• Shriram City Union Finance
• Prince Pipes And Fittings
• Reliance Communications
• Reliance Home Finance
• Solar Industries
• RPG Lifesciences
• Steel Strips Wheels
• Saregama
• Tata Chemicals
• Tata Metaliks
• TCI Finance
• Teamlease Services
• Thyrocare Technologies
• Ujjivan Small Finance Bank
• UCO Bank
• Vakrangee
• Zydus Wellness

Pledged Share Details

• Max Financial Services promoter Max Ventures Investment Holdings created pledge of 92.26 lakh shares from March 18-July 3
• Zee Entertainment Enterprises promoter Essel Corporate invoked pledge 10.36 lakh shares on July 27
• Emami promoter Diwakar Vinyog released pledge of 40 lakh shares on July 29
• Ruchi Soya Industries promoter Patanjali Ayurveda created pledge of 19.25 crore shares on July 21

(As Reported On July 30)

Bulk Deals

• Future Supply Chain Solutions: Dhunseri Ventures acquired 2.41 lakh shares (0.55%) at Rs 158.1 per share.
• AU Small Finance Bank: Westbridge AIF acquired 59.88 lakh shares (1.95%) at Rs 746.4 per share and Redwood Investment sold 69.23 lakh shares (2.26%) at Rs 746.4 per share. Other buyers included Abu Dhabi Investment Authority (1.35 lakh shares), Reliance MF (4 lakh shares) and Morgan Stanley (4 lakh shares)

Trading Tweaks

• AGM Date: Axis Bank, Atul, Bank of Baroda, Bharti Airtel, Blue Dart Express, Cyient, Godrej Agrovet, Orient Cement, Shriram City Union Finance, Indian Bank, Equitas Holdings, Sundaram Brake Linings, Camlin Fine Sciences, Canara Bank, Central Bank of India.
• Fund Raising: Motilal Oswal Financial Services
• Price Band Revised From 20% To 10%: DPSC
• Price Band Revised From No Band To 20%: Just Dial, NCC
• Move Into Short-Term ASM Framework: DPSC, Tarmat, Onward Technologies
• Move Out Of Short-Term ASM Framework: Kamat Hotels

Insider Trades

• Mindtree promoters sold 5.1 lakh shares on July 29
• Persistent Systems promoter Rama-Purushottam Foundation sold 1.4 lakh shares on July 28

(As Reported On July 30)

F&O Cues

• Nifty Aug. futures closed at 11,084.65, discount of 18 points versus premium of 10 points
• Nifty Aug. futures open interest up 48%, adds 37.15 lakh shares in open interest
• Nifty Bank Aug futures closed at 21,619, discount of 28 points versus premium of 54 points
• Nifty Bank July futures open interest up 66%, adds 5.5 lakh shares in open interest

Nifty Monthly Expiry: Aug. 6

• Max open interest on call side at 11,500 strike (15.9 lakh shares)
• Max open interest on put side at 11,000 strike (15.7 lakh shares)
• Active options: 11,000 Put (+8.2 lakh shares), 12,000 Call (+9.9 lakh shares)

Nifty Monthly Expiry: Aug. 27

• Max open interest on call side at 11,500 strike (18 lakh shares)
• Max open interest on put side at 11,000 strike (31 lakh shares)