Stocks To Watch: M&M, Equitas, Realty Shares, Reliance Home Finance

The unprecedented move in oil reverberated around financial markets. U.S. equity futures declined, while shares in Asia opened flat.

Saudi Arabia stocks declined, with the Tadawul All Share Index falling as much as 3.1 percent after the attacks. Markets in Japan are closed Monday for a holiday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.83 percent to 11,018.50 as of 7 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 trade today

• Real Estate stocks in focus after Finance Minister Nirmala Sitharaman announced announced the creation of a special fund to provide financing to the many stalled affordable and middle-income housing projects in the country. The government will contribute Rs 10,000 crore to the fund, and expects a similar-sized contribution from external entities such as Life Insurance Corporation, banks, sovereign funds etc.
• Prabhat Dairy: Board approved delisting proposal of the company. The floor price is set at Rs 63.77 per share which is at a discount price of 20 percent to the closing prices as on Sept. 13.
• Reliance Home Finance: Care Ratings downgraded the rating to D (Default) for company’s long-term debt program due to delay in servicing of principal on one of the NCDs of the company. The company said that this rating actions was untimely and uncalled for, specifically since the company is working on a Resolution Plan.
• Equitas Holdings: SEBI has returned the draft scheme for listing of Equitas Small Finance Bank and advised to company to resubmit the same after ensuring compliance with norms. The company said that the bank will initiate necessary steps to lists its share through IPO which is expected to be completed by March 2020.
• Indiabulls Housing Finance: Delhi High Court passed an injunction order against Rajya Sabha member Subramanian Swamy and others from publishing in digital platform, in respect of allegations against the company which are false, offending, defamatory as tweeted by Subramanian Swamy. The company had filed a civil suit in Delhi High Court. Court has also directed Twitter, Facebook, WhatsApp etc. to remove offending false messages from their portals within two weeks from Sept. 13.
• PVR clarified on the new of the company not passing GST benefits stating that it had received a notice on Aug. 31 from Directorate General of Anti-Profiteering for initiation of the investigation in respect of certain cinemas in Telangana, seeking certain clarifications. The company has already filed its response and provided relevant documents as sought by the authorities.
• Texmaco Rail & Engineering: Board sets Rights Issue price at Rs 46.7 per share seeking to raise Rs 200 crore. Rights entitlement ratio at 19 equity shares for every 100 shares, with record date being Sept. 25.
• Cox & Kings Financial Service: Board has approved the surrender of NBFC license of the company considering the ongoing challenges and slowdown in NBFC environment.
• Piramal Enterprise: Board approved issue up to Rs 800 crore via NCDs.
• Bharat Electronics won orders worth Rs 5,357 crore for Akash Missile Systems for Indian Air Force.
• TV Today Network: HDFC Mutual Fund increased its stake to 9.25 percent from 7.15 percent in the company.
• Emami Paper Mills: Board of Directors have approved surrender of land in Gujarat allotted by GIDC for Greenfield Expansion Project.
• Alembic-Demerger: Cost of acquisition for Alembic’s equity share at 98.84 percent and the remaining stake will be 1.16 percent towards preference shares of Shreno.
• Hudco received loan sanctions of Rs 6,793.21 crore and loan releases of Rs 5,160.94 crore as on Aug. 31.
• Omax Auto: India Ratings & Research has downgraded Long Term Issuer Rating to BBB+ from A-, with outlook remaining stable.
• Info-Edge increased its stake to 32.85 percent in ShoeKonnect for Rs 4 crore.
• Mahindra & Mahindra to observe no production days between 8-17 days for automotive and farm equipment sector. It will range between 1-3 days for the second quarter of the current financial year.
• SML Isuzu has decided to shut its chassis manufacturing plant in Punjab from Sept. 16-21. Need based production will continue for Bus Body Division.
• Canara Bank: Board gave in-principle approval for amalgamation of the Bank with Syndicate Bank and approved capital infusion of Rs 9,000 crore by the Government of India via preferential allotment of equity shares.
• Syndicate Bank: Board gave given in-principle approval for amalgamation of Bank with Canara Bank.
• United Bank of India reduced MCLR across various tenors with effect from Sept. 16. Three-month MCLR at 8.25 percent and One-year MCLR at 8.45 percent. Board to consider amalgamation of the Bank with Oriental Bank of Commerce and Punjab National Bank on Sept. 18 and consider raising Rs 3,000 crore from Government of India.
• Andhra Bank: Board as given in-principle approval for amalgamation of the Bank with Corporation Bank and Union Bank of India. Bank has decreased MCLR across various tenors. One-Month MCLR at 7.95 percent and One-Year MCLR at 8.4 percent.
• Indian Bank: Care Ratings has placed s placed the ratings assigned to various debt instruments of the Bank on credit watch with developing implications, following the recent announcement by Ministry of Finance regarding the proposed amalgamation of Allahabad Bank into the Bank.
• Eveready Industries & McLeod Russel in focus after the High Court of Calcutta has passed an ad-interim order of injunction by which, the company has been restrained from transferring, alienating or encumbering any of its assets till the disposal of the said application in reference to a matter filed against some of the promoters of the company with regards to certain alleged dues, The company has been advised that since it is neither a party to any agreement or arrangement with the petitioner, in respect of the said alleged dues nor does any claim pertaining to the said dues arise from, the said ad-interim order against the company, should not be legally tenable. The matter is currently sub-judice and the company is in the process of taking appropriate action against the said order based on advice from its legal counsel.

Datawatch

• 12 p.m.: India WPI Inflation for August.
• Sept. 18: U.S. Federal Open Market Committee rate decision

Bulk Deals

India Energy Exchange

• Amansa Holdings acquired 1.09 crore shares (3.7 percent) at Rs 115.18 per share
• Agri Power and Engineering Solutions sold 93.8 lakh shares (3.1 percent) at Rs 115.3 each

Trading Tweaks

• Astral Poly Technik ex-date for bonus share issue at 1:4
• Zuari Agro Chemicals record date for rights issue: 14 Convertible Debentures for Every 15 Shares
• Jaypee Infratech, Gati , Khadim, Tejas Networks, TRF, Walchandnagar Industries, Waterbase to move into Short-Term ASM Framework
• Anant Raj to move out of short term ASM Framework
• Kwality , Multibase, Sintex Industries to move out of ASM Framework
• ITDC, Khadim, Walchandnagar Industries price band revised to 10 percent
• Zenlabs Ethica, Tijaria Polypipes, Balkrishna Paper Mills price band revised to 5 percent

Who’s Meeting Whom

• Tata Motors to meet Bernstein, MUFG Bank and other investors from Sept. 17-19
• Magma Fincorp to meet Mobius Capital Partners, Al Rashid and other investors from Sept. 18-19.
• Tata Steel to meet SBI MF, Jefferies and Neuberger Berman from Sept. 18-20
• Mahindra & Mahindra to meet Capital World, Macquarie Funds Management and other investors from Sept. 16-19
• Escorts to meet Limiar Capital, Nomura and other investors from Sept. 16-20
• Exlerx Services to meet Acacia Partners on Sept. 19
• Cholamandalam Investment & Finance to meet ICICI Securities, Goldman Sachs and other investors from Sept. 17-26
• Mahindra Logistics to meet Ashmore Investment Management and Invesco MF on Sept. 17

Insider Trading

• Usha Martin promoter Peterhouse Investments sold 3.05 lakh shares from Sept. 11-12
• Aarti Industries promoter Chandrakant Vallabhji Gogri sold 2.1 lakh shares from Sept. 9-12

(As Reported On Sept. 13)

Money Market Update

Rupee closed at 70.92/$ on Friday from 71.14/$ on Thursday, strengthening for the seventh straight session.

F&O Cues

September Futures

• Nifty September futures closed at 11,105 premium of 29.6 points versus 13.6 points.
• Nifty futures OI down 2 percent, sheds 3.7 lakh shares in OI.
• Bank Nifty September futures closed at 28,163, premium of 65 points versus 5.9 points.
• Bank Nifty futures OI up 2.5 percent, adds 40k shares in OI.

Options

• Nifty PCR at 1.34 Versus 1.26 (across all series).

Nifty Weekly Expiry: Sept. 19

• Max OI on call side at 11,100 (17.9 lakh shares).
• Max OI on put side at 11,000 (26.8 lakh shares)
• OI addition seen at 11,000P (+11.2 lakh shares), 10,950P (+8 lakh shares).

Nifty Monthly Expiry: Sept. 26

• Max OI on call side at 11,200 (25.9 lakh shares).
• Max OI on put side at 10,800 (31.1 lakh shares).

Brokerage Radar

Goldman Sachs on L&T Infotech

• Initiated ‘Buy’ with a price target of Rs 1,854.
• At a sweet spot given size advantage and focused investments.
• Proven best-in-class execution; expect strong sequential growth in the second half of the current financial year.
• To continue to deliver industry-leading $ dollar revenue growth of 13.3 percent CAGR over FY20-22.

Edelweiss on Axis Bank

• Upgraded to ‘Buy’ from ‘Hold’; maintained price target at Rs 761.
• Upgrade on credible changes and a plausible RoE of 16–17 percent.
• Changes:- competitive landscape has weakened, stress was recognised in the March quarter, bank has taken steps to de-risk strategy, strengthen liability and operating efficiency and the stock has underperformed.
• Plan to raise growth capital would help the bank capture emerging opportunities.

Axis Capital on Westlife Development

• Maintained ‘Buy’; hiked price target to Rs 380 from Rs 370.
• Management reiterated its confidence in achieving near term and Vision 2022 guidance despite slowdown.
• Core focus remains on driving incremental Ebitda growth and not margin expansion.
• Initiatives like value platform, brand extensions and better customer experience to aid growth.

Citi on Shree Cement

• Maintained ‘Neutral’ with a price target of Rs 21,000.
• FY20 demand should grow 4-5 percent; industry supply slowing.
• Shree should continue to focus on pricing and volumes.
• Management believes the North and East should have the strongest demand growth followed by other regions.

Morgan Stanley on Cement

• Conversations with investors suggest optimism about realizations despite weak volumes.
• Cement prices may not correct, will hold-up despite a weak volume growth environment.
• Expect cement prices to move broadly in line with WPI and correct over the coming months.
• Near-term risk reward more favorable for ACC and Ambuja vs. Ultratech if cement prices hold up.

Citi on India Electric Utilities

• Prepared for moderate but not strong demand growth.
• Growth in generation capacity is decelerating.
• Sector trading at historical lows.
• Prefer Power Grid to NTPC as it benefits regardless of capacity addition.
• Among mid-caps top picks are CESC, Tata Power and JSPL.