Stocks To Watch: ONGC, RCom, RBL Bank, TD Power Systems

Indian equity benchmarks posted its longest losing streak in four weeks, on investor worry the government may breach fiscal targets as inflation rises. The S&P BSE Sensex Index dropped 0.6 percent at the close, with Sun Pharma leading the declines. The NSE Nifty 50 Index declined 0.7 percent to 10,118.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,147 as of 7:00 a.m.

Here are the stocks to watch out for in Thursday’s session:

• Reliance Communication: Says it is not making any payment to lenders for time being.
• CRISIL: To buy entire stake in Pragmatix Services for Rs 56 crore.
• NHAI: Terminates agreement with Atlanta for Gujarat project.
• RBL Bank: Acquires an additional 2.08 percent stake in Swadhaar Finserve, increasing its holding to 60.48 percent.
• Manaksia Industries: To set up wholly-owned subsidiary in India and Tanzania for its agro-commodities business.
• ONGC: Says Venezuela’s state-run PDVSA is committed to the arrangement with ONGC Videsh.
• Seamec: Approves scheme of demerger of EPC and Vessel division of HAL offshore into itself.

Trading Tweaks

• Tube Investments shifted to B group. Circuit filter revised to 20% percent.
• Kinetic Engineering circuit filter revised to 10 percent.
• Khadim India added to BSE IPO Index

Offerings/Listings

• Edelweiss: QIP issue opens; seeks around $300 million at a floor price of Rs 285.14 a share; to set issue price on Nov. 20.
• 5Paisa Capitalt to list on exchanges. IIFL demerged ‘5Paisa Digital Undertaking’ into its fully-owned subsidiary 5Paisa Capital in 2016.

F&O Setup

• Nifty November futures closed at 10,154, premium of 36 points versus 47.6points
• November contracts: Nifty open interest down 2 percent; Bank Nifty open interest down 1 percent
• India VIX closed 0.7 percent higher at 14.2
• Max open interest for November series at 10,500 Call (open interest at 58.2lakh, up 3 percent)
• Max open interest for November series at 10,200 Put (open interest at 45.4 lakh, down 1 percent)

F&O Ban

• In ban: DHFL, Indiabulls Real estate, India Cement, Infibeam, Jet Airways, JP Associates, JSW Energy, Just Dial. Kaveri Seed, Reliance Communications, Reliance Capital
• New in ban: Jet Airways, Reliance Communications, Reliance Capital
• Out of ban: HDIL, Jain Irrigation

Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.

Active Stock Futures

Bulk Deals

Vadilal Industries

• Radhika Sharma bought 40,000 shares or 0.6 percent stake at Rs 1040.2 each.
• Avvanti advisors sold 36,611 shares or 0.5 percent stake at Rs 1040 each.

Indo Count Industries: Param Value Investments bought 10 lakh shares or 0.5 percent stake at Rs 116.9 each.

Control Print: India Opportunities Growth Fund sold 84,000 shares or 0.5 percent stake at Rs 439.32 each.

CMM Infra Projects: Systematix Shares & stocks sold 1.14 lakh shares (net) at Rs 61.28 each.

Earnings Reactions To Watch

Wonder La (Q2, YoY)

• Revenue up 1.2 percent at Rs 49.4 crore.
• Net profit down 37.8 percent at Rs 2.3 crore.
• EBITDA up 20.65 percent at Rs 11.1 crore.
• Margin at 22.5 percent versus 18.9 percent.

CARE Ratings (Q2, YoY)

• Revenue up 12.3 percent at Rs 91 crore.
• Net profit up 2 percent at Rs 48.3 crore.
• EBITDA up 11 percent at Rs 66.5 crore.
• Margin at 73.1 percent versus 74.1 percent.

New India Assurance (Q2, YoY)

• Gross written premium up 12.2 percent at Rs 6,489.2 crore.
• Profit up 187.5 percent at Rs 748.3 crore.
• Combined ratio improved to 112.5 percent.
• Solvency ratio stood at 2.24 from 2.04.

TD Power Systems (Q2, YoY)

• Revenue up 19.4 percent at Rs 126 crore.
• Net profit at Rs 5 crore.
• EBITDA at Rs 9 crore.
• Margin at 7.1 percent versus 1.4 percent.

Results Today

• Ahluwalia Contracts
• Gati
• Honda Siel
• Bharat Matrimony

Brokerage Radar

CLSA on Jubilant Foodworks

• Maintained ‘Buy’ with price target of Rs 2,200.
• Menu price hike of around 6 percent effected.
• Need to watch out for customer reactions to the menu price change.
• Price change varies across portfolio with prices of entry-level seeing almost no change.
• With lower GST rate on output end-prices dropped 11 percent, which should help volumes.

Deutsche Bank Jubilant Foodworks

• Maintained ‘Buy’ with price target of Rs 1,775.
• Domino’s has implemented a weighted average price hike of 6 percent.
• Mitigates the potential margin headwind due to impact of stranded taxes.
• Remains top pick in consumer discretionary.
• Easy comps on revenue growth and potential for higher cost savings in the second half may drive consensus earnings upgrades.

Macquarie on Ceat

• Maintained ‘Outperform’ with price target of Rs 2,200.
• Margins improved in the previous quarter on the back of volume growth, lower rubber prices and cost-control.
• Expect volume growth to improve further in the second half, led by restocking by the trade channel.
• Expect margins to improve on benign rubber prices, favourable mix and an increase in utilisation.
• Expect Earnings per share to grow at a compound annual growth rate of 15 percent over the financial years till March 2020.

Media Reports

• Suzlon Eyeing $250 million from stake sale in Unit (Mint).
• Federal Bank In Process of Divesting 26% Stake in The Fully Owned NBFC Arm Fedfina (Financial Express).
• Govt need not consult Statutory Board: SC On Combination Drugs Ban (Economic Times)
• Government To Float Another Tender For 10,000 Electric Cars (PTI)
• Finance Ministry Asks State-Owned Banks To Submit Fundraising Roadmap In A Month (PTI)
• ONGC, Cairn Bid For 41 Oil And Gas Blocks (PTI)