Stocks To Watch: PNB, RIL, SAIL, Tata Motors, TCS, Yes Bank
Stock market movements shown on an electronic display in Tokyo, Japan. (Photographer: Kiyoshi Ota/Bloomberg)

Stocks To Watch: PNB, RIL, SAIL, Tata Motors, TCS, Yes Bank

Asian stocks followed their U.S. peers with modest declines in early Friday trading amid concern that a resurgence in coronavirus cases could slow the global economic recovery. Treasuries held on to an overnight jump.

Japanese shares slipped at the open along with those in South Korea and Australia.

Here are the stocks to watch in trade today:

  • Yes Bank had filed an appeal against single judge bench order of the Bombay High Court which refused its plea to enforce Zee Entertainment's letter of comfort as bank guarantee. Yes Bank's appeal was heard by a division bench of the court on July 9.Court has directed Zee Entertainment to file an affidavit within a period of one week. Matter will be heard on July 21.
  • BP and Reliance Industries announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility. BP has paid Reliance $1 billion for a 49% stake in the joint venture, with Reliance holding the remaining stake. Venture has received the marketing authorization for transportation fuels, amongst other necessary regulatory and statutory approvals. The joint venture will begin selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to “Jio-bp” in due course. Venture aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years and to increase its presence from 30 to 45 airports in the coming years.
  • Punjab National Bank: Board approved raising Rs 10,000 crore by private placement, QIP issue, FPO, rights issue or any combination thereof and seek shareholders nod to raise Rs 7,000 crore via equity. Board has also approved the appropriation of accumulated losses of Rs 28,707.9 crore from share premium account of the amalgamated Bank. A fraud of Rs.3,688.6 crore is being reported by Bank to RBI in the accounts of the DHFL at large corporate branch at Mumbai. Bank has already made provisions amounting to Rs.1,246.6 crore, as per prescribed prudential norms.
  • Tata Motors JLR Q1FY21 Update: Retail sales down 42.4% to 74,067 units. June retail sales down 24.9% to 35,334 units. Sales in China and North America were encouraging. Over 95% of JLR’s retailers are open and all plants have resumed manufacturing, except Castle Bromwich facility, which will restart in August.
  • PNB Housing Finance FY21 update: The Covid-19 impact was visible on the disbursements in the last quarter and the first quarter of fiscal 2020 and 2021, respectively. The focus will be on the mass housing lower risk weighted retail segment. In the mass housing segment, the company will also disburse loans to high yielding Unnati segment (individual housing) with average ticket size of around Rs 17 lakh. Unnati segment will account for 10-15% of the total disbursements planned for fiscal 2021. With focus on retail segment, the retail loans are expected to further increase beyond 85% of the total AUM as on March 31, 2021. As on June 30, the retail loans under moratorium phase 2 account for 29% of the retail AUM and on over all basis, 39% of the AUM is under moratorium.
  • Firstsource Solutions: Rakesh Jhunjhunwala increased stake from 2.06% to 2.88% in June quarter.
  • Moody’s Investors Service has retained the JSW Steel’s ratings at Ba2 with outlook revised to negative.
  • India Ratings and Research has upgraded CCL Products long-term issuer rating to ‘INDAA-’ from ‘INDA+’. The outlook is stable.
  • Gujarat Ambuja Exports: Board to consider proposal for share split of 1:2 on July 25.
  • VIP Industries: Board approved raising NCDs worth Rs 100 crore via private placement.
  • Kirloskar Oil Engines on Covid-19 impact: Good improvement in the performance of the business divisions that are categorized as essential supplies such as agriculture, the progress with reference to other divisions like power generation and industrial has been relatively slower and this would impact the profitability of the company. Supply chain was also affected to some extent due to constraints in the availability of few raw materials, transportation, and workers at the suppliers’ manufacturing locations.
  • Rallis India has completed the merger of Zero Waste Organics into the company with effect from July 9.
  • Subrat Kumar has been assigned the position of CFO of Bank of Baroda with effect from July 10.
  • Muthoot Capital Services has completed its first securitization of Rs 100.9 crore for the fiscal 2021.
  • Seamec said that one of its vessel charter has been extended with Clipper Bulk Shipping, has been extended for a further period of one year. The annualized value of the charter is $2.88 million.
  • CG Power and Industrial Solutions: Hungary court has declared company's two Hungarian arms to be insolvent and the commencement of liquidation proceedings has started.
  • Seshasayee Paper and Boards' operations, in its Tirunelveli unit, has been temporarily shut from July 7 due to detection of Covid-1 9 virus infection to some employees.
  • Tourism Finance Corp to consider raising capital on July 16.
  • Som Distilleries and Breweries clarified that there has been a GST dispute in a promoter company where an investigation is going on, which is related to a dispute regarding hand sanitizers which promoter company had started manufacturing at the outbreak of the ongoing pandemic.
  • Container Corporation of India Q1FY21 update: Total throughput down 21% at 7.33 lakh TEUs.
  • Dai-Ichi Karkaria to sell its Pune land parcel for Rs 153.5 crore to Gera Developments.
  • Elantas Beck: Gujarat Pollution Control Board has granted further extension of 6 months to the revocation for the closure order issued to the company's manufacturing plant at Bharuch, Gujarat. The company will in the coming days represent to pollution control board for permanent revocation of the closure order and accordingly is doing all the necessary acts and deeds in that connection.
  • GE Power India has been awarded a contract worth approximately Rs 291.9 crore by Megha Engineering & Infrastructures for Kundah pumped storage hydro electric project in Nilgiris district of Tamil Nadu.
  • NLC India: Solar project in Andaman islands has been commissioned on June 30.

Nifty Earnings

TCS Q1 (Consolidated, QoQ)

  • $ Revenue down 7% at $5,060 million (Est $5,140 million)
  • Revenue down 4.1% at Rs 38,322 crore (Est Rs 38,910 crore)
  • Net profit down 12.9% at Rs 7,049 crore (Est Rs 7,694 crore)
  • EBIT down 9.7% at Rs 9,048 crore (Est Rs 9,432 crore)
  • Margins at 23.6% versus 25.1% (Est 24.2%)
  • Bottom line below expectations
  • Operating margins miss
  • Company expects gradual recovery over the next 2 quarters
  • Clients are neither cancelling contracts nor renegotiating

Other Earnings

Sadbhav Engineering Q4 (Consolidated,YoY)

  • Revenue down 57.2% at Rs 629.5 crore
  • Net profit at Rs 886.6 crore versus Net loss at Rs 27 crore
  • Ebitda down 24% at Rs 180.2 crore
  • Margins at 28.6% versus 16.1%
  • Exceptional gain of Rs 1,501 crore due transfer of assets of Sadbhav infrastructure Project to Indlnfravit Trust

Earnings Today

  • IRCTC
  • Lakshmi Vilas Bank
  • SAIL
  • Karnataka Bank
  • Vishal Fabrics
  • Ashapuram Minechem
  • Future Consumer
  • GNFC
  • IFB Agro Industries

Pledged Share Details

  • Rushil Decor promoter K.Thakkar created a pledge of 19.9 lakh shares on July 8
  • JSW Steel promoter JSW Techno Projects Management revoked pledge of 9.7 lakh shares on July 6

(As Reported On July 9)

Bulk Deals

  • Tejas Networks: HDFC MF sold 12.2 lakh shares (1.32%) at Rs 51.8 per share.
  • Arvind Fashions Right Issue: Schroder Asian Growth Fund sold 3.21 lakh shares at Rs 55.89 per share.

Who’s Meeting Whom

  • Allcargo Logistics to meet Ashmore on July 10

Trading Tweaks

  • Record Date Rights Issue: PVR, Shriram Transport Finance
  • AGM Date: Ambuja Cement, Aditya Birla Money, Neuland Labs, CSB Bank
  • Fund Raising: Shriram EPC, Bank of Maharashtra, Canara Bank
  • Move Into ASM Framework: LT Foods
  • Move Into Short-Term ASM Framework: Indiabulls Real Estate, IG Petrochemicals, Ujjivan Small Finance Bank.
  • Move Out Of Short-Term ASM Framework: Gallantt Ispat, Anant Raj, Den Networks, Bajaj Hindusthan Sugar, Century Extrusions, Zensar Technologies.

F&O Cues

  • Nifty July futures closed at 10,823, premium of 10 points versus discount of 10 points
  • Nifty July futures open interest up 4.2%, adds 4.7 lakh shares in open interest
  • Nifty Bank July futures closed at 22,908, premium of 1 point versus premium of 26 points
  • Nifty Bank July futures open interest down 0.5%, sheds 7,200 shares in open interest

Nifty Monthly Expiry: July 16

  • Max open interest on call side at 11,000 strike (13.7 lakh shares)
  • Max open interest on put side at 10,800 strike (13.3 lakh shares)
  • Active options: 10,800 Put (+10.4 lakh shares), 11,000 Call (+7.4 lakh shares)

Nifty Monthly Expiry: July 30

  • Max open interest on call side at 11,500 strike (26.3 lakh shares)
  • Max open interest on put side at 10,000 strike (34 lakh shares)
Stocks To Watch: PNB, RIL, SAIL, Tata Motors, TCS, Yes Bank
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