Stocks To Watch: Quess Corp, SBI, Star Cement, United Bank

Indian equity benchmarks snapped a two-day winning streak after touching new record highs during the session.

The S&P BSE Sensex Index fell 0.3 percent to end below 34,000 after 24 out of its 31 stocks declined. The NSE Nifty 50 ended 0.4 percent lower at 10,490.75.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,559 as of 6:50 a.m.

Here Are The Stocks To Watch In Thursday’s Trade

• Star Cement received Rs 158.82 crore as capital investment subsidy from Central government.
• Quess Corp acquired Master staffing solutions and 60 percent stake in Golden Star Facilities and Service.
• Riddhi Siddhi board approved proposal to de-list shares of the company. Promoters set the offer floor price at Rs 510 apiece.
• SEBI asked Axis Bank to conduct inquiry on leak of unpublished price sensitive financial information within 3 months.
• Kolte Patil’s Pune township signed Rs 193 crore agreement with KKR.
• SBI board approved raising up to Rs 8,000 crore through Tier-1 bonds by March.
• United Bank raised Rs 100 crore through Tier-1 bonds.

Bulk Deals

• Bajaj Auto: Nirav Trust sold 16.69 lakh shares or 0.6 percent equity at Rs 3351.40 each.
• JHS Svendgaard: Sixth Sense India Opportunities-I sold 3.16 lakh shares or 0.7 percent equity at Rs 74.06 each.
• Bajaj Finserv: Anant Bajaj Trust sold 9.19 lakh shares or 0.6 percent equity at Rs 5372.14 each.
• Sintex Plastics: Hypnos Fund sold 30 lakh shares or 0.5 percent equity at Rs 81.01 each.

Bajaj Electricals

• Madhu Bajaj bought 7.70 lakh shares or 0.8 percent equity at Rs 475 each.
• Neelima Bajaj Swamy bought 7.90 lakh shares or 0.8 percent equity at Rs 475 each.
• Anant Bajaj Trust sold 21.80 lakh shares or 2.1 percent equity at Rs 475 each.

Bajaj Holding

• Nirav Trust bought 21.99 lakh shares or 2 percent equity at Rs 3012.40 each.
• Anant Bajaj Trust bought 21.65 lakh shares or 1.9 percent equity at Rs 2963.76 each.
• Kumud Bajaj sold 12.12 lakh shares or 1.1 percent equity at Rs 2987.50 each.
• Madhu Bajaj sold 18.97 lakh shares or 1.7 percent equity at Rs 2987.50 each.

ADF Foods

• Kuber India Fund bought 6 lakh shares or 2.8 percent equity at Rs 324 each.
• Promoter Priyanka Thakkar sold 8 lakh shares or 3.8 percent equity at Rs 324.23 each.

F&O Setup

• Nifty December futures closed trade at 10500, premium of 9.5 points versus discount of discount of 5 points.
• Nifty January futures trading at 10,533, premium of 42 points versus premium of 37 points.
• Across all series: Nifty open interest down 1 percent; Bank Nifty open interest up 0.4 percent.
• Nifty rollover at 51 percent, Bank Nifty rollover at 44 percent.
• India VIX ended at 12.4, up 3.6 percent.
• Max open interest for Dec. series at 10,600 Call (open interest at 54.5 lakh, up 21 percent).
• Max open interest for Dec. series at 10,000 Put (open interest at 64.4 lakh, down 9 percent).

F&O Ban

• In ban: Balrampur Chini, DHFL, DLF, GMR Infra, HDIL, IFCI, Jet Airways, Jain Irrigation, JP Associates, Reliance Communications, Reliance Capital, TV18 Broadcast, Wockhardt
• New in ban: Reliance Communications, TV18 Broadcast

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

Brokerage Radar

Motilal Oswal On Mahindra CIE Automotive

• Initiated ‘Buy’ rating with target price of Rs 297, implying a potential upside of 19 percent from yesterday’s close.
• Mahindra CIE Automotive is all primed for a growth phase after three years of consolidation.
• Mahindra CIE Automotive's India (ex BFL) business is focused on fast-growing/recovering segments.
• A strong, focused and disciplined parent, CIE has instilled financial discipline.
• The Bill Forge (BFL) acquisition is an excellent strategic fit for Mahindra CIE Automotive.
• Estimate consolidated revenue to grow at a compounded rate of about 8 percent by 2019.
• Expect Ebitda margin expansion of about 260 basis points to around 15.1 percent by 2019.
• Strong earnings growth, limited capex (5-6 percent of sales) to drive improvement in capital efficiencies.

Motilal Oswal On NTPC

• Maintained ‘Buy’ rating with a price target of Rs 211, implying a potential upside of 19 percent.
• Revised norms provide relief from low PLF inefficiencies.
• Three plants had PLF of less than 75 percent in the financial year-ended March 2014, which increased to five plants in the previous financial year.
• The revised regulatory norms can compensate earnings by about 2 percent, visible in September quarter results.
• Swapping/flexible coal linkages also a positive since this leads to reduction in landed cost of coal.
• Expect earnings to grow at a compounded rate of 14 percent over the financial years through March 2020, driven by strong capitalization.
• Stock could re-rate as return on equity could get a boost from capitalization outpacing the capex.

Ventura On Hyderabad Industries

• Maintained ‘Buy’ rating with a price target of Rs 1700, implying a potential upside of 21 percent from yesterday’s close.
• Fiber cement roofing sheets is a cash cow for Hyderabad Industries.
• Management to launch new product in fiber cement roof segments by March.
• Hyderabad Industries is planning a capacity expansion in the pipes & fittings segment.
• See higher contribution from low costing AAC blocks, boards and panels segment.
• Expect revenue, operating income and net profit to grow at a compounded rate of 12 percent, 21 percent and 22 percent in three years.

Goldman Sachs On Sun Pharma

• Maintained ‘Buy’ rating and price target at Rs 600, implying a potential upside of 4 percent from yesterday’s close.
• NDA filing of OTX-101 for Dry Eye Disease in line with expectation.
• Expect an NDA approval for OTX-101 over the next 12 months.
• Expect commercialization of OTX drug to follow in the financial year-ending March 2020.
• Potential generic entry for Restasis could reduce the overall market potential for the drug.
• Delayed Halol plant resolution timeline, US price erosion intensity a key risk.

Media Reports

• Door to resolution set to open wider; Bill replacing IBC ordinance to allow promoters more time to repay dues, let ARCs, banks and AIFs put in bids and clarify status of guarantors (Economic Times).
• Aion-JSW Steel files Rs 3500 crore resolution plan for Monnet Ispat (Economic Times).
• Land cost of road projects rises to 55 percent from 9 percent in 2009 (Financial Express).
• Maruti Suzuki to set up 12 automated driving test centres in Delhi (Financial Express).
• NBFC’s retail credit growth seen at 16-18 percent in FY18: ICRA (Financial Express).