Stocks To Watch: Reliance Industries, Cipla, Bharti Airtel, M&M Finance, L&T Finance
A stock broker trades in a trading room in Mumbai, India. (Photographer: Kuni Takahashi/Bloomberg)

Stocks To Watch: Reliance Industries, Cipla, Bharti Airtel, M&M Finance, L&T Finance

Asian markets have opened higher at the start of a fresh trading week. Investors are finding encouragement in businesses reopening across major economies.

Markets in Japan, South Korea and Australia are edging higher. Futures in the U.S. too are gaining after the benchmarks had a positive close on Friday, trimming a weekly loss.

However, the U.S. Federal Reserve has warned of a potential asset-price declines if the pandemic worsens.

Here Are The Stocks To Watch In Today’s Trading Session:

  • Reliance Industries: General Atlantic to buy 1.34 percent stake in Jio Platforms amounting to Rs 6,598 crore. General Atlantic values Jio Platforms at an equity value of Rs 4.91 lakh crore and an Enterprise Value of Rs 5.16 lakh crore. General Atlantic becomes the fourth investor in Jio Platforms in less than a month.
  • Piramal Enterprises: Board to consider NCD issue worth Rs 500 crore on May 20.
  • NCC: Aditya Birla Sun Life Mutual Fund reduces its stake to 3.96 percent from 7.24 percent.
  • GAIL: Bloomberg News reports that the company has stalled LNG imports at the Ratnagiri port.
  • Godrej Consumer Products: Increases stake in Canon Chemicals to 100 percent from 75 percent. The stake increase has been done for a sum of Rs 106.5 crore
  • Persistent Systems: Awarded a multi-year contract by a leading U.S.-based multi-cloud enterprise software company. The engagement is for a period of five years with an estimated revenue of $50 million.
  • M&M Financial Services: Board approves raising the borrowing limits of the company to Rs 90,000 crore from Rs 80,000 crore.
  • Berger Paints: Starts business in the area of products related to hand sanitisers, multi-purpose sanitisers and home hygiene chemical products.
  • NIIT Tech: HDFC Mutual Fund reduces its stake to 3.03 percent from 5.06 percent on May 13.
  • InterGlobe Aviation: Clarifies that it has not formulated any indicative proposal or expressed any interest in the sale of Virgin Australia. The company has also said that InterGlobe Enterprises is a separate legal entity and a shareholder in the company.
  • Companies That Resumed Operations: Eveready Industries, Filatex India, Polycab, Kirloskar Oil Engines, Crompton Greaves Consumer Electricals
  • Non-Nifty Earnings Today: AstraZeneca Pharma, Delta Corp, Dr Lal Pathlabs, GSK Pharma, Torrent Power, Maharashtra Scooters.

Earnings Reported After Market Hours

  • Cipla: Revenue down 1 percent to Rs 4,376 crore. Net profit falls 33 percent from last year while Ebitda margin narrows to 14.5 percent from 21.8 percent. India business sees double-digit growth for the third straight quarter. The company has also approved raising funds of up to Rs 3,000 crore by issue of equity shares or ADRs, GDRs or Foreign Currency Convertible Bonds or other financial instruments through a public issue or private placement subject to necessary approvals.
  • L&T Technology Services: Revenue up 7.7 percent to Rs 1,446 crore while net profit rises 6.9 percent from last year to Rs 204.8 crore. Ebitda margin remains flat at 18.5 percent
  • Tata Chemicals: Revenue down 7.2 percent to Rs 2,378.1 crore while net profit ex-consumer products business falls 46 percent to Rs 184.7 crore. The company had an exceptional gain of Rs 98 crore in the base quarter.
  • L&T Finance Holdings: Net interest income rises 5.5 percent to Rs 1,552.1 crore while net profit fell 30 percent from last year to Rs 386.2 crore. Impairment of Rs 502 crore on financial instruments in the current quarter of which Rs 314 crore is for the Covid-19 impact.
  • M&M Financial Services: Net Interest Income up 3.7 percent to Rs 1,670.4 crore while net profit fell 65.8 percent to Rs 234.8 crore. Impairment of Rs 822 crore on financial instruments in the current quarter of which Rs 681 crore is for the Covid-19 impact.
  • Crompton Greaves Consumer Electricals: Revenue fell 15 percent to Rs 1,026.3 crore while net profit was down 27.3 percent to Rs 102.1 crore. Better sales mix led to gross margins improving 30 basis points on a year-on-year basis.
  • Nippon Life AMC: Net profit fell 97.6 percent to Rs 3.7 crore impacted by MTM loss in treasury operations due to market volatility in March.

Bulk Deals

  • AU Small Finance Bank: Bharti SBM Holdings, a entity promoted by Sunil Bharti Mittal, acquired 24.12 lakh shares or 0.79 percent stake in the company at Rs 414.6 per share from promoter Chirinjee Lal Agarwal who sold the stake.
  • Equitas Holdings: Julius Baer sold 27.5 lakh shares or 0.8 percent stake in the company at Rs 49.17 per share.
  • Indian Energy Exchange: Westbridge Crossover Fund sold 37.33 lakh shares or 1.25 percent stake at Rs 160.52 per share

Pledged Share Details

  • Adani Green Energy: Promoter Adani Trading Services revoked pledge of 2.17 crore shares on May 14
  • Solara Active Pharma: Promoters invoked pledge of 6.5 lakh shares on May 12.

As reported On May 15

Trading Tweaks

  • Price Band Revised From 10 Percent To 5 Percent: NDTV, TCI Developers
  • Moves Into ASM Framework: Take Solutions
  • Moves Into Short-ASM Framework: Subex
  • Move Out Of Short-Term ASM Framework: Astec LifeSciences, Spandana Sphoorty Financial, Aavas Financiers, Filatex India, GHCL , HPL Electric & Power, JBM Auto, Mahindra Logistics, Shalby, Suzlon Energy, Welspun Enterprises, Sadhna Nitro Chem, DCM Shriram

F&O Cues

  • Nifty May futures end at 9,137; premium narrows to 0.2 points from 1 point
  • Nifty May futures add 2.2 percent in Open Interest and 1.6 lakh shares
  • Nifty Bank May futures end at 18,808; a discount of 26 points from 31 points
  • Nifty Bank May futures add 10.4 percent in Open Interest and 1.2 lakh shares
  • Nifty Put-Call Ratio at 1.11 from 0.89 across all series
  • Securities Out Of F&O Ban: Vodafone Idea

Nifty: May 21 Expiry

  • Maximum Open Interest on Call side at 9,500 strike (17.3 lakh shares)
  • Maximum Open Interest on Put side at 9,000 strike (9.6 lakh shares)
  • 8,600 Put (2.97 lakh shares) and 9,200 Call (2.3 lakh shares) see addition in Open Interest

Nifty: May 28 Expiry

  • Maximum Open Interest on Call side at 10,000 strike (21.9 lakh shares)
  • Maximum Open Interest on Put side at 9,000 strike (24.4 lakh shares)

F&O Buzzers & Fund Flows

Stocks To Watch: Reliance Industries, Cipla, Bharti Airtel, M&M Finance, L&T Finance
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