Stocks To Watch: RIL, Kotak Mahindra Bank, Titan, Deepak Nitrite, Sun Pharma

Asian markets are mixed at the start of trade on Wednesday amidst reports that the Trump administration is considering sanctions on Chinese officials.

Shares in South Korea and Australia are retreating while those in Japan see modest losses. The yen fluctuates, treasuries hold losses while oil prices are lower.

Here are the stocks to watch in today’s session:

• Kotak Mahindra Bank: Board approves opening of QIP on May 26. Floor price of Rs 1,147.75 per share is a 0.47% discount to Tuesday's closing. The bank may, at its discretion, consider offering a discount of not more than 5% on the floor price.
• Reliance Industries: Bloomberg News reports that the company is preparing Jio Platforms for an IPO outside the country, according to people familiar with the matter. The company however has not decided on the listing venue. The offering may happen in the next 12-24 months.
• Titan: The company has shared its Covid-19 update with the exchanges. The release says that it saw virtually no sale from March 17 until the first week of May. The company is gradually re-opening stores and 43% of its stores are currently operational. The company has guided for low visibility on revenue and that customer demand sentiment is pointing to reduced discretionary spends.
• Bharti Airtel: Bharti Telecom said in a press release that it raised over Rs 8,433 crore through accelerated book-build offering of equity shares of the telecom player. Sale proceeds will be fully utilized to repay debt at and make the promoter holding company a ‘debt free.’
• Coal India: Bloomberg News reports that its consultancy arm CMPDIL has been roped in by NTPC to make separate mining plans for Banai and Bhalumuda coal mines in Chhattisgarh with an aim to maximise the extractable reserves by merging operations of the two mines.
• ITI: The company says that it has started manufacturing face shield at its Bengaluru unit. The company is now capable of producing 5 lakh face shileds per month which may be extended to 15 lakh in the coming days.
• Relaxo Footwear’s Covid-19 Update: The overall demand of the products has been impacted, but due to easing of lockdown restrictions, the demand for open slippers has improved.
• Astra Microwave Products: Operating at 75% capacity in all factories.
• Century Plyboards: Extensive damage done to the factory shed and building at Joka factory near Kolkata due to cyclone AMPHAN. The plant production has been partly shut down. Plant is adequately covered under insurance. The overall impact is not expected to be material.
• Welspun Enterprises: To consider raising capital via equity on May 29.
• Non-Nifty Earnings Today: Ujjivan Financial Services, United Spirits, Dabur, KPIT Tech, Tube Investments, Vaibhav Global, Aditya Birla Fashion & Retail, Quess Corp.

Earnings Reported After Market Hours

• Deepak Nitrite: Net profit rises 88.3% from last year, aided by a deferred tax reversal of Rs 22.5 crore this quarter. Fine and Speciality segment revenue grew 30% while basic chemicals segment revenue saw a 10% decline.
• Max Financial Services: Net profit falls 96.7% from last year while New Business Margins remain constant at 21.6% for FY 20.
• Coromandel International: Net profit up 2.1 times to Rs 234.2 crore while Ebitda margin expands to 13.6% from 9.8%, aided by lower raw material costs.
• Torrent Pharma: Returns to profitability with net profit of Rs 314 crore from net loss of Rs 152 crore last year. The company had an exceptional loss of Rs 357 crore in the previous quarter. Synergies from acquired Unichem portfolio, incremental productivity and cost control aid margins.
• VIP Industries: Net profit falls 62.5% while Ebitda margins at 10.2% from 9.1%. Gross margins aided by better share of hard luggage and lower raw material costs.
• SH Kelkar: High taxes this quarter and higher other income in the base quarter leads to 40.6% drop in net profit this quarter. Margins expand to 11.6% from 9.3% due to lower input costs.
• Blue Dart Express: Net loss of Rs 23.8 crore from net profit of Rs 12.9 crore. Ebitda margin down to 2.1% from 3.6% due to IND-AS 116 impact.

Bulk Deals

• Bharti Airtel: Promoter Bharti Telecom sold 15 crore shares (2.75 percent) at Rs 562.2 per share and Societe Generale acquired 3.53 crore shares (0.65 percent) at Rs 561.1 per share.
• Indian Energy Exchange: Westbridge Crossover Fund sold 18.65 lakh shares (0.62 percent) at Rs 165 per share.

Who’s Meeting Whom

• Escorts: To meet IIFL Wealth Management and SBI Mutual Fund between May 27-28.
• Allcargo Logistics: To meet HSBC MF, Abakkus Asset Managers and other investors on May 28.
• CG Consumer Electricals: To meet Highclere International Investors and Hill Fort Capital on May 28.

Pledged Share Details

• Solara Active Pharma Sciences: Promoter Prafulben Dudhagara invoked pledge of 32,216 shares on May 21.
• Adani Power: Promoters released pledge of 2.37 crore shares between May 20-22.

(As Reported On May 26)

F&O Cues

• Nifty May futures closed at 9,034; premium of 5 points from a discount of 13 points
• Nifty May futures shed 16% and 11.8 lakh shares in Open Interest
• Nifty Rollovers at 40%
• Nifty Bank May futures closed at 17,445; premium of 5 points from a discount of 60 points
• Nifty Bank May futures shed 18% and 3.2 lakh shares in Open Interest
• Nifty Bank Rollovers at 21%
• Nifty Put Call Ratio at 1.16 from 1.15 across all series

Nifty Monthly Expiry: May 28

• Maximum Open Interest on Call side at 9,200 strike (29.6 lakh shares)
• Maximum Open Interest on Put side at 9,000 strike (31.5 lakh shares)
• Active options: 9,100 Call (+5.5 lakh shares), 9,200 Call (+5.5 lakh shares)