India Markets open in 3 hrs 34 mins

Stocks To Watch: ACC, Ambuja Cements, Fortis Healthcare, Indiabulls Real Estate

The Smarter way to get your business news - Subscribe to BloombergQuint on WhatsApp

  • ACC-Ambuja Cements merger put on hold.
  • HDFC Bank said that it will work closely with SEBI on information leakage.
  • IMAX inks new five-year pact with PVR Cinemas, reported Bloomberg.
  • Coffee Day Enterprises: KKR Mauritius sold 5.9 percent stake.
  • Vadivarhe Specialty Chemicals: Pantomath Fund Managers bought 75,000 shares.

Asian stocks built on the recent rally after U.S. shares reached a four-week high and investors bet monetary policy tightening won’t be too severe to derail the bull run in equities.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,656 as of 6:58 a.m.

On Monday, Indian equity benchmarks trimmed their biggest monthly loss in 15 months as private sector lenders and car makers gained. The S&P BSE Sensex rose 304 points or 0.9 percent to 34,335.75 while the NSE Nifty 50 Index climbed 0.9 percent or 92 points to 10,583.

Here Are The Stocks To Watch Out For In Tuesday’s Session

  • PNB reveals possibility of additional fraud of Rs 1,325 crore in Nirav Modi case.
  • Ambuja Cements said that it is not pursuing the merger with ACC owing to some constraints. Meanwhile, the board approved an arrangement with ACC for the sale and purchase of materials and services.
  • HDFC Bank said that it will work closely with SEBI on information leakage.
  • Gujarat Sidhee Cement commissions 5.5 megawatt power plant.
  • Sagar Cements to acquire 4.3 megawatt hydel power projects for Rs 26.9 crore.
  • Indiabulls Real Estate seeks shareholders’ approval for divestment of stake in Indiabulls Properties.
  • IMAX inks a new five-year pact with PVR Cinemas, reported Bloomberg.

F&O Setup

  • Nifty March futures closed at 10,600, a premium of 18.4 points versus 13 points on Friday.
  • All series-Nifty Open Interest up 3 percent, Bank Nifty OI up 2 percent.
  • India VIX ended at 13.7, down 3.5 percent.
  • Maximum OI for March series at 11,000 call strike, OI at 30 lakh, up 12 percent.
  • Maximum OI for March series at 10,000 Put, OI at 33.9 lakh, down 4 percent.

F&O Ban

  • In Ban: Fortis Healthcare, JP Associates, Oriental Bank of Commerce.
  • New In Ban: Oriental Bank of Commerce.

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

Active Stock Futures

Bulk Deals

  • Vadivarhe Specialty Chemicals: Pantomath Fund Managers bought 75,000 shares at Rs 86.5 each.
  • Supreme Infrastructure: Discord Exim Pvt. bought 3.24 lakh shares, or 1.3 percent equity at Rs 92.7 each, on an average.
  • Consolidated Construction Consortium: IDBI Bank sold 35.48 lakh shares, or 0.9 percent equity at Rs 5.08 each.
  • Intense Technologies: UNO Metals sold 2 lakh shares, or 0.9 percent equity at Rs 80.75 each.
  • MoldTek Technologies: UNO Metals sold 1.38 lakh shares, or 0.5 percent equity at Rs 62 each.
  • Punjab Alkalies & Chemicals: IDBI Bank sold 2.11 lakh shares, or 0.8 percent equity at Rs 23.08 each.
  • Subex: AKG Finvest bought 80.50 lakh shares, or 1.4 percent equity at Rs 9.32 each.

Coffee Day Enterprises

  • Promoter Malavika Hegde bought 55 lakh shares, or 2.6 percent equity at Rs 324 each.
  • KKR Mauritius Pe Investments II sold 1.25 crore shares, or 5.9 percent equity at Rs 324.45 each, on an average.

Fortis Healthcare

  • BNP Paribas Arbitrage bought 40.20 lakh shares, or 0.8 percent equity at Rs 157.59 each.
  • ECL Finance sold 41.95 lakh shares, or 0.8 percent equity at Rs 155.81 each.

Brokerage Radar

Macquarie on SBI

  • Maintained ‘Neutral’ with price target of Rs 300.
  • Near-term slippages to remain high in general.
  • Significant IFRS impact on networth.
  • Will focus on one-time settlements aggressively to bring down mid-corporate and agri NPLs.
  • Some loan demand seen but corporate capex absent.
  • Expect margins to improve going forward.

JPMorgan on Ashok Leyland

  • Upgraded to ‘Overweight’ from ‘Neutral’; raised price target to Rs 160 from Rs 130.
  • Expect double digit growth in medium and heavy commercial vehicle sales.
  • High volumes to normalise discounts and improve margins.
  • Expect earnings per share to compound at 23 percent through the financial years till March 2020.
  • General freight demand/infrastructure spending to be positive over next two years.
  • Bus demand too, would make a comeback in the next fiscal.

Deutsche Bank on Gujarat State Petronet

  • Maintained ‘Buy’; raised price target to Rs 255 from Rs 249.
  • Volume growth to continue.
  • Expect gas transmission volume to compound at 12 percent over the fiscal 2017-2020.
  • Current fiscal is turning out to be the inflection point for gas transmission business.
  • Expect tariff revision of about 20 percent by June 2018.
  • Cheapest Indian gas utility with strong earnings growth outlook.

Macquarie on Hero MotoCorp

  • Maintained ‘Outperform’ with price target of Rs 4,400.
  • Growth momentum expected to sustain in the next fiscal estimates.
  • New products in under-represented segments.
  • Improving outlook for exports.
  • Continued focus on cost reduction initiatives.
  • Expect Hero to be key beneficiary of rural demand recovery in the next financial year.
  • Like strong franchise in two-wheelers in India, robust FCF, high dividend yield and healthy return ratios.

Credit Suisse on Ambuja-ACC Merger

  • Full merger replaced by material swap agreements.
  • Development weaker than market expectations.
  • Full merger would have higher synergies than current form.
  • Synergies delayed and sentiment negative.
  • Cautious on the sector.
  • Demand growth weak and players finding it difficult to pass on cost increase.

Nomura on Financials

  • Asset quality – Resolution finally round the corner.
  • Core pre-provisioning operating profit weak but to improve from April.
  • Macros getting a bit mixed.
  • Valuations reasonable again for corporate banks.
  • Top picks - HDFC Bank, Yes Bank, Bank of Baroda and Shriram Transport.
  • Avoid - Housing finance companies and PNB.
  • PNB: Downgraded to ‘Neutral’ from ‘Buy’; maintain price target at Rs 115.

Media Reports

  • M&M plans to double its EV portfolio in three years (Economic Times).
  • Creditors ok Aion-JSW offer for Monnet Ispat; offer entails payment of Rs 2,450 crore to the lenders and equity funding of Rs 1,050 crore (Economic Times).

The Smarter way to get your business news - Subscribe to BloombergQuint on WhatsApp

. Read more on Markets by BloombergQuint.