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Stocks To Watch: Aurionpro Solutions, Bank Of Maharashtra, Coal India, KM Sugar Mills

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  • Coal India examining the feasibility of producing methanol.
  • Bank of Maharashtra to raise Rs 650 crore via equity.
  • KM Sugar Mills sold 7.30 lakh shares (73 percent) in subsidiary KM Energy.

Indian equity benchmarks were little changed for the second day in a row as gains in ICICI Bank, Larsen & Toubro Ltd. and Reliance Industries Ltd. were offset by losses in HDFC Bank, Infosys Ltd. and Maruti Suzuki Ltd.

The S&P BSE Sensex was little changed at 33,793 and the NSE Nifty 50 Index was little changed at 10,443. Mid- and small-cap shares outperformed large cap peers as the S&P BSE MidCap Index rose 0.5 percent and the S&P BSE SmallCap Index advanced 0.98 percent.

The Singapore traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India, rose 0.2 percent to 10,500 as of 7:30 a.m.

Here Are The Stocks To Watch Out For In Thursday’s Trade

  • HDFC: The mortgage lender said its third quarter profit on the sale of investments stood at Rs 5,270 crore compared to Rs 3 crore a year ago. The figure includes Rs 5,250 crore from the IPO of HDFC Life. Its dividend income stood at Rs 151 crore from Rs 179 crore year-on-year. HDFC said it will also make additional special provision of Rs 1,575 crore.
  • Coal India examining feasibility of producing methanol.
  • SJVN to consider share buyback on Jan. 8.
  • Bank of Maharashtra to raise Rs 650 crore via equity.
  • NBCC secures total business of Rs 315 crore in Dec.
  • Kridhan Infra’s Rs 128 crore institutional share sale closes. Investors include Singapore government, DSP Blackrock and HDFC AMC.
  • Rushil Décor to import plywood as well as low thickness MDF boards.
  • Aurionpro Solutions subsidiary Cyberinc to sell its Identity and Access Management business to KPMG in an all cash deal worth Rs 217.6 crore.
  • KM Sugar Mills sold 7.30 lakh shares (73 percent) in subsidiary KM Energy.
  • HPCL: ONGC may pay Rs 45,000 crore (45 percent premium to market cap) for company's stake (Financial Express)
  • Greaves Cotton: To make new BS-VI engines for Piaggio (PTI)

Bulk Deals

  • WPIL: Promoter V N Enterprises bought 1.08 lakh shares or 1.1 percent stake at Rs 679.18 each.
  • Viceroy Hotels: ICPA Health Products bought 2.50 lakh shares or 0.6 percent stake at Rs 21.27 each.

Aro Granite Industries

  • Dilipkumar Lakhi bought 1.5 lakh shares or 1 percent stake at Rs 80.93 each.
  • Surefin Financial Cons. Pvt Ltd sold 96,000 shares or 0.6 percent stake at Rs 81.01 each.

Navkar Corp

  • Ashish Kacholia bought 10 lakh shares or 0.7 percent stake at Rs 187 each.
  • Everest Finance and Investment Co. bought 10 lakh shares or 0.7 percent stake at Rs 187.06 each.

Orchid Pharma

  • Fortune Intercontinental sold 11.28 lakh shares or 1.3 percent stake at Rs 20.2 each (average).
  • Serum Institute of India sold 13.12 lakh shares or 1.5 percent stake at Rs 20.1 each.

F&O setup

  • Nifty January futures trading at 10,469, premium of 26 points from 30 points earlier.
  • January series: Nifty open interest up 3 percent; Bank Nifty open interest up 14 percent.
  • India VIX ended at 13.6, down 0.4 percent.
  • Max open interest for January series at 11,000 Call (open interest at 43.3 lakh, down 2 percent).
  • Max open interest for January series at 10,300 Put (open interest at 48.3 lakh, down 3 percent).

F&O Ban

  • In ban: Fortis Healthcare, GMR Infrastructure, HDIL, IFCI, JP Associates, Reliance Communications, Reliance Power.
  • New in ban: Fortis Healthcare.

Only intraday positions can be taken in stocks which are in F&O ban. There will be a penalty in case of a rollover of these intraday positions.

Brokerage Radar

Equirus on FIEM Industries

  • Initiated ‘Long’ rating with price target of Rs 1,336.
  • Second largest player in Indian automotive lighting market.
  • Key beneficiary of shift to LED usage in two wheelers.
  • Effective AHO regulations to fuel LED usage in two wheelers.
  • LED lamps to drive strong value growth; Lower competition to aid RoIC.
  • Strong track record of adding new products.
  • Margin and return profile to rebound after a blip in the previous financial year.
  • Expect RoIC to rebound to 13 percent by March 2020.
  • Expect revenue, operating income and net profit to grow at a compounded rate of 18 percent, 21 percent and 33 percent over the financial years through March 2020.

Equirus on Lumax Industries

  • Initiated ‘Long’ rating with price target of Rs 2,486.
  • Market leader in automotive lighting market in India with 35 percent market share.
  • Set to be a key beneficiary of shift to LEDs in two and four wheelers.
  • Focus on increasing market share in commercial vehicles, tractors and two wheelers.
  • Expect gain in share in Hero Motor’s light sourcing.
  • Large exposure to Maruti provides good growth visibility.
  • Maruti recently introduced LED in mid to premium segment.
  • Return matrix to improve led by growth, margin expansion.
  • Expect revenue, operating income and net profit to grow at a compounded rate of 15 percent, 24 percent and 27 percent over thr financial years through March 2020.

IIFL on IRB InvIT

  • Initiated ‘Buy’ with fair value of Rs 97.
  • Natural hedge against inflation.
  • Established and stable concession agreements.
  • Significant government support for highway development.
  • Strong leverage to underlying traffic growth.
  • Healthy balance sheet provides room to expand portfolio.
  • Large pipeline of assets from IRB Infrastructure.
  • Fair value assuming 8 percent toll revenue growth.

Credit Suisse on India Steel Sector

  • Odisha shutdown takes out 10 percent of India's output.
  • With output cut, India to turn iron ore importer again.
  • Iron ore prices to rise if India turns net-importer.
  • Steelmaking cost up $55-60/tonne vs $60/tonne rise in steel prices.
  • Cost-push steel price hikes good for Tata Steel.

IIFL on Axis Bank

  • Upgraded to ‘Buy’ from ‘Add’; raised price target to Rs 650 from Rs 520.
  • Increase in share capital to boost capital position by over 200 basis points.
  • Share capital boost to enhance ability to absorb large write-downs.
  • Expect earnings growth to rebound strongly by March 2020.
  • Expect sharp decline in loan loss provisions.
  • Profitability could normalise by March 2019 under Indian Accounting Standards.
  • Positives: crystallization of loan losses, reduced uncertainty on capital adequacy and resumption of loan growth.

Media Reports

  • TRAI invites inputs on new telecom policy (PTI).
  • India’s GDP growth to slip below 7 percent this fiscal, say experts (PTI).
  • Electoral bonds printing to have currency notes-like secrecy (PTI).
  • India cancels $500 million missile deal with Israel’s Rafael (PTI).
  • SBI earns Rs 1,772 crore in minimum balance penalty during April-November (PTI).

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