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Stocks To Watch: Bharti Airtel, Reliance Industries, Sun Pharma, TCS

  • Tata’s consumer telecom business to merge with Bharti Airtel
  • TCS beats estimates on client wins, digital services
  • Sun Pharma to increase shareholding in Ranbaxy Malaysia
  • Shriram EPC bagged multiple orders worth Rs 349 crore

The Singapore-traded SGX Nifty, an early indicator of Nifty 50 Index’s performance in India, fell 0.13 percent to 10,113 as of 7:30 a.m.

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

  • Tata Teleservices: To merge consumer mobile business with Bharti Airtel
  • DB Realty: LIC Housing Finance filed insolvency plea against the company; says has repaid Rs 157.37 crore of the Rs 188 crore loan availed.
  • Sun Pharma: To acquire 6.66 lakh shares in Ranbaxy Malaysia. Post-acquisition, stake to increase from 71.2 percent to 79.5 percent
  • Shriram EPC: Bags multiple orders worth Rs 349 crore
  • Ruby Mills: Bharat Shah, managing director of the company granted bail by CBI
  • Bharti Airtel: Board approves merger of Tikona Digital Networks with company
  • Monsanto: Denied reports of settlement of GM cotton dispute
  • Gammon India: Promoter Abhijit Rajan pledged 81.7 lakh shares (2.21 percent stake) with IDBI Trusteeship

Piramal Enterprises

  • To raise 5,000 crore via QIP. Issue opens today. Floor price set at Rs 2,688.35
  • To raise Rs 2,000 crore via rights issue. Issue price fixed at Rs 2,380 per share
  • Board approves scheme of amalgamation of subsidiaries Piramal Finance and Piramal Housing Finance

News You Should Know

  • The Reserve Bank of India imposed a monetary penalty of Rs 20 lakh on Religare Finvest Ltd.
  • Leasing vehicles purchased before July 1 to attract 65 percent GST. Applicable for a period of three years with effect from July 1
  • September CPI Inflation at 3.28 percent (unchanged over last month) August IIP at 9 months high of 4.3 percent
  • GM Breweries: Circuit filter changed to 10 percent

IPO Watch

  • General Insurance Corporation of India continues on day 3. The issue was subscribed 0.9 times at end of day 2
  • Reliance Nippon Life Asset Management IPO at Rs 247-252 a share starting October 25

Bulk Deals

Atul Auto

  • Goldman Sachs India sold 2.94 lakh shares or 1.3 percent stake at Rs 463.05 each
  • Birla Sun Life MF bought 1.75 lakh shares or 0.8 percent stake at Rs 463 each

Sterlite Technologies

  • Adar Cyrus Poonawalla sold 40.46 lakh shares or 1 percent stake at Rs 263.63 each
  • Serum Institute of India bought 40.46 lakh shares or 1 percent stake at Rs 263.63 each

Som Distilleries

  • Ranjeet Singh Pawar sold 2.01 lakh shares or 0.7 percent stake at Rs 164.83 each
  • Santosh Bhadoriya sold 2.43 lakh shares or 0.9 percent stake at Rs 165.13 each
  • Param Capital bought 2 lakh shares or 0.7 percent stake at Rs 163.85 each

Singer Ltd

  • Promoter Singer (India) B.V. sold 1.35 lakh shares or 1.3 percent stake at Rs 240.69 each

F&O Setup

  • Nifty October Futures closed with a premium of 15 points versus 7.5 points at 10,111.4
  • October Futures: Nifty open interest up 4 percent; Bank Nifty open interest down 10 percent
  • India VIX closed lower by 5.8 percent at 11.04
  • October series highest Call base at 10,000 (open interest at 37.9 lakh, down 25 percent)
  • October series highest Put base at 10,000 (open interest at 65.4 lakh, up 24 percent)
  • October call strikes 10,000 10,100, 10,200 saw open interest unwinding
  • October put strikes 9900, 10,000, 10,100 saw open interest addition

F&O Ban

  • Bharat Earth Movers
  • DHFL
  • Indiabulls Real Estate
  • JSW Energy
  • Reliance Communications
  • Reliance Capital

Active Stock Futures

  • NBCC saw open interest addition of 53 percent on long side
  • Nestle saw open interest addition of 18 percent on long side
  • Hindalco saw open interest addition of 16 percent on long side
  • Britannia saw open interest addition of 16 percent on long side
  • PFC saw open interest addition of 14 percent on short side
  • NIIT Tech saw open interest addition of 13 percent on long side
  • Nalco saw open interest addition of 13 percent on long side
  • Bharti Infratel saw open interest addition of 12 percent on long side
  • TCS saw open interest addition of 12 percent on long side

Earnings Reactions To Watch

Tata Consultancy Services (Q2, QoQ)

  • Total income rose 3.2 percent to Rs 30,451 crore
  • EBIT grew 10.8 percent to Rs 7660 crore
  • EBIT margins at 25.1 percent versus 23.4 percent
  • Profit up 8.4 percent to Rs 6,446 crore

Reliance Industrial Infrastructure (Q2, YoY)

  • Revenue fell 14.8 percent to Rs 19.85 crore
  • EBITDA declined 32.4 percent to Rs 3.65 crore
  • EBITDA margins at 18.4 percent versus 23.2 percent
  • Profit down 20.6 percent to Rs 2.7 crore

IndusInd Bank (Q2, YoY)

  • Net profit rose 24.9 percent to Rs 880 crore
  • Net Interest Income grew 24.7 percent to Rs 1,821 crore
  • Gross NPAs unchanged at Rs 1,347 crore QoQ
  • Provisions fell 5.2 percent to Rs 293.8 crore QoQ

Nifty Results To Watch

  • Mukesh Ambani-owned Reliance Industries Ltd. is expected to report its highest ever gross refining margin number in the last eight years.

To read the full earnings preview, click here

Other Results Today

  • Bhansali Engineers
  • GNA Axles
  • Karnataka Bank
  • Kirloskar Oil
  • MCX
  • Reliance Naval

Brokerage Radar

  • Sanghi Industries: Anand Rathi initiated coverage with a ‘Buy’ rating and price target of Rs 147

Bharti Airtel

  • UBS maintained its ‘Buy’ rating on the stock with price target of Rs 495
  • CLSA maintained ‘Underperform’ on the stock with price target of Rs 430
  • Credit Suisse upgraded stock rating to ‘Neutral’ from ‘Underperform’ and hiked price target to Rs 400 from Rs 320
  • Kotak Securities upgraded stock to ‘Add’ from ‘Reduce’ and hiked price target to Rs 470 from Rs 430
  • HSBC upgraded stock rating to ‘Buy’ from ‘Hold’ and hiked price target to Rs 490 from Rs 421

TCS

  • CLSA maintained its ‘Buy’ rating with price target hiked to Rs 2,970 from Rs 2,880
  • Macquarie retained its ‘Neutral’ stance with price target hiked to Rs 2,375 from Rs 2,224
  • Credit Suisse retained its ‘Neutral’ rating with price target hiked to Rs 2,350 from Rs 2,250
  • Morgan Stanley maintained ‘Underweight’ and hiked price target to Rs 2,250 from Rs 2,100

IndusInd Bank

  • CLSA maintained its ‘Buy’ rating on the stock with price target of Rs 2,060
  • UBS reiterated its ‘Neutral’ stance on the stock with price target of Rs 1,800

Media Reports

  • Reliance Communications: Lenders’ block Rcom’s property sale plans. (Financial Express)
  • Indian Hotels: Company’s right issues opens for today and closes on October 27. (Financial Express)
  • Apollo Tyres: Raises Rs 1,500 crore via QIP. (Financial Express)
  • Idea Cellular: Idea, Vodafone may also offer 4G smartphones. (Economic Times)
  • Mahindra & Mahindra: M&M, Shapoorji, Liberty House vie for ABG Shipyard; offer Rs 3,000-3,500 crore for assets; lenders face a 70 percent haircut. (Economic Times)
  • Claris Lifesciences: High cost of Baxter deal draw Claris investors’ ire. (Economic Times)
  • NBCC: May acquire three PSUs to create construction giant; HSCC, Hindustan Prefab & engineering projects on the list. (Economic Times)
  • DHFL: Loan to developer under tax scanner. (Business Standard)
  • Motilal Oswal: Motilal Oswal with MMTC Pamp, offers digital gold. (Business Standard)

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