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Asian equities open mixed Monday as traders look for clues from earnings reports, developments in the trade war and a meeting of central bankers in Jackson Hole later in the week to gauge the outlook for markets.
Japan’s shares were off to a muted start, while South Korea’s equities rose and futures indicated Hong Kong shares may open with small declines. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India traded 0.4 percent higher at 11,518.
Short on time? Well, then listen to this podcast for a quick summary before the opening bell.
Here Are The Stocks To Watch Out For In Today’s Trade
- Infosys’ CFO MD Ranganath resigned.
- L&T to consider share buyback on Aug. 23.
- Goa Carbon’s Goa unit resumed operations after maintenance.
- IHH Group makes open offer to acquire 19.7 crore shares of Fortis Healthcare at Rs 170 each.
- CG Power & Industrial Solutions entered into agreement with Malaysia based Tenaga Switchgear.
- Jet Airways clarified that it will keep evaluating alternatives for fleet utilisation.
- Prism Johnson awarded LOI for 5 captive solar power projects, to invest Rs 8 crore for 26 percent stake in JV.
- Mangalore Chemicals & Fertilizers received environmental clearance for expansion of a fertiliser plant.
- Navin Fluorochemicals MD Shekhar Khanlokar resigned.
- Alibaba has revived talks with Reliance, Tata on India push (Economic Times).
- BSE, NSE may suspend nine firms’ trading from Sept. 10. (PTI).
- BPCL Hydrocracker unit may stay shut for at least two months (Reuters).
- SJVN seen as possible selloff candidate by Government, NHPC likely suitor (Times of India).
- Amazon along with Goldman Sachs and Samara Capital to form a consortium to acquire Aditya Birla Group's More at an enterprise valuation of Rs 4,500 - Rs 5,000 crore (Economic Times).
- Hatsun Agro Product: Promoter Chandramorgan RG acquired 10 lakh shares or 0.66 percent equity at Rs 719.99 each.
Who’s Meeting Whom
- Great Eastern Shipping to meet ULJK on Aug. 20.
- Wipro to meet investors on Aug. 20.
- DCM Shriram to meet Ambit Capital on Aug. 20.
- Lemon Tree Hotels to meet investors on Aug. 20.
- Chambal Fertilisers & Chemicals promoter acquired 10,000 shares on Aug. 16.
- Nava Bharat Ventures promoter acquired 10,000 shares on Aug. 16.
- R Systems International promoter acquired 26,600 shares from Aug. 14-16.
- Page Industries promoters sold 9,000 shares from Aug. 14-16.
- Skipper promoters acquired 56,200 shares on Aug. 16.
(As reported on Aug.17)
- Stocks added to ASM list: Responsive Industries, International Paper APPM, Tamil Nadu Newsprint & Papers, Lincoln Pharmaceuticals and WPIL.
- Nifty August futures closed trading at 11,488.4 premium of 17.7 points versus 25.9 points.
- August series-Nifty OI up 3 percent and Bank Nifty OI up 3 percent.
- India VIX ended at 13.1, down 3.5 percent
- Max OI for Aug series at 11,500 Call, OI at 36.5 lakh, OI down 20 percent.
- Max OI for Aug series at 11,000 Put OI at 46.1 lakh, OI down 4 percent.
- In Ban: Adani Enterprises, Adani Power, Jet Airways, Jain Irrigation, Raymond.
- New in Ban: Raymond.
- Out of Ban: None.
- Nifty PCR at 1.66 versus 1.60.
- Nifty Bank PCR at 1.38 versus 0.81.
Active Stock Futures
BofAML on Dalmia Bharat
- Initiated ‘Buy’ with a price target of Rs 3,335.
- Best placed for 'Housing for All' on higher share in east.
- Cost controls to keep profitability above average of peers.
- Premiumisation, acquisitions to spur EPS growth and return on equity.
- Ongoing litigation for Binani Cement acquisition remain an overhang.
ICICI Direct on Elgi Equipments
- Initiated ‘Buy’ with a price target of Rs 350.
- Aspiring market leader with solid fundamentals.
- Indian manufacturing cycle uptick to strongly benefit Elgi.
- Sustained turnaround in foreign subsidiaries remains key.
- Expect revenue, operating income and net profit to grow at a compounded annual growth rate of 18 percent, 22 percent and 29 percent over FY18-20.
Deutsche Bank on BHEL
- Maintained ‘Buy’ with a price target of Rs 112.
- Fructification of FGD orders has just started; Rs 17,000 crore potential in 2018-19.
- Elections could delay finalization to 5.6GW in 2018-19 out of 14GW opportunity.
- Rising power tariffs on demand recovery - indicator for new investments.
- Buy on compelling valuations and expected recovery of capital cycle in power.
Nomura on AIA Engineering
- Maintained ‘Neutral’; raised price target to Rs 1,955 from Rs 1,585.
- Strong recovery in volumes and margin stabilisation visible from the second half of the current financial year.
- Stabilising ferro-chrome prices and rising volumes key drivers.
- Rupee depreciation to further increase competitiveness.
- Stock rally appears to price in growth; Valuation turning expensive.
BofAML on Infosys
- Infosys announced the resignation of its CFO.
- Resignation is unlikely to have parallels with resignation of prior CFO and others in October 2015.
- Triggers: Pace of improvement in US, financial services business and dollar-rupee.
Brokerages On Godrej Consumer
- Maintained ‘Outperform’ with a price target of Rs 1,465.
- The current financial year can be a turnaround year led by HI recovery and distribution expansion.
- Lower competitive intensity and new product launches to drive recovery in HI segment.
- Doubling sales in general trade by March 2021 can be a game changer.
- Fairly impressed with strategy and execution in Indonesia.
- June quarter showed pick-up with festive season witnessing expansion after a few years.
- Strong launch pipeline with disruptive products to aid distribution expansion.
- Double-digit growth and sustaining its margin are its targets for the current financial year.
CLSA on Indian Pharma
- June quarter was the second-consecutive stable quarter for Indian pharma.
- Pace of earnings downgrades eases significantly.
- U.S. sales decline on a sequential basis, but likely to pick-up in the second half of the current financial year; commentary improving.
- Redesign of cost structure continues.
- Remain positive on pharma; Sun and Cipla best ideas.
JPMorgan on Life Insurance Sector
- Believe low penetration and rapid growth justify premium over China’s peers.
- SBI Life and ICICI Prudential Life are most attractive.
- New India Assurance: Moderation of underwriting cycle and new IFRS accounting to benefit.
- General Insurance Corp: Product mix limits underwriting margin improvement potential.
- HDFC Standard Life and ICICI Lombard: Outstanding insurers, but their strong positives look priced in.
- SBI Life: Initiated ‘Overweight’ with a price target of Rs 1,000.
- ICICI Prudential: Maintained ‘Overweight’; raised price target to Rs 560 from Rs 520.
- HDFC Life: Initiated ‘Neutral’ with a price target of Rs 520.
- New India: Initiated ‘Overweight’ with a price target of Rs 360.
- ICICI Lombard: Initiated ‘Neutral’ with a price target of Rs 710.
- General Insurance Corp: Initiated ‘Neutral’ with a price target of Rs 390.
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