Stocks To Watch: Ashoka Buildcon, Axis Bank, Tata Motors, TCS

• SEBI asks Tata Motors to strengthen systems and controls; to conduct an inquiry into results' leakage.
  
• Tata Sons to buy 6.64 percent stake in Indian Hotels from promoter entities.

• Sadbhav Infra declared L1 for highway project worth Rs 933.82 crore in Karnataka.
• Axis Bank says exposure to Nirav Modi, Gitanjali Gems accounts at about Rs 200 crore.

Indian equity benchmarks tumbled, sending the indices to their steepest drop this year after Bloomberg reported that the Enforcement Directorate had sought meetings with 31 banks as part of the probe into the $2 billion fraud at Punjab National Bank.

Financial stocks led by ICICI Bank and SBI were the biggest laggards. The S&P BSE Sensex fell 1.27 percent or 429.58 points to 33,317 and the NSE Nifty 50 Index tumbled 110 points or 1.06 percent to 10,249.25.

Asian stocks declined and Treasuries climbed on Wednesday as global trade-war concerns intensified with free-trade advocate Gary Cohn resigning as President Donald Trump's top economic adviser.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, slid 0.1 percent to 10,216 as of 7:10 a.m.

PNB head Sunil Mehta likely to appear before SFIO today. #PNBFraud https://t.co/9ufzxPhaLR pic.twitter.com/SxikGbyMlb

March 7, 2018

Here Are The Stocks To Watch Out For In Wednesday's Trade

• Lumax Auto Technologies to consider stock split on Mar 23.
• Ashoka Buildcon unit declared L1 for 3 road contracts worth Rs 2991.70 crore in Karnataka.
• SEBI asks Tata Motors to strengthen systems and controls; to conduct an inquiry into results' leakage.
• Ortel communication to consider fundraising plan on March 10.
• TCS says Virgin Atlantic has extended partnership for 5 years.
• Sharon Bio says operations at Taloja API plant temporarily suspended on the directions of CPCB.
• Bal Pharma forms joint venture with Australia-based Akaal Pharma for developing veterinary products.
• Tata Sons to buy 6.64 percent stake in Indian Hotels from promoter entities.
• RBI allows raising FPI limit in Teamlease services to 75 percent from 24 percent.
• RBI allows raising FPI limit in Ultratech Cement to 40 percent from 30 percent.
• REC board approves the proposal for sale of subsidiary WE-NR Power Transmission Ltd. to Power Grid.
• Dilip buildcon wins Rs 917 crore highway project in Jharkhand.
• Sadbhav Infra declared L1 for highway project worth Rs 933.82 crore in Karnataka.
• Axis Bank says exposure to Nirav Modi, Gitanjali Gems at about Rs 200 crore.

Sugar stocks slide as higher output in India will add to global glut.https://t.co/3hTFUsem2e pic.twitter.com/AlygRJW9TT

March 7, 2018

F&O Setup

• Nifty March Futures closed trading at 10,248.5 discount of 0.6 points versus premium of 7.6 points.
• March Series-Nifty open interest up 5 percent , Bank Nifty open interest up 8 percent.
• India VIX ended at 16.2, up 5.5 percent.
• Max open interest for March series at 10,500 call strike , open interest at 45.9 lakh, open interest up 17 percent.
• Max open interest for March series at 10,000 Put, open interest at 37.1lakh, up 10 percent.

F&O Ban

In ban: Dewan Housing, Fortis Healthcare, HDIL, IDBI, Oriental Bank

New in ban: Dewan Housing

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

Active Stock Futures

Bulk Deals

• PG Electroplast: Nomura Singapore sold 1 lakh shares or 0.6 percent equity at Rs 340 each.
• IZMO: LKP Merchant Financing sold 1.50 lakh shares or 1.2 percent equity at Rs 109.12 each.
• Punjab Alkalies & Chemicals: IDBI Bank sold 5.20 lakh shares or 1.9 percent equity at Rs 29.25 each.

Gayatri Projects

• Första AP-fonden bought 11.07 lakh shares or 0.6 percent equity at Rs 208.7 each.
• GMO Completion Fund Master Portfolio bought 11.91 lakh shares or 0.7 percent equity at Rs 208.7 each.
• GMO Emerging Domestic Opportunities Fund bought 11.25 lakh shares or 0.6 percent equity at Rs 208.7 each.
• Stichting Depositary APG Emerging Markets Equity Pool bought 13.43 lakh shares or 0.8 percent equity at Rs 208.7 each.
• Mentor Capital sold 47.67 lakh shares or 2.7 percent equity at Rs 208.7 each.

Novelis CEO says Trump's aluminium tariffs will increase costs for consumers. pic.twitter.com/SCJrWxoiok

March 6, 2018

Brokerage Radar

Jefferies on Oil & Gas

• A step forward in Mozambique but risks remain.
• Earnings uplift is years away.
• Development spend likely to weigh on cashflow.
• Prefer ONGC and Oil India over BPCL.
• Valuation inexpensive for ONGC and Oil India.

Morgan Stanley on United Spirits

• Maintained ‘equal-weight'; cut price target to Rs 3,250 from Rs 4,000.
• Risk of GST being levied on Extra Neutral Alcohol (ENA) has re-emerged.
• United Spirits may trend lower amid this ongoing debate.
• Imposition of 18 percent GST on ENA, suggest 15 percent impact on earnings.
• United Spirits should be unable to mitigate impact of higher input costs.
• Risk reward is less favorable with low visibility on incremental pricing growth.

BofAML on Titan

• Maintain Buy; Raised target price to Rs 920 from Rs 770
• Banking scam may hasten jewelry industry consolidation
• Tighter credit norms for jewelers to hasten consolidation
• Titan to be key beneficiary of recent events
• Over 14 percent of organised market up for grabs
• Positives: strong brands, national presence, debt-free balance sheet & robust corporate governance.

Morgan Stanley on NBFCs

• Higher market borrowing rates to stay.
• Pricing power has swung in favour of banks.
• Banks have stepped up price competition in retail.
• Like NBFCs in non-bank segments.
• Aditya Birla Capital: Downgrade to ‘Underweight' from ‘equal-weight', cut price target to Rs 163 from Rs 185.
• Indiabulls Housing Finance: Downgrade to ‘Underweight' from ‘equal-weight', maintained price target at Rs 1,250.
• LIC Housing Finance: Maintained ‘Overweight', cut price target to Rs 600 from Rs 675.
• Shriram City Union Finance: Maintain ‘equal-weight', cut price target to Rs 2,200 from Rs 2,300.
• Bajaj Finance: Maintained ‘Overweight'; cut price target to Rs 2,000 from Rs 2,200.
• Mahindra Financial: Maintained ‘Overweight'; cut price target to Rs 575 from Rs 600.
• Edelweiss Financial: Maintained ‘Overweight'; cut price target to Rs 340 from Rs 380.

Kotak Securities on Zee Entertainment

• Maintain Add with target price of Rs 625.
• Believe ZEE5 has what it takes to be key OTT player and even compete with leader.
• Extent of success will be determined by execution and competitive intensity.
• Management confident of operating margins to be above 30 percent in the next fiscal after factoring digital investments.
• Will closely track ZEE5's execution and competitive landscape.
• Expect digital loss to be within Rs 200-250 crore percent year in the next two financial years.

Credit Suisse on India Financials

• Bond hit will add to current quarter woes.
• PSU banks are staring at potential treasury loss of over Rs 20,000 crore in current quarter.
• PSU banks' current 10 percent excess bond holdings - highest in last 12 years.
• Rising bond losses will add to concerns about adequacy of recap plan.
• RBI intervention may be required.
• Continue to prefer private over PSU banks.

Here are the biggest laggards of 2018 so far.https://t.co/uWi99WFWeH pic.twitter.com/o7nlyE0PMK

March 6, 2018

Media Reports

• BoB may have to provide for Guptas' debt (Economic Times).
• Union Bank plans to auction loans worth Rs 5,900 crore (Economic Times).
• Government to consult ONGC, OIL before auctioning fields (Economic Times).
• Ultratech moves NCLT over evaluation of Binani Cement bids (Economic Times).
• Liberty House emerges as top bidder for Amtek Auto (Times of India).

SEBI directs Tata Motors to probe Whatsapp earnings leak.https://t.co/QpHi4zJycb pic.twitter.com/SShoyPfJjv

March 7, 2018

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