Stocks To Watch: Aurobindo Pharma, Coal India, Hero MotoCorp, PNB, Wipro

• Auto Sales: Hero MotoCorp February sales up 20 percent year-on-year
  
• Aurobindo Pharma gets U.S. FDA form 483 for its Unit 4 with nine observations.
  
• PNB raises interest rates by 10-45 basis points on various tenures.
  
• L&T Finance to consider issue price for preferential issue to L&T on March 7.
  
• HealthCare Global Enterprises entered an agreement with the promoter to buy a cancer care hospital for Rs 52 crore.
  

Asian equities started the week on a mixed footing as investors assessed the impact of American tariffs on the global economy and the euro fluctuated as vote counting began in the Italian election.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.6 percent to 10,374.50 as of 6:55 a.m.

Indian equity benchmarks fell for third day in a row on Thursday as banking heavyweights extended selloff. The S&P BSE Sensex fell 0.4 percent or 137 points to 34,046.94 and the NSE Nifty 50 Index declined 0.3 percent or 34 points to 10,458.35.

Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay

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

Stocks To Watch

• Hero MotoCorp February sales up 20 percent year-on-year to 6,29,597 units.
• TVS Motors February sales up 37 percent year-on-year to 2,90,673 units-.
• Power Tillers sales up 65 percent YoY to 2,525 units.
• Aurobindo Pharma received Form 483 from the U.S. FDA for its Unit 4 with 9 observations.
• Coal India's coal production stood at 54.46 million tonnes in February, while the coal offtake was 49.97 million tonnes. It failed to achieve its set target.
• Manipal Health Enterprises set to buy Fortis Healthcare for Rs 6,500 crore, reported DNA.
• NMDC cut lump ore prices by 3.2 percent, and fine prices by 3.62 percent.
• Wipro to acquire 33.33 percent stake in the U.S. based application security solution provider, Denim group for $8.8 million.
• Poly Medicure started commercial production at its Haryana plant.
• Punjab National Bank raised interest rates by 10-45 basis points on various tenures.
• Dilip Buildcon received Letter of Award by NHAI for two new hybrid annuity projects in Karnataka worth Rs 4,473 crore.
• JBM Auto board approved scheme of amalgamation of JBM Auto Systems and JBM MA Automotive with self.
• Laurus Labs said that the U.S.FDA completed inspection of its Unit 2 with zero observations under Form 483, and received maiden approval from the drug regulator for TDF tablets used in the treatment of HIV-1 infection.
• L&T Finance to consider issue price for preferential issue to L&T on March 7.
• HealthCare Global Enterprises entered into an agreement with promoter to buy a cancer care hospital for Rs 52 crore.
• Reliance Naval: According to RBI circular, company loans will be either classified as irregular or sub-standard.
• Fortis Healthcare gets notice from Serious Fraud Office seeking information and documents.

Also Read: Low Base Helps Auto Sales Rise In February

FDA woes hit Aurobindo Pharma as unit 4 gets nine observations.https://t.co/UX5d9enjwx pic.twitter.com/X0W2I6UvMn

F&O Setup

• Nifty March Futures closed trading at 10,456.5, discount of 1.4 points.
• All series-Nifty Open Interest up 5 percent, Bank Nifty Open Interest down 2 percent.
• India VIX ended at 14.07, up 1.9 percent.
• Maximum Open Interest for March series at 10,800 call strike, Open Interest at 44.2 lakh, up 54 percent.
• Maximum Open Interest for March series at 10,400 Put, Open Interest at 36.7 lakh, down 1 percent.

F&O Ban

• HDIL
• IDBI Bank
• Oriental Bank of Commerce

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

Trading Tweaks

• All Fortis Healthcare F&O contracts will expire on March 29.
• Venkys circuit filer revised to 10 percent.
• BEL buyback period between March 5-16.
• Balrampur Chini ex-date for determining buyback eligibility.

Bulk Deals

• Indian Terrain Fashions: Limiar Fund (Master) LP bought 6.50 lakh shares or 1.7 percent equity at Rs 202 each.

South Africa says Bank of Baroda holds `proceeds of crime'.https://t.co/QtasbQOrd2 pic.twitter.com/7ttqnX3uIN

Brokerage Radar

Edelweiss on Fortis Healthcare

• Maintained ‘Buy'; cut price target to Rs 180 from Rs 230.
• Earnings under pressure; Quality of business remains intact.
• Fortis can unlock significant value by demerging SRL.
• SRL valued at 30 percent of consolidated enterprise value.
• Expect revenue and Ebitdac to compound at 16 percent and 23 percent respectively over the fiscal 2018-2020.
• Expect free cash flow generation from April to drive re‐rating.

JPMorgan on Axis Bank

• Maintained ‘Overweight'; cut price target to Rs 650 from Rs 700.
• Price target cut to capture impact of new RBI provisioning guidelines and front-end the legacy provisioning to the current fiscal.
• This clean-up to act as a near-term headwind for stock.
• Core pre-provisioning operating profit momentum to resume from April.
• Refinancing of NCLT cases to represent an opportunity to jumpstart loan growth.
• Axis remains top pick among value stocks.

Morgan Stanley on Coal India

• Maintained ‘Underweight' with price target of Rs 221.
• Production was flat and dispatches moderated in Feb. 18.
• Expect growth rates to remain moderate.
• Higher costs to constrain earnings and dividend payouts.

Jefferies on Voltas

• Maintained ‘Buy' with price target of Rs 795.
• Dealer interactions indicate AC pricing normalised post discounts in December 2017.
• Weather linked demand is yet to reflect in volumes.
• Rating changes see smooth implementation.
• Voltas to benefit from summer onset in current and next fiscal from low GST base.
• Remain positive on Voltas.

Nomura on Dr Reddy's Laboratories

• Maintained ‘Buy' with price target of Rs 3,238.
• Expects to file proprietary migraine drug in next three months under 505b(2) route.
• Company guides of $100-300 million from the product.
• Dr Reddy's is play on potential of complex generic and specialty opportunities in U.S.

Nomura on KNR Construction

• Maintained ‘Buy' with price target of Rs 383.
• Order win of Rs 1,020 crore revives momentum.
• Potentially another order worth Rs 1,380 crore in pipeline.
• Some of L1 positions may witness delays in confirmation and spill over to next quarter
• Order largely addresses investor concerns on orderbook depletion.

Nomura on Dilip Buildcon

• Maintained ‘Buy' with price target of Rs 1,265.
• Recent series of order wins exceed top end of its order inflow guidance for the current fiscal.
• Dilip has secured more recent EPC contracts at aggressive bids.
• HAM project bids seems competitive.
• Overall bidding appearing reasonable.
• Do not expect Dilip to face major hurdles in financial closure of new HAM projects.

Special court issues non-bailable warrants against Nirav Modi and Mehul Choksi. #PNBFraud https://t.co/aCXnjZfgyq pic.twitter.com/OPWiNMRmZo

Media Reports

• Airtel, Idea challenge Trai's tariff order (Economic Times).
• IOC bids for stake in Vietnam's Binh Son Refining (Economic Times).

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