- Ashok Leyland to acquire 4.68 percent stake in Hinduja Leyland Finance at Rs 110 per share, valued at Rs 225.42 crore. Increases stake to 61.9 percent.
- RBI says FPI limit In ICICI Lombard increased to 49 percent from 24 percent
- Bank of Baroda to consider raising up to Rs 6,000 crore through a QIP, rights issue on Nov. 21
- Mercator aims to begin oil production by first half of 2018 at Cambay basin oil block
Indian equity benchmarks rebounded from its longest losing streak in four weeks, led by gains in Reliance Industries and Infosys. The S&P BSE Sensex rose 1.1 percent to 33,107 and the NSE Nifty 50 Index advanced 0.96 percent or 97 points to 10,215.
In what comes in as a big boost to Prime Minister Narendra Modi's government, rating agency Moody's Investor Service has raised India's government bond rating, citing continued progress in the nation's economic and institutional reforms.
The rating agency upgraded India's bond rating to 'stable' from 'positive' and said reforms being pushed through by the government will help stabilise debt. (More details here)
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.8 percent to 10,313.50 as of 7:15 a.m.
Your Friday morning briefing.https://t.co/ytVONZ1lBQ pic.twitter.com/abacgPwJGU
Here are the stocks to watch out for in Friday's session:
- Ashok Leyland: To acquire 4.68 percent stake in Hinduja Leyland Finance at Rs 110 per share, valued at Rs 225.42 crore. Increases stake to 61.9 percent.
- ICICI Lombard: RBI says FPI limit in ICICI Lombard increased to 49 percent from 24 percent.
- Edelweiss Financial Services: RBI says FPI limit in Edelweiss Financial Services increase to 49 percent from 40 percent.
- Petronet LNG: RBI says FPI limit In Petronet LNG increased to 40 percent from 30 percent.
- JSW Energy: To be out of F&O from February series.
- Bank of Baroda: To consider raising up to Rs 6,000 crore through a QIP and rights Issue on Nov. 21.
- Vascon Engineers: To sell Mumbai division of its subsidiary GMP Technical Solutions for Rs 18 crore in a slump sale.
- Mercator: Aims to begin oil production by H1 2018 at Cambay basin oil block.
- PVR: To acquire minority stake in U.S. based luxury restaurant-and-theater company iPic.
Sharp move seen in the rupee due to Moody's ratings upgrade for India.https://t.co/SruWB0zngI pic.twitter.com/QJkZoOqJ2Z
IPO Watch
- HDFC Standard Life to list on exchanges with a base price of Rs 290 per share. The issue was subscribed 4.9 times.
F&O Setup
- Nifty Nov. futures closed at 10,251, premium of 37 points versus 36 points.
- November contracts: Nifty open interest down 4 percent; Bank Nifty open interest down 2 percent.
- India VIX closed down 5.6 percent at 13.4.
- Max open interest for Nov. series at 10,500 Call (open interest at 54.4 lakh, down 6 percent).
- Max open interest for Nov. series at 10,200 Put (open interest at 51.8 lakh, up 14 percent).
India is @MorganStanley's preferred Asian telecom market, given price increases by newest entrant Reliance Jio & faster-than-expected industry consolidation.https://t.co/FKvHEBhPrv pic.twitter.com/d0SHZN0Rv3
F&O Ban
- In ban: DHFL, India Cement, Infibeam, Jet Airways, JP Associates, JSW Energy, Kaveri Seed, Reliance Communications, Reliance Capital
- Out of ban: Indiabulls Real Estate, Just Dial
Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.
Active Stock Futures
Bulk Deals
Dixon Technologies
- Business Excellence Trust sold 4.94 lakh shares or 4.4 percent stake at Rs 2704.23 each (average)
- Birla Sun Life AMC bought 1.80 lakh shares or 1.6 percent stake at Rs 2700 each
Royal Orchid Hotels
- Industrial Development Bank of India sold 1.42 lakh shares or 0.5 percent stake at Rs 152.41 each
Thangamayil Jewellery
- Old Bridge Capital Mgmt bought 4.89 lakh shares or 3.6 percent stake at Rs 410 each
- Promoter Balusamy Ramesh sold 5 lakh shares or 3.6 percent stake at Rs 410.05 each
Arshiya Ltd
- Ecap Equities bought 60 lakh shares or 2.7 percent stake at Rs 80.4 each
- Promoter Mittal Archana sold 60 lakh shares or 2.7 percent stake at Rs 80.4 each
ADF Foods
- JSL Enterprises bought (net) 1.62 lakh shares or 0.8 percent stake at Rs 254.16 each
State-run Oil and Natural Gas Corp. bidding for stakes in the fields off Abu Dhabi's coast.https://t.co/Ws1O6rS3Zo
Results Announced
Honda Siel Power Products (Q2, YoY)
- Revenue up 5 percent at Rs 184.5 crore
- Net profit down 10 percent at Rs 15 crore
- EBITDA down 3 percent at Rs 25.7 crore
- Margin at 13.9 percent versus 15.1 percent
Ahluwalia Contracts (Q2, YoY)
- Revenue up 15.3 percent at Rs 334.5 crore
- Net profit up 30 percent at Rs 26 crore
- EBITDA up 23.75 percent at Rs 49.5 crore
- Margin at 14.8 percent versus 13.8 percent
Bharat Matrimony (Q2, YoY)
- Revenue up 13.6 percent at Rs 83.6 crore
- Net profit up 58 percent at Rs 19 crore
- EBITDA up 41 percent at Rs 20.6 crore
- Margin at 24.6 percent versus 19.8 percent
Earnings To Watch
- JMT Auto
- Kalyani Forge
- Mayur Uniquoters
- Sadbhav Infra
- Salzer Electronics
- S Chand
Government's proceeding with strategic divestment as per mandate & it won't rush through stake sale proposals: Neeraj Kumar Gupta.https://t.co/5doTHcQsWE
Brokerage Radar
Deutsche Bank on NTPC
- Maintained ‘Buy' with a price target of Rs 215.
- 8 percent positive net profit impact for the next two financial years, if gross calorific value on coal relief is accepted.
- Net profit could jump 20 percent from the second half of the current financial year if GCV order favours NTPC.
- Multiple positives have emerged for NTPC which are likely to drive strong profitability.
- Positives: 5-6GW capacity addition per annum, higher plant load factors and relief from GCV losses.
- Potential risk of regulated return on equity reduction is much smaller than positives.
Nomura on Just Dial
- Maintained ‘Buy'; Hiked price target to Rs 635 from Rs 590.
- Company has now renewed focus on its core Search business.
- Positives: improved traffic growth trends, stable realisations and operational efficiencies.
- Justdial remains the most cost-effective small and medium enterprises advertising platform in India, with scope for coverage expansion in tier 2/3 cities.
- Competition from Google or vertical players is an issue.
- Expect earnings per share to grow at a compound annual growth rate of 19 percent by March 2020 and Revenue to grow at a compound annual growth rate of 10 percent by March 2019.
CLSA on ONGC
- Maintained ‘Buy' with price taregt of Rs 225
- Stock down $4 billion on worst-case risk of $1.1 billion.
- Correction is an overreaction and is a buying opportunity, as ONGC is pricing in sub-$50/bbl Brent.
- ONGC is also the cheapest global E&P stock on most key parameters.
- Re-rating likely as subsidy uncertainties are largely behind us and ONGC has started to deliver on production growth.
JPMorgan on Ashok Leyland
- Maintained ‘Neutral' with price target of Rs 113.
- Acquisition of stake in NBFC values the entity at Rs 4,800 crore.
- The deal is a very mild positive and helps benchmark some value for NBFC.
- On core business, competitive activity will remain heightened for the second half of the current financial and next financial year as Tata Motors looks to claw back lost share.
JP Morgan on India Real Estate
- Increased in carpet area for houses eligible under interest subsidy scheme is positive.
- Should significantly enhance coverage of the scheme by increasing the qualifying population set multi-fold.
- Should spur up some activity on project sales around major metros and Tier 1 cities.
- Key beneficiaries: Prestige Estates/Sobha Developers/Godrej Properties.
- Other beneficiaries: Major Housing Finance companies and Cement/Building Material companies.
India removes restrictions on pulses exports on bumper harvests.https://t.co/P6ordfoeYT pic.twitter.com/2hILNeg54b
Media Reports
- NCLT asks Siemens to halt arbitration process against Gujarat NRE (Financial Express).
- Andhra Bank withdraws HDIL insolvency plea (Financial Express).
- Bharti- Tata Tele deal gets CCI approval (Financial Express).
- Essar Steel, Bhushan Steel face fresh audits (Mint).
- RBI likely to zero in on 50 more stressed accounts (Economic Times).
- United Spirit wants Rs 1.8k crore from UB Group (Economic Times).
- India M&A deals likely to reach $46.5 billion in 2017 (PTI).
You can travel from Mumbai to Pune faster than you can get pizza delivered to your home.@HyperloopOnehttps://t.co/2Wp5RleF5w pic.twitter.com/TzCpU19Iaa
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