Stocks To Watch: Bharti Airtel, GTL infra, HCL Tech, JSW Energy

• Bharti Airtel partners with Samsung to offer Galaxy J-series smartphones at affordable prices.
• HCL Technologies terminates pact with GAIC for India joint venture.
  
• Government seeks bids from advisors for sale of Dredging Corp, HLL.
  
• Jaypee Infratech aims to complete 24,000 flats by acquires MS Global India.

Indian equity benchmarks snapped three days of sluggish trade led by gain in metal stocks. Sentiment also got a boost after the government sought parliamentary approval to issue about Rs 80,000 crore of bonds to fund capital injections into state lenders, boosting shares of public sector lenders.

The S&P BSE Sensex rose 176 points or 0.52 percent to 33,970 and the NSE Nifty 50 Index advanced 0.59 percent or 62 points to 10,505.

The Singapore traded SGX Nifty, an early indicator of Nifty 50 Index's performance in India, rose 0.3 percent to 10,562 as of 6:50 a.m.

Here are some of the things people in markets are talking about.https://t.co/KnEluW1Lvt

January 5, 2018

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

• Bharat Forge and RK Forging: U.S. North America Class 8 truck sales for December at 37,200 units, up 77 percent year-on-year.
• Bharti Airtel partners with Samsung to offer Galaxy J-series smartphones at affordable prices.
• Tata Motors: Jaguar Land Rover India 2017 volume growth at 49 percent.
• Varun Beverages enters into a strategic partnership with PepsiCo India for Tropicana.
• HCL Tech terminates pact with GAIC for India joint venture.
• JSW Energy incorporates JSW Solar to pursue business opportunities in renewable energy space.
• Take Solutions incorporated subsidiary Navitas Life Sciences in Columbia.
• Indian Overseas Bank to utilise Rs 7,650.1 crore in share premium account to write off Rs 6,978.94 crore losses.
• Government seeks bids from advisors for sale of Dredging Corp, HLL.
• GTL Infra on track to add 5,000 tenancies in current fiscal; expect to add 5,000 tenancies in FY19.
• Samvardhana Motherson International Ltd. acquires MS Global India
• Jaypee Infratech aims to complete 24,000 flats by acquires MS Global India.

IOB to wipe out nearly Rs 7,000 crore in accumulated losses.https://t.co/SMzkUh6JAS pic.twitter.com/hFvjixGrbB

January 4, 2018

Bulk Deals

• Jain Irrigation: International Finance Corp sold 75 lakh shares or 1.5 percent equity at Rs 125.52 each.
• Gayatri Projects: Afrin Dia sold 34.88 lakh shares or 2 percent equity at Rs 220.4 each.
• Gitanjali Gems: Macquarie Finance (India) pvt ltd sold 25 lakh shares or 2.1 percent equity at Rs 73.5 each.
• Satin Credit Care: MV Mauritius sold 4.30 lakh shares or 1 percent equity at Rs 427.01 each.
• Nandan Denims: LTS Investment Fund bought 2.45 lakh shares or 0.5 percent equity at Rs 163.5 each.
• Aro Granite: Amrit India Value Fund sold 1.40 lakh shares or 0.9 percent equity at Rs 97.2 each.
• Veer Health: Promoter Divyabala Shah sold 4.14 lakh shares or 6 percent equity at Rs 22.35 each.

Apollo Pipes

• India Accorn Fund bought 1.64 lakh shares or 3.3 percent equity at Rs 652.1 each.
• Param Capital bought 1 lakh shares or 2 percent equity at Rs 656 each.
• Kotak Mahindra MF bought 2.75 lakh shares or 5.5 percent equity at Rs 655.61 each.
• Vinay Gupta sold 10.19 lakh shares or 20.4 percent equity at Rs 657.13 each.
• Neera Gupta sold 3.22 lakh shares or 6.5 percent equity at Rs 653.49 each.
• Meenakshi Gupta sold 3.86 lakh shares or 7.7 percent equity at Rs 656.95 each.

Subex Ltd

• UNO Metals bought 47.25 lakh shares or 0.8 percent equity at Rs 10.87 each.
• QVT Mauritius West Fund – FCCB A/c sold 70.72 lakh shares or 1.3 percent equity at Rs 10.9 each.

Government invites bids from transaction advisers for the sale process of three PSU companies. https://t.co/WuNlY924Wj pic.twitter.com/8koJcUKWEB

January 4, 2018

F&O Setup

• Nifty Jan. futures trading at 10,526, premium of 22 points versus 26 points
• Jan Series: Nifty open interest up 2 percent; Bank Nifty open interest down 1 percent
• India VIX ended at 13.4, down 1.5 percent
• Max open interest for Jan series at 11,000 Call (open interest at 44 lakh, up 1 percent)
• Max open interest for Jan series at 10,300 Put (open interest at 54 lakh, up 15 percent)

F&O Ban

• In ban: Fortis Healthcare, GMR Infra, HDIL, IFCI, Jindal Steel, Jain Irrigation, JP associates, Reliance Power
• New in ban: Jindal Steel, Jain Irrigation
• Out of ban: Reliance Communications

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.

India's sovereign bond market is seeing its wildest swings in a year.https://t.co/WvZmL9T9Mf pic.twitter.com/oydGp1b7ed

January 4, 2018

Active Stock Futures

Brokerage Radar

Brokerages on Idea Cellular Fund Infusion

• IDFC Securities: Capital infusion was much needed in Idea, considering the company's leveraged balance sheet and the need to catch up with incumbents on 4G networks (capex).
• Edelweiss: Fund raising has been necessitated by the Vodafone merger pact limiting peak leverage. Expect Idea to use the proceeds primarily to prune leverage. Expect Idea's debt to increase in the second half of the current financial year owing to lower operating income due to interconnect usage charges reduction and sustained competitive intensity.
• Goldman Sachs: Capital infusion to increase market confidence in the commitment of promoter entities. Fund raising would help lower debt, but leverage ratios likely to stay elevated given ongoing rapid decline in operating income.
• Deutsche Bank: Promoter group underlines commitment by subscribing to 48 percent of the issue. Fund raising to provide further headroom for the mergeco to defend its.

CLSA on Idea Cellular

• Upgraded to ‘Buy' from ‘Sell'; raised price target to Rs 130 from Rs 77.
• Move stock valuations to merged financials.
• Expect revival in long-term growth.
• Merged company offers compounded growth rate of 38 percent in operating income over the next three financial years.
• Merger is crucial to address inadequacy in data spectrum.
• Idea's cut in gearing and early closure of merger trigger.
• Expect integration costs and full merger synergies of Rs 14,000 crore annually by March 2023.

Credit Suisse on India Outlook 2018

• Maintain cautiously optimistic outlook on Indian equities.
• Enthused by reform momentum.
• Fiscal crunch, several state elections, earnings downgrades and high valuations make nervous.
• Do not expect sharp and prolonged correction in Indian equities.
• Themes to play:-
• Rural demand revival and financial inclusion.
• Affordable housing beneficiaries.
• Infrastructure focus to continue.
• Energy sector continues to attract attention.
• NPA resolution to accelerate.
• rev-share against aggressive competition.

IIFL on Motherson Sumi

• Maintained ‘Buy'; raised price target to Rs 450 from Rs 300.
• Motherson is a global giant built on sound operating/financial principles.
• History of value creation through acquisitions offers sizeable upside risk.
• Pickup in autos to drive acceleration in Motherson's growth.
• Increase in content per vehicle a key growth driver.
• Good mix of business with steady growth and turnaround potential to drive earnings.
• Expect revenue, operating income and earnings per share to grow at a compounded rate of 16 percent, 16 percent and 28 percent respectively over the financial years through March 2020.

IOB to wipe out nearly Rs 7,000 crore in accumulated losses.https://t.co/SMzkUh6JAS pic.twitter.com/hFvjixGrbB

January 4, 2018

Media Reports

• ICICI Bank takes western India Shipyard to NCLT (Economic Times).
• Paper stocks on a tear as earnings outlook improves (Economic Times).
• UP set to have its own logistics policy to ride the growth wave ((Economic Times).
• Telcos report highest subscriber additions in November: COAI (Financial Express).
• Bharti, Vodafone tie up with Samsung to offer cashback on 4G smartphones (Financial Express).
• 24 states under UDAY cut losses to nearly Rs 37000 crore in FY17 (Financial Express).

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