Stocks To Watch: Fortis Healthcare, JSW Steel, Tata Steel, Vedanta

• Tata Steel to pay Rs 35,200 crore cash for Bhushan Steel; to convert remaining debt to equity.
  
• JSW Steel-Numetal, Vedanta and ArcelorMittal enter race for Essar Steel.
• Karnataka Bank turnover cross Rs 1.1 lakh crore; reduces interest rate on loans offered to MSMEs.
  
• Fortis Healthcare seeks shareholders nod for purchase of RHT Health's assets.

Asian stocks declined as a sell-off in once much-favored U.S. technology shares deepened and volatility soared.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.6 percent to 10,207 as of 7:30 a.m.

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

• RBI lets banks spread bond losses over four quarters.
• Tata Steel to pay Rs 35,200 crore cash for Bhushan Steel; to convert remaining debt to equity.
• JSW Steel-Numetal, Vedanta and ArcelorMittal enter race for Essar Steel.
• Motherson Sumi signed deal to acquire Reydel Automotive Group for $201 million from Cerberus.
• VST Tillers March sales up 22.8 percent year-on-year to 7,399 units; commissions new power tiller plant in Karnataka.
• Karnataka Bank turnover cross Rs 1.1 lakh crore; reduces interest rate on loans offered to MSMEs.
• Rolta India said it amended and restated restructuring support pact. The amended RSA pact accelerates dates of certain fee payments.
• Akzo Nobel completed sale of specialty chemicals division.
• RPP Infra received orders worth Rs 264 crore.
• Fire at Saregama's Bhiwandi warehouse; quantum of losses yet to be assessed.
• Galaxy Surfactants received 13 observations from U.S. FDA under Form 483 for its facilities located at Tarapur.
• Fortis Healthcare seeks shareholders nod for purchase of RHT Health's assets.
• Info Edge: Zomato revenue rose 45 percent in FY18 to $74 million.

Here's how automakers fared in March 2018.https://t.co/lQJ411c4dl pic.twitter.com/I10EJu0TrV

April 3, 2018

Bulk Deals

• Jayashree Tea: Promoter Kesoram Industries sold 2.05 lakh shares or 0.7 percent equity at Rs 86.57 each.
• WPIL: Promoter VN Enterprises bought 1.97 lakh shares or 2 percent equity at Rs 509.03 each.

Infibeam

• Smaller Cap World Fund Inc bought 1.89 crore shares or 3.5 percent equity at Rs 152 each.
• Affluence Gems Private Limited sold 30 lakh shares or 0.6 percent equity at Rs 152 each.

.@Bioconlimited expects early-mover bonanza in biosimilars.https://t.co/QpywmmVfpU pic.twitter.com/ToCtJrJiGT

April 2, 2018

Trading Tweaks

• Arrow Greentech circuit filter revised to 10 percent.
• JBF Industries circuit filter revised to 5 percent.

Who's Meeting Whom

• MGL to meet Axis Capital and Vontobel AM on April 3.
• Grasim to meet various fund houses on April 3.
• ACC to meet GSIC, State Street and Eastspring Investment on April 3 in Singapore.
• ACC to meet Capital World and JF AMC in Hong Kong on April 4.
• Magma Fincorp to meet Tata MF, New Horizon, Ashmore and Crador on April 3-4.
• Visaka Industries to meet investors on April 5.

F&O Cues

• Nifty April futures closed trading at 10,264 with a premium of 52.2 points versus 38.2 points
• April series: Nifty open interest down 1 percent, Bank Nifty open interest up 8 percent
• India VIX ended at 15.3, down 2.6 percent
• Max open interest for April series at 11,000 call strike (open interest at 34.9 lakh, up 4 percent)
• Max open interest for April series at 10,000 put (open interest at 40.6 lakh, up 25 percent)

F&O Ban

No stocks in ban list.

Active Stock Futures

Brokerage Radar

JPMorgan on RBI Norms

• RBI allowed banks to amortise mark-to-market losses for third and fourth quarter of the previous fiscal over four quarters.
• To ease pressure on March quarter earnings and reverse 50 percent losses of December quarter.
• Move to encourage PSU banks to re-enter bond market.
• Use PSU banks trading rally to exit.
• NBFCs/HFCs a better play on falling yields.
• Prefer Bajaj Finance and HDFC over SBI, Bank of Baroda and PNB.

BofAML on Motherson Sumi

• Maintained ‘Buy' with a price target of Rs 420.
• Reydel strengthens interiors vertical; Expect synergies across clients and geographies.
• Deal to provide more avenues for in-sourcing and margin improvement.
• Deal appears inexpensive and EPS accretive.
• Acquisition to take Motherson one step closer to meet revenue target for the next financial year.

Citi on NTPC

• Maintained ‘Buy' with a price target of Rs 196.
• Poor coal supply situation could to impact March quarter results.
• March quarter end regulated equity would be similar to December quarter.
• 2260MW difference between commissioned and commercial capacity provides visibility for commercialisation in the next financial year.

Investec on Can Fin Homes

• Maintained ‘Buy' with a price target of Rs 575.
• Expect stock to further drop as divestment process called off.
• Business likely to remain weak in the previous quarter.
• Right issues to be key driver for stock performance.

IDFC Securities on NIIT

• Consolidated financial performance has improved over past 12 months.
• Corporate training business drives overall revenues; Growing at 15 percent.
• Skills and Careers business is a drag; Management focussing to maintain breakeven.
• Consistent execution to aid earnings upgrades and help drive re-rating.
• Valuations cheap; provide high margin of safety.

Motilal Oswal on Tata Chemicals

• Initiated ‘Buy' with a price target of Rs 940; implying a potential upside of 36 percent from the last regular trade.
• To use cash cows to invest in growth businesses.
• To focus on consumer and specialty products.
• Existing salt distribution network to boost consumer business.
• To be net debt-free by March 2020; RoCE to improve considerably.
• Reduction in debt via sale of fertilizer business and investments.
• Expect revenue and net profit to compound at 9 percent and 22 percent respectively over the fiscal 2018-2020.
• Bull Case price target of Rs 1,147.

Edelweiss on SpiceJet

• Maintained ‘Buy' with a price target of Rs 166.
• Enthused about the growth prospects of the company.
• Robust domestic passenger growth to outstrip capacity addition.
• Profit to grow with improving yields.
• Addition of new planes to prune costs.
• Expect volume and earnings per share to compound at 22 percent and 37 percent respectively over the fiscal 2017-2020.

Kotak Securities on Air India Divestment

• International slots available are valuable.
• Debt reduction not enough for Air India to become profitable.
• Believe Air India Express and Air India's international business to be a good fit for IndiGo.
• Acquirer would need to bring significant amount of operational improvement to generate value.

Credit Suisse on Air India Divestment

• Cost ex-fuel double of IndiGo suggesting strong inefficiencies.
• Large multi-dimensional asset can have varied interests.
• Increase in competition is likely.
• Indian airlines, except Indigo, may have to form JVs to qualify.

RBI allows banks to stagger hit on bond portfolios.https://t.co/hbUuc2PSUX pic.twitter.com/deMziy3yY4

April 2, 2018

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