Stocks To Watch: GAIL, Prestige Estates Projects, SRF, Thermax

• Prestige Estates to buy CapitaLand's stake in various entities for Rs 342 crore.
  
• GAIL commissions India's second largest rooftop solar plant.
  
• Thermax wins Rs 327 crore order for a co-generation power plant.
  
• Coal India's December output stands at 5.46 crore tonne versus 5.88 crore tonne target.

Indian equity benchmarks started 2018 on a rocky note as it slipped off record highs and fell the most in a month led by a decline in automakers.

The S&P BSE Sensex fell 0.72 percent to 33,812 while the NSE Nifty 50 Index dropped 0.9 percent to 10,435.

The Singapore traded SGX nifty, an early indicator of Nifty 50 index performance in India, fell 0.42 percent at 10,514 as of 7:05 a.m.

The companies were earlier given a six-month deadline to comply with the new rule.https://t.co/dlLTrpPx9t

January 1, 2018

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

• Salil Parekh to take over as Infosys CEO and MD today.
• Prestige Estates to buy Capitaland's stake in various entities for Rs 342 crore.
• Bajaj Hindusthan successfully implements S4A scheme.
• PVR opens three-screen multiplex in Ghaziabad taking its total tally to 603 screens at 132 properties in 51 cities.
• Acrysil Ltd. acquires additional 3.75 percent stake in U.K. based Homestyle products Ltd for Rs 27.3 crore in a debt-free, cash-free deal.
• GAIL commissions India's second largest rooftop solar plant.
• Idea Cellular to consider fund raising on Jan. 4
• SRF commissions 40,000 tonnes per annum chloromethanes plant at Dahej.
• NLC commissions 130 MW solar power project at Neyveli.
• Future Consumer allots 6.68 crore equity shares to International Finance Corporation on conversion of CCDs.
• Thermax wins Rs 327 crore order for a co-generation power plant.
• JM Financial seeks shareholders' approval to raise Rs 650 crore.
• Kiri Industries says promoter Equinaire Chemtech acquires 24 lakh shares on conversion of warrants.
• Coal India December output stands at 5.46 crore tonne versus 5.88 crore tonne target.

Salil Parekh set to take over as Infosys CEO tomorrow.https://t.co/eHQ5GTadMR pic.twitter.com/aLQzumxTwR

January 1, 2018

December Auto Sales

• Eicher Motors' sales rose 17 percent to 66,968 units.
• TVS Motor's sales jumped 39 percent to 2.56 lakh units.
• Mahindra and Mahindra's sales grew 8 percent to 39,200 vehicles.
• Escorts' sales rose 13.1 percent to 3,606 units.
• Maruti Suzuki's sale rose 10.3 percent to 1.3 lakh units.

Discounts, poor sales last year make automakers look good in December.https://t.co/BZoFhxFENh pic.twitter.com/IIFJTPTOOJ

January 1, 2018

Bulk Deals

• Nandan Denims: LTS Investment Fund bought 2.41 lakh shares or 0.5 percent stake at Rs 164.5 each.
• Subex: QVT Mauritius West Fund – FCCB A/C sold 34.76 lakh shares or 0.6 percent stake at Rs 10.42 each.
• Gujarat NRE Coke: Orange Mauritius Investment sold 5 lakh shares or 1 percent stake at Rs 1.8 each.

India's eight core industries grew 6.8% in November from the year-ago period. https://t.co/L9PJmNdK06 pic.twitter.com/70CalL7n9A

January 1, 2018

F&O Setup

• Nifty Jan. futures trading at 10,498.7, premium of 64 points versus 27 points.
• Jan. series: Nifty open interest down 3 percent; Bank Nifty open interest up 5 percent.
• India VIX ended at 13.3, up 5.3 percent.
• Max open interest for Jan. series at 11,000 Call (open interest at 41.2 lakh, up 11 percent).
• Max open interest for Jan. series at 10,300 Put (open interest at 47.1 lakh, up 3 percent).

F&O Ban

• In ban: HDIL, JP Associates, Reliance Communication
• New in ban: Reliance Communication

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

Brokerage Radar

Angel Broking on Capital First

• Initiated ‘Buy' rating with price target of Rs 850.
• Change in ownership and management brought new life to company.
• Strong capital adequacy and pick up in retail credit to ensure loan growth.
• Favorable loan mix with expansion in NIM to drive earnings.
• Expect asset under management and earnings ot grow at a compounded rate of 23 percent and 32 percent respectively over the financial years through March 2020.
• Formalisation of economy to open new opportunities Housing finance is small but has huge potential.
• Reducing dependence on bank borrowings to lower cost of funds.
• Stock poised for re-rating with improving return ratios.

IDFC Securities on India Strategy

• Asset heavy and export-oriented industries to benefit by recovery in global economy.
• Consumption and discretionary consumption to find growth impetus from retail credit.
• Recent reduction in tax rates for discretionary consumer sector to boost overall consumption.
• Nifty's earnings per share target for the next financial year is at Rs 577, i.e., 20.6 percent year-on-year (YoY) growth
• Mild downgrade risk to continue in near term, but earnings to bounce from the next financial year.
• Overweight: Engineering and Capital goods, Construction, Metals & Mining, Oil & Gas, Consumer Goods, Automobiles, Media and Pharmaceuticals.
• Neutral: Banks, Cement, Chemicals, Power and IT.
• Underweight: Real Estate and Telecom.
• Large caps Top Picks: SBI, ONGC, Motherson Sumi, HPCL, Hindalco Industries, Aurobindo Pharma, Bharat Electronics and Ashok Leyland.
• Small and Mid caps Top Picks: Kajaria Ceramics, SpiceJet , Ashoka Buildcon and Greenply Industries.
• Top Sell: Bajaj Auto.

CLSA on Mahindra & Mahindra

• Maintained ‘Buy'; raised price target to Rs 910 from Rs 885.
• Good outlook and priced cheap.
• Positives: healthy demand in tractors and a cyclical recovery in light commercial vehicles.
• Expect volume and warnings per share to grow at a compounded rate of 10 percent and 14 percent respectively over the financial years through March 2020.
• M&M is top Buy in Indian Autos for 2018.
• SUVs weak volumes bottoming out; Upcoming MPV launches key trigger.
• Positive on rural India given rise in government spending and general elections in 2019.

CLSA on India Financial Sector

• Expects rates and bank credit growth to rise; 25-50 basis points hike in rates.
• Expect financialisation of savings and capital raising to continue.
• Expects pick-up in affordable housing; Porject compounded growth rate of 16-17 percent by March 2022.
• 2018 to be litmus test for NCLT; $70 billion (50% of gross NPL) worth NPL cases to be resolved.
• Transition to Ind-AS to cost $25-30 billion mostly to PSU banks.
• Extent of haircut for steel sector and timely recap will be key.
• Wild cards: Election politics, regulations and wage negotiations.
• Non-lending financials to benefit from financialisation of savings and low penetration levels.
• Top picks: ICICI Bank, IndusInd Bank, HDFC and ICICI Pru Life.

Nomura on Coal India

• Maintained ‘Neutral' with price target of Rs 283.
• Despite moderation in offtake growth in past two months, but 9MFY18 is still fairly robust.
• Coal stock situation at power plants improved in December but remains at sub-par levels.
• Growth outlook remains healthy for the rest of the current financial year.
• CIL's output target of 600 MT for the current financial year appears out of reach.

The demand slowdown in real estate sector is behind us, says Info Edge chief. https://t.co/vRWgjPdkQD pic.twitter.com/z2yjp9RgEM

January 1, 2018

Media Reports

• Hardcastle Restaurants' McDonald's franchisee Lifestyle in the dock for charging higher GST (Times of India).
• NCLT rejects Tata Power plea against Meenakshi Energy (Financial Express).
• ITC, JK Paper among potential suitor for Sirpur Paper (Mint).
• Axis Bank to sell Rs 2,000 crore Bhushan Steel loan (Economic Times).
• Adani Power, Neyveli Lignite and Sembcorp Vie to buy stake in GMR's power projects (Economic Times).

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