Stocks To Watch: Swaraj Engines, CG Power, AIA Engineering, Lyka Labs

• Camlin Fine Sciences to allot 1.72 crore equity shares at Rs 87 each via QIP.

• Swaraj Engines to consider buyback on November 28.
• RBI allows ARCs to hold more than 26 percent stake in defaulting companies.
• CG Power bags Rs 111 crore order from Indian Railways.

Indian equity benchmarks closed little changed after fluctuating intraday on low trading volume. An advance in software exporters countered a decline in telecom stocks.

The S&P BSE Sensex was little changed at 33,588 and the NSE Nifty 50 Index was also little changed at 10,348.75.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, was little changed at 10,368 as of 6:50 a.m.

All you need to know going into trade today.https://t.co/HyLCFLkcdD pic.twitter.com/LZ8HOHlsqG

Here Are The Stocks To Watch:

• Cox & Kings owned Meininger to open a hotel in Dresden, Germany.
• Camlin Fine Sciences to allot 1.72 crore equity shares at Rs 87 each via QIP.
• Skipper to enter into a JV for drip irrigation business with MetzerPlas Cooperative Agriculture Organization of Israel.
• Swaraj Engines to consider buyback on Nov. 28.
• RBI allows ARCs to hold more than 26 percent stake in defaulting companies.
• Government to launch third auction of wind power capacity on Friday.
• CG Power and Industrial Solutions bagged Rs 111 crore order from Indian Railways.

Bharti Airtel's revenue share in telecom market fell the most in 3 months, while Reliance Jio gained.@soumeet_sarkar reportshttps://t.co/rgzY4GVdnl pic.twitter.com/CIRRXy9cyw

F&O Setup

• Nifty November futures closed at 10,366.6 with a premium of 18 points from 15.9 points
• November contracts: Nifty open interest down 3 percent; Bank Nifty open interest up 2 percent
• India VIX at 13.8, down 1.2 percent
• Max open interest for November series at 10,500 Call (open interest at 62.9 lakh, open interest up 3 percent)
• Max open interest for November series at 10,300 Put (open interest at 60.2 lakh, up 11 percent)

F&O Ban

• In ban: DHFL, DLF, Fortis Healthcare,  HDIL, Infibeam, Jet Airways, Jain Irrigation, JP Associates, JSW Energy, Just Dial, Reliance Communication, TV18 Broadcast and Wockhardt.
• New in ban: Fortis Healthcare and Jet Airways.
• Out of ban: Indocount.

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

#BQExplains | Government adds 10 ineligibility conditions to the IBC to prevent misuse of its provisions.https://t.co/7Ki9fe2YAF

Active Stock Futures

Bulk Deals

• AIA Engineering: Jwalamukhi Investment Holdings sold 12.11 lakh shares or 1.3 percent equity stake at Rs 1446.05 each.
• MT Educare: Visa Capital bought 2.50 lakh shares or 0.6 percent equity stake at Rs 68.05 each.
• Garware Wall Ropes: Hober Mallow Trust bought 1.62 lakh shares or 0.7 percent equity stake at Rs 913.73 each.

Syngene:

• Gaoling Fund LP bought 15 lakh shares or 0.8 percent equity stake at Rs 515 each.
• Steadview Capital Mauritius sold 19.50 lakh shares or 1 percent equity stake at Rs 516.92 each.

Steel Strips Wheels:

• Promoter DHG Marketing bought 1.29 lakh shares or 0.8 percent equity stake at Rs 811.76 each.
• GS Global Corp sold 1.24 lakh shares or 0.8 percent equity stake at Rs 754.19 each.

Government has ordered belt-tightening and asset disposals at the loss-making 63-year-old mill, SAIL.https://t.co/5w1WU4RdZg pic.twitter.com/b5elqY0So6

Earnings Reactions To Watch

Kesar Terminals (Q2, YoY)

• Revenue down 7 percent at Rs 10.5 crore.
• Net profit down 18 percent at Rs 4.1 crore.
• EBITDA down 23 percent at Rs 5.3 crore.
• Margins at 50.5 percent from 61.1 percent.

Star Paper Mills (Q2, YoY)

• Revenue down 3.4 percent at Rs 81.3 crore.
• Net profit down 6.4 percent at Rs 14.7 crore.
• EBITDA down 3.7 percent at Rs 18.4 crore.
• Margins at 22.6 percent from 22.7 percent.

Earnings To Watch

• Bharat Bijlee
• Career Point
• Kingfa Science
• Lyka Labs
• Rane Brake
• Saksoft

Asset reconstruction companies can now hold more than 26% in stressed units but conditions apply, says RBI.https://t.co/qeMxwO8oJP pic.twitter.com/nMRQNqn4GW

Brokerage Radar

CIMB on Hindustan Zinc

• Initiated with Reduce Rating and price target of Rs 251; implying a potential downside of 20 percent from yesterday's close.
• Zinc demand-supply balance could turn to surplus in 2018
• Zinc fundamentals weakening now; Given the surplus prices could lower
• Hindustan Zinc's operating income to decelerate in the next financial year as volume growth is offset by price decline.
• Expect metal production CAGR of 8 percent till March 2020, driving operating income of 6 percent and 4 percent in the next two financial years each.
• Expect company to remain in net cash position in over the financial years till march 2020; Dividend per share to remain elevated.

Motilal Oswal on Bata India

• Downgraded to ‘Sell' from ‘Buy'; maintained price target at Rs Rs 578; implying a potential downside of 23 percent from yesterday's close.
• Downgraded on rich valuations.
• With GST netted off from the topline, we expect similar growth of 6 percent year-on-year in the second half of the current financial year.
• Premiumization to support margin expansion of 70 basis points and 100 basis points in the currentand next financial year each.
• Store expansion plan on track, but expect muted same store sales growth.
• Revenue estimates cut by 4 percent and 6 percent for the current and the next financial years each, to factor in weak first half.
• Expect revenue and net profit to grow at a compound annual growth rate of 9 percent and 19 percent respectively, till March 2019.

HSBC on Gujarat Pipavav Ports

• Upgraded to ‘Hold' from ‘Reduce'; hiked price target to Rs 144 from Rs 120.
• Maersk Line revises two of its services that would raise Pipavav's annual container throughput by 15 percent.
• Raise earnings estimates over financial years till March 2019 by 4-16 percent, driven by higher throughput from the additional service.
• Long term challenge remains with PSA's new terminal in Nhava Sheva coming by the end of 2017.
• Continue to prefer Adani Ports and SEZ.

UBS on Motherson Sumi

• Maintained ‘Buy'; hiked price target to Rs 405 from Rs 370.
• Expect strong earnings growth trajectory over next three years.
• Positives: ramp up of new facilities and continued margin expansion in international business.
• SMP has been investing in automation to increase productivity; PKC is well placed to grow.
• Mirrors business gaining share and rising value.
• Global business to continue to trade at higher end of the space.

Jefferies on Info Edge

• Downgraded to ‘Hold' from ‘Buy'; hiked price target to Rs 1,150 from Rs 1,118.
• Downgrade as risk-reward unfavourable.
• Target price hiked to factor in higher value for Zomato.
• Prospects for Zomato have improved over the last 12 months, helped by strong momentum in online ordering and lower cash burn.
• Current stock price already reflects recoveries in Naukri and 99acres.
• Investors should wait for better entry points.

Citi on India Grid Trust

• Upgraded to ‘Buy' from ‘Neutral'; hiked price target to Rs 102 from Rs 97.
• Acquisition of three power transmission asset to be accretive from distribution per unit and internal rate of return point.
• Target price hiked to factor in change in earnings per share and cost of equity.
• India Grid Trust increased its distribution period unit guidance by 4 percent for the next financial years.

Deutsche Bank on Life Insurance Companies

• Task force on direct taxes - may impact life insurance industry.
• Tax rehaul at a very preliminary stage now.
• Since the change is large, this may remain a slight overhang, until clarity emerges.
• Meaningful impact on embedded value and value of new business likely if tax rates raised.

Citi on Changes to Insolvency Code

• Some government banks have been anxious about allowing existing promoters to bid.
• Changes made could also mean that in some cases there could be low recoveries or resolution process could get extended due to lack of bidders.

I don't mind some haircut, but don't want to be bald: SBI Chairman Rajnish Kumar on IBC amendment.https://t.co/zAmtMhyFxA pic.twitter.com/OM2omNiEdt

Media Reports

• Home buyers not to get financial creditors status (Financial Express).
• Videocon resolves with banks to stay out of NCLT (Financial Express)
• Demonetisation and higher cost bleed small finance banks (Mint).
• Jewellery stocks shine brighter (Mint).
• Digital ad spends set to rise in India (Mint).
• Airtel, Rel Jio to vie for RCom's spectrum (Economic Times).
• Thomas Cook's OFS for Quess Corp oversubscribed five times (Economic Times).

The Supreme Court appoints the official receiver of the Bombay High Court to help the liquidator in the Aamby Valley auction.https://t.co/AKDpK6BRnL

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