Stewart & Mackertich on Federal Bank

• Initiated ‘Buy’ with a price target of Rs 121.
• Expanding reach beyond Kerala, to give bank the much-needed growth and diversification.
• Increase in Net Banking to further reduce cost to income ratio.
• Positives: clean books, RoE improvement and focus on various verticals.

HSBC on Indian Tractor Industry

• Tractor growth is slowing down, but still remains healthy led by few key states.
• Channel inventory is even lower than previous year and EMI collections robust.
• Contrary to market fears, rural demand remains robust.
• Escorts: Maintained ‘Buy’; hiked price target to Rs 980 from Rs 950.
• M&M: Maintained ‘Buy’; cut price target to Rs 960 from Rs 980.

Morgan Stanley on Bank of Baroda

• Maintained ‘Underweight’ with a price target of Rs 95.
• Announced swap ratios implies 27 percent and 6 percent lower valuation for Dena Bank and Vijaya Bank respectively.
• Expect 30 percent dilution for BoB and trailing BVPS accretion of around 15 percent.
• Expect BoB to see material moderation in credit costs, but PPoP (pre-provisioning operating profit) margin recovery will be relatively.

JPMorgan on Bank Of Baroda

• Maintained ‘Neutral’ with a price target of Rs 100.
• Merger swap ratio alleviates pricing concerns.
• Merger synergies will take a long time to play out.
• Believe next round of PSB mergers is likely to follow only post-elections.

Citi on Godrej Consumer

• Maintained ‘Neutral’ with a price target of Rs 785.
• Company is taking steps to regain earnings momentum.
• Expect slight improvement in the second half; business volatility should continue.
• Innovation segment to contribute 10-11 percent of total sales given aggressive moves by company.

Morgan Stanley on Telecom

• Jio continued to garner disproportionate share in industry additions.
• As smaller operators are left with no subs it will be interesting to see market share shifts.

• Nifty January futures closed trading at 10831, premium of 38 points.
• Max open interest for January series at 11,200 strike value call (open interest at 32 lakh shares)
• Max open interest for January series at 10,500 strike value put (open interest at 40.7 lakh shares)

Who’s Meeting Whom

• JMC Projects to meet Sundaram AMC on Jan. 3.

Bulk Deals

Triveni Turbine

Nalanda India Fund sold 51.5 lakh shares or 1.56 percent equity at Rs 103 each.

SBI MF acquired 51.3 lakh shares or 1.55 percent equity at Rs 1,030 each.

Trading Tweaks

• ONGC ex-date for share buy back.
• Techno Electric & Engineering Company record date for share buy back.
• Kellton Tech Solutions, Axtel Industries to move in to ASM Framework.
• Kellton Tech Solutions price band revised to 10 percent.

Insider Trading

• Confidence Petroleum India promoter Confidence LPG Bottling acquired 1.33 lakh shares from Dec. 28-31.
• Jindal Stainless promoter Abhuday Jindal sold 24,000 shares from Dec. 31-Jan. 1.

• Reliance Jio’s active subscribers increased by 84.6 lakh – lowest since June 2018.
• Airtel’s active subscribers increased for the first time in four months by 33.7 lakh.
• Vodafone Idea’s active subscribers fell by 30.1 lakh – for sixth straight month.
• Reliance Jio was the only private player to add Rural Subscribers in October
• Rural Subscribers of Jio increased by 64 lakh, i.e., 61 percent of net additions.
• Telecom operators yet to see the impact of minimum recharge pack introduction and new KYC process. Impact to be visible from the month of Nov’18.