Asian stocks were steady early Friday as traders weighed risks from China to the global recovery and the prospect of reduced Federal Reserve stimulus.
Equities fluctuated in Japan and fell in Australia and South Korea, while S&P 500 and Nasdaq 100 futures slipped. U.S. stocks closed mostly lower after swinging between gains and losses ahead of Friday’s quarterly expiration of options and futures, which can trigger volatility.
Treasury yields and the dollar stayed higher following surprise strength in U.S. retail sales, which eased worries over the impact of the delta variant and highlighted the case for the Fed to scale back pandemic-era emergency support. Jobless claims increased, likely reflecting volatility in weekly data as the labor market broadly recovers.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance rose 0.35% to 17,664.50, as of 6:50 a.m.
Global equities are on course for a second weekly drop, subdued by the impact of the delta strain on economic reopening, the implications of elevated inflation and the upheavals in China. The Fed’s policy meeting next week is another possible source of volatility as traders await more clues about the time-line for paring bond purchases and eventually hiking interest rates.
Oil was steady, while iron ore’s losing streak threatens to push futures back below $100 a tonne on declining Chinese steel output. Gold and silver held drops.
Watch Out For
GST Council to meet on Friday; rate review, tax concession to 11 Covid drugs on cards: PTI
Stocks To Watch
Biocon: The Board of Directors of Biocon Biologics Ltd, a material subsidiary of the company, has approved the merger of Covidshield Technologies Pvt Ltd, a wholly owned subsidiary of Serum Institute Life Sciences, into BBL. Under the terms of the agreement, BBL will offer approximately 15% stake to SILS, at a post-money valuation of $4.9 billion. In return, BBL will have access to 100 million doses of vaccines annually for 15 years and commercialisation rights of the SILS vaccine portfolio for global markets. Further, Adar Poonawalla will have a board seat in BBL.
Hero MotoCorp: To increase prices of scooters and motorcycles by up to Rs 3,000 from September 20. Company says price hike necessitated to offset the impact of steadily increasing commodity costs. This is the fourth such price hike by Hero MotoCorp this year.
JSW Steel: The company has raised $1 billion by issuing sustainability-linked bonds in the offshore market. Issue comprised of two tranches of 5.5 years and 10.5 years, each of $500 million. The 10.5 year tranche is priced at 5.05% while the 5.5 year tranche is priced at 3.95%. Proceeds will be used for capex and to refinance debt. Further, the pricing of JSW Steel's SLBs can change if the company fails to achieve certain emission reduction targets by 2030.
TVS Motor Company: The company will take a majority stake in EGO Movement in an all-cash deal through its Singapore unit, TVS Motor (Singapore) Pte. EGO Movement is a Swiss technology company with a portfolio of e-bikes, e-cargo bikes, and e-scooters.
Kotak Mahindra Bank: Kotak Mahindra Group has acquired the vehicle loan portfolio of Volkswagen Group’s Indian captive financing arm Volkswagen Finance Pvt Ltd. Kotak Mahindra Prime will acquire passenger cars and two-wheeler portfolio; KMB will acquire commercial vehicles portfolio of VFPL. With the acquisition, Kotak will gain access to more than 30,000 customers with a total loan outstanding of about Rs 1,340 crore. All these acquired loans are classified as Standard Loans as per the current RBI guidelines. In addition to the Standard Loans, Kotak has also acquired the NPA portfolio of VFPL.
Hindustan Copper: Offer for sale for non-retail investors gets 141% demand as compared to the shares on offer. Demand at indicative price of Rs 116.12 per share. Consequently, the seller has decided to exercise the oversubscription option to the extent of 1.99 crore, representing 2.06% of the total equity share capital, in addition to the base offer size of 4.83 crore equity shares. The OFS for retail investors opens today.
Poonawalla Fincorp: Managing Director, Abhay Bhutada, has resigned from the board of the company effective September 16. Resignation came in the wake of SEBI’s insider trading allegations against Bhutada. Vijay Deshwal, Group CEO, Poonawalla Fincorp will continue to run the operations of the company.
Ujjivan Small Finance Bank: RBI has approved the constitution of “Special Committee of Directors” with three independent directors as its members, to oversee the operations and administration of the bank in the absence of the Managing Director and CEO w.e.f. September 16, 2021.
Indiabulls Housing Finance: The company has approved Rs 231.48 per foreign currency convertible bond as the floor price for a $200 million issue that opened on Thursday.
Infosys: Frost Bank has selected the company as strategic partner to launch new mortgage loan product offering.
KEI Industries: ICRA as upgraded the rating of the long-term bank facilities to AA-/Stable from A+ and the rating of short-term bank facilities to A1+ from A1.
Balkrishna Industries: The company has commenced the trial production at Green Field Project in Aurangabad, Maharashtra with an installed capacity of 30,000 MT per annum along with warehousing facility for raw materials and finished good.
Cosmo Films: To set up of new production line for Biaxially Oriented Poly Propylene Film at Aurangabad, Maharashtra with rated capacity of 67,000 MT annually. The Rs 350 crore investment required for production line will be met via internal accrual, debts. The line is expected to commence production by FY2024-25. The company has also declared first interim dividend of Rs 25 per share for FY21-22.
Dhunseri Ventures: Approved the appointment of Vikash Jain as Chief Financial Officer w.e.f. September 16 in place of Rajiv Sharma. The company has also approved incorporation of a new wholly owned subsidiary in U.S. for expansion and exploration of the cupcake business in the market. The company will make an initial investment of up to $1 million in the form of equity.
Mangalore Chemicals and Fertilizers: Board has approved the appointment of Shubhabrata Saha as a Managing Director for a term of five years effective September 16.
Intellect Design Arena: The company has signed a multiple-year digital transformation deal with Resurs Bank, a Nordic bank with market leadership in sales finance business. The bank has chosen Intellect to implement Intellect Digital Core and iKredit360.
NCL Industries: CRISIL has upgraded the long-term and short-term ratings of the company's bank loan facilities of Rs 396 crore to A/Stable from A- and A1 from A2+ respectively.
Capri Global Capital: Shareholders approved raising of funds through issuance of equity or equity linked securities aggregating up to Rs 1,500 crore.
AGMs: Sun TV Network (10 a.m.); Jubilant FoodWorks (11 a.m.); Motherson Sumi Systems (3 p.m.); Den Networks (4 p.m.); ISGEC Heavy Engineering (11:30 a.m.);
The initial public offering of Sansera Engineering Ltd. was subscribed 11.47 times on the final day of the bidding.
Paras Defence sets price range for up to $23 million IPO, offer open Sept. 21, closes Sept. 23
IIFL Finance: CDC Group PLC sold 1 crore shares (2.64%) at Rs 294.52 per share and sold another 50 lakh shares (1.32%) at Rs 295.47 per share.
Easy Trip Planners: WHV-EAM International Small Cap Equity Fund bought 9.11 lakh shares (0.84%) at Rs 606.84 per share.
Reliance Capital: Algoquant Financials LLP bought 25 lakh shares (0.99%) at Rs 21.65 per share.
Apollo Tyres: Promoter Sunrays Properties and Investments Company sold 3.25 lakh shares on September 13.
Gujarat Fluorochemicals: Promoter Inox Chemicals LLP sold 1.98 lakh shares between September 13-15.
KCP: Promoter Rajiv Rangasami sold 1,500 shares between September 9-14.
Karda Constructions: Promoter Prem Karda sold 60 lakh shares on September 14.
Sudarshan Chemical Industries: Promoter Anuj Narayandas Rathi HUF sold 5.67 lakh shares on September 15.
Who’s Meeting Whom
Gujarat Themis Biosyn: The company's officials will meet Roha Asset Managers on September 17.
HSIL: To meet Baroda Asset Management on September 17.
NGL Fine-Chem: To meet analysts and investors on September 17.
Nuvoco Vistas Corporation: To meet Millennium Partners on September 17.
Somany Home Innovation: To meet AUM Fund Advisors LLP on September 17.
Ex-Date AGM: Indoco Remedies, Shalby, NCL Industries, Mahanagar Gas, Ratnamani Metals & Tubes, HeidelbergCement India, Federal-Mogul Goetze (India), Jay Bharat Maruti, Titagarh Wagons, Ester Industries, The Investment Trust Of India, Nagarjuna Fertilizers and Chemicals, KDDL, Olectra Greentech, Delphi World Money
Ex-Date Final Dividend: Bharat Dynamics, Ester Industries, Indoco Remedies, Mahanagar Gas, MSTC, NCL Industries, Nxtdigital, Prestige Estates Projects, Ratnamani Metals & Tubes, Rhi Magnesita India, Rushil Décor, Shalby, Shivalik Rasayan, United Drilling Tools
Ex-Date Dividend: Beekay Steel Industries, Heidelbergcement India, Jay Bharat Maruti, KDDL, Rama Phosphates
Ex-Date Stock Split: CESC
Record Date Final Dividend: Wabco India, TD Power Systems, REC, NHPC, Capital India Finance, Aegis Logistics
Record Date Dividend: Globus Spirits, ADF Foods, Poly Medicure
Record Date Rights Issue: Kesoram Industries
Move Into Short-Term ASM Framework: RPSG Ventures, Zensar Technologies, Filatex India, Ganesh Housing Corporation, Ganesh Benzoplast
Move Out Of Short-Term ASM Framework: Prestige Estates Projects, Delphi World Money
Money Market Update
The rupee ended at 73.51 against the U.S. dollar on Thursday as compared to Wednesday's closing of 73.49.
Nifty September futures ended at 17,611, a discount of 18.5 points
Nifty September futures added 0.15%. and 445 shares in Open Interest
Nifty Bank September futures ended at 37,808.40, a premium of 199.8 points
Nifty Bank September futures added 3.71%, and 2,623 shares in Open Interest
Securities that continue to be on the ban list: Exide Industries, Escorts, Sun TV, National Aluminium Company, Zee Entertainment
Securities added to the ban list: SAIL
Securities removed from the ban list: Canara Bank, Vodafone Idea, IRCTC, LIC Housing Finance
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