A trader reacts while speaking on a fixed line telephone as he looks at financial data on computer screens on the trading floor at ETX Capital, a broker of contracts-for-difference, in London, U.K. (Photographer: Luke MacGregor/Bloomberg)  

All You Need To Know Going Into Trade On Oct. 01

Stocks in Asia kicked off the final quarter in muted fashion, in a holiday-affected start to the week. Volumes are likely to be thin Monday, with Labor Day in Australia, Hong Kong’s market shut and China’s closed through Oct. 7.

Japan’s two main equity benchmarks opened mixed, while holiday-hit Australian stocks started with small losses, and Korea’s benchmark was up. S&P 500 Index futures climbed after the benchmark saw the best quarter since 2013.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 10,971.

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BQ Live

Here’s a quick look at all that could influence equities today.

U.S. Market Check

  • U.S. stocks ended virtually unchanged Friday to cap the best quarterly advance in five years.
  • The yield on 10-year Treasuries was little changed at 3.05 percent.
All You Need To Know Going Into Trade On Oct. 01

Also read: President Trump's Nafta Deal With Canada Is Close 

Europe Market Check

  • European equities fell for the first time in four days as worries about the budget deficit proposed by Italy’s populist leaders soured sentiment amid fears the target threatens the country’s financial stability.
All You Need To Know Going Into Trade On Oct. 01

Also read: May Faces Tory Fire Over Brexit as Hammond Attacks Boris Johnson

Asian Cues

  • Nikkei 225 rose 0.1 percent and Topix Index fell 0.3 percent.
  • Kospi gained 0.3 percent.
  • S&P 500 Index futures gained 0.3 percent with the benchmark closing flat on Friday.

Also read: China’s Manufacturers Slow in September as Trade War Worsens

Commodity Cues

  • West Texas Intermediate crude rose 0.3 percent to $73.45 a barrel.
  • Gold is at $1,191.19.
  • LME copper was little changed at $6,254.50 per metric ton.

Also read: What Oil at $100 a Barrel Would Mean for the Global Economy

Here are some key events coming up this week:

  • U.K. Conservative Party opens second day of its annual conference Monday. Prime Minister Theresa May speaks Oct. 3. In Birmingham.
  • Reserve Bank of Australia policy decision Tuesday
  • Reserve Bank of India monetary policy decision Friday
  • U.S. employment report for Sept. also due Friday
  • 10:30am: Nikkei India Manufacturing PMI for Sept., prior 51.7
  • India Aug. Eight Infrastructure Industries Index, prior 6.6 percent.

Stories That You Might’ve Missed

Indian ADRs

All You Need To Know Going Into Trade On Oct. 01

Stocks To Watch

  • Automobile manufacturers will be in focus as companies will report their September sales data.

Also read: Delayed Festival Season To Hurt Auto Sales In September 

  • Bandhan Bank said its promoters will look at various options, including acquisitions, to bring down shareholding in line with the Reserve Bank of India’s norms after the central bank placed restrictions on its operations.
  • Infibeam Avenues says that it had given interest free unsecured loan to its wholly owned subsidiary NSI Infinium Global. These loans are short-term loans which are repayable on demand and have been utilized by the arm solely for its business and operations.
  • Yes Bank’s debt instruments worth Rs 21,371 crore have been placed under ‘credit watch with developing implications’ by CARE Ratings. The instruments include infrastructure binds, tier-II bonds, additional tier-I bonds and perpetual bonds.
  • Vakrangee has received an order from the Ministry of Corporate Affairs for inspection of books of accounts for three financial years.

The probe will include:

  1. Resignation of its statutory auditors
  2. Income tax orders
  3. Tax reports for the last five years
  4. Number of Vakrangee Kendras in India
  5. Deposit amount, if any, collected from franchisees and
  6. Shareholding structure of the company
  • SEBI has directed the National Stock Exchange of India Ltd., to appoint an independent forensic auditor to look into the books of J.Kumar Infraprojects Ltd.
  • Aurobindo Pharma is scouting for suitable acquisitions in the domestic market for Rs 3,000 - 4,000 crore. This is as per a report in the Business Standard.

Also read: Aurobindo Pharma Is The Cheapest Indian Drugmaker. Or Is It?

  • ONGC expects to break-even in its gas business after the price hike. Chairman Shashi Shanker says that the company hopes to decide a partner for its OpAL unit by February next year. ONGC Videsh’s Managing director NK Verma also added that ONGC Videsh expects Venezuela to clear its oil dues.
  • Bharat Petroleum Corporation’s board has approved setting up of facilities for production of Polyols, Propylene Glycol and Mono Ethylene Glycol at its Kochi Refinery. The estimated investment for the same is pegged at Rs 11,130 crore.
  • Tata Power’s subsidiary Coastal Gujarat Power has completed the refinancing of its outstanding ECB loans amounting to Rs 5,500 crores. The company’s interest costs post this refinancing will be lessened, according to their statement.
  • NMDC has hiked the prices of lump iron ore by 8.45 percent to Rs 3,850 per tonne and for fines ore by 6.4 percent to Rs 3,310 per tonne. The above mentioned price revisions took effect on Sept 26.
  • Kalpataru Power Transmission has secured infrastructure orders worth Rs 1,145 crore. The company says that the orders have come for transmission lines in Africa and CIS regions and a railway infra order from the Rail Vikas Nigam Ltd.
  • Dilip Buildcon’s board has approved to take strategic initiatives by way of backward and forward integration which will add value addition to the company as well as to the stakeholders.
  • Ajanta Pharma’s Ranitindine Hydrochloride has received ANDA approval from U.S. FDA.
  • IRB Infrastructure Developer’s arm has achieved financial closure for its Rs 2,203 crore four-laning project on the Poondiyankuppam- Sattanathapuram stretch.
  • Engineers India has received orders worth Rs 5,000 crore for execution of HPCL’s Rajasthan Refinery Project. The project’s mechanical completion will be completed by October 2022.
  • ONGC, Oil India: India raises gas prices by 10 percent to $3.36 per mmBtu for H2FY19; prices hiked for third consecutive time and now at three-year high.
  • InterGlobe Aviation, Jet Airways and SpiceJet: Aviation turbine fuel prices for October hiked by 7 percent to Rs 76,000 per kilolitre pan India; Prices hiked for third consecutive month and now at near 5-year high.
  • ITI Ltd.: Board approves DRHP for proposed follow-on public offer by the company. It looks to issue 18 crore equity shares, according to its DRHP, to raise funds for working capital requirement and for debt repayment. As per Friday’s closing price, the company can raise Rs 1,470 crore, according to BloombergQuint’s calculation. Issuing 18 crore equity shares would dilute government holding to 78.1 percent from current 93.8 percent.
  • Puravankara Ltd.: Joint venture Keppel Puravankara Development Pvt. Ltd. has entered into agreements to acquire 7.635 acres site in Bangalore, from Metro Cash & Carry India Pvt. Ltd. for Rs 405 crore. The total consideration includes the cost of Rs 80 crore to construct a 1.6 lakh square feet retail-cum-office facility on the land, which will be handed over to Metro Cash & Carry. The Grade A office tower will be managed by KPDL upon completion.

Indraprastha Gas Ltd.

Raises CNG and PNG prices in Delhi, NCR and Rewari to pass on the hike in domestic gas prices and impact of weaker rupee. CNG prices hiked by Rs 1.7-1.95 per kilogram, while PNG prices hiked by Rs 1.3-1.5 per scm (standard cubic meter).

Offerings

  • Garden Reach IPO fully subscribed after offer was extended to Oct. 01.
  • Dinesh Engineers IPO was subscribed 0.34 percent on Day 1.
  • Neccon Power & Infra seeks SEBI approval for Rs 273 crore IPO.
  • Stove Kraft files DRHP for IPO incluses new share of up to Rs 145 crore. Promoter to sell up to 72 lakh shares.

Also read: All You Need To Know: Dinesh Engineers IPO

Bulk Deals

  • Veto Switchgear Cable: Reliance Wealth Management Ltd. sold 1.15 lakh shares or 0.63 percent equity at Rs 118.92 each.

Rane Engine Valve

  • TRW Automotive JV LLC sold 2.52 lakh shares or 3.54 percent equity at Rs 454 each.
  • Promoter Rane Holdings acquired 2.52 lakh shares or 3.54 percent equity at Rs 454 each.

Who’s Meeting Whom

  • Blue Star to meet Goldman Sachs, Aviva Life Insurance and other investors on Oct. 01.

Insider Trades

  • Bajaj Holdings & Investment promoter Shekhar Bajaj acquired 66,400 shares from Sept. 25-26.
  • Trident promoter group Lotus Global Foundation acquired 8.15 lakh shares from Sept. 26-27.
  • Mannapuram Finance promoter and director VP Nandakumar acquired 14 lakh shares on Sept. 24.
  • KEC International promoter acquired 50,000 shares from Sept. 26-27

(As reported on Sept. 28)

Trading Tweaks

  • Indiabulls Real Estate Ltd. circuit filter revised to 10 percent
  • ICRA buy back of worth Rs 84.5 crore at maximum price of Rs 3,800 per share starts today.

Money Market Update

  • Rupee ends at one-week high at 72.49 per dollar, however ends lower for a fifth week in a row.
  • Sovereign bonds traded little changed as 10-year benchmark yield ended flat at 8.02.
  • All eyes on RBI Policy meet later this week.

Also read: Government Cuts Planned Borrowings As It Seeks To Keep Markets Calm

Top Gainers And Losers

F&O Cues

  • Nifty futures end trade at 10,954, with a premium of 24 points.
  • Maximum open interest on call side at 11,000 strike price call option, OI at 24.3 lakh shares.
  • Maximum OI on put side at 11,200 strike put option, OI at 29.4 lakh shares.

Put-Call Ratio

  • Nifty PCR at 1.33 versus 1.35
  • Nifty Bank PCR at 0.88 versus 0.72

Fund Flows

All You Need To Know Going Into Trade On Oct. 01

Brokerage Radar

Macquarie on ITC

  • Upgrades to ‘Outperform’ from ‘Neutral’; Raises target price to Rs 367 from Rs 304.
  • See improving cigarette volume trends based on channel checks.
  • Expect higher visibility of margin improvement in FMCG business.
  • Believe potential double-digit cigarette EBIT growth will lead to valuation re-rating.

JPMorgan on Bandhan Bank

  • Maintains ‘Neutral’ for target price of Rs 670.
  • RBI curbs new branch opening pending clarity on stake reduction plan.
  • Promoter needs to take exception approval from regulators to reduce stake.
  • Above regulation should not be a drag on operating growth near term.

PhillipCapital on Engineers India

  • Maintains ‘Neutral’; Raises target price to Rs 150 from Rs 145.
  • HPCL order much anticipated and far higher than estimates.
  • Expect margins to be higher for the order as it is a greenfield project.
  • Raise earnings estimate by 4 percent and 9 percent for FY19 and 20 respectively.

Brokerages On Indian Hotels

UBS

  • Maintains ‘Buy’; Raises target price to Rs 175 from Rs 170.
  • Taj Mansingh at higher bid but still strategically important.
  • Increase earnings estimate to include Mansingh’s estimates.
  • Core business generates superior operating RoCE.

JPMorgan

  • Maintains ‘Overweight’ for target price of Rs 150.
  • Increased revenue share from Mansingh largely in line with expectations.
  • Expect improving hotel cycle to drive strong earnings growth.