All You Need To Know Going Into Trade On October 1

Stocks To Watch

• Reliance Industries: Silver Lake to invest an additional Rs 1,875 crore in Reliance Retail Ventures. This is the second investment made by Silver Lake in RRVL. The aggregate investment made by Silver Lake in RRVL now stands at Rs 9,375 crore for a 2.1% stake.
• The government has cut prices of natural gas by 25% to $1.79 mmBtu. The new prices are effective today and are the lowest in a decade. The new price for natural gas produced from domestic fields will be valid for six months, starting today. Gas ceiling price for difficult fields with high pressure and high temperature set at $4.06/mmBtu. Watch out for stocks like ONGC & Oil India along with City Gas Distributors like Indraprastha Gas, Mahanagar Gas and tiles companies like Kajaria.
• Inox Leisure, PVR, Hotel Stocks: Government has allowed reopening of cinema halls, theatres, multiplexes from October 15 with a maximum of up to 50% of their capacity. However, Maharashtra has extended the lockdown in the state to October 31.
• Lupin: Launched the Lapatinib Tablets, after the company's alliance partner Natco Pharma received final approval for its ANDA from the U.S. FDA. The drug is used primarily for the treatment of certain types of breast cancer. The drug had sales of $61 million in the U.S. Market as per IQVIA data till June 2020.
• MOIL: The price of all grades of Ferro, SMGR grades, fines and Chemical grades have been raised by 7.5% as compared to the previous month. The new prices take effect today.
• Sanofi: Sanofi Pasteur India - the company’s vaccine unit said it has launched a booster vaccine for preschoolers to protect against four major diseases -diphtheria, pertussis, tetanus and polio.
• Punjab National Bank: Reported a borrowal fraud of Rs 1,203.26 crore in the NPA account of Sintex Industries. Bank has already made provisions worth Rs 215.21 crore, as per prescribed prudential norms.
• HDFC: National Housing Bank imposed a monetary penalty of Rs 1.5 lakh on the company for non-compliance with two provisions of the Housing Finance Companies (NHB) Directions, 2010.
• Bank of Baroda: Has dissolved its wholly owned arm BOB (U.K.) in the United Kingdom on September 22.
• JMC Projects: CARE Ratings has downgraded the rating of the company’s short-term bank facilities to CARE A1 from CARE A1+. The revision in ratings is on account of high working capital intensity of operations which is likely to remain high amid heightened execution challenges due to the Covid-19 pandemic along with continued funding requirement for company's underperforming operational toll projects.
• Infibeam Avenues: Sold its 51% stake in its wholly-owned arm Infibeam Logistics to Osia Hypermart Retail for Rs 19 crore.
• Shree Renuka Sugars: To commence operations at its port-based refinery at Haldia (West Bengal) in the first half of October, subject to receipt of all regulatory approvals. The Haldia refinery can refine up to 2,000 tons of raw sugar per day.
• Indian Bank: Revises base rate to 8.3% from 9.15% while external benchmark lending rate revised to 12.55% from 13.4%. The new rates are effective from October 3. MCLR and Policy Repo Rate-linked External Benchmark Lending Rate remains the same.

IPO Subscruption Updates - Day 2

• Mazagon Dock Shipbuilders: Overall subscription at 7.52 times. Institutional subscription at 2.83 times. Non-institutional subscription at 4.96 times. Retail subscription at 15.53 times.
• Likhitha Infra: Overall subscription at 3.11 times. Institutional subscription at 0.03 times. Non-institutional subscription at 3.2 times while retail subscription at 7.47 times.
• UTI AMC: Overall subscription at 0.79 times. Institutional subscription at 0.48 times. Non-institutional subscription at 0.35 times. Retail subscription at 1.15 times.
• Brookfield REIT: Filed IPO papers with SEBI.

Brokerage Radar

Credit Suisse On Page Industries

• Upgrade to neutral from underperform
• Price target raised to Rs 22,000 from Rs 18,000
• Well poised to accelerate its growth based on steady demand in core categories, major positive changes made in distribution and lower competitive intensity
• Well poised to gain from the rising athleisure opportunity
• Expect reversion to historic Ebitda margin range of 20-22% in FY22
• Raise earnings estimates for FY22/23 by 6-9%

CLSA On Indian I.T.

• Meeting elevated expectations key to sustaining premium valuations
• Suggest investors to focus on profile of order booking and deal pipeline to assess recovery strength during H2FY21 and FY22.
• Commentaries for H2FY21 will be critical for a 'normal' FY22
• Expect Infosys to retain 0-2% CC revenue growth guidance for FY21
• Infosys and HCL Technologies remain our preferred picks
• Upgrade Tech Mahindra to buy from outperform; price target raised to Rs 940 from Rs 780
• Find risk-reward for TCS attractive at current levels

Macquarie On Maruti Suzuki India

• Outperform rating maintained
• Price target of Rs 7,800
• Subscription program is NPV negative as compared to purchase, but offers lower upfront outgo, no resale risk and higher flexibility
• Expect adoption to remain low in the near-term
• Concerns over the ICE resale value and a change in mindset can drive penetration in the medium-term
• Plans to roll out the subscription program to 40-60 cities over the next 2-3 years
• Recovery in PV sales, strong new launches in UVs and margin recovery are key catalyst
• Remain positive on PV recovery, further supported by strong replacement demand

HSBC On Indian I.T.

• Growth recovery in Q2FY21 likely to be driven by supply-side normalisation and pick-up in cost-related deals
• Outlook for Q3FY21 may be muted than expected as conversions are slow despite robust pipeline
• Remain positive on long-term sector outlook
• Near-term market expectations look high
• Top largecap picks: Infosys, HCL Tech
• Top Midcap picks: L&T Infotech and Mphasis
• Downgrade L&T Technology Services to hold from buy

Pledged Share Details

• Chambal Fertilisers & Chemicals: Promoter Zuari Global created pledge of 27 lakh shares on September 28.
• Ajanta Pharma: Promoter Ravi Agrawal created pledge of 11.5 lakh shares on September 29.
• Siti Networks: Promoter Direct Satellite Holding invoked pledge of 50 lakh shares on September 25.
• Zuari Agro Chemicals: Promoter Zuari Global created pledge of 5 lakh shares on September 25.

(As Reported On September 30)

Who’s Meeting Whom

• Affle India: To meet Franklin Templeton, HSBC Securities and other investors between October 1-6.
• Dixon Technologies: To meet Credit Suisse, Barings Asia between October 1-6.

Bulk Deals

• CG Power & Industrial Solutions: Habrok India Master acquired 40.58 lakh shares (0.65%) at Rs 24.01 per share.
• Usha Martin: Promoter Neutral Publishing House acquired 16.75 lakh shares (0.59%) at Rs 25.59 per share.
• Punjab Alkalies & Chemicals: Promoter Rupam Shalil Shroff acquired 1 lakh shares (0.82%) at Rs 600.25 per share.

Trading Tweaks

• Ex-Date For Share Split: Gujarat Ambuja Exports (face value split from Rs 2 to Rs 1 per share).
• Record Date Bonus Issue: Aarti Drugs (bonus 3:1).
• Price Band Revision From 20% To 10%: Advanced Enzyme Technologies.
• Listing: CAMS, Chemcon Speciality Chemicals.
• Move Into ASM Framework: E2E Networks, Anuh Pharma.
• Move Out Of ASM Framework: Indosolar, HDIL, Bartronics India, Gujarat Metallic Coal & Coke, PSL , Videocon Industries.
• Move Into Short Term ASM Framework: Ausom Enterprise, Manali Petrochemicals, Ramkrishna Forgings.
• Move Out Of Short Term ASM Framework: Kapston Facilities Management, Technocraft Industries, Tata Motors DVR.

Insider Trades

• Arvind: Promoter Aura Business Ventures acquired 14 lakh shares on September 29.
• CCL Products: Promoters acquired 2.51 lakh shares between September 25-29.
• Just Dial: Promoter Anita Mani acquired 2.33 lakh shares between September 25-28.
• Dollar Industries: Promoter Dollar Holdings acquired 1.25 lakh shares on September 29.

(As Reported On September 30)

Money Market Update

• The rupee snapped a two-day losing streak on Wednesday, ending at 73.76 against the U.S. Dollar as compared to Tuesday's close of 73.86.
• The currency was the second best performer in Asia on Wednesday.

F&O Cues

• Nifty October futures closed at 11,244; discount of 4 points from premium of 16 points.
• Nifty October futures add 5% and 3.9 lakh shares in Open Interest
• Nifty Bank October futures closed at 21,435; discount of 17 points from premium of 77 points
• Nifty Bank October futures add 9% and 1.3 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.35

Nifty Weekly Expiry: October 1

• Maximum Open Interest on Call side at 11,400 strike (41.6 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (41 lakh shares)
• Active Options: 11,200 Put (8.7 lakh shares) and 11,350 Call (6.5 lakh shares)

Nifty Monthly Expiry: October 29

• Maximum Open Interest on Call side at 11,500 strike (18 lakh shares)
• Maximum Open Interest on Put side at 10,500 strike (38 lakh shares)