All You Need To Know Going Into Trade On October 5

A global selloff in stocks continued in Asia on Tuesday amid concern that surging prices for raw materials such as crude oil will stoke inflation and sap economic momentum.

Shares declined in Japan, South Korea and Australia. U.S. contracts stabilized after the S&P 500 retreated to the lowest since July and the Nasdaq 100 shed over 2%, dragged down by megacap tech firms like Amazon.com Inc. and Facebook Inc. The energy sector was among the few to rise in the U.S. session.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, shed 0.87% to 17,556.50, as of 7:10 a.m.

Ten-year U.S. Treasury yields held a climb toward 1.5% and the dollar remained lower. Oil in New York reached the highest since 2014 following OPEC+’s decision to maintain a gradual supply hike even as a natural-gas crisis boosts crude demand. The Bloomberg Commodity Spot Index soared to an all-time peak.

China’s indebted property sector continues to vex traders. Fantasia Holdings Group Co. did not repay a $205.7 million bond that was due Monday, adding to the strains of the nation’s heavily leveraged property firms following China Evergrande Group’s debt woes. Chinese markets are shut until Friday for the Golden Week holidays.

Elsewhere, Bitcoin was around $49,000, making a push back toward $50,000 for the first time since El Salvador’s troubled rollout of the largest cryptocurrency as legal tender at the start of September.

• 10:30am: Markit India PMI Services for September, prior 56.7

• 10:30am: Markit India PMI Composite for September, prior 55.4

Stocks To Watch

• Adani Green: Founder Gautam Adani said that the conglomerate would invest a fresh $20 billion in its green value chain over the next decade. This would include funds for areas such as electrolyzer manufacturing, backward integration plans to secure the supply chain for solar and wind generation businesses, and AI-based industrial cloud platforms.

• SREI Infrastructure Finance: RBI has superseded the boards of SREI Infra and SREI Equipment Finance with immediate effect due to governance concerns and defaults. The banking regulator appointed Rajneesh Sharma, former chief general manager from Bank of Baroda, as the administrator for both firms. RBI said it would now initiate insolvency proceedings against the NBFCs. SREI has said invoking insolvency will be unfair and lead to massive public loss.

• Zee Entertainment Enterprises: Invesco Developing Markets Fund said at the National Company Law Tribunal that Zee's decision to reject EGM requisition was 'mala fide' and that their apprehensions about CEO Puneet Goenka had been proven right. The NCLT will continue the hearing on Tuesday.

• JSW Energy: Company has signed a contract with Senvion India to procure 591 MW of wind turbines for its pipeline of renewable energy projects. Supply of the turbines will begin by the second half of 2022.

• Vedanta: Aluminum production in the July-September period rose 4% quarter-on-quarter. Zinc mined metal output also climbed 4% while oil and gas output remained flat. Output of saleable steel rose 13% year-on-year.

• Hindustan Zinc: Q2 integrated metal production 209,000 tonnes; Q2 mined metal production 248,000 tonnes

• Rail Vikas Nigam: In accord with Tata Steel for implementation of infrastructure projects

• S Chand & Co.: Approves Rs 40 crore working capital facility from SBI; Co. to use funds to take over existing credit facilities

• ICICI Lombard General Insurance: Societe Beaujon, AXA Group's French investment holding company will sell 1.75 crore shares representing 3.8% stake. The price range is between Rs 1497.92 to Rs 1576.75 per share. BNP Paribas is appointed as the sole placement agent of the deal.

• Aditya Birla Money: Market regulator SEBI has imposed a Rs 1 crore fine for violation of norms. According to SEBI's adjudication order, Aditya Birla Money did not have aduequate systems and internal controls to ensure due diligence in the conduct of its business with clients. In addition, it said that the stockbroker misled clients by understating losses and overstating profits.

• HFCL: Company has a bagged a Rs 287.9 crore order from RailTel Corporation of India, a government-owned company, for setting up network infrastructure for the defense forces. The stock rated new Buy at ICICI Securities with a price target of Rs 92.

• EID Parry India: Board approved the sale of plant and equipment of the sugar factory at Pettavaithalai, that is currently not operational. The board also approved an investment of Rs 19 crore in joint venture company Algavista Greentech Pvt. Ltd.

• Rail Vikas Nigam: Company entered into a memorandum of understanding with Tata Steel Ltd. for implementation of infrastructure projects either on nomination basis or through special purpose vehicle route.

• Mercator: Company disclosed that it has defaulted on loan and interest repayments worth Rs 1,011.4 crore. The total indebtedness of the company stood at Rs 1,327.3 crore as of Sept. 30.

• M&M Financial Services: Total disbursement in September 2021 at Rs 1,900 crore, delivering 23% YoY growth. During Q2FY22, the total disbursement at circa Rs 6,450 crore (60% YoY growth over Q2 FY21). Company said that subject to improvement in auto supply chain, it is hopeful of good Q3, supported by festival season and harvest cashflow. Collection efficiency was reported at 100% for September 2021, resulting in further reduction in the NPA contracts during the month. Company enjoyed a comfortable liquidity position on its balance sheet as at September 30, 2021.

• Fino Payments Bank, Popular Vehicles get SEBI nod for IPOs

Insider Trades

• Bajaj Auto: Promoter Geetika Bajaj acquired 1,17,200 shares (0.04%) at Rs 3,898.2 on Sept. 29 in a transfer from promoter groups Geetika Trust and Geetika Trust No. 2.

• Aurobindo Pharma: Promoter Penaka Neha Reddy sold 1.3 lakh shares (0.02%) at Rs 724.8 on Sept. 30.

• Promoter Penaka Suneela Rani acquired 1.3 lakh shares at Rs 724.8 apiece.

• MEP Infrastructure Developers: Promoter Sudha D Mhaiskar created a pledge of 10 lakh shares (0.55%) at Rs 20.3 on Sept. 28.

• Arvind Fashions: Promoter Sanjaybhai Shernibhai Lalbhai & others acquired 30.53 lakh shares (2.32%) through preferential issue between Aug. 24 and Sept. 30.

• Nippon Life India Asset Management: LIC of India acquired 2.02 lakh shares (0.03%) on Sept. 30.

• Piramal Enterprises: LIC of India sold 47.9 lakh shares (2.01%) between Sept. 30 and Oct. 4.

• Max India: Rajasthan Global Securities Pvt. Ltd. & PACs acquired 1.21 lakh shares (0.23%) on Oct. 4.

Trading Tweaks

• Ex Date Stock Split: Alphalogic Techsys

• Price Band Revised From 10% To 5%: BEW Engineering, Meghmani Finechem, Sintex Industries, Supreme Engineering

• Price Band Revised From 20% To 10%: Alkali Metals

• Moved Into Short-Term ASM Framework: GRPL Hathway

• Moved From Short-Term ASM To Long-Term ASM: Rollatainers

• Moved Into Long-Term ASM: Suzlon Energy

Who's Meeting Whom

• Nazara Technologies met Rimo Capital on Oct. 4 and will meet Napean Capital on Oct. 7.

• JSW Steel will meet analysts and institutional investors at the Macquarie-APAC ESG Summit on Onct. 7.

Money Market Update

• The rupee strengthened 0.25% against the U.S. dollar to 74.3138 on Monday.

F&O Cues

• Nifty October futures ended at 17,715, a premium of 23.75 points

• Nifty October futures added 0.95% and 2,287 shares in Open Interest

• Nifty Bank October futures ended at 37,750.05, a premium of 170.4 points

• Nifty Bank October futures shed 9.15%, and 7.406 shares in Open Interest

• Securities in the ban list: Nil