All You Need To Know Going Into Trade On October 6

Asian stocks rose Wednesday after U.S. equities rebounded as traders weigh the resilience of the economic recovery to elevated inflation fanned by surging energy costs. Treasury yields advanced and the dollar held a climb.

Shares rose in Japan and South Korea, while Australia was little changed. U.S. contracts fluctuated after bargain-hunting for technology stocks that bore the brunt of a recent selloff boosted the S&P 500 and Nasdaq 100.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.10% to 17,836, as of 6:40 a.m.

The 10-year Treasury yield headed toward 1.55% and the 30-year yield reached the highest since June. Faster-than-expected U.S. service-sector activity and inflation risks from spiraling costs for crude oil and natural gas are adding to the case for a reduction in Federal Reserve bond-buying. Traders are awaiting labor market data later this week for more clues about the outlook.

Worries about China’s highly-leveraged property sector and broad regulatory crackdown on private industries continue to shadow sentiment. Crude oil extended its rally from a seven-year high. Elsewhere, Bitcoin held a climb past the $51,000 mark.

Stocks To Watch

• Godrej Consumer Products: The company expects to deliver high single-digit sales growth with another quarter of double-digit 2-year CAGR during July-September quarter. It expects operating margins to contract during the quarter driven by a lag between the rise in input costs and increase in end consumer pricing. India sales growth expected to be in double-digit during the second quarter, driven largely by volume growth and calibrated price increases.

• Marico: The company expects modest profit growth, margin contraction in July-September quarter. Revenue growth was in low twenties as consumer sentiment was healthy across categories. India volume growth was close to double-digits on a 2-year CAGR basis. International business delivered double-digit constant currency growth, helped by positive trends in all markets but Vietnam.

• Coal India: The company’s board has accorded in-principle approval to pre-feasibility report for setting up integrated greenfield aluminium project in Odisha and associated captive power plant by its subsidiary Mahanadi Coalfields.

• Central Bank of India has entered into a co-lending partnership with IIFL Home Finance.

• Phillips Carbon Black: The company closed its qualified institutional placement issue and raised Rs 400 crore by issuing over 1.63 crore equity shares to 20 qualified institutional buyers at Rs 244 per equity share.

• Force Motors: The company’s total production in September stood at 2,159 units. It reported domestic sales of 1,968 units and exports of 272 units.

• Canara Bank: The bank has reduced overnight and one-month MCLR by 0.15% and three-month, six-month and one-year MCLR by 0.10%.

• Future Retail: The Master Franchise agreement executed between Future7-India Convenience, 7-Eleven INC, Future Corporate Resources and the company--for developing and operating 7-Eleven stores within India-- has been mutually terminated. The Future-7 was not able to meet the target of opening stores and payment of franchisee fees.

• MTAR Technologies: CRISIL Ratings has upgraded long-term rating of company’s bank facilities to A-/Stable from BBB+/Positive and short-term rating to A2+ from A2.

• Raymond: Raymond Realty seeks to expand operations via joint development route

• Glenmark Pharma: Confirms recall of some products in U.S.

• Havells India raised to Buy at Reliance Securities

• HDFC Life cut to Accumulate at KR Choksey; price target Rs 790

• Voltas raised to Buy at Reliance Securities; price target Rs 1,545

Bulk Deals

• ICICI Lombard General Insurance Company: Societe Beaujon sold 1.75 crore shares (3.85%) at Rs 1,540.13 per share.

• IG Petrochemicals: Rikeen P Dalal HUF bought 1.63 lakh shares at Rs 896.03 per share.

Pledge Share Details

• Angel Broking: Promoter Deepak Thakker created a pledge of 3 lakh shares on September 30.

Insider Trades

• Bengal & Assam Company: Promoter Hari Shankar Singhania Holdings sold 3.25 lakh shares on September 30. Promoters (Accurate Finman Services, Nav Bharat Vanijya, Sidhivinayak Trading and Investment and JK Credit & Finance) bought 3.25 lakh shares on September 30.

Block Deals

• Hinduja Global Solutions: Promoter Hinduja Realty Ventures bought 3 lakh shares (1.44%) at Rs 2,850 per share. Aasia Exports sold 3 lakh shares (1.44%) at Rs 2,850 per share. Promoter Hinduja Group bought 60,000 shares (0.29%) at Rs 2,850 per share. Aasia Corporation LLP sold 60,000 shares (0.29%) at Rs 2,850 per share.

Who’s Meeting Whom

• HSIL: To meet Dolat Capital Market on October 6.

• India Grid Trust: To meet HDFC Standard Life Insurance on October 7.

• Radico Khaitan: To meet Tokio Marine Asset Management on October 7.

Trading Tweaks

• Price Band Revised From 20% To 10%: DCW, Patel Engineering

• Move Into Short-Term ASM Framework: Godfrey Phillips India, Trident

• Move Into ASM Framework: Laxmi Organic Industries, Nelco

Money Market Update

Indian bonds and the currency may extend Tuesday’s losses as oil prices holding near a seven-year high and an overnight jump in U.S. Treasury yields weigh on sentiment. Traders will also assess Moody’s raising the nation’s outlook to stable from negative.

• 10-year yields rose 1bp to 6.26% on Tuesday

• “The energy crisis and tighter global financial conditions may imply that foreign investors start asking for a higher risk premium from EM and could start pressuring EM assets, including India,” says Madhavi Arora, lead economist at Emkay Global Financial Services Ltd. “The surge in oil prices amid changing global dynamics could add further complications to RBI’s reaction function”

• USD/INR rose 0.2% to 74.4487 on Tuesday

  • Implied opening from forwards suggest spot may start trading around 74.49

F&O Cues

• Nifty October futures ended at 17,837.05, a premium of 14.75 points

• Nifty October futures shed 0.55% and 1,345 shares in Open Interest

• Nifty Bank October futures ended at 37,866.25, a premium of 125.25 points

• Nifty Bank October futures added 2.54%, and 1,870 shares in Open Interest

• Securities added to the ban list: Nalco