All You Need To Know Going Into Trade On October 7

Asian stocks rose Thursday after progress on the U.S. debt-ceiling impasse lifted equities on Wall Street.

Shares advanced in Japan, Australia and South Korea, while U.S. futures also climbed. The S&P 500 and Nasdaq 100 erased losses of more than 1% to close with gains on a possible deal to boost the debt ceiling into December. That would alleviate the immediate risk of a default but leave the political fight simmering in Washington.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, rose 0.77%, to 17,766.50, as of 7:30 a.m.

Further aiding sentiment, President Joe Biden plans to meet virtually with Chinese President Xi Jinping before the end of the year, and Russia offered to ease Europe’s energy crunch. Meanwhile, the European Central Bank is studying a new bond-buying program to prevent any market turmoil when emergency purchases get phased.

The yield on the U.S. 10-year Treasury note edged up. Investors are continuing to weigh the economic recovery against inflation risks from a jump in energy costs. ADP employment data beat expectations and a robust U.S. nonfarm payrolls report Friday could cement predictions of a reduction in Federal Reserve stimulus starting next month.

Crude oil retreated from a seven-year high in the wake of growing U.S. inventories and after Russia’s signal. In cryptocurrencies, Bitcoin jumped above $55,000. Chinese markets are shut for a holiday and reopen on Friday.

Stocks To Watch

• Zee Entertainment Enterprises: The founder of Zee Entertainment Enterprises Ltd., Subhash Chandra, has alleged that dissenting investors Invesco Developing Markets Fund and OFI Global China Fund LLC are trying to take over the firm he set up two decades ago, adding another twist in the public fight for board control of India’s largest listed TV network.

• Nazara Technologies: The company raised Rs 315 crore from marquee institutional investors. The funds will be utilised to invest in growth initiatives of the company as well as pursue strategic acquisitions in the various business verticals of the company including gamified learning, freemium, skill based real money gaming and esports.

• Lupin: Received tentative U.S. FDA approval for Brexpiprazole Tablets, a generic equivalent of Rexulti Tablets of Otsuka Pharmaceutical Co. The company will manufacture Brexpiprazole at its Pithampur facility in India.

• Titan Company: The company reported strong recovery in demand in Q2FY22. Jewellery business grew by 78% in Q2FY22 YoY and added 13 stores during the quarter, watches & wearables segment registered 73% YoY growth and eye wear business increased by 74% YoY in the same period.

• Sobha: New sales grew by 50.62% to 13.48 lakh square feet in Q2FY22 versus 8.91 lakh square feet in Q2FY21. Total sales value increased 49.32% to Rs 1,030.2 crore from Rs 689.9 crore in the same period. The company achieved best-ever quarterly sales volume of 13.5 lakh square feet of super built-up area. It also achieved best ever Sobha Share of sale value of Rs 854 crore. Average cost of borrowing has further come down during the quarter.

• Macrotech Developers: Second quarter pre-sales rise 88% year-on-year to Rs 2,003 crore. The company had pre-sales of £145 million (Rs 1,450 crore) in U.K. projects during the quarter. Collections up 73% YoY at Rs 1,912 crore. Net debt at India business fell to Rs 12,508 crore versus Rs 16,965 crore a year earlier. Plans to cut debt to about Rs 10,000 crore by March.

• Telecom stocks: Government has reduced bank guarantee requirements for telecom operators by 80%.

• Ambuja Cements: Life Insurance Corporation of India acquired 3.99 crore equity shares in the company via open market transactions, increasing shareholding to 6.12% from 4.11% earlier.

• Orissa Minerals Development Company: Life Insurance Corporation of India sold 1.24 lakh equity shares in the company via open market transactions, reducing shareholding to 9.08% from 11.16% earlier.

• NIIT: U.S.-based Sutherland, a leading global digital transformation company, and StackRoute, an NIIT Venture, have entered into a partnership to launch an immersive training program designed to identify the right talent and develop them as high-quality full stack IT professionals, handling critical roles at Sutherland.

• Balaji Amines: The company’s demethylformamide plant will remain shut for two-three weeks. An incident took place at the company’s unit III demethylformamide plant which caused leakages/breakdown. While rectifying this the company added some debottlenecking activities to increase capacity.

• PNB Housing Finance: The company has collaborated with CSC e-Governance Services India to provide last‐mile home loan facilities to individuals living in tier 2 and 3 cities.

• Sona Blw Precision Forgings: Rated new Buy at Nirmal Bang

Pledge Share Details

• Emami: Promoter Sneha Enclave revoked pledge of 13.50 lakh shares on October 1.

• HIL: Promoter Central India Industries revoked pledge of 1.70 lakh shares on October 1.

Bulk Deals

• Bharti Airtel (Rights Entitlement): Blackrock India Equities Fund (Mauritius) sold 25.50 lakh shares at Rs 207.67 per share.

Who’s Meeting Whom

• Heranba Industries: To meet Max Life Insurance Company on October 7.

Trading Tweaks

• Ex-Date Stock Split: Affle (India)

• Price Band Revised From 5% To 20%: RSWM, Nureca, NACL Industries

• Price Band Revised From 5% To 10%: Reliance Capital, Reliance Communications, Mindteck (India), Hindustan Construction Company, Future Lifestyle Fashions, Future Enterprises, Dhampur Sugar Mills, Coffee Day Enterprises

• Price Band Revised From 10% To 20%: Ruchi Soya Industries, Ujjivan Financial Services, Thomas Cook (India), Transport Corporation Of India, Suryoday Small Finance Bank, 5paisa Capital, VST Tillers Tractors, Future Retail, Reliance Industrial Infrastructure, PG Electroplast, Mahanagar Telephone Nigam, Lux Industries, KIOCL, Goldiam International, Future Enterprises, Dish Tv India

• Move Into Short-Term ASM Framework: Triveni Turbine

• Move Out Of Short-Term ASM Framework: Gujarat Alkalies and Chemicals, EIH, Meghmani Finechem, Max Ventures and Industries

• Move Into ASM Framework: Arvind Fashions, GHCL, Computer Age Management Services, Max Ventures and Industries

Money Market Update

• The rupee ended at 74.98 against the U.S. Dollar on Wednesday as compared to Tuesday's closing of 74.45.

F&O Cues

• Nifty October futures ended at 17,611, a discount of 35 points.

• Nifty October futures added 6.50%, and 15,440 shares in Open Interest.

• Nifty Bank futures ended at 37,571.85, a premium of 50.3 points.

• Nifty Bank October futures added 0.65%, and 491 shares in Open Interest.

• Securities in the ban list: Nalco

• Securities added to the ban list: Indiabulls Housing Finance, Canara Bank, Punjab National Bank, SAIL