All You Need To Know Going Into Trade On October 8
Asian stocks Friday tracked a Wall Street climb as concerns eased about the U.S. debt ceiling and an energy crunch. Investors are awaiting a key American jobs report and the start of trading in China after a holiday.
Japanese shares outperformed, while South Korea and Australia posted more muted performance. U.S. futures edged up after the S&P 500 and Nasdaq 100 pushed higher for a third day.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, climbed 0.1% to 17,834 as of 7 a.m.
U.S. lawmakers in the Senate voted to temporarily increase the debt ceiling, aiding sentiment by breaking a prolonged stalemate. The 10-year U.S. Treasury yield reached the highest since mid-June. While some fears about energy costs receded, investors continue to fret over inflation.
Global stocks are on course for their best week since early September, helped by the U.S. move to avert the risk of an immediate default amid the wrangling over the debt limit. But commodity-fueled price pressures, the prospect of tighter Fed monetary policy and China’s property-sector slowdown remain as risks for the recovery from the pandemic.
Elsewhere, oil rebounded after the U.S. Energy Department said it has no plans “at this time” to tap into the nation’s oil reserves to help quell rising fuel prices. The recent sharp rally in Bitcoin paused around the $54,000 level.
Back home, India’s central bank to announce its monetary policy decision. The RBI will also hold reverse repo, government bond auctions and release weekly foreign exchange data. Tata Consultancy Services to report Q2 FY22 earnings. India NCLT to hear Zee-Invesco case and AMFI will share mutual fund industry data for September and outlook.
Stocks To Watch
InterGlobe Aviation: Rahul Gangwal, co-promoter of InterGlobe Aviation Ltd. has moved the Delhi High Court to seek enforcement of an arbitral award in his shareholder dispute with co-promoter Rahul Bhatia. [read more here]
Zee Entertainment Enterprises: NCLT made an error in not granting enough time to Zee for replying to Invesco Developing Markets Fund’s petition seeking an extraordinary general meeting of the company, NCLAT said. The NCLAT, however, has not specified the time Zee should be given. NCLT Mumbai is scheduled to resume hearing in the case today.
JSW Energy: The company has signed a contract with GE Renewable Energy for supply of 810 MW of onshore wind turbines for the company’s underconstruction pipeline of 2.5 GW of renewable projects in India. The supply of the turbines will start by the second quarter of CY2022.
Hero MotoCorp: Introduces XPulse 200 4 Valve adventure motorcycle
Piramal Enterprises: To spin off & list pharma business; shareholders will get 4 shares of Piramal Pharma Ltd. for each share held
Great Eastern Shipping Company: SBI Mutual Fund sold 8.44 lakh equity shares in the company via an open market transaction on October 6, reducing shareholding to 2.85% from 3.43% earlier.
Ratnamani Metals & Tubes: The company has received a new order of Rs 98 crore for the supply of carbon steel pipes from the domestic oil and gas sector, to be executed in 5 to 12 months.
IL&FS Transportation Networks: To sell stake in Warora Chandrapur Ballarpur Toll Road, an associate of the company, to Vishvaraj Infrastructure for Rs 12.25 crore. The sale is expected to be completed by January 31, 2022.
National Aluminium Co.: A patent has been granted jointly to Jawaharlal Nehru Aluminium Research Development and Design Centre and Nalco by Controller of Patent for an invention entitled "Determination of calcium in alumina hydrate, calcined alumina and process liquor.”
Oberoi Realty: Units booked in Q2 at 200 vs 45 YoY (39 QoQ); Booking value in Q2 at Rs 828.52 crore vs Rs 327.30 YoY (Rs 169.97 QoQ); Area booked in Q2 at 4,43,716 square feet vs 1,30,236 square feed YoY (92,128 square feet QoQ)
Tata Motors: Automakers will be in focus after a report said Tata Motors is seeking to buy Ford’s units in Tamil Nadu and Gujarat states.
Earnings: Tata Consultancy Services
Polycab India: Rated new Buy at HSBC; price target Rs 3,200
KEI Industries: Rated new Buy at HSBC; price target Rs 1,250
Mahindra Financial: Raised to Buy at Edelweiss Capital; price target Rs 160
Shree Cement: Raised to Hold at Edelweiss Capital
United Spirits: Cut to Reduce at Edelweiss Capital; price target Rs 710
Vesuvius India: Raised to Buy at Edelweiss Capital
Macrotech cut to Sell at Axis Capital; price target Rs 830
Paytm is said to be in talks with ADIA, BlackRock for IPO stakes. The company could be valued at about $20 billion to $22 billion.
Pledge Share Details
Future Consumer: Promoter Future Capital Investment invoked pledge of 20 lakh shares between October 4-5.
Future Retail: Promoter Future Corporate Resources invoked pledge of 10 lakh shares on October 5.
Jubilant FoodWorks: Promoter Jubilant Consumer revoked pledge of 98,660 shares on October 5.
As reported on October 7.
Bharti Airtel (Rights Entitlement): Vanguard Emerging Markets Stock Index Fund sold 22.26 lakh shares at Rs 208.31 per share. Vanguard Total International Stock Index Fund sold 20.98 lakh shares at Rs 208.31 per share.
Heritage Foods: Promoter NP Ramakrishna sold 10,000 shares on October 4.
NRB Bearings: Promoter Harshbeena Zaveri bought 33,676 shares between September 23-24
Who’s Meeting Whom
Jindal Stainless: To meet investors on October 8.
Ex-Date Stock Split: DCM Shriram Industries
Record Date Stock Split: Affle (India)
Move Into Short-Term ASM Framework: Patel Engineering, Dishman Carbogen Amcis, Meghmani Finechem
Move Out Of Short-Term ASM Framework: Gayatri Projects, DB Realty
Move Into ASM Framework: IIFL Finance, Anant Raj
Money Market Update
India’s rupee and government bonds may trade steady ahead of the central bank’s monetary policy announcement. Traders will also await a weekly bond auction later in the day.
USD/INR fell 0.3% to 74.7850 on Thursday
Implied opening from forwards suggest spot may start trading around 74.84
10-year yields fell by 1bp to 6.27%
Nifty October futures ended at 17,820, a premium of 29.65 points.
Nifty October futures shed 4.49%, and 11,528 shares in Open Interest.
Nifty Bank futures ended at 37,905, a premium of 151.8 points.
Nifty Bank October futures shed 9.33%, and 7,085 shares in Open Interest.
Securities in the ban list: Nalco, Canara Bank, Indiabulls Housing Finance, Punjab National Bank, SAIL