All You Need To Know Going Into Trade On October 9

Stocks To Watch

• Vedanta: The company says that certain brokers registered with the BSE are not allowing public shareholders to place their bids above the floor price. Listing regulations state that public shareholders may submit their bid at any price at or above the floor price. Today is the final day of the reverse book building process in which public shareholders can tender their shares.
• Future Group Stocks: Amazon initiates arbitration proceedings against the group before the Singapore International Arbitration Centre. Amazon alleges violation of the contract it signed with the group in 2019 whien it acquired 49% stake in Future Coupons in 2019.
• Lakshmi Vilas Bank: Gets non-binding offer from Clix Group. The bank on September 16 had stated that substantial portion of the due diligence process is completed.
• CreditAccess Grameen: Approves allotment of 1.13 crore equity shares of face value of Rs 10 each to eligible qualified institutional buyers. The issue price of Rs 707 per equity share is a 0.1% discount to the floor price. The company has raised Rs 799 crore from this issue. T. Rowe Price, HDFC Life, ICICI Prudential are some of the funds to whom shares are allotted.
• Solar Industries: Gets order worth Rs 447 crore for supply of bulk explosives and initiating systems from the Telangana Government.
• GOCL Corporation: Wholly-owned subsidiary gets order worth Rs 187 crore from a Telangana Government PSU for supply of explosives and accessories over a period of two years.
• JK Cement: Successfully commissioned 0.7 MTPA grey cement grinding capacity in Gujarat and also commenced commercial dispatches for the same from October 8.
• Ramco Cements: Cement grinding unit gets commissioned from October 8.
• Container Corporation of India: Total physical volumes handled in September down 8.6% to 8,85,673 TEUs (Twenty-Foot Equivalents)
• Oil India: Commenced seismic survey in Andaman Offshore and has plans for intensifying exploration efforts and capex.
• HPCL: Fitch Ratings affirms long-term foreign currency Issuer Default Rating at BBB- with a negative outlook. The company's senior unsecured rating and the ratings on its outstanding senior unsecured debt is also affirmed at BBB-. The rating incorporates weak petroleum product demand and narrow GRMs in the near-term, followed by a gradual recovery.
• Future Lifestyle Fashion: Long-term bank facilities and NCDs downgraded to CRISIL BBB- from CRISIL A. Outlook has been revised to ratings watch with negative implications from stable. The downgrade reflects the company's stretched liquidity position due to slower than expected ramp-up of store revenues, non-availability of additional credit lines and increased dependence on restructuring of debt payments.
• AIA Engineeering: Magotteaux International, AIA Engineering and its Managing Director Bhadresh Shah have agreed and entered into a full and final binding settlement of all claims made in, arising out of, or in connection, with the arbitration proceedings & challenge proceedings, including claims as to costs, with no liberty to reinstate any such claims in any forum.
• Non-Nifty Earnings Today: Steel Strips Wheels, RCF

Earnings Reported After Market Hours

5Paisa Capital Q2FY21

• Revenue up 2.2 times to Rs 52.4 crore
• Net profit at Rs 2.8 crore from net loss of Rs 3.5 crore
• Ebitda up 12.8 times to Rs 11.6 crore
• Ebitda margin at 22.1% from 3.8%
• Acquired 2.45 lakh clients this quarter - the highest ever
• Confident of P2P business scaling up in the coming quarters
• Growth led by strong fees and income segment
• All numbers are consolidated and compared on a year-on-year basis

Titagarh Wagons Q1CY20

• Revenue down 30.3% to Rs 412.3 crore
• Net loss of Rs 8.9 crore from net profit of Rs 26.4 crore
• Ebitda down 21.7% to Rs 31 crore
• Ebitda margin at 7.5% from 6.7%
• Exceptional gain of Rs 24 crore in the base quarter
• Impairment loss of Rs 69.4 crore due to Covid-19
• Net debt down to Rs 132 crore from Rs 276 crore
• All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

CLSA On Prestige Estates

• Buy rating maintained
• Price target raised to Rs 315 from Rs 280
• Rental stake sale around the corner
• Expect gearing to fall to 0.8-1.1 times from 1.5 times
• Stronger balance sheet may lead to re-rating
• With 80% improvement in Q2FY21 office demand, raise FY22-23 leasing assumptions and earnings estimates

CLSA On Indian Pharma

• 2015 rally was followed by deterioration and subsequent earnings disappointment
• Sector fundamentals healthier today than in 2015
• Deteriorating market dynamics in the U.S. have now turned stable
• Complex assets which were in investment phases now being monetised
• U.S. FDA compliance has strengthened over last five years
• Sun Pharma, Cadila Healthcare and Torrent Pharma are our top picks

Stock Picks:

• Maintain buy rating on Cadila Healthcare; price target raised to Rs 525 from Rs 475
• Maintain buy rating on Torrent Pharma; price target raised to Rs 3,450 from Rs 3,100
• Maintain buy rating on Sun Pharma; price target raised to Rs 710 from Rs 660

Jefferies On Trent

• Initiate coverage with hold rating
• Price target of Rs 650
• Structural story on the apparel opportunity given strong formats and own labels
• Covid-19 crisis a headwind for FY21E
• Westside holds the key going forward
• Focus on value segment would rise under Zudio over the medium-term
• Hold rating due to sharp rally from lows and uncertainty on footfalls

HSBC On Titan

• Buy rating maintained
• Price target raised to Rs 1,400 from Rs 1,250
• Q2 update confirms strong rebound in the jewellery business
• Strong network expansion, launch of new collections and channel confidence suggests a stronger festive season
• Rebound lifts believe in Titan's long-term appeal
• Forecast jewellery revenue to decline 5.5% in FY21E but grow 30% in FY22E

Pledged Share Details

• Solara Active Pharma Sciences: Promoter Pronomz Venture invoked pledge of 8.45 lakh shares on October 5
• Future Enterprises: Promoters created pledge of 1.55 crore shares between October 5-6.
• Apollo Pipes: Promoter Sameer Gupta revoked pledge of 4.95 lakh shares on October 6.
• JSW Steel: Promoters revoked pledge of 70 lakh shares between October 3-6.
• JSW Energy: Promoter Indusglobe Multiventures released pledge of 4.55 crore shares on October 6.
• Emami: Promoters released pledge of 92 lakh shares on October 6.
• Future Consumer: Promoter Future Capital Investment created pledge of 2.36 crore shares on October 6.

(As Reported On October 8)

Bulk Deals

• Solara Active Pharma Sciences: Ascent India Fund sold 3.42 lakh shares (0.96%) at Rs 1,212.64 per share.
• EIH Rights Issue: General Insurance Corporation of India sold 8.28 lakh shares at Rs 7.87 per share.

Trading Tweaks

• AGM: ONGC, Natco Pharma
• Funding: Spandana Sphoorty Financial
• Price Band Revised From 20% To 10%: AVSL Industries
• Price Band Revised From 5% To 20%: Man Industries
• Move Into Short Term ASM Framework: Thyrocare Technologies, Rushil Décor, Greenpanel Industries.
• Move Out Of Short Term ASM Framework: Sagardeep Alloys.

Money Market Update

• The currency gained for the second straight day on Thursday, ending at 73.24 against the U.S. Dollar as compared to Wednesday's close of 73.33.
• The rupee was the fourth best performing currency in Asia on Thursday.

F&O Cues

• Nifty October futures closed at 11,827; discount of 8 points from premium of 17 points
• Nifty October futures add 6.5% and 6.7 lakh shares in Open Interest
• Nifty Bank October futures closed at 23,170; discount of 21 points from premium of 46 points
• Nifty Bank October futures add 2% and 31,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.5

Nifty Weekly Expiry: October 15

• Maximum Open Interest on Call side at 12,500 strike (21.3 lakh shares)
• Maximum Open Interest on Put side at 11,500 strike (13.7 lakh shares)
• Active Options: 11,800 Put (8.5 lakh shares) and 12,500 Call (18.5 lakh shares)

Nifty Monthly Expiry: October 29

• Maximum Open Interest on Call side at 12,500 strike (20 lakh shares)
• Maximum Open Interest on Put side at 10,500 strike (35.3 lakh shares)