All You Need To Know Going Into Trade On Sept. 13 

Asia stocks saw modest gains Friday at the end of a week in which trade optimism continued to grow and the European Central Bank introduced a fresh round of stimulus. Treasuries steadied.

Japanese and Australian shares pushed higher, with markets in China and South Korea closed for a holiday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.08 percent to 11,000 points as of 7:10 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here’s a quick look at all that could influence equities today.

• The S&P 500 rose to just under its all-time high after a report that American officials have discussed offering a limited trade agreement to China.
• European Central Bank to cut its main rate to minus 0.5 percent and buy 20 billion euros ($22 billion) of bonds a month.
• Oil remained below $55 a barrel after on a warning to OPEC from the International Energy Agency that it faces a “daunting” surplus of crude in 2020.

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Brokerage Radar

Goldman Sachs on Motherson Sumi

• Upgraded to ‘Buy’ from ‘Neutral’; cut target price to Rs 121 from Rs 124.
• Ramp-up of new plants and execution of new orders will aid earnings.
• Improvement in profitability at group company SMP led by lowering losses at plants.

Goldman Sachs on Shriram Transport

• Upgraded to ‘Buy’ from ‘Neutral’; raised target price to Rs 1,231 from Rs 1,155.
• Well positioned to deliver healthy return on assets of around 2.6 percent over financial years 2020-22.
• See benign interest rate cycle supporting margins.
• Healthy fundamentals and a benign rate cycle offers upside.

JP Morgan on Fortis Health

• Maintained ‘Overweight’, target price fixed at Rs 160.
• On track to improve hospital profitability and diagnostic unit SRL’s growth.
• IHH committed to completing open offer as per SEBI regulation post clearance from Supreme Court
• Regulatory risk not going away but working through these headwinds.

CLSA on Glenmark Pharma

• Maintained ‘Sell’, target price fixed at Rs 350.
• Cashflow generation in financial year ending 2019 remained weak with negative free cash flows.
• Leverage is higher than its peers with debt repayment of Rs 2,700 crore over three years.
• Weak earnings trajectory coupled with high leverage is an area of concern.

Stocks To Watch

• Power Grid Corporation was declared successful bidder for two transmission projects in Madhya Pradesh and Rajasthan.
• DHFL defaulted in payment of NCD and its interest worth Rs 196.65 crore which was due on Sept. 12.
• Zee Entertainment promoter Cyquator Media Services decreased its stake in the company from 21.15 percent to 12.14 percent and promoter Essel Corporate LLP’S stake fell from 3.28 percent to 1.48 percent.
• Biocon licensed three Generic Formulations Products to China Medical System Holdings.
• Dr. Reddy’s Laboratories received EIR from the U.S.FDA indicating closure of audit for its Vizag’s formulations plant.
• Infibeam Avenues to separate its SME e-commerce services unit to Suvidha Infoserve, with Suvidhaa issuing 197 shares for every 1,500 shares. Company’s unit NSI Infinium Global will also separate its e-commerce business unit and Suvidhaa will issue 110,229 shares for every 20 shares held in NSI Infinium Global. Company’s Themepark & Event Software undertaking will be demerged to its own subsidiary DRC Systems wherein it will issue one share for every 412 shares held by Infibeam Avenue’s shareholders. Following the demerger Suvidhaa and DRC Systems will be listed on the exchanges.
• Gravita’s Ghana arm has increased its capacity of its existing Lead Recycling Plant from 60,000 MTPA to 12,000 MTPA.
• Sintex Industries defaulted payment of NCDs interest amounting to Rs 3.03 crore which was due on Sept. 11.
• SBI stated that it will exercise the over-subscription option of 1 crore share in the SBI Life Insurance offer for sale.
• Bharat Road Networks: SEBI revoked its order, stating that now the company can dispose its assets or divert funds without prior permission of SEBI.
• Manpasand Beverages said no forensic audit and call option approved by CMD Dhirendra Singh. Alleges company’s financier Finquest Financial Solutions to have passed the resolution with malafide intentions. Company has stated forensic audit and call option cannot be acted upon the company.

• ICICI Bank: SEBI imposed a penalty of Rs 10 lakh on the Bank and Rs 2 Lakh Penalty from Bank’s ED Sandeep Batra regarding disclosure norms regarding agreement signed between dominant shareholders of the Bank and Bank of Rajasthan. (SEBI Press Release)
• Kalpataru Transmission: HDFC AMC increased its stake from 7.4 percent to 9.6 percent in the company.
• L&T Finance Holdings: Board to approve raising Rs 150 crore via preference shares on Sept. 17.
• NDTV stated that on Sept. 5, the Bombay High Court had ruled in favor of the company in a defamation suit filed in 2013 against Quantum Securities and its directors. The case was based on a smear campaign against company.
• Corporation Bank to consider merger with Union Bank of India on Sept. 16.
• Virinchi awarded Aadhar Project for Rs 20 crore from Telengana government.

Data To Watch

• India August trade balance data. Bloomberg estimate at -$13.5 billion; July at -$13.4 billion.
• India second quarter balance of payment current account deficit. Bloomberg estimate at -$16 billion.

Bulk Deals

Future Retail

• Bennet Coleman & Co. acquired 73.9 lakh shares (1.47 percent) at Rs 406 each.

Apollo Hospitals

• Abu Dhabi Investment Authority acquired 9.65 lakh shares (0.69 percent) at Rs 1,482.5 each.
• Societe General acquired 13.58 lakh shares (0.98 percent) at Rs 1,482.5 each.
• Promoter Suneeta Reddy sold 50 lakh shares (3.6 percent) at Rs 1482.5 each .

Talwalkars Lifestyles

• Master Trust Bank of Japan sold 1.76 lakh shares (0.57 percent) at Rs 10.45 each.

Trading Tweaks

• Zuari Agro Chemicals ex-date for rights issue: 14 Convertible Debentures for Every 15 Shares
• Orient Paper & Industries, Shree Rama Newsprint, Seshasayee Paper and Boards, Somany Ceramics to move into short term ASM Framework
• Minda Corporation to move out of short term ASM Framework
• Genus Paper & Boards, Liberty Shoes, Praxis Home Retail, NR Agarwal Industries price band revised to 10 percent
• Tejas Networks, Gati price band revised to 5 percent

Who’s Meeting Whom

• Eicher Motors to meet QRC Investment Advisors on Sept. 13
• Castrol India to meet CGS-CIMB Securities on Sept. 16
• PI Industries to meet JP Morgan, Cartica Capital and other investors from Sept. 13-27

Insider Trading

• Tata Power promoter Tata Sons acquired 1.6 crore shares from Sept. 5-11
• Elpro International promoter International Conveyors acquired 1.9 lakh shares on Sept. 9

Money Market Update

• The rupee on Thursday strengthened for the sixth straight session to close at 71.14/$ compared to 71.66/$ on Wednesday.

F&O Cues

September Futures

• Nifty Sep futures closed at 10,996 premium of 13.6 points versus 25 points.
• Nifty futures open interest up 2 percent, adds 3.2 lakh shares in open interest.
• Bank Nifty Sep futures closed at 27,824.4, premium of 5.9 points versus 54 points.
• Bank Nifty futures open interest down 10 percent, sheds 1.7 lakh shares in open interest.

Options

• Nifty PCR at 1.26 versus 1.32 (across all series)

Nifty Weekly Expiry: Sept. 19

• Max open interest on call side at 11,100 (16.6 lakh shares)
• Max open interest on put side at 11,000 (15.5 lakh shares)
• Open interest addition seen at 11,000P (+10.5 lakh shares), 11,000C (+9.6 lakh shares)

Nifty Monthly Expiry: Sep 26

• Max open interest on call side at 11,000 (22.6 lakh shares)
• Max open interest on put side at 10,800 (28.9 lakh shares)