All You Need To Know Going Into Trade On Sept. 18
Stocks in Asia opened mixed as investors awaited the outcome of the Federal Reserve’s policy meeting, where it’s widely expected to cut interest rates again.
Equity indexes in Japan edged down, while South Korea and Australia opened flat. Futures on the S&P 500 were little changed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.42 percent to 10,887.50 as of 7 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 all that could influence equities today:
- Oil sank from a three-and-a-half-month high amid signs Saudi Arabia is restoring production after a debilitating weekend attack on key installations.
- The S&P 500 Index posted a small advance, with dividend paying real-estate shares faring best.
- The Supreme Court concluded the first of three days of hearings into Boris Johnson’s decision to suspend Parliament.
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Stocks To Watch
- Bajaj Finance said it will raise up to Rs 8,500 crore through qualified institutional placement by issuing equity shares.
- Coffee Day Enterprises: Blackstone Group and Salapuria Sattva Group have agreed to acquire the company’s Global Village Tech Park in Bengaluru. The acquisition would take place at an enterprise value of around Rs 2,700 crore in two tranches. The first tranche is expected to be transferred before Oct. 31, while the deal would be subject to conditions, including regulatory approval.
- Sunteck Realty signed an agreement with Transcon Enterprises for development of residential, commercial and retail project in Mumbai’s Andheri area. The company said that project has a potential saleable area of 1.1 million square feet and a revenue of over Rs 2,500 crore is expected in the next four-to-five years.
- Oil marketing stocks: Indian refiners and Rosneft are in talks to finalise a term-contract for supply of Russian oil as part of the South Asian nation’s efforts to diversify its sources of crude, Bloomberg reported quoting oil ministry’s mail
- IIFL Holdings: IIFL Wealth to be listed on Sept. 19 and IIFL Securities to be listed on Sept. 20.
- CG Power & Industrial Solutions: Securities and Exchange Board of India barred the company's ex-chairman Gautam Thapar and three other former officials from capital markets for “serious” misstatement of accounts as well as diversion of funds, and ordered forensic audit of the company, according to a PTI report.
- Balmer Lawrie & Co: Board deferred the proposal of bonus share issue.
- Gujarat Alkalies and Chemicals has completed the commissioning of remaining 12.5 MW Solar Power Plant in Charanka. Total Installed capacity of the plant has increased to 35 megawatt.
- Glenmark Pharma: S&P Global Ratings revised outlook to negative from stable, with BB- rating affirmed, according to Bloomberg report.
- Ahluwalia Contracts secured orders worth Rs 497.36 crore. Total order inflow for fiscal year 2020 stands at Rs 927.59 crore.
- NCC: Aditya Birla Sun Life MF increased stake from 5.09 percent to 7.24 percent in the company.
- MSTC: Bihar State Road Transport Corporation has appointed to the company as selling agent to sell all categories of goods and equipment for a period of three years.
- DHFL defaulted in payment of non-convertible debentures and their interests worth Rs 114 crore which were due on Sept. 16.
- DHFL: Failed to repay interest and principal amount on certain ECBs worth $20.17 million due to Sept. 16-17.
- Magma Fincorp: Entered into co-origination arrangement with ICICI Bank Limited for asset backed finance business. This arrangement represents an alternate model of disbursals for Magma that would be asset light and create a sound revenue model through fee income.Magma’s responsibility under this co-origination agreement shall include sourcing and servicing of loans and collection of repayments from the customers.
- Future Supply Chain Solutions: Board to meet on Sept. 20 to consider fund raising.
CLSA on GAIL
- Maintained ‘Buy’ with a price target of Rs 165.
- Slew of reforms may act as a tailwind.
- profits during the second half of the financial year may be better than the first half.
- Also a beneficiary of higher crude prices.
Credit Suisse on Reliance Industries
- Maintained ‘Neutral’ with a price target of Rs 1,210.
- Petchem margins weakening further.
- Expect petchem weakness to continue, given the high supply additions.
- But higher refining margins should offset petchem weakness.
Credit Suisse on Britannia Industries
- Downgraded to ‘Neutral’ from ‘Outperform’; cut price target to Rs 2,750 from Rs 2,975.
- Macro slowdown to keep 2019-20 subdued.
- Unlikely to see revenue and Ebtida growth for next one-to-two years.
- Slowdown and stretched valuations leave limited room for upside.
Credit Suisse on Pidilite Industries
- Downgraded to ‘Underperform’ from ‘Neutral’; cut price target to Rs 1,125 from Rs 1,175.
- Segments linked to real estate facing severe pressure.
- Pidilite has strong margin tailwinds for 2019-20 due to sharp correction in key input costs.
- With slowing volume growth, expect valuations to correct.
Axis Capital on Wipro
- Maintained ‘Reduce’; cut price target to Rs 250 from Rs 260.
- Growth outlook muted, investments to weigh on margin.
- Mgmt. indicated continued challenges in few verticals as clients continue to slow their decision making.
- Weakness persists in both deal closures and deal pipeline.
Axis Capital on Mindtree
- Upgraded to ‘Add’ from ‘Reduce’; hiked price target to Rs 740 from Rs 710.
- Challenges to mitigate further as earnings improve.
- Transition has been managed well by the L&T and the new Mindtree team.
- Believe strong deal wins would help accelerate revenue momentum along with margin expansion.
Citi on AU Small Finance Bank
- Maintained ‘Buy’ with a price target of Rs 720.
- Prioritizing asset quality and margins overgrowth.
- Given the macro environment, growth will likely be slow.
- Believe that structural opportunity remains large.
CLSA on Pharma
- Signs of price erosion easing in the U.S.
- Fears of a slowdown and threat of substitution in India are receding.
- The current financial year is likely to be another double-digit profit growth year.
- Long-term winners need IPR capability, diversified strategy.
- Sun Pharma, Dr Reddy’s and Cadila Healthcare are best placed.
CLSA on Auto
- Demand survey shows weak start to festive season.
- Demand pick-up in balance part of festive season is crucial.
- remain cautious on autos given continued weak demand and regulatory pressures.
- Patel Engineering record date for Rights Issue at 7:5 at a premium of Rs 8 per share.
- Tata Communications record date for Demerger.
- Alphageo to move into ASM Framework.
- 8K Miles Software Services, Confidence Petroleum India, Gravita, IG Petrochemicals, Jain Irrigation Systems, Anant Raj, Skipper to move into short term ASM Framework.
- Den Networks, Eros International Media to move out of short term ASM Framework.
- Arshiya price band revised to 10 percent.
Who’s Meeting Whom
- Allcargo Logistics to meet Kotak Securities on Sept. 18.
- Welspun Enterprises to meet Dolat Capital Market on Sept. 19.
- Welspun Corp to meet JM Financial Services on Sept. 18.
- Usha Martin promoter Rajeev Jhawar acquired 5 lakh shares on Sept. 16.
- Aarti Drugs promoter Rashesh Ghogri acquired 40,000 shares on Sept. 12.
Money Market Update
- The rupee closed at 71.79/$ on Tuesday versus 71.60/$ on Monday.
- Nifty Sep futures closed at 10,833.5, premium of 15.9 points versus 13.7 points.
- Nifty futures open interest up 2 percent, adds 3 lakh shares in open interest.
- Bank Nifty Sep futures closed at 27,140, premium of 8.4 points versus 34.9 points.
- Bank Nifty futures open interest up 1 percent, adds 14,000 shares in open interest.
- Nifty PCR at 0.98 versus 1,16 (across all series)
Nifty Weekly Expiry: Sept. 19
- Max open interest on call side at 11,100 (32.9 lakh shares).
- Max open interest on put side at 10,800 (18.5 lakh shares).
- open interest addition seen at 10,900C (+16.3 lakh shares), 11,000C (+11.7 lakh shares).
- open interest shedding seen at 11000P (-11.9 lakh shares), 10,900P (-7 lakh shares).
Nifty Monthly Expiry: Sept. 26
- Max open interest on call side at 11,000 (32.9 lakh shares)
- Max open interest on put side at 10,800 (36 lakh shares)