All You Need To Know Going Into Trade On Sept. 26

Stocks in Asia pushed higher Thursday as signs of easing trade tensions overshadowed impeachment inquiry proceedings in Washington.

Japan equities opened higher along with modest gains in South Korea and Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.17 percent to 11,494.50 as of 6:58 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.

• The S&P 500 halted a three-day slide, with technology and bank shares pacing the gain, after President Donald Trump suggested a trade deal with China was possible and touted a pact with Japan.
• The yields on 10-year Treasuries rose to 1.75 percent.
• Crude declined to the lowest since Saudi Arabia’s oil industry suffered devastating attacks as investors gauged the kingdom’s efforts to restore production.

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Indian ADRs

Stocks To Watch

• Sterlite Technologies said its Mauritius-based arm has signed a pact to acquire entire stake in the U.K.-based Impact Data Solutions at an enterprise value of around Rs 105 crore. Sterlite Global Venture (Mauritius) Ltd. has acquired an 80 percent stake in Impact Data Solutions in the first tranche and plans to acquire another 20 percent over the next few years, according to its stock exchange filing.
• GlaxoSmithKline Pharmaceuticals announced recall of ranitidine hydrochloride tablets produced in India using Active Pharmaceutical Ingredient sourced from Saraca Laboratories Ltd. following detection of genotoxic nitrosamine NDMA by authorities. The company has also decided to suspend release, distribution and supply of all dose forms of ranitidine hydrochloride products to all markets, including India, as a precautionary action pending the outcome of ongoing tests and investigations, according to its statement on the exchanges..
• SRF said that Supreme Court has dismissed the company’s petition against High court order to pay stamp duty and penalty of Rs 28.82 crore. The demand of the Collector of Stamps, (Madhya Pradesh) stands confirmed. The company stated that it is exploring other legal options.
• Jet Airways’ Insolvency: NCLT directed the financial creditors to release funds for interim finance immediately. Jet Airways’ Resolution Professional had moved NCLT seeking directions for release of funds. Share of banks in interim financing was approved in CoC's first meeting. NCLT has directed Yes bank, Punjab National Bank, IDBI Bank, Bank of India, Indian Overseas Bank and Axis Bank to sanction and release the amounts immediately.
• CG Power & Industrial Solution: Board has appointed Ashish Kumar Guha as the Chairman of the company with effect from Sept. 24. The board has constituted Special Situation Committee to focus on operational improvement, strategic review of international businesses, capital re-structuring including raising capital and dealing with the regulatory bodies. The board will consider first and second quarter results on or before Nov. 11.
• Cipla has launched generic daptomycin drug in U.S. markets.
• NTPC signed accords to build 540MW Hydro Projects in Himachal Pradesh, ccording to Bloomberg report.
• AstraZeneca Pharma received import and market permission in Form 45 from DGCA for diabetes drug.
• Talwalkars Healthclubs: MCA has approved extension of AGM for a period of 3 months from Sept. 30.
• IDBI Bank clarified that unscrupulous elements are circulating malicious and totally unfounded messages on social media platforms about the Bank's financial position. The Bank stated to all its stakeholders that it is well capitalised and its business operations continue as usual.
• Praxis Home Retail to consider raising funds on Sept. 30.

Brokerage Radar

UBS on Future Consumer

• Maintained ‘Buy’; cut price target to Rs 50 from Rs 70.
• Company now focusing on profitable growth.
• Long term potential for sector keeps us bullish.
• Can achieve profitable growth roadmap.

Macquarie on Godrej Consumer

• Maintained ‘Outperform’ with a price target of Rs 762.
• Channel check suggest revival in H1 helped by normal monsoon and lower growth in incense sticks.
• Indonesia business continues to outperform led by market share gain in the Air Fresheners segment.
• Outperformance in India and Indonesia will lead to valuation catch-up with peers.

HSBC on MOIL

• Upgraded to ‘Buy’ from ‘Hold’; maintained price target to Rs 180.
• Manganese prices could decline further, but impact on MOIL should be buffered.
• Robust dividend yield from strong net cash position.
• Valuations attractive; supported by sustainable healthy margins from low cost operations .

CLSA on Zee Entertainment

• Maintained ‘Buy’; cut price target to Rs 450 from Rs 515.
• Ad slowdown, but tax cut boost and lender extension to Zee’s promoter.
• Advertising slowdown worst than in 2009; subscription jump will continue in 2020-21.
• Earnings boost from corporate tax rate cut; valuations compelling.

Morgan Stanley on InterGlobe Aviation

• Maintained ‘Overweight’; hiked price target to Rs 2,261 from Rs 2,060.
• Positives: rising international mix, rising share of NEOs and healthy fare environment.
• Expect higher international share will also lead to a lower fuel charge.
• FY21 domestic market should see peers adding capacity thus pricing power will be relatively constrained.

Bulk Deals

• Varun Beverages: Promoter RJ Corp sold 27 lakh shares or 1.48 percent equity at Rs 630.01 each.
• Anup Engineering: Abakkus Emerging Opportunities Fund acquired 2.05 lakh shares or 2.02 percent equity at Rs 410 each.

Trading Tweaks

• Supershakti Metaliks ex-date for bonus share issue at 1:1
• Uttam Value Steels to move into ASM Framework
• Everest Kanto Cylinder, Texmaco Infrastructure & Holdings, Unitech, ICICI Securities to move into short ASM Framework
• 8K Miles Software Services, Confidence Petroleum, Gravita, IG Petrochemicals, Jain Irrigation Systems, OnMobile Global, Tata Teleservices (Maharashtra), Dixon Technologies, ISGEC Heavy Engineering, Shriram Asset Management to move out of short term ASM Framework
• Precision Camshafts price band revised to 10 percent
• Arshiya price band revised to 5 percent

Who’s Meeting Whom

• Essel Propack to meet Ratnabali Investment on Sept. 26
• Tamil Nadu Newsprint and Papers to meet Wellworth Share and Stock Broking on Sept. 26
• Cipla to meet Reliance MF, Treeline Advisors and other investors from Sept. 26-30
• Eicher Motors to meet Axis Capital and BOB Capital Markets from Sept. 26-30
• Shriram City Union Finance to meet Kotak Mahindra AMC and Quantum AMC from Sept. 26-28
• Mahindra & Mahindra to meet Hara Global Capital Management on Sept. 27

Insider Trading

• Vakrangee promoter and director Dinesh Nandwana acquired 10 lakh shares on Sept. 25
• Kalpataru Power Transmission promoters sold 69 lakh shares on Sept. 11
• Sun Pharma promoter Shanghvi Finance acquired 5 lakh shares on Sept. 25
• Filtex India promoter Shefali Bhageria acquired 2 lakh shares on Sept. 23
• Varun Beverages promoters RJ Corp and Ravi Kant Jaipuria & Sons (HUF) sold 40 lakh shares on Sept. 25

(As reported on Sept. 25)