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All You Need To Know Going Into Trade On September 1

Stocks in the news, big brokerage calls of the day, complete trade setup and much more!  

Morning commuters cross a road. (Photographer: Takaaki Iwabu/Bloomberg)
Morning commuters cross a road. (Photographer: Takaaki Iwabu/Bloomberg)

Asian markets have drifted lower at the start of a new month after most U.S. equities saw a negative close on Monday.

Benchmark indices notched a fifth straight monthly gains in August despite the negative close on Monday. The U.S. Dollar fell for the fifth straight month.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.26% to 11,395 as of 7:00 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.

Let's take a look at the factors that may influence equities in today's session:

  • Benchmark indices in Japan and Australia are underperforming while those in South Korea trade with gains.
  • Futures on the Dow Jones trade little changed. The index ended 0.8% lower on Monday.
  • Indian markets may react to the country's first quarter GDP numbers with the economy contracting a record 23.9% in the April-June period.
  • India will also be reporting monthly auto sales, and manufacturing PMI data for the month of August.
  • Yield on the 10-year treasuries rose to 0.72%.
  • West Texas Intermediate crude rose 0.8% to $42.93 per barrel while Gold was little changed at $1,969.5/Oz.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On September 1

Stocks To Watch

  • Bharti Infratel: Gets nod from the board of directors to proceed with the Scheme of Arrangement with Indus Towers. The company will now approach the NCLT to make the scheme effective, subject to certain procedural condition precedents. The deal will be done for Vodafone Idea's 11.15% shareholding in Indus Towers, for a cash consideration of Rs 4,000 crore.
  • Reliance Industries: Transaction with Brookfield completed after obtaining all regulatory approvals. Brookfield along with its institutional partners invested Rs 25,215 crore to subscribe to units of the Tower Infrastructure Trust.
  • Larsen & Toubro: Announces closure of strategic divestment of its electrical and automation business to Schneider Electric. Schneider Electric to use related brand Insignia for a specified period due to its popularity and strong brand recall in the switchgear market. The transaction was of an all-cash deal worth Rs 14,000 crore.
  • Grasim: Moves NCLAT challenging CCI's order which found the company guilty of abusing its dominant position. The CCI in March held that the company abused its dominant position under provisions dealing with imposition of unfair prices in purchase or sales of goods, imposing a penalty of Rs 301 crore on the company. The Textiles Consumer Federation has filed a separate appeal saying that the penalty imposed on Grasim is inadequate. The matter will be heard on September 24.
  • Biocon: Biocon Biologics and Mylan launch an insulin glargine injection (Semglee) in the U.S. for diabetes patients.
  • BEML: Received order worth Rs 842 crore from Ministry of Defence.
  • Bharat Road Networks: Joint venture with RKD Construction has received Letter of Acceptance from the NHAI for a HAM project in Bihar with a bid cost of Rs 1,034.7 crore.
  • Mahindra and Mahindra: The completion of sale of its entire stake in Neo Solren to CLP India, is now expected to be done by September, as against the earlier completion expected to be in the end of August due to Covid-19.
  • MOIL: Raises prices of all grades of Ferro, SMGR Grades, Fines and Chemical Grades by 10% as compared to the prices on August 1. The new prices will take effect today.
  • India Grid Trust: Acquired Gurgaon Palwal Transmission from Sterlite Power at an enterprise value of Rs 1,080 crore. The acquisition will add Rs 35-40 crore of net distributable cash flow per year.
  • Punjab National Bank: Base rate has been changed from 8.90% to 8.80% and repo linked lending rate from 6.65% to 6.80%, from September 1.
  • ENIL: The company along with TV Today Network have terminated an advertising sales agreement from September 1. ENIL was to support India Today Network to market and sell radio airtime on various platforms to third parties with respect to the company's three radio stations in Delhi, Mumbai and Kolkata.
  • V-Guard: Planning to start commercial production of ceiling fans in September at its new plant at Roorkee.
  • Rain Industries: India Ratings affirmed the long-term issuer rating at IND A while revising the outlook to negative from stable. The revision in outlook reflects a likely deterioration in the company's consolidated net leverage in 2020, with the delay in capex programs and Covid-19 related disruptions which may hamper the deleveraging efforts.
  • Zensar Tech: Granted U.S. patent for its digital tool enabling direct conversion with organization’s leadership.
  • Mahindra Logistics: Deferred investment of Rs 7 crore in Transtech Logistics due to unfulfillment of certain conditions as per the agreement. The board of the company had given an in-principle approval for the investment in August 2018. The company currently holds 39.79% stake in Transtech.
  • Best Agrolife: Statutory auditors resign with immediate effect due to pre-occupation in other assignments.
  • 5paisa Capital: To consider raising funds via issue of equity shares via qualified institutional placement, preferential allotment etc. on September 3.
  • Exide Industries: Increased stake in its joint venture Exide Leclanche Energy to 77.87% from 74.99% for Rs 33.2 crore.
  • Nifty Earnings Today: ONGC
  • Non-Nifty Earnings Today: Nalco, NLC India, Shalimar Paints, Anant Raj

Earnings Reported After Market Hours

Shree Renuka Sugars Q1FY21

  • Revenue up 30.6% to Rs 1,310.7 crore
  • Net loss narrows to Rs 34.9 crore from Rs 364.2 crore
  • Ebitda gain of Rs 84.1 crore from Ebitda loss of Rs 71.1 crore
  • All numbers are consolidated and compared on a year-on-year basis

JK Cement Q1FY21

  • Revenue down 27.3% to Rs 965 crore
  • Net profit down 49.5% to Rs 77.7 crore
  • Ebitda down 29.1% to Rs 215.3 crore
  • Ebitda margin at 22.3% from 22.9%
  • All numbers are standalone and compared on a year-on-year basis

Pledged Share Details

  • Zuari Agrochemicals: Promoter Zuari Global created pledge of 11 lakh shares on August 20
  • Prakash Industries: Promoter Vanshi Farms released pledge of 10 lakh shares on August 26.
  • JSW Steel: Promoters revoked pledge of 2.55 crore shares between August 26-27.
  • Max Financial Services: Promoter Max Ventures Investment Holdings created pledge of 13 lakh shares between August 26-28.
  • JSW Energy: Promoters revoked pledge of 5.1 crore shares between August 26-28.

(As Reported On August 31)

Who’s Meeting Whom

  • UPL: To meet SBI Life Insurance, Emkay PMS and other investors between September 1-2.
  • TVS Motor: To meet West Bridge Capital Partners on September 2.

Bulk Deals

  • Aavas Financiers: New World Fund acquired 5.2 lakh shares (0.66%) at Rs 1,409.97 per share, Nomura India acquired 5.2 lakh shares (0.66%) at Rs 1,410 per share and Partners Group sold 25.58 lakh shares (3.27%) at Rs 1410.01 per share.
  • Bharti Airtel: Integrated Core Strategies (Asia) acquired 3.8 lakh shares (0.70%) at Rs 513.79 per share.
  • Future Retail: Norges Bank sold 95 lakh shares (1.75%) at Rs 158.61 per share.
  • Ceat: Westbridge Crossover Fund sold 8.36 lakh shares (2.07%) at Rs 885 per share and Plutus Wealth Management acquired 8.44 lakh shares (2.09%) at Rs 885 per share.
  • GOCL Corporation: Promoter Hinduja Power sold 4 lakh shares (0.81%) at Rs 202 per share.
  • Future Enterprises: Investguard Ventures acquired 30.25 lakh shares (0.66%) at Rs 21.1 per share.

Trading Tweaks

  • AGM Date: NIIT, Astra Microwave Products, Jai Bharat Maruti, KEI Industries, Petronet LNG, Century Plyboards, Avenue Supermart, Dollar Industries, Jenburkt Pharma, Syngene International.
  • Fund Raising: Max Healthcare Institute.
  • Record Date For Share Split: Morganite Crucible (From FV of Rs 10 to Rs 5 per share).
  • Price Band Revision From 10% To 5%: Aarti Drugs, Remsons Industries, RattanIndia Power, Somi Conveyor Beltings.
  • Price Band Revision From 20% To 10%: Future Retail.
  • Move Into ASM Framework: Manaksia Aluminium, Mercator, Indian Terrain Fashions, A2Z Infra Engineering, Inspirisys Solutions, BLB, Zee Media Corporation, Indosolar.
  • Move Out Of ASM Framework: Digjam, Karuturi Global, Garden Silk Mills.
  • Move Into Short Term ASM Framework: Repco Home Finance, Shree Rama Multi-Tech, Indiabulls Ventures.
  • Move Out Of Short Term ASM Framework: DPSC, Indiamart Intermesh, STL Global.

Insider Trades

  • JSW Steel: Promoter JTPM Metal Traders acquired 15.75 lakh shares between August 27-28
  • KEC International: Promoter Instant Holdings acquired 52,000 shares between August 27-28
  • Man Infra: Promoter Manan Shah acquired 1 lakh shares on August 28

(As Reported On August 31)

Money Market Update

  • The rupee snapped a three-day gaining streak on Monday, ending at 73.62 against the U.S. Dollar as compared to Friday's close of 73.40.
  • The rupee was the second worst performing currency in Asia on Monday, behind the Japanese Yen.
All You Need To Know Going Into Trade On September 1

F&O Cues

  • Nifty September futures closed at 11,360; discount of 28 points from premium of 34 points
  • Nifty September futures shed 8% and 10 lakh shares in Open Interest
  • Nifty Bank September futures closed at 23,661; discount of 93 points from premium of 98 points
  • Nifty Bank September futures shed 3.7% and 54,500 shares in Open Interest
  • Nifty Put-Call Ratio at 1.28
  • In F&O Ban: Vodafone Idea
  • Out of F&O Ban: Bank of Baroda

Nifty Monthly Expiry: September 3

  • Maximum Open Interest on Call side at 12,000 strike (30.4 lakh shares)
  • Maximum Open Interest on Put side at 11,400 strike (17.6 lakh shares)
  • Active Options: 11,500 Put (-14.5 lakh shares) and 11,600 Call (12 lakh shares)

Nifty Monthly Expiry: September 24

  • Maximum Open Interest on Call side at 12,000 strike (19.6 lakh shares)
  • Maximum Open Interest on Put side at 11,000 strike (26 lakh shares)
All You Need To Know Going Into Trade On September 1