All You Need To Know Going Into Trade On September 10
Asian markets have opened higher this morning after equities on Wall Street rebounded from a three-day rout.
The U.S. Dollar steadied after declines, as did the Pound which steadied after declining on worries that Brexit talks may collapse again.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 11,312 as of 6:55 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:
- Shares in Japan, South Korea and Australia are advancing this morning, trading with gains of close to 1%.
- Futures on the Dow Jones are trading 40 points lower. The index ended 1.6% higher on Wednesday.
- The Nasdaq composite saw its best day since April with technology shares leading the rebound, following a fall that took the index to its 50-Day Moving Average.
- The European Central Bank will be announcing its policy decision later this evening. Also in focus will be the weekly jobless claims data in the U.S.
- The Bloomberg Dollar Spot Index was flat after a decline of 0.4%.
- Yield on the 10-year treasuries stood at 0.69%.
- West Texas Intermediate crude fell 1% to $37.67 per barrel while gold was little changed at $1,947.66/Oz.
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Stocks To Watch
- Indiabulls Housing Finance: Launches QIP issue on Wednesday. Floor price of Rs 206.7 per share is a 2.8% premium to Wednesday's close. The company may offer a discount of not more than 5% on the floor price. The board will meeton September 14 to consider and approve the issue price, permitted under SEBI guidelines. The company also said that it is in the process of partially divesting its equity shareholding in OakNorth Bank in one or more tranches in order to boost capital and grow the loan book.
- Healthcare Global Enterprises: Promoter Aesco Company increased stake to 49.99% from 29.2% , via mandatory tender offer on September 8.
- Happiest Minds Technologies: IPO subscribed 151 times on the final day of bidding. Institutional subscription at 77.43 times. Non-institutional investor portion subscribed 351.46 times. Retail subscription at 70.94 times.
- Route Mobile: IPO subscribed 1.02 times on the first day. Institutional subscription at 0.01 times. Non-institutional investor subscription at 0.47 times and retail subscription at 1.83 times.
- Bharat Dynamics: OFS concluded with total subscription of about 2.34 crore shares worth Rs 770 crore from institutional and retail investors. LIC increased stake to 10.5% from 2.23% during the OFS period.
- IRCTC: Says it has not received any intimation from the government regarding plans to sell stake in the company through an Offer for Sale. PTI had reported on Tuesday that the government is planning to sell 15-20% stake in the company.
- Aditya Birla Fashion and Retail: Shareholders approved creation of charge on movable and immovable properties of the Company up to Rs 4,500 crore.
- Goa Carbon: August production down 37% to 10,508.5 MT.
- Texmaco Infra: Board approved raising up to Rs 250 crore via issue of equity shares and to increase borrowing limit to Rs 800 crore.
- Gujarat Ambuja Exports: Acquired 100% stake in Mohit Agro Commodities Processing for Rs 12.64 crore.
- Non-Nifty Earnings Today: Goa Carbon, Hindustan Aeronautics, Hindustan Copper, Jay Bharat Maruti, J&K Bank
CLSA On Reliance Industries
- Outperform rating maintained
- Price target of Rs 2,250
- Silver Lake stake buy at 12% less than our valuation
- RIL's current market-cap already bakes in full value from this
- Exhaustion of large inorganic triggers may cap near-term upsides
- Remain positive on the long-term opportunity that the company offers
CLSA On Sunteck Realty
- Initiate coverage with buy rating
- Price target of Rs 345
- Accretive project acquisitions with prudent capital management
- Operates five brands catering to a range of customers, thereby hedging its risks
- Gained market share in Mumbai after shifting focus to volume from value
- Ramped up portfolio using an asset-light approach
- Positive on value-accretive acquisition potential
- Pace of acquisitions may accelerate due to consolidation
- Slowdown in the Mumbai housing market remains a key risk
JPMorgan On Aurobindo Pharma
- Overweight rating maintained
- Price target of Rs 950
- Investors gaining confidence in the execution story, but some still overlook the stock due to low EPS CAGR over FY21E-22E and the risk of volatility due to its U.S. base.
- Investments to support diversified U.S. growth should help offset erosion and drive incremental returns
- Correction in the last few weeks provides an opportunity to buy the stock
- Play for visibility in medium-term earnings and upside from R&D investments.
- Valuations do not factor the company's stronger execution, improving balance sheet and higher return profile
BofA Securities On BHEL
- Downgrade to underperform from neutral
- Price target cut to Rs 32 from Rs 33
- Near-term outlook weak with receivables elevated
- Do not find the stock attractive as nearly 30% of receivables can turn into bad debts
- Do not expect the company to gain partnerships with large global firms under Make in India
- Cut FY21-22E EPS by 20% and 7% respectively on weak near-term outlook
Citi On Maruti
- Buy rating maintained
- Price target raised to Rs 8,350 from Rs 6,700
- Remains top pick in the Indian Auto space
- Revival post Covid-19 is a work in progress
- Continues to dominate the PV market
- Do not have clarity on the new model but bake in 20,000 units in FY21 and 60,000 units in FY22 estimates
- Trim FY21 volume estimates by 3%, although we see volumes rising by 2-3% over FY22-23E
- Raise FY22/23E earnings estimates by 2-6%
Pledged Share Details
- Future Consumer: Promoter Future Capital Investment invoked pledge of 1 crore shares on September 8.
- Adani Transmission: Promoter SB Adani Family Trust released pledge of 5.44 crore shares on September 7.
- Max India: Promoter Max Ventures Investment Holdings created pledge of 87.94 lakh shares on September 8.
- Max Healthcare: Promoter Max Ventures Investment Holdings released pledge of 2.94 crore shares on September 8.
- Adani Enterprises: Promoter SB Adani Family Trust revoked pledge of 2.6 crore shares between September 7-8.
- Emami: Promoters released pledge of 46.8 lakh shares between September 7-8.
- Zee Media Corporation: Promoter 25FPS Media invoked pledge of 44 lakh shares on September 3.
- Adani Power: Promoter Adani Tradeline revoked pledge of 1 crore shares on September 4.
(As Reported On September 9)
Who’s Meeting Whom
- Manappuram Finance: To meet YES Securities on September 11.
- Sudarshan Chemical: To meet Doric Capital on September 11.
- Thyrocare Tech: To meet Arisaig Partners on September 10.
- Inox Leisure: To meet Working Capital Advisors on September 10.
- Dixon Tech: To meet Bellweather Capital, KGI Funds and Capital International between September 10-15.
- IIFL Finance: To meet Bank of America Securities on September 14.
- Control Print: India Max Investment Fund acquired 1.62 lakh shares (0.99%) at Rs 217.96 per share and Grovsnor Investment Fund sold 1.62 lakh shares (0.99%) at Rs 217.96 per share.
- Escorts: Victory Emerging Markets Small Cap Fund acquired 8.03 lakh shares (0.66%) at Rs 1,165.44 per share.
- Transport Corporation of India: HDFC Mutual Fund acquired 8.64 lakh shares (1.12%) at Rs 215 per share and Himalaya Finance And Investment sold 10.46 lakh shares (1.36%) at Rs 215 per share.
- AGM Date: Zee, Hindalco, Jay Bharat Maruti, Ceat, Cera Sanitaryware, Petronet LNG, Pidilite, Emami, Jagran Prakashan, Heidelberg Cement, IPCA Labs, MRPL, Ramkrishna Forgings, Minda Industries, Rupa, Dalmia Bharat & Sugar, GMR Infra, Prataap Snacks, Fine Organic, DFM Foods, Linde India.
- Fund Raising: Hindustan Copper.
- Ex-Date Rights Issue: Rushil Décor (Rights at 1:3, at a premium of Rs 40 per share).
- Price Band Revision From 20% To 10%: CL Educate.
- Move Into ASM Framework: Godawari Power And Ispat, Videocon Industries.
- Move Into Short Term ASM Framework: Gujarat Apollo Industries, Repco Home Finance.
- Move Out Of Short Term ASM Framework: Ramkrishna Forgings, TCPL Packaging, MM Forgings, IZMO.
- Trident: Promoter Trident Capital acquired 18 lakh shares on September 8.
- Mindtree: Promoter Subroto Bagchi sold 4.64 lakh shares between September 4-8.
- Alembic Pharma: Promoter Uday Educational Society sold 2 lakh shares between September 7-8.
(As Reported On September 9)
Money Market Update
- The rupee snapped a two-day losing streak on Wednesday, ending at 73.54 against the U.S. Dollar as compared to Tuesday's close of 73.6.
- The rupee was the third best performing currency in Asia.
- Nifty September futures closed at 11,318; premium of 40 points from discount of 15 points.
- Nifty September futures shed 6% and 6.6 lakh shares in Open Interest
- Nifty Bank September futures closed at 22,375; premium of 108 points from discount of 87 points.
- Nifty Bank September futures add 3% and 48,000 shares in Open Interest
- Nifty Put-Call Ratio at 1.24
Nifty Weekly Expiry: September 10
- Maximum Open Interest on Call side at 11,500 strike (32.9 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (33.7 lakh shares)
- Active Options: 11,200 Put (9 lakh shares) and 11,300 Call (12.7 lakh shares)
Nifty Monthly Expiry: September 24
- Maximum Open Interest on Call side at 11,500 strike (22.7 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (28.2 lakh shares)