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All You Need To Know Going Into Trade On September 11
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
11 Sep 2020, 11:46 AM IST 
Shoppers wearing protective face masks browse food stalls at the Edgar Quinet market in Paris, France. (Photographer: Cyril Marcilhacy/Bloomberg)
Asian markets have opened with losses on the Final trading day of the week as the selloff resumed in megacap technology shares on Wall Street. Markets are poised to decline for the second straight week.
Treasuries and the U.S. Dollar were steady while oil prices traded lower.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.3% at 11,425 as of 7:05 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, South Korea and Australia are trading lower, though the losses are modest as compared to their peers in the U.S.
- Futures on the Dow Jones are trading higher by 130 points. The index ended 1.5% lower on Thursday. The Nasdaq fell over 2% as technology shares sold-off again.
- Europe has emerged as a fresh Covid-19 hotspot while U.S. lawmakers remain far apart on a fresh relief bill.
- Initial jobless claims in regular state programs in the U.S. stood at 8.84 lakh which was unchanged as compared to the previous week. A Bloomberg estimate had pegged the figure at 8.5 lakh.
- U.S. CPI data is due later today where consumer prices have likely risen in August.
- Yield on the 10-year treasuries stood at 0.68%
- West Texas Intermediate crude fell 0.4% to $37.17 per barrel.
Get your daily fix of the global markets here.
Stocks To Watch
- Reliance Industries: Says it does not comment on media speculation and cannot confirm or deny any transaction which may or may not be in the works. It also said that it evaluates various opportunities on an ongoing basis. Bloomberg reported on Thursday that it is mulling a $20 billion stake sale in Reliance Retail to Amazon.
- National Fertilisers: Total fertiliser sale at 23.81 lakh MT between April-August 2020, a growth of 16% compared to the same period last year. Production up 13% to 16.11 lakh MT between April-August.
- Bank of Baroda: Cuts MCLR by 5-30 basis points across various tenors from September 12. Overnight MCLR will now be at 6.7% while one-month MCLR at 7.1%.
- Info Edge: Zomato closes primary fund raising of $100 million from Tiger Global and $60 million from Temasek holding. The food-delivery startup is now valued on a post-money valuation of $3.3 billion. The company holds 22.2% stake in Zomato.
- Hexaware Tech: Promoter HT Global I.T. solutions released a pledge of 18.63 crore shares or 62.08% stake which was pledged to Deutsche Bank and six other lenders. The pledge was released on September 8 after redemption of bonds.
- Amber Enterprises: Board approves closure of QIP. The company will issue 22.47 lakh shares to eligible qualified buyers at Rs 1,780 per share which is a 1% discount to the floor price. The company has raised Rs 400 crore through the same.
- Rashtriya Chemicals: Begins Methanol plant at its Trombay unit.
- Panacea Biotec: NCLT Chandigarh has sanctioned demerger of the real estate business of the company into a new company, called Ravinder Heights.
- Vaibhav Global: Commissioned a 1MW solar PV power generation project in Rajasthan. Together, the existing facility and the new plant will address around 45% of the company’s power requirements for the Jaipur facility.
- Gujarat Gas: CARE ratings has upgraded the company’s long-term facilities worth Rs 2,000 crore from CARE AA to CARE AA+. The outlook has been revised to stable from positive.
- ITI: The Army Static Switched Communication Network or ASCON has given its approval to ITI for a project for which it was declared the lowest bidder in 2017. The project is valued at Rs 7,796 crore.
- Hindustan Copper: Board defers plans to consider raising of funds.
- KEI Industries: CARE Ratings has upgraded company’s long-term facilities and fixed deposits to CARE A+. The outlook is maintained as stable.
- J&K Bank: Expects credit growth of 5-7% in its loan book and is going for capital augmentation of Rs 4,500 crore to further cushion its lending capacity.
- Route Mobile: IPO subscribed 4.21 times on the second day of bidding. Institutional subscription at 1.27 times, non-institutional investor subscription at 2.07 times and retail subscription at 6.81 times. Institutional category doesn’t include anchor portion.
- Non-Nifty Earnings Today: BHEL, IRCTC, MIDHANI, Rail Vikas Nigam, Puravankara, Adani Green Energy, Future Supply Chain, Premier Explosives, OMDC.
Earnings Reported After Market Hours
Hindustan Aeronautics Q1FY21
- Revenue down 47.2% to Rs 1,736.7 crore
- Net profit down 73.7% to Rs 148.7 crore
- Ebitda down 54.7% to Rs 384.3 crore
- Ebitda margin at 22.1% from 25.8%
- All numbers are consolidated and compared on a year-on-year basis
Jay Bharat Maruti Q1FY21
- Revenue down 84.1% to Rs 70.2 crore
- Net loss of Rs 21 crore from net profit of Rs 7.8 crore
- Ebitda loss of Rs 10.2 crore from Ebitda gain of Rs 39 crore
- All numbers are consolidated and compared on a year-on-year basis
Hindustan Copper Q1FY21
- Revenue up 41.9% to Rs 431.4 crore
- Net profit up 39.9% to Rs 29.8 crore
- Ebitda down 7.4% to Rs 86.4 crore
- Ebitda margin at 20% from 30.7%
- Inventory gains contribute to net profit
- All numbers are standalone and compared on a year-on-year basis
Brokerage Radar
CLSA On Hero MotoCorp
- Buy rating maintained
- Price target of Rs 3,315
- Commentary during Investors' forum indicated improving trends for production, dispatches, and retail.
- Price hikes appear to have been absorbed by the market
- A second round of price hikes should protect OEMs' per-unit gross margins
- Management expects financing to gradually improve
- Rural has led the recovery but urban starting to pick-up as well
- Premium, scooters and exports are medium-term strategic areas
- Price competition and significant market share loss are key risks
UBS On Cummins India
- Downgrade to sell from buy
- Price target cut to Rs 390 from Rs 415
- Muted revenue growth due to persistent slowdown in industrial demand
- Domestic demand recovery outlook remains hazy even in FY22
- Margins likely to remain under pressure
- Expect margins to expand 140 basis points by FY22 from the 20-year low in FY20
- Shares are not adequately discounting the medium-term headwinds
Haitong On General Insurance Corporation
- Downgrade to neutral from outperform
- Price target cut to Rs 140 from Rs 190
- Combined ratio continues to remain elevated
- Ratings downgrade by AM Best will severely impact its ability to get good business in the global markets
- Reduce gross premium growth CAGR over FY20-22 to 0% from 5%
- Main downside risk is further catastrophic events that materially raise claims ratio
- Upside risk is better-than-expected combined ratio performance of the global business
Goldman Sachs On Phoenix Mills
- Buy rating maintained
- Price target raised to Rs 690 from Rs 670
- Post QIP, FY21E net debt/Ebitda moves to 5x from 7.1x
- Existing equity infused in under-construction projects should be enough to finance the planned capex in FY21
- To benefit from consolidation in the industry given its strong balance sheeet and high quality of assets
- Additional capital provides protection against a prolonged impact from Covid-19 and dry powder to pursue acquisitions
Who’s Meeting Whom
- BSE: To meet Quantum AMC on September 11.
- Cummins: To meet IIFL, Nomura and other investors on September 11.
- Mahindra & Mahindra: To meet Sanford C Bernstein on September 11.
- EIH: To meet Nippon India Mutual Fund and Sundaram Mutual Fund between September 11-12.
- Tata Steel: To meet Bank of America on September 14.
- Heidelberg Cement: To meet Sundaram Mutual Fund on September 12.
Trading Tweaks
- AGM Date: IIFL Wealth Management, HEG, Jubilant Lifesciences, JK Paper, Anuh Pharma, Suven Life Sciences, VA Tech Wabag, Tata Steel Bsl, Bajaj Consumer Care.
- Fund Raising: Puravankara. Deepak Fertilizers and Petrochemicals.
- Record Date Rights Issue: Rushil Décor (Rights at 1:3, at a premium of Rs 40 per share)
- IPO Closes: Route Mobile
- Price Band Revision From 5% To 20%: Max India.
- Move Into ASM Framework: Shiva Texyarn.
- Move Into Short Term ASM Framework: Globus Spirits, Macpower CNC Machines, NDR Auto Components.
- Move Out Of Short Term ASM Framework: Dynamatic Technologies, Sakar Healthcare, Cambridge Technology Enterprises, Nxtdigital.
Insider Trades
- Alembic: Promoter Nirayu acquired 2.82 lakh shares on September 8.
- ADF Foods: Promoter Bhavesh Thakkar sold 90,739 shares between September 8-9.
- Jamna Auto: Promoters acquired 2.8 lakh shares between September 7-9.
- Trident: Promoter Trident Capital acquired 1.5 lakh shares on September 9.
- Maruti Suzuki: Promoter Suzuki Motor Corporation acquired 2.84 lakh shares between September 8-9.
- Man Infra: Promoter Manan Shah acquired 2 lakh shares on September 9.
(As Reported On September 10)
Money Market Update
- The currency ended higher for the second straight day at 73.46 against the U.S. Dollar as compared to Wednesday's close of 73.54.
- Five other currencies managed to outperform the rupee on Wednesday.
F&O Cues
- Nifty September futures closed at 11,468; premium of 19 points from 40 points
- Nifty September futures add 1% and 1.1 lakh shares in Open Interest
- Nifty Bank September futures closed at 22,534; premium of 68 points from 108 points
- Nifty Bank September futures shed 6.5% and 99,000 shares in Open Interest
- Nifty Put-Call Ratio at 1.35
Nifty Weekly Expiry: September 17
- Maximum Open Interest on Call side at 12,000 strike (15.3 lakh shares)
- Maximum Open Interest on Put side at 11,400 strike (9.9 lakh shares)
- Active Options: 11,300 Put (1 lakh shares) and 12,000 Call (11.5 lakh shares)
Nifty Monthly Expiry: September 24
- Maximum Open Interest on Call side at 11,500 strike (19.2 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (29.5 lakh shares)
