All You Need To Know Going Into Trade On September 15
Morning commuters wearing protective masks ride a Jakarta Mass Rapid Transit (MRT) train during a partial lockdown due to the coronavirus in Jakarta, Indonesia. (Photographer: Rony Zakaria/Bloomberg)

All You Need To Know Going Into Trade On September 15

Asian markets have drifted lower at the start of trade this morning, after ending Monday's session with steady gains.

The U.S. Dollar has maintained its losses and the Yuan was steady, after rising to the highest level this year.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was flat at 11,458 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:

  • Markets in Japan are edging lower while those in Australia and South Korea are trading with modest gains.
  • Futures on the Dow Jones are little changed this morning. The index ended 1.2% higher on Monday.
  • Immunomedics Inc. nearly doubled after Gilead Sciences agreed to buy the cancer drugmaker for $21 billion.
  • "Valuations have risen, and we could see greater volatility as a result, especially as the U.S. election closes in," Elga Bartsch of BlackRock Investment Institute said.
  • The Bloomberg Dollar spot index was flat after a drop of 0.3%
  • Yield on the 10-year treasuries stood at 0.67%
  • West Texas Intermediate crude rose 0.2% to $37.35 per barrel while Gold was little changed at $1,958.02/Oz.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On September 15

Stocks To Watch

  • ICICI Bank: Granted exemption by the Reserve Bank of India, from the Banking Regulation Act, 1949, with regards to shareholding above 30% in ICICI Lombard and ICICI Prudential. The exemption is for a period of three years, until September 2023. The exemption may permit both subsidiaries to consider strategic options such as mergers, acquisitions or capital raise which have the potential to reduce the bank's shareholding. The bank also said there will be no impact on the current distribution arrangement. The above exemption would facilitate compliance with rules if the proposed acquisition of another general insurance business made by ICICI Lombard is consummated and would result in the bank's shareholding in ICICI Lombard drop below 50%.
  • Indiabulls Housing Finance: Raises Rs 682.87 crore through the QIP issue which was closed on Monday. The issue price of Rs 196.37 per share is a 5% discount to the floor price.
  • Vedanta: Deferred its board meeting to consider results to September 30, citing unforeseen circumstances and the Covid-19 pandemic.
  • Central Bank of India: Reduced MCLR by 5 basis points across various tenors from September 15. One year MCLR now at 7.10% and one month MCLR at 6.55%.
  • Mindspace Business Parks REIT: To raise up to Rs 500 crore via NCDs.
  • Motherson Sumi Systems: Allotted NCDs worth Rs 2,130 crore on a private placement basis.
  • GE Shipping: Signed a contract to buy a second-hand gas carrier. The Japan-built vessel is expected to join the company’s fleet in the third quarter of FY21.
  • Gujarat Gas: CARE Ratings upgraded long-term and short-term bank facilities worth Rs 2,000 crore to CARE AA+ from CARE AA, with outlook remaining stable.
  • Take Solutions: Initiated the liquidation process of its German arm due to Covid-19 impact.
  • Non-Nifty Earnings Today: Allcargo Logistics, Future Enterprises, ITD Cementation, Kalyani Forge, Max India, MEP Infra, National Fertilisers, P&G Health, Sterling & Wilson Solar, VA Tech Wabag, Zee Media

Earnings Reported After Market Hours

PVR Q1FY21

  • Revenue down 98.6% to Rs 12.7 crore
  • Net loss of Rs 225.6 crore from net profit of Rs 17.6 crore
  • Ebitda loss of Rs 115.9 crore from Ebitda gain of Rs 278.6 crore
  • Higher other income due to recognition of rent concessions worth Rs 29.8 crore as per IND-AS 116
  • Invoked force majeure clause in various lease agreements for its cinema properties
  • Deferred tax reversals of Rs 116 crore this quarter
  • All numbers are consolidated and compared on a year-on-year basis

Apollo Hospitals Q1FY21

  • Revenue down 15.6% to Rs 2,171.5 crore
  • Net loss of Rs 208.2 crore from net profit of Rs 57.2 crore
  • Ebitda down 90.2% to Rs 35.5 crore
  • Ebitda margin at 1.6% from 14.1%
  • Pharmacy business reports 21% revenue growth year-on-year
  • All numbers are consolidated and compared on a year-on-year basis

Raymond Q1FY21

  • Revenue down 88.6% to Rs 163.2 crore
  • Net loss widens to Rs 242.2 crore from Rs 14.9 crore
  • Ebitda loss of Rs 225 crore from Ebitda gain of Rs 99.5 crore
  • All numbers are consolidated and compared on a year-on-year basis

ITI Q1FY21

  • Revenue up 2.5% to Rs 165 crore
  • Net loss widens to Rs 102.3 crore from Rs 61 crore
  • Ebitda loss widens to Rs 59.9 crore from Rs 27.6 crore
  • All numbers are consolidated and compared on a year-on-year basis

Future Retail Q1FY21

  • Revenue down 73.9% to Rs 1,358.1 crore
  • Net loss of Rs 562 crore from net profit of Rs 159.2 crore
  • Ebitda loss of Rs 150.3 crore from Ebitda gain of Rs 646.8 crore
  • All numbers are consolidated and compared on a year-on-year basis

JB Chemicals & Pharma Q1FY21

  • Revenue up 19.2% to Rs 489.6 crore
  • Net profit doubles to Rs 121.9 crore
  • Ebitda up 71.5% to Rs 158.1 crore
  • Ebitda margin at 32.3% from 22.4%
  • All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

Credit Suisse On Siemens

  • Initiate coverage with neutral rating
  • Price target of Rs 1,350
  • Wider portfolio than ABB
  • Stronger presence in industrial turbines, rail, and buildings automation
  • Recent acquisition of C&S Electric helps gain distribution scale, product range breadth and higher share basis synergies
  • Attribute lower multiple to gas and power business, given lower growth outlook as well as holding structure
  • Estimates are under Covid-19 impact and can have upsides as recovery becomes visible

CLSA On HCL Tech

  • Buy rating maintained
  • Price target raised to Rs 870 from Rs 850
  • Mid-quarter update highlights an improved outlook
  • Stronger-than-expected execution momentum likely to flow into margins as well
  • Commentary indicates an improved operating environment
  • Strong cross-currency tailwind should also help
  • Raise FY20-22 U.S. Dollar revenue CAGR to 4.1% from 2.7%
  • Raise FY22/23 EPS estimates by 2% and 1% respectively
  • Remains top pick in the sector

JPMorgan On Ashok Leyland

  • Overweight rating maintained
  • Price target raised to Rs 85 from Rs 80
  • LCV Platform launch an important strategic lever
  • Scrappage policy key to watch
  • Funding and asset quality at Leyland finance will be key to monitor

UBS On Federal Bank

  • Neutral rating maintained
  • Price target raised to Rs 54 from Rs 45
  • Return ratios remain weak
  • Focus on higher yielding segments to support margins
  • Management remains confident on the growth outlook
  • Expect RoE of 3%/4% in FY21E/FY22E
  • Remain cautious due to higher exposure to SME and mid-corporates
  • Improvement in asset quality of Mid-corporates, SME key for significant re-rating

Haitong Securities On HeidelbergCement India

  • Initiate coverage with outperform rating
  • Price target of Rs 220
  • Strong presence in central region on account of access to scarce limestone reserve
  • Enjoys superior margin and return profile in comparison to its major peers
  • Strong balance sheet provides room for future growth opportunities
  • Valuations are attractive
  • Risks: Slower-than-expected demand recovery and weak pricing power

Pledged Share Details

  • Hubtown: Promoter Falguni Shah invoked pledge of 20 lakh shares on September 11.
  • Manappuram Finance: Promoter VP Nandkumar released pledge of 27 lakh shares on September 11.
  • Emami: Promoter Bhanu Vyapar created pledge of 27.9 lakh shares between September 9-14.
  • Future Retail: Promoter Future Corporate Resources invoked pledge of 3 crore shares on September 10.
  • Max Healthcare: Institute promoter Max Venture Investment released pledge of 24 lakh shares between September 9-10.

(As Reported On September 14)

Who’s Meeting Whom

  • Shriram City Union Finance: To meet Motilal Oswal on September 15.
  • Tata Steel: To meet IIFL Securities on September 16.
  • India Energy Exchange: To meet Canara Robeco, UTI Mutual Fund and other investors between September 15-22.
  • IIFL Finance: To meet Bank of America Securities on September 15.
  • Mahindra Holidays & Resorts: To meet Enam AMC on September 15.
  • Hindalco: To meet Autonomy Capital Research, Wells Capital Management and other investors between September 15-16.
  • Syngene: To meet Purnartha Investment Advisors and Champlain Investment Partners between September 15-16.

Bulk Deals

  • ADF Foods: Ashish Ramchandra Kacholia acquired 1.49 lakh shares (0.74%) at Rs 377.99 per share.
  • BASF India: Plutus Wealth Management acquired 3.1 lakh shares (0.72%) at Rs 1,545.83 per share.
  • BSE: Acacia Group acquired 12 lakh shares (2.67%) at Rs 549 per share and Deutsche Borse Group sold 12 lakh shares (2.67%) at Rs 549 per share.
  • Tata Elxsi: William Blair International Growth Fund acquired 3.12 lakh shares (0.50%) at Rs 1,304 per share.
  • Oswal Greentech: Clareville Capital Opportunities Master Fund sold 43.37 lakh shares (1.69%) at Rs 11.95 per share.
  • Greenply Industries: Jwalamukhi Investment Holdings sold 7.13 lakh shares (0.58%) at Rs 90.5 per share.
  • Satin Creditcare Network: Kora Investments sold 22.3 lakh shares (4.29%) at Rs 64.18 per share.

Trading Tweaks

  • AGM Date: Goa Carbon, ITD Cementation, DLF, Welspun India, Khadim, Bharat Electronics.
  • Fund Raising: Puravankara.
  • Price Band Revision From 5% To 10%: GTL.
  • Move Into ASM Framework: Panache Innovations, Alfa Transformers, Timex Group.
  • Move Into Short Term ASM Framework: Blue Dart Express, Forbes & Company, Genus Prime Infra, Shree Rama Multi-Tech.
  • Move Out Of Short Term ASM Framework: Aurionpro Solutions, Dilip Buildcon, Jiya Eco-Products, Kabra Extrusiontechnik.

Insider Trades

  • Action Construction Equipment: Promoter Vijay Agarwal acquired 76,801 shares between September 10-11.
  • Mindtree: Promoters sold 4.35 lakh shares between September 9-14.
  • Man Infra: Promoter Manan Shah promoter acquired 2 lakh shares on September 11.

(As Reported On September 14)

Money Market Update

  • The currency ended flat but with a positive bias on Monday at 73.48 against the U.S. Dollar as compared to Friday's close of 73.54.
  • Six other currencies managed to outperform the rupee.
All You Need To Know Going Into Trade On September 15

F&O Cues

  • Nifty September futures closed at 11,434; discount of 6 points from premium of 3 points
  • Nifty September futures add 4% and 4.5 lakh shares in Open Interest
  • Nifty Bank September futures closed at 22,154; premium of 53 points from 95 points
  • Nifty Bank September futures add 18% and 2.6 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 1.37

Nifty Weekly Expiry: September 17

  • Maximum Open Interest on Call side at 11,500 strike (26.2 lakh shares)
  • Maximum Open Interest on Put side at 11,000 strike (20.6 lakh shares)
  • Active Options: 11,000 Put (4.2 lakh shares) and 11,550 Call (10.4 lakh shares)

Nifty Monthly Expiry: September 24

  • Maximum Open Interest on Call side at 11,500 strike (22 lakh shares)
  • Maximum Open Interest on Put side at 11,000 strike (26.4 lakh shares)
All You Need To Know Going Into Trade On September 15
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