All You Need To Know Going Into Trade On September 2
Asian stocks were steady Thursday after U.S. technology shares climbed in a defensive tilt to the Wall Street rally, and as traders await employment data to assess when the Federal Reserve may pare stimulus.
Equities wavered in Japan and dipped in South Korea and Australia. U.S. equity futures fluctuated, following a record close in the Nasdaq 100 and little change in the S&P 500. Economic data suggested a slower U.S. labor market recovery.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, was little changed at 17,111 as of 7:05 a.m.
Benchmark U.S. 10-year Treasury yields held around 1.30%. The U.S. payrolls report Friday will offer clues on the economic outlook and a possible timeline for a reduction in the Fed’s $120 billion of monthly bond purchases. A gauge of the dollar held a decline.
Investors are trying to assess when the delta variant virus outbreak might peak as well as the implications of reduced central bank policy support in the months ahead. Global stocks are near record levels and gauges of implied financial market volatility are declining, suggesting many remain optimistic that the reopening from the health crisis will weather challenges.
Oil slipped in the wake of a relatively harmonious OPEC+ decision to gradually raise supply and a bullish U.S. oil inventory report.
Stocks To Watch
Vedanta: Board has approved first interim dividend of Rs 18.50 per equity share for the financial year 2021-22. The interim dividend amounts to Rs 6,877 crore for the financial year. The record date for the purpose of payment of dividend is September 9, 2021.
Hindustan Zinc: Extended the shutdown of one of the roasters at Chanderiya lead zinc smelter for repair and overhaul of many major structural components to avoid any operational risk in the future. The shutdown will result in loss of production of about 25,000 ton of zinc. The company expects roaster to be operational by mid of October 2021.
Wipro: Appointed Mohammed Areff as the Country Head and Managing Director for the Middle East. Areff will focus on Wipro’s vision for business growth, localisation, brand building and significant transformational and modernisation engagements with clients in key sectors across the region, the company said.
State Bank of India: Raised Rs 4,000 crore via local AT-1 bond issue. SBI raised funds at coupon rate of 7.72%. Bank received over Rs 10,000 crore in bids.
Indian Bank: The Central government has appointed SL Jain as Managing Director and Chief Executive Director of the bank for a period of three years with effect from September 1.
Mphasis: Board has approved re-appointment of Nitin Rakesh as the Chief Executive Officer and appointment as the Managing Director of the company for a period of 5 years with effect from October 1, 2021
IIFL Wealth Management: Appointed Sanjay Wadhwa as Chief Financial Officer of the company with effect from September 2. Wadhwa will replace Mihir Nanavati who resigned from the role effective September 1.
Minda Corporation: The wholly owned subsidiary of the company, Spark Minda Green Mobility Systems, has entered into definitive agreements for acquiring 26% equity stake in EVQPOINT Solutions. The investment will see Spark Minda Group, become EVQPOINT’s exclusive technology and manufacturing partner for battery chargers and EV supply equipment. This partnership with EVQPoint is meant to strengthen the Spark Minda Group’s EV supply equipment portfolio and offer battery chargers for both onboard and offboard configurations in the range of 250 W to 6.6 KW, with a roadmap for further range expansion, said Executive Director Aakash Minda.
Aditya Birla Fashion and Retail: To raise up to Rs 400 crore by issuing 4,000 unsecured NCDs of face value of Rs 10 lakh each on private placement basis, on or after September 8.
Kitex Garments: Telangana government has approved Rs 1,000 crore expansion plan of the company.
Kotak Mahindra Bank: Completed the sale of 20 crore equity shares, 8.57% shareholding on a fully diluted basis, of Airtel Payments Bank to Bharti Enterprises for Rs 294.8 crore.
Axis Bank: The RBI has imposed a penalty of Rs 25 lakh on the bank for contravention of certain provisions of KYC norms.
Coal India: Production in August up 14.6% year-on-year to 42.6 MT versus 37.2 MT. Offtake up 9.5% year-on-year to 48.6 MT versus 44.4 MT.
GRM Overseas: Approved appointment of Vedant Garg as Chief Financial Officer with effect from September 29. Garg will replace Rattan Lal Mittal, who will step down from the position from closing of business hours on September 28.
Grasim Industries: Board has approved appointment of Hari Krishna Agarwal, as the Managing Director of the company for a period of two years with effect from December 1, 2021. Agarwal will replace Dilip Gaur who will retire on November 30.
IFGL Refractories: Completed the first phase of greenfield project being set up at industrial park in Andhra Pradesh at a cost of about Rs 30 crore. The company has started commercial production of Monolithics and Castables. Installed capacity is 48,000 MT per annum.
Shyam Metalics and Energy: The wholly owned subsidiary of the company, Shyam SEL & Power, completed the acquisition of 90% stake in Shree Venkateshwara Electrocast for Rs 22.28 crore on August 31. The investment in Shree Venkateshwara has been done through a combination of equity and inter corporate loans.
NMDC: Says Aug. sales 2.91 million tonnes vs. 1.79 million YoY
Morepen Laboratories: Approves transfer of medical devices business to a unit
AGMs: IPCA Laboratories (3:30 p.m.); Karnataka Bank (11 a.m.); Hikal (11:30 a.m.); Indian Energy Exchange (12 p.m.); Ingersoll-Rand India (12 p.m.); Shree Renuka Sugar (11 a.m.)
Ami Organics IPO fully subscribed, gets 190% demand on first day sale; offer closes Sept. 3
Vijaya Diagnostic IPO gets 30% demand on first day sale; offer closes Sept. 3
August Auto Sales
Eicher Motors: Total Royal Enfield sales up 4.03% at 45,860 units Vs 44,038 units units. Exports up 43% at 6,790 units Vs 4,748 units units.
Hero MotoCorp: Overall sales down 3.25% at 4,53,879 units Vs 4,69,160 units. Motorcycle sales down 4.73% at 4,20,609 units Vs 4,41,536 units. Exports down 25% at 22,742 units Vs 30,646 units.
Comparison made on a month-on-month basis.
Pledge Share Details
Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 9.64 lakh shares between August 29-31.
As reported on September 1.
NHPC: REC sold 6.17 crore shares (0.62%) at Rs 27.19 per share.
Adani Green Energy: Promoter Infinite Trade and Investments bought 14.75 lakh shares on August 31.
Alkyl Amines Chemicals: Promoter Yogesh Kothari sold 72,000 shares between August 30-31.
Carborundum Universal: Promoter MV Subbiah trustee of Saraswati Trust sold 14,300 shares on August 30.
Grasim Industries: Promoter IGH Holdings bought 1.50 lakh shares between August 26-27.
Gati: Promoter TCI Finance sold 25,000 shares between August 27-30.
Gujarat Fluorochemicals: Promoter Inox Chemicals LLP sold 13,308 shares on August 31.
GRM Overseas: Promoters (Atul Garg and Mamta Garg) bought 11,231 shares between August 30-31.
Jindal Stainless (Hisar): Promoter JSL Overseas bought 45,429 shares on August 30.
Nava Bharat Ventures: Promoter AV Dwellings bought 20,000 shares between August 30-31.
Pidilite Industries: Promoters (Mrudula Parekh and Maithili Parekh) sold 5.55 lakh shares between August 30-31. Promoter Pidichem bought 2 lakh shares on August 31.
RPSG Ventures: Promoter STEL Holdings bought 24,241 shares on August 31.
SBI Cards and Payment Services: Promoter SBI Life Insurance Company sold 1 lakh shares on August 31.
Wockhardt: Promoters (Themisto Trustee Company, Pasithee Trustee Company and Ananke Trustee Company) sold 18 lakh shares between August 26-27.
Who’s Meeting Whom
Affle (India): To meet Asian Markets Securities on September 2, Prudential Global (India) on September 3, Spark Capital Advisors on September 6, and Polen Capital on September 7.
Ex-Date AGM: Bajaj Hindusthan Sugar, Manali Petrochemicals, Zee Entertainment Enterprises, Sunflag Iron and Steel Company, Amber Enterprises India, Garden Reach Shipbuilders & Engineers, Tamilnadu PetroProducts, Ashiana Housing, Vardhman Special Steels
Ex-Date Final Dividend: Coal India, Garden Reach Shipbuilders & Engineers, Ashiana Housing, Jtekt India, Kovai Medical Center & Hospital, PNB Gilts, Surya Roshni, Tamilnadu Petroproducts, Zee Entertainment Enterprises
Ex-Date Dividend: Manali Petrochemical, Vardhman Special Steels
Record Date Dividend: JB Chemicals & Pharmaceuticals
Move Out Of Short-Term ASM Framework: Apex Frozen Foods, Ujjivan Financial Services, Ujjivan Small Finance Bank, Capacite Infraprojects, Sadbhav Engineering, IFGL Refractories
Price Band Revised From 10% To 5%: Laxmi Organic Industries
Price Band Revised From 5% To 10%: Meghmani Finechem
Price Band Revised From 5% To 20%: Meghmani Organics
Money Market Update
Indian bonds may open with a positive bias after the overnight drop in U.S. yields and global oil prices following a decision by OPEC+ to stay its with a plan to boost production.
10-year yields fell 2bps to 6.2% on Wednesday
USD/INR rose 0.1% to 73.0875
Implied opening from forwards suggest spot may start trading around 73.02
GST revenues were steady as economic activity continued its recovery, Kotak Mahindra Bank economists including Upasna Bhardwaj, wrote in a note
Meanwhile, the center’s finances remain in control led by robust tax collections and muted government spending. We remain optimistic on the center’s fiscal situation and estimate FY2022E GFD/GDP at 6.4% compared to our earlier estimate of 6.8%.
Nifty September futures ended at 17,086.25, a premium of 10 points
Nifty September futures shed 0.82%. and 2,348 shares in Open Interest
Nifty Bank September futures ended at 36.670.45, a premium of 96.15 points
Nifty Bank September futures added 3.01%, and 2,169 shares in Open Interest
Securities in the ban list: Nil
Securities removed from the ban list: Canara Bank