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All You Need To Know Going Into Trade On September 22
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
22 Sep 2020, 07:38 AM IST 
A pedestrian carries shopping bags and a bulk package of toilet roll in London, U.K. (Photographer: Jason Alden/Bloomberg)
Asian markets have opened lower after a weak closing on Wall Street, despite a rebound from the sessions lows. Markets in Japan are shut for a holiday today as well.
The U.S. Dollar is steady after posting the biggest gain in three months.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 11,272 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:
- Benchmark indices have declined in Australia and South Korea during early trading.
- Futures on the Dow Jones currently trade lower by 40 points. The index recovered from the day's low, but ended 1.8% lower on Monday. Most benchmarks in Europe ended with losses between 3-4%.
- Investors are also weighing the outlook for further U.S. fiscal stimulus, rising Covid-19 cases in a number of nations and the looming presidential election.
- Yield on the 10-year treasuries dipped to 0.67% on Monday. Cash treasuries will only begin trading today post opening in London.
- West Texas Intermediate crude rose 0.9% after its biggest fall in nearly two weeks, to $39.67 per barrel. Gold is up 0.3% to $1,918/Oz, after a 2% fall.
Get your daily fix of the global markets here.
Stocks To Watch
- GMM Pfaudler: Promoters to sell up to 40.93 lakh shares or 28% stake through an Offer for Sale. Floor price of Rs 3,500 per share is a 33% discount to Monday's closing. The total share sale amounts to Rs 1,433 crore. Base offer is for 25.71 lakh shares (17.59%) with an oversubscription option of 15.22 lakh shares (10.41%). The OFS for non-retail investors opens today while that for retail investors opens tomorrow. Sellers include Pfaudler Inc, Millars Machinery and Urmi Patel.
- JSPL: Clarified on media reports over certain transactions undertaken by the company between 2014-2016. The company stated that all transactions were routine business activities and all of them had proper underlying assets. The statement also said that it had fully complied with all regulatory guidelines at the time of these transactions.
- HSIL: Board approves share buyback of 66.67 lakh shares or 9.22% of total equity. The buyback price of Rs 105 per share is a 47% premium to Monday's closing price. The total buyback aggregates to Rs 70 crore. On full acceptance of maximum buyback offer, promoter stake in the company will rise to 59.38% from 53.91%.
- Shree Renuka Sugar: Board approved allotment of 21.17 crore equity shares at Rs 8.74 per share aggregating to Rs 185 crore on a preferential basis to promoter Wilmar Sugar Holdings.
- SBI: Board approved allotment of debentures worth Rs 7,000 crore.
- Bombay Burmah Trading: Board to consider raising Rs 75 crore via NCDs on September 24.
- NBFCs: Fitch Ratings has taken rating action on the long-term issuer default rating of four NBFCs, in light of their performance amid the Covid-19 pandemic. Rating for IIFL Finance maintained at B+ with rating watch negative. Rating for Manappuram Finance affirmed at BB-. Rating for Muthoot Finance and Shriram Transport Finance affirmed at BB. Rating watch negative removed for Manappuram, Muthoot and Shriram Transport. The outlook for Manappuram and Muthoot is stable while that for Shriram Transport Finance is negative.
- Aarti Drugs: October 1 set as the record date for the company's bonus issue. The board had approved a bonus issue of three shares for every one held in August.
- Ceat: Board to consider raising funds via NCDs on September 25.
- Angel Broking: Raises Rs 180 crore from 26 anchor investors ahead of its IPO. The issue opens for subscription today.
- Chemcon Speciality Chemicals: Issue subscribed 5.2 times on the first day. Institutional subscription at zero, non-institutional subscription at 1.24 times while retail subscription at 9.86 times.
- CAMS: Issue subscribed 0.82 times on day 1. Institutional subscription at 0.25 times, non-institutional subscription at 0.3 times while retail subscription at 1.4 times.
Brokerage Radar
UBS On Eicher Motors
- Neutral rating maintained
- Price target of Rs 2,150
- Bookings have slowed down as compared to survey in June
- Has taken a price hike of Rs 2,800 in bullet and Rs 1,800 in other models last week
- Do not expect Royal Enfield to significantly outperform industry volume growth
- Resolving supply issues key
- Growth in tier-II and tier-II cities seems to have moderated
- Four dealers indicated high customer anticipation for the upcoming 'Meteor' launch
Investec On Aurobindo Pharma
- Buy rating maintained
- Price target raised to Rs 1,000 from Rs 755
- Trades at a significant discount to the sector average
- Street does not appreciate basic model, execution, and segments like injectables and branded injections along with OTC
- U.S. business execution has been robust on new launches
- Branded injectables business delivering steady growth and will get a sales / profit kicker when biosimilars get launched
- Best placed for a re-rating with no leverage concerns
Citi On Asian Paints
- Neutral rating maintained
- Price target raised to Rs 2,110 from Rs 1,835
- Business rebound post lockdown has been surprising
- Increased spending on home decor/improvement is here to stay
- Upsides may be capped for now post recent outperformance
- Raise revenue forecasts by 3-5%
- Value growth may continue to lag volume growth
Pledged Share Details
- MEP Infra Developers: Promoter Sudha Mhaiskar revoked pledge of 4.5 lakh shares on September 17.
- Apollo Micro Systems: Promoter KR Baddam created pledge of 8 lakh shares on September 8.
(As Reported On September 21)
Who’s Meeting Whom
- Rossari Biotech: To meet Edelweiss Securities and Neuberger Berman on September 22.
- IDFC First Bank: To meet Wellington Management International U.K. on September 22.
- CG Consumer Electricals: To meet M&G Investment Management, Alliancebernstein and Mirae AMC between September 24-28.
- CARE Ratings: To meet MK Ventures and India Insight Value Fund on September 22.
- Welspun Enterprises: To meet Antique Stock Broking on September 22.
- IIFL Finance: To meet Trinada Capital on September 22.
- UPL: To meet Amundi Finance, HSBC AMC and other investors between September 22-24.
Bulk Deals
- Route Mobile: Goldman Sachs acquired 24.09 lakh shares at Rs 705.95 per share and Kuwait Investment Authority acquired 5.79 lakh shares at Rs 697.25 per share.
- Deepak Nitrite: Vanguard acquired 12.03 lakh shares (0.88%) at Rs 839.18 per share.
- Tata Motors DVR: Vanguard acquired 30.42 lakh shares (0.60%) at Rs 63.37 per share.
Trading Tweaks
- AGM Date: Aarti Drugs, Aarti Surfactants, Balrampur Chini Mills, GAIL, JK Tyre, FDC, JB Chemical & Pharma, Apex Frozen Foods, PFC, Muthoot Finance, PNC Infratech, NMDC.
- Ex-Date For Rights Issue: EIH (Rights at 8:84, at a premium of Rs 63 per share).
- Record-Date For Spinoff: Panacea Biotec.
- Price Band Revision From 10% To 5%: Kapston Facilities Management.
- Move Into ASM Framework: Him Teknoforge.
- Move Into Short Term ASM Framework: Alembic, Aurionpro Solutions, Ind-Swift Laboratories, Kopran, Ramkrishna Forgings.
Insider Trades
- HFCL: Promoter MN Ventures acquired 20 lakh shares on September 21.
- Mindtree: Promoters sold 4.34 lakh shares between September 15-17.
(As Reported On September 21)
Money Market Update
- The currency ended little changed on Monday, closing at 73.4 against the U.S. Dollar, as compared to Friday's close of 73.45.
F&O Cues
- Nifty September futures end at 11,226; discount of 24 points from premium of 15 points
- Nifty September futures shed 16.8% and 16.63 lakh shares in Open Interest
- Nifty Bank September futures end at 21,292; discount of 74 points from premium of 93 points
- Nifty Bank September futures shed 0.4% and 5,900 shares in Open Interest
- Nifty Put-Call Ratio at 0.74
- Out of F&O Ban: Adani Enterprises, BHEL, Canara Bank, L&T Finance, JSPL, Tata Chemicals
- Stocks In F&O Ban: Glenmark, SAIL, Vedanta, Vodafone Idea
Nifty: September 24 Expiry
- Maximum Open Interest on Call side at 11,500 strike (53.4 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (32 lakh shares)
- Active Options: 11,500 Call (+20.9 lakh shares) and 11,500 Put (-13.1 lakh shares)