All You Need To Know Going Into Trade On September 23
Asian markets continue to retreat as investors mulled remarks from officials of Federal Reserve officials, that pointed to a slower economic recovery.
The U.S. Dollar has extended its rebound, as it pushed past a key technical resistance.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 11,157 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:
- Markets in Japan are declining after traders returned post a two-day holiday. Markets in South Korea too are trading lower while those in Australia are bucking the trend.
- Futures on the Dow Jones traded higher by 50 points currently. The index ended 0.5% higher on Tuesday.
- Global equities are on track to post their first monthly decline since March, owing to the absence of another U.S. fiscal stimulus package and a rise in Covid-19 cases.
- U.K. Prime Minister Boris Johnson announced new restructions that are likely to last six months and told people to work from home, if possible.
- “We are most likely to see this continued high volatility until the U.S. election in November," Erin Gibbs of Gibbs Wealth Management said on Bloomberg TV.
- Federal Reserve Chair Jerome Powell appears before the house select subcommittee on Covid-19, to discuss the central bank's response.
- Yield on the 10-year treasuries stood at 0.67%.
- West Texas Intermediate crude traded at $39.6 per barrel while Gold was little changed at $1,902.7/Oz.
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Stocks To Watch
- Reliance Industries: KKR to invest Rs 5,550 crore in Reliance Retail Ventures. The investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. KKR's investment will translate into a 1.28% equity stake on a fully diluted basis. KKR had earlier invested Rs 11,367 crore in Jio Platforms.
- Tata Group Stocks: Tata Group Stocks: Shapoorji Pallonji Group in a statement said that a separation from the Tata Group is necessary due to the potential impact of the continuing litigations on the livelihoods and the economy. The statement comes after the Supreme Court barred the Mistry group from pledging or selling any Tata shares until October 28. Also in focus will be the two SP Group companies - Sterling & Wilson Solar and Forbes & Company.
- Vedanta: Vedanta Resources avails loan facility of $1.75 billion from lenders like JPMorgan Chase, Barclays, Credit Suisse, Deutsche Bank and Standard Chartered Bank. Four promoter entities have created a combined share pledge of 186.3 crore shares or 50.13% of total equity as per the agreement on September 18. The funds raised, pursuant to the issue of bonds, via Vedanta Holdings Mauritius, will be utilised towards funding the proposed de-listing of the company's shares from the bourses, as per SEBI regulations. Promoters held 50.14% stake in the company as per the recent shareholding pattern.
- Central Bank of India: Launches QIP issue on Tuesday. Floor price of Rs 16.18 per share is a 5.9% discount to Tuesday's closing price. The lender may offer a discount of not more than 5% on the floor price, as per SEBI guidelines. The panel is scheduled to meet on September 25 to consider the date of closing the QIP and determining its issue price.
- Reliance: Jio introduces postpaid plans, which include subscription to Netflix, Amazon Prime, Disney + Hotstar. Family plan, data rollover, in-flight services are also included in the offering. Services begin September 24 in Jio stores along with home delivery.
- Sequent Scientific: Entered into a definitive agreement with Dr Huseyin Aydin for the acquisition of 40% stake from him in Provet for $17.1 million. Provet is among the top three and the largest local company in veterinary medicine market in Turkey. The company already holds a 60% stake in Provet through its Irish arm. The ownership of Sequent Scientific in Provet will rise to 100% post this acquisition. Deal likely to be completed on or before October 31.
- Max Healthcare Institute: Promoter Max Ventures Investment Holdings to undertake open market sale of 1.67 crore shares (1.85%) with face value of Rs 10 per share, in order to achieve minimum public shareholding as per SEBI guidelines. Promoters had 82.24% stake in the company as per the most recent public shareholding pattern.
- HCC: Closed sale of Farakka Raiganj Highways to Cube Highways at an enterprise value of Rs 1,508 crore. The HCC group will receive a total expected pay-out of Rs 603 crore over a period of time.
- Fortis Healthcare: Supreme Court adjourns Fortis Open Offer case to October 14. Lawyer Harish Salve stated that IHH wants to invest in the Fortis Hospital chain and re-brand it.
- Linde India: The company has sought an extension of the 'hold separate arrangement' for the balance tenure of the gas supply agreement up to November 2021 with the Competition Commission of India. This is due to Inox Air Products confirming its inability to acquire the company's Belloxy Divestment Business, the binding term sheet for which was signed in December 2019.
- DHFL: SEBI has restrained certain members of Wadhawan family including Kapil and Dheeraj Wadhawan from accessing securities markets.
- CARE Ratings, ICRA: SEBI imposes a penalty of Rs 1 crore each in the IL&FS case.
- Future Retail: Defaulted in payment of NCDs interest worth Rs 15.87 crore, which was due on September 21.
- Biocon: Appointed Anupam Jindal as the CFO of the company from September 22. Anupam Jindal is the ex-Group CFO of Sterlite Tech.
- Chemcon Speciality Chemicals: IPO subscribed 12.65 times on Day 2. Institutional subscription at 1.37 times, non-institutional subscription at 3.51 times and retail subscription at 23 times.
- CAMS: IPO subscribed 1.93 times on Day 2. Institutional subscription at 0.83 times, non-institutional subscription at 1.22 times and retail subscription at 2.91 times.
- Angel Broking: IPO subscribed 0.77 times on Day 1. Institutional subscription zero, non-institutional subscription at 0.16 times and retail subscription at 1.46 times.
Nomura On Gujarat Pipavav Ports
- Buy rating maintained
- Price target raised to Rs 105 from Rs 100
- Strong volume outlook from FY22F
- ~6.5% price hike to drive growth in profitability
- Western Dedicated Freight Corridor (WDFC) linkage and ramp-up in LPG volumes to drive volume growth
- Longer term concession renewal beyond September 2028 is a key catalyst
- Raise FY22/23F EPS estimates by 17% and 19% respectively
- Key Risks: Delay in WDFC Linkage, slower-than-expected recovery in volumes & market share loss
Pledged Share Details
- Laurus Labs: Promoters released pledge of 9.75 lakh shares on September 21.
- Ramkrishna Forgings: Promoters created pledge of 37.5 lakh shares on September 22.
- VA Tech Wabag: Promoter S. Varadarajan revoked pledge of 16.77 lakh shares on September 21.
- Max India: Promoter Max Ventures Investment Holdings released pledge of 34.46 lakh shares on September 18.
(As Reported On September 22)
Who’s Meeting Whom
- Sundram Fasteners: To meet Carnelian Asset Management on September 23.
- Tata Consumer Products: To meet Eastspring Investments, Franklin Templeton and other investors from September 23-24.
- AGM Date: Bharat Forge, Coal India, Den Networks, DLF, Endurance Tech, Entertainment Network, Vedanta, Jindal Steel & Power, Motherson Sumi Systems.
- Fund Raising: Spandana Sphoorthy Financial.
- Record Date For Rights Issue: EIH (Rights at 8:84, at a premium of Rs 63 per share).
- Listing: Fortis IHH.
- Price Band Revision From 10% To 5%: Vikas WSP.
- Move Into Short Term ASM Framework: Kapston Facilities Management, Bafna Pharmaceuticals.
- Move Out Of Short Term ASM Framework: Blue Dart Express, Indiabulls Ventures, Forbes.
- Majesco: Unifi Wealth Management acquired 2.06 lakh shares (0.72%) at Rs 779.05 per share.
- Repco Home Finance: Fidelity Group acquired 4.2 lakh shares (0.67%) at Rs 150.33 per share.
- Max Financial Services: Promoter Max Ventures Investment Holdings sold 20.8 lakh shares (0.77%) at Rs 600.07 per share.
- Surya Roshni: Promoters acquired 93,750 shares between September 17-21.
- Sequent Scientific: Promoter Chayadeep Ventures sold 2.63 lakh shares between September 17-18.
- IIFL Wealth Management: Promoter Karan Bhagat acquired 1 lakh shares on September 22.
(As Reported On September 22)
Money Market Update
- The rupee ended lower at 73.59 against the U.S. Dollar, as compared to Monday’s close of 73.40.