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All You Need To Know Going Into Trade On September 24
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
24 Sep 2020, 07:58 AM IST 
United Airlines Holdings Inc. pilots wearing protective masks walk inside a terminal at San Francisco International Airport (SFO) in San Francisco, California, U.S. (Photographer: David Paul Morris/Bloomberg)
Asian markets have opened lower on Thursday as warnings from the U.S. Federal Reserve on the need for more stimulus, added fresh jitters.
The U.S. Dollar continues to strengthen and is on course for the strongest week since April.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.9% to 11,038 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 and South Korea are trading with losses.
- Futures on the Dow Jones are trading little changed. The index fell to an eight-week low on Wednesday, declining nearly 2%.
- U.S. Federal Reserve chair Jerome Powell reiterated that there is a long way to go for the economic rebound, which will likely require more support.
- The caution comes as Covid-19 cases continue to rise in the U.S. and some other European nations which have resorted to more social distancing norms.
- Global equities are set for their first monthly decline since March, with the MSCI gauge declining over 5% in September.
- Yield on the 10-year treasuries stood at 0.67%.
- West Texas Intermediate crude fell 1% to $39.56 per barrel while Gold fell 0.2% to $1.859/Oz.
Get your daily fix of the global markets here.
Stocks To Watch
- Sun Pharma: Bloomberg News reports that the company will voluntarily recall one lot of RIOMET ER (Metformin Hydrochloride for extended-release oral suspension), to the consumer level. The recall is due to the level of N-Nitrosodimethylamine (NDMA) being above the acceptable daily intake limit established by the U.S. FDA.
- Zydus Wellness: Launches QIP issue at Rs 1,775.85 per share on Wednesday. Floor price is a 3.3% premium to Wednesday's closing price. The company may offer a discount of not more than 5% on the floor price as per SEBI guidelines. The panel will meet on September 28 to consider the closing of the QIP and issue price for sale.
- Ircon International: Secured work orders for nine road over bridges valuing over Rs 400 crore from the Ministry of Railways.
- CG Consumer Electricals: Promoter Amalfiaco created pledge of 17.17% stake or 10.77 crore shares in favour of Nomura and Deutsche Bank for securing a loan facility worth $145 million.
- Jindal Steel & Power: ICRA removes its 'rating watch with negative implications' on the company's bank facilities and NCDs and assigned a stable outlook. The ratings have been affirmed at ICRA BBB- for long-term facilities and NCDs and ICRA A3 for short-term facilities.
- HDFC: Seeks to raise Rs 5,000 crore through private placement of bonds.
- IIFL Securities: Increased its stake in Trendlyne by 6.25% to 20.55%.
- Shalby: Board to consider options in reducing promoter holding to 75% from 79.45% on September 28.
- Datamatics Global Services: Announced expansion of its distribution agreement with Ingram Micro for Middle East, Turkey and Africa region for its intelligent automation products.
- Chemcon Speciality Chemicals: IPO subscribed 149.6 timeson the final day. Institutional subscription at 113.4 times, non-institutional subscription at 450.5 times and retail subscription at 41.3 times.
- CAMS: IPO subscribed 46.99 times on the final day. Institutional subscription at 73.18 times, non-institutional subscription at 111.85 times and retail subscription at 5.55 times.
- Angel Broking: IPO subscribed 1.46 times on the second day of bidding. Institutional subscription at zero, non-institutional subscription at 0.31 times and retail subscription at 2.79 times.
Brokerage Radar
CLSA On Hindalco
- Buy rating maintained
- Price target cut to Rs 225 from Rs 230
- Recent weakness in the stock unjustified
- Attractive product mix, strong scrap spreads and high physical premium to drive Novelis' earnings in near to medium-term
- Trading at 5x FY22CL EV/Ebitda, below its median and global peers
- Cut FY21-23CL Ebitda by 2-3%
- Current price factors in much lower LME and Novelis profitability
Citi On Cholamandalam Investment & Finance
- Initiate coverage with buy rating
- Price target of Rs 300
- Top midcap pick among NBFCs
- Covid-19 will lower growth, RoE in FY21, we see a recovery to 10% and 16% respectively in FY22E
- Client, geographic positioning to drive NIMs higher
- Multi-product portfolio to help growth recovery
- Clinical execution should help growth recover faster than peers
- See 21% profit CAGR over FY20-22E on lower credit costs
- Better-than-sector growth and asset quality in H2FY21 to be key catalyst
Macquarie On Petronet LNG
- Outperform rating maintained
- Price target of Rs 325
- Dahej terminal utilisation at ~115% in current quarter
- Share price will likely remain supressed for the next few months until we get a firm cancellation on the proposed investment in Tellurian
- Business continues to generate strong cash flow
- RoE outlook even with a strong net cash position
- Current valuations are undemanding
Nomura On Balkrishna Industries
- Buy rating maintained
- Price target of Rs 1,626
- Agri tyre exports from India up 49% year-on-year in August
- Balkrishna Industries a key beneficiary of recovery in the agri tyre segment
- Current valuations are attractive, given the strong growth outlook and double-digit return ratios
- FY21F/22F EPS estimates are ~12% above Bloomberg consensus
Macquarie On Bharti Airtel
- Outperform rating maintained
- Price target of Rs 700
- With only 5% of India's mobile subscribers on prepaid plans with large content bundles, there is a lot of room for both Airtel & Jio to grow
- Fair to conclude that Jio is Rs 100 cheaper than Airtel & Idea
- Can see some pressure on Airtel & Idea's postpaid subscribers
HSBC On Phoenix Mills
- Buy rating maintained
- Price target raised to Rs 860 from Rs 850
- Journey to normalcy begins but time to destination uncertain
- Strong company and promoter balance sheet provides downside support
- Tenant negotiation so far the most attractive amongst peers
- May benefit from distressed acquisition opportunities
Pledged Share Details
- Jindal Stainless: Promoters created pledge of 11.18 crore shares on September 21.
- Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 12.2 lakh shares between September 21-22.
- Olectra Greentech: Promoter Trinity Infraventures revoked pledge of 2 lakh shares on September 18
(As Reported On September 23)
Who’s Meeting Whom
- SH Kelkar: To meet Lucky Investment Managers on September 24.
- Blue Star: To meet Nomura Securities on September 24.
- Bajaj Electricals: To meet Phillip Capital on September 25.
- Kilpest: To meet Sundaram Mutual Fund, Sunidhi Securities and other investors on September 26.
- Gujarat Pipavav Port: To meet Franklin Templeton Investments on September 25.
Bulk Deals
- Tata Chemicals: Promoter Tata Sons acquired 22.1 lakh shares (0.87%) at Rs 287.58 per share.
- Tata Motors DVR: Promoter Tata Sons acquired 37.63 lakh shares (0.74%) at Rs 59.83 per share.
- Mahindra CIE Automotive: Participaciones Internacionales Autometal Dos Sociedad acquired 79.3 lakh shares (2.09%) at Rs 139.99 per share and Aditya Birla Sun Life Mutual Fund sold 76.5 lakh shares (2.02%) at Rs 140 per share.
- Satin Creditcare Network: Nederlandse Financierings acquired 14.24 lakh shares (2.74%) at Rs 56.1 per share and SBI Mutual Fund sold 14.24 lakh shares (2.74%) at Rs 56.1 per share.
Trading Tweaks
- AGM Date: Godfrey Phillips, Kaveri Seeds, NALCO, Affle, CG Power.
- Ex-Date For Bonus: Elgi Equipments (1:1)
- Ex-Date For Demerger: Man Industries
- Price Band Revision From 10% To 5%: CL Educate, GMM Pfaudler.
- Price Band Revision From 20% To 5%: Man Industries.
- Move Into ASM Framework: Bohra Industries.
- Move Into Short Term ASM Framework: SMS Lifesciences, Forbes & Co.
- Move Out Of Short Term ASM Framework: GSS Infotech.
Insider Trades
- Mindtree: Promoters sold 2 lakh shares between September 18-21
- KPIT Tech: Promoter Anupama Patil acquired 94,000 shares on September 22.
- IIFL Wealth Management: Promoter Karan Bhagat acquired 1.07 lakh shares between September 21-23.
(As Reported On September 23)
Money Market Update
- The rupee ended little changed at 73.57 against the U.S. Dollar as compared to Tuesday's close of 73.59.
- The currency was the second best performer in Asia on Wednesday.
