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All You Need To Know Going Into Trade On September 3
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
03 Sep 2020, 08:08 AM IST 
Travelers wearing protective masks walk to a boarding gate area at Melbourne Airport in Melbourne, Australia. (Photographer: Carla Gottgens/Bloomberg)
Asian markets continue to edge higher, following their U.S. peers amid signs that the rally in global equities is now broadening to sectors beyond technologies.
Treasuries rose while the U.S. Dollar held on to gains as the Euro fell further.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, is little changed at 11,547 as of 7:10 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 trade with gains of over 1% while those in South Korea and Australia are rising as well.
- Futures on the Dow Jones currently trade little changed. The index ended 1.6% higher on Wednesday.
- Wednesday's rally on Wall Street saw utilities and material stocks outperforming and aiding gains while Technology shares underperformed.
- The Euro fell further below the $1.2 mark, a level it breached for the first time in over two years.
- U.S. jobless claims for the week, Eurozone retail sales data for July are set to be released today.
- Yield on the 10-year treasuries stood at 0.64%.
- West Texas Intermediate crude rose 0.6% to $41.74 per barrel while GOld was little changed at $1,945/Oz.
Get your daily fix of the global markets here.
Earnings Fineprint: Coal India Q1FY21
- Revenue down 25.9% to Rs 18,486.8 crore
- Net profit down 55.1% to Rs 2,079.6 crore
- Ebitda down 53.8% to Rs 3,051.8 crore
- Ebitda margin at 16.5% from 26.5%
- Volumes impacted due to lower demand from power sector due to Covid-19
- Offtake at 120.4 MT from 153.49 MT
- Lower taxes and other expenses cushion fall in net profit
- All numbers are consolidated and compared on a year-on-year basis
Opinion
Coal India Q1 Results: Profit Falls By More Than Half As Covid-19 Hits Demand
Stocks To Watch
- IndusInd Bank: To allot 4.76 crore shares aggregating to Rs 2,495.8 crore on a preferential basis to qualified institutional buyers. Key investors in the issue include Route One Fund, ICICI Prudential, Tata Investment Corporation and AIA. The allotment price of Rs 524 per share is an 18% discount to Wednesday's closing.
- Future Retail: Fitch Ratings has placed the company's default rating and rating on its $500 million 5.6% senior secured notes due in 2025 with a recovery rating of RR4 on rating watch positive, post sale of its business to Reliance Industries.
- Tata Motors: Total sales in domestic and international market up 13.3% to 36,472 vehicles. Domestic sales up 21.6% to 35,420 vehicles. CV sales down 28% while PV sales up 154% year-on-year to 18,583 vehicles.
- Vedanta: Arrives at book value of Rs 89.38 for its equity shares.
- Edelweiss Financial Services: Ontario Teachers’ Pension Plan Board has signed an agreement with Edelweiss Alternate Asset Advisors - the largest private debt manager in India for an investment of Rs 2,600 crore . The agreement represents a long‐term partnership between Ontario Teachers’ and Edelweiss Group that will focus on performing and distressed private credit investment opportunities in the Indian market.
- Engineers India: Received project contract from GAIL for setting up PDH / PP plant and pipeline at Uran for Rs 448 crore.
- SH Kelkar: Kedar Vaze has been re-appointed as Group CFO till August 2025.
- Sterlite Tech: Anupam Jindal has resigned as the company’s CFO from September 11.
- Bharat Forge: Sebi gives exemption to open offer in deal with Kalyani Forge.
- VIP Industries: Sold its land and building of its Haridwar Factory for Rs 25-30 crore to Fresh Pet on ‘as-is-where is’ basis. The operations at the said Haridwar factory have been suspended since March 2020 due to Covid-19.
- HOEC: Clarifies to some media reports related to liabilities of the company. The company says that allegations of liabilities worth over Rs 722 crore is incorrect and an attempt is made by adding non-current provisions for site restoration.
- JK Paper: India Ratings & Research upgrades long-term issuer rating to IND AA- from IND A+ with outlook remaining stable.
- Kalpataru Power Transmission: Incorporated a wholly-owned arm in Senegal to foray into transmission and distribution and railways business.
- Rossari Biotech: Plutus Wealth Management acquired 3 lakh shares or 0.58% stake at Rs 773.82 per share.
- Non-Nifty Earnings Today: Jubilant Industries, MSTC, Page Industries, Panacea Biotech, Zuari Agro Chemicals
Earnings Reported After Market Hours
Dish TV Q1FY21
- Revenue down 9.8% to Rs 835.6 crore
- Net profit at Rs 75.9 crore from net loss of Rs 32 crore
- Ebitda up 2.9% at Rs 551.4 crore
- Ebitda margin at 66% from 57.9%
- Lower operating costs and other expenses aid margin expansion
- All numbers are consolidated and compared on a year-on-year basis
Brokerage Radar
CLSA On Vedanta
- Outperform rating maintained
- Price target of Rs 133
- Lower book value per share may temper expectations
- Funds secured by promoters indicate the ability to offer Rs 128 per share for delisting
- Delisting price can also be outside the range of Rs 89-128 per share
- If Vedanta finds the Reverse Book Building price to be higher, it can make a counter offer which cannot be less than the book value
CLSA On UPL
- Buy rating maintained
- Price target of Rs 620
- Improved market position and healthy innovation pipeline
- Arysta acquisition boosted shares in FY20
- See 28% earnings CAGR in FY20-23 on improved product breadth, balanced geographic mix and cost competitiveness
- Pipeline of 14 late-stage and 38 early-stage products with peak sales of $1-1.5 billion in 5-8 years
JPMorgan On Jubilant Foodworks
- Overweight rating maintained
- Price target raised to Rs 2,450 from Rs 1,800
- Competitive moats widen during pandemic
- Long-term growth opportunity is intact
- Focused cost reduction program coupled with delivery charges will aid margin expansion
- Pace of revenue recovery is encouraging
- Raise FY22 Ebitda margin forecast to 26%
Macquarie On Coal India
- Neutral rating maintained
- Price target of Rs 139
- Better than expected e-auction volumes a positive surprise
- Near-term earnings upside is capped with benign e-auction realisations
- Increasing working capital and capex may cap dividend payout
- Valuations are at a discount to long-term average and may likely limit the downside
Antique Stock Broking On JK Cement
- Buy rating maintained
- Price target raised to Rs 1,625 from Rs 1,420
- Lower costs supported overall profitability
- Cement prices have corrected marginally by Rs 10-15 per bag post festive period
- Strategically using newer capacities to save on power & fuel consumptions
- Management expects slight delay in pending expansions
- Factor in a YoY volume growth in FY21
- Like presence and expansion favourable pricing regions
- Market share gains, improved profitability and leadership position in white/putty segment provides comfort to valuations
Pledged Share Details
- Max India: Promoter Max Ventures Investment Holdings released pledge of 91.25 lakh shares on August 31.
- JSW Energy: Promoters revoked 68.6 lakh shares between August 28-31.
- Shilpa Medicare: Promoter Omprakash Inani released pledge of 5.5 lakh shares on September 1.
- JSW Steel: Promoters revoked pledge of 25.8 lakh shares between August 28-31.
- Asahi India Glass: Promoter Brij Mohan Labroo created pledge of 40 lakh shares on August 27.
- Jamna Auto: Promoter created pledge of 2.5 lakh shares on August 31.
(As Reported On September 2)
Who’s Meeting Whom
- CG Consumer Electricals: To meet Aditya Birla SunLife Mutual Fund, Antique Stock Broking and other investors between September 3-21.
- Eicher Motors: To meet JP Morgan AMC, Aditya Birla Money and other investors between September 3-8.
- Tata Power: To meet First State Investments, JP Morgan AMC and other investors between September 3-4.
Trading Tweaks
- AGM Date: Munjal Auto Industries, JK Paper, HEG, Hindalco, Dhanuka Agritech, Indiabulls Housing Finance, Garden Reach Shipbuilders & Engineers, IIFL Wealth Management, Dabur, Hindustan Zinc.
- Fund Raising: Credit Access Grameen, 5Paisa Capital.
- Price Band Revision From 10% To 5%: Adani Green Energy.
- Move Into ASM Framework: OCL Iron and Steel, SE Power, SEL Manufacturing.
- Move Out Of Short Term ASM Framework: Anant Raj, Sundaram Finance Holdings, Remsons Industries, Premier Polyfilm, Oswal Chemicals & Fertilizers, Acrysil, Indo Amines.
Insider Trades
- GOCL Corporation: Promoter Hinduja Capital sold 4 lakh shares on August 31.
- Sequent Scientific: Promoters sold 3.14 lakh shares between August 24-31.
- Jamna Auto: Promoter Map Auto acquired 2.25 lakh shares on August 31.
- Aavas Financiers: Promoter Partners Group sold 25.6 lakh shares on August 31
(As Reported On September 2)
Money Market Update
- The currency saw modest losses on Wednesday, ending at 73.03 against the U.S. Dollar as compared to Monday's close of 72.87.
- The rupee was the third worst performing currency in Asia on Wednesday.
F&O Cues
- Nifty September futures closed at 11,565; premium of 30 points from 58 points
- Nifty September futures add 4% and 4.4 lakh shares in Open Interest
- Nifty Bank September futures closed at 23,921; premium of 46 points from 133 points
- Nifty Bank September futures shed 4% and 55,000 shares in Open Interest
- Nifty Put-Call Ratio at 1.3
- Enter F&O Ban: Escorts, PNB
- Out of F&O Ban: Vodafone Idea
- Stocks In F&O Ban: Escorts, Indiabulls Housing Finance, PNB
Nifty Weekly Expiry: September 3
- Maximum Open Interest on Call side at 11,700 strike (27.4 lakh shares)
- Maximum Open Interest on Put side at 11,400 strike (27.5 lakh shares)
- Active Options: 11,500 Put (7.8 lakh shares) and 11,500 Call (-8.2 lakh shares)
Nifty Monthly Expiry: September 24
- Maximum Open Interest on Call side at 12,000 strike (20.3 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (27.5 lakh shares)
