All You Need To Know Going Into Trade On September 30

Stocks To Watch

• Reliance Industries: General Atlantic to invest Rs 3,675 crore in Reliance Retail Ventures. The investment amounts to a stake of 0.84% for General Atlantic. The investment values Reliance Retail at a pre-money equity value of Rs 4.28 lakh crore. General Atlantic had earlier invested Rs 6,598 crore in Jio Platforms.
• Indiabulls Housing Finance: Launches buyback of all its bonds maturing in the next 12 months. The company has further sold a portion of its stake in OakNorth Holdings. It has now sold some stake to TEMF - a fund managed by Toscafund Asset Management for approximately Rs 630 crore. The company has now raised a total of Rs 1,832 crore as fresh equity in the month of September.
• Sumitomo Chemical India: Promoter Sumitomo Chemical Company to sell up to 1.65 crore shares or 3.3% stake through an Offer For Sale (OFS). The stake is being sold in order to comply with minimum public shareholding norms. The floor price of Rs 270 per share is a 9.2% discount to Tuesday's closing price. The stake sale will fetch Rs 445 crore to the promoters and bring their stake in the company down to 75% from 78.3%. The OFS for non-retail investors opens today while it opens for retail investors tomorrow.
• Arvind Fashions: Wholly-owned subsidiary Arvind Lifestyle Brands and Gap Inc. have decided to mutually terminate their franchise business relationship in India. The company cited the impact of Covid-19 as the reason behind the step. Both companies will now work out modalities regarding transition of the Gap business. The company has appointed an investment banker to find a buyer for the Gap business.
• BPCL: The Economic Times has reported this morning that Rosneft and Saudi Aramco are unlikely to bid in the company's privatisation, quoting people familiar with the matter. Low oil prices and weak demand have curbed their investment plans, according to sources.
• Dhanlaxmi Bank: The Reserve Bank of India has appointed DK Kashyap as the second Additional Director on the bank's board. Kashyap, currently a general manager at the RBI will be on the board till September 2022.
• Welspun Corp: Wins multiple orders of approximately 147 Kilo Metric Tonnes worth close to Rs 1,400 crore. The company's current order book now stands at Rs 6,300 crore.
• NHPC: Signs MoU with the Power Ministry, detailing targets for the year 2020-21. The generation target has been set at 27,500 million units as against 26,000 units the previous year. The revenue target has been set at Rs 8,900 crore while the target for operating profit, as a percentage of revenue has been set at 38%.
• Power Finance Corporation: Government sets revenue target of Rs 36,000 crore for FY21.
• PSU Stocks: Bloomberg News reports that Anil Agarwal is seeking at least $5 billion for a fund, targeting companies in which the Indian government plans to sell stake. Agarwal is targeting an initial raise of $1 billion or more for the proposed India Direct Investment Fund.
• Oil India: Chairman Sushil Mishra says that the company hopes to control the blowout at its well in Assam within the next two months. The losses from the blowout are estimated to be Rs 179 crore.
• PVR: To consider raising funds via NCDs on October 5.
• HDFC: NCLT Mumbai has sanctioned the scheme of amalgamation for merger of HDFC ERGO Health Insurance with and into HDFC ERGO.
• Nirlon: Board has appointed Rajindar Pal Singh as the company’s Chairman from October 1.
• Dixon Tech: ICRA has reaffirmed long term ratings at ICRA A+. Outlook has been revised to positive from stable.
• Dish TV: Shareholders have approved reappointment of Jawahar Lal Goel as Managing Director till March 2022.
• GHCL: CCI approves de-merger of the company's textile business into its wholly-owned arm GHCL Textiles.
• BASF India: Has received a revised tax notice from the Karnataka government worth Rs 85.77 crore from Rs 82.74 crore earlier. The company is taking legal steps. These tax notices were for the periods 2006-2007 and 2015-2016 by treating the stock transfers of the company’s Mangalore plant as interstate sales to dealers and its subsequent stay by the Karnataka Appellate Tribunal on recovery of demand.
• Future Enterprises: Has defaulted in payment of interest on NCDs worth Rs 16.11 crore which was due on September 27.
• Puravankara: Has allotted NCDs worth Rs 50 crore.
• Central Bank of India: Former RBI regional director PJ Thomas has been nominated by the central government as a Director in the Bank.

IPO Subscription Update - Day 1

• Mazagon Dock Shipbuilders: Overall subscription at 2.09 times. Institutional subscription at 0.04 times, non-institutional subscription at 0.78 times while retail subscription at 5.65 times.
• Likhitha Infra: Overall subscription at 1.01 times. Institutional subscription at 0.02 times while non-institutional subscription at 0.85 times. Retail subscription at 2.49 times.
• UTI AMC: Overall subscription at 0.27 times. Institutional subscription zero, while non-institutional subscription at 0.06 times. Retail subscription at 0.51 times.

Brokerage Radar

CLSA On Bharti Airtel

• Buy rating maintained
• Price target of Rs 715
• Risks may be overdone following recent sharp correction
• Stock factors in AGR burden risk as per Sensitivity analysis
• Active subscribers are ahead of Jio
• Valuation is at a 25-50% discount to past EV/Ebitda multiples

CLSA On Asian Paints

• Outperform rating maintained
• Price target raised to Rs 2,200 from Rs 1,900
• Raise FY21-23 EPS by 5-15%
• Upgrading estimates to capture a faster recovery
• Multiple levers for market share gains
• Rational price competition to aid margins

UBS On Indian I.T.

• Sector in a sweet spot in Q2FY21
• Revenue recovering faster than cost
• Q3 / Q4 to be a better indicator of normalised demand
• Any upside to FY21 / CY20 guidance will act as a near-term catalyst
• Prefer TCS, Infosys, HCL Tech among the larger names

Antique Stock Broking On Hindustan Unilever

• Buy rating maintained
• Price target of Rs 2,431
• Gradual but consistent improvement in its performance
• Incremental contribution from skin care, hair care and water will aid performance in Q2FY21
• Nutrition portfolio recorded continued traction
• Margins may remain under pressure due to higher raw material costs, adverse product mix & restructuring cost of GSK
• Well placed to witness a recovery led by better supply chain and resilient demand for staples
• Recent correction provides good entry opportunity

Pledged Share Details

• Ajanta Pharma: Promoter Aayush Agrawal created pledge of 1.3 lakh shares on September 28.
• Max India: Promoter Max Ventures Investment Holdings released pledge of 8.5 lakh shares on September 25.

(As Reported On September 29)

Who’s Meeting Whom

• Shriram City Union Finance: To meet Hara Global Capital Management and Ruane, Cunniff & Goldfarb Inc. on September 30.
• Metropolis Healthcare: To meet Citigroup Global Markets on October 1.

Bulk Deals

• GMM Pfaudler: Plutus Wealth Management acquired 1.65 lakh shares (1.13%) at Rs 3,528.75 per share.
• IRB Infrastructure: Promoter Virendra Dattatraya Mhaiskar acquired 19 lakh shares (0.54%) at Rs 114.45 per share.

Trading Tweaks

• Fund Raising: SBI
• Record Date For Share Buyback: RITES.
• Ex-Date Bonus Issue: Aarti Drugs (bonus 3:1).
• Price Band Revision From 20% To 10%: TIPS Industries.
• Move Into ASM Framework: Indiabulls Ventures, Ind-Swift Laboratories.
• Move Into Short Term ASM Framework: Cigniti Technologies, Advanced Enzyme Technologies.
• Move Out Of Short Term ASM Framework: Aurionpro Solutions, Kopran, Ramkrishna Forgings, Manaksia Steels, Dish TV.

Insider Trades

• Welspun Corp: Promoter Balkrishan Goenka acquired 19 lakh shares between September 25-28.
• IRB Infrastructure promoter Virendra Dattatraya Mhaiskar acquired 25 lakh shares between September 25-29.

(As Reported On September 29)

Money Market Update

• The rupee ended lower for the second straight day on Tuesday, ending at 73.86 against the U.S. Dollar as compared to Monday's close of 73.79.
• The rupee was the fourth worst performing currency in Asia on Tuesday.

F&O Cues

• Nifty October futures closed at 11,238; premium of 16 points from 15 points
• Nifty October futures add 1% and 95,000 shares in Open Interest
• Nifty Bank October futures closed at 21,488; premium of 77 points from 87 points
• Nifty Bank October futures add 2% and 34,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.34

Nifty Weekly Expiry: October 1

• Maximum Open Interest on Call side at 11,500 strike (40 lakh shares)
• Maximum Open Interest on Put side at 11,000 strike (33.2 lakh shares)
• Active Options: 11,200 Put (8.7 lakh shares) and 11,400 Call (14 lakh shares)

Nifty Monthly Expiry: October 29

• Maximum Open Interest on Call side at 11,500 strike (18 lakh shares)
• Maximum Open Interest on Put side at 10,500 strike (35 lakh shares)