All You Need To Know Going Into Trade On September 30

Asian stocks were off to a muted start after U.S. equities pared most of their gains as a rally in technology shares petered out.

Japan was little changed as the ruling party’s new leader, who is set to become the next prime minister, is seen by investors as maintaining stability. Australia rose and South Korea dipped. U.S. futures climbed. The Nasdaq 100 notched its third straight day of losses after earlier climbing about 1%. Dip buyers helped push the S&P 500 higher.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.3 to 17,651 as of 7:05 a.m.

The dollar traded near the highest since November as investors opted for safe havens. The deadline for the U.S. government to keep running and avoid a default is looming amid wrangling in Washington. Treasury yields dipped though remained around the highest since June.

Federal Reserve Chair Jerome Powell and his counterparts in Japan, Europe and the U.K. voiced cautious optimism that supply-chain disruptions lifting inflation rates around the world would ultimately prove temporary.

In China, investors continue to monitor the situation at China Evergrande Group. On Wednesday, the central bank injected liquidity into the financial system for a ninth day in the longest run since December to ensure there’s sufficient liquidity ahead of a week-long holiday.

Data To Watch

• 4pm: India fiscal deficit in rupees for April-Aug. period, prior 46,898

• 5:30pm: Eight Infrastructure Industries Index for Aug. (Prior 9.4%)

• India Q2 BoP Current Account Balance, est. $2b, prior -$8.13b

• FTSE Russell to Release Results of Index Review on Sept. 30

Stocks To Watch

• Persistent Systems: The company’s wholly owned subsidiary, Persistent Systems Inc., USA, to acquire Software Corporation International and its affiliate Fusion360 LLC for $53 million. The company will acquire Shree Infosoft, India along with certain assets of Shree Partners LLC, USA—the parent company of Shree Infosoft—for $6.87 million. These acquisitions are subject to customary closing conditions which are expected to be completed in a span of 2-5 weeks.

• Sterling and Wilson Solar: Promoters Shapoorji Pallonji and Company and Khurshed Daruvala have facilitated the repayment of the balance outstanding loans (Rs 741 crore) along with interest accrued till date, by Sterling and Wilson and its subsidiary Sterling and Wilson International FZE to the company and its subsidiary Sterling and Wilson International Solar FZCO respectively. With this, the entire outstanding loans of Rs 2,563 crore along with interest accrued till date has been repaid in full, the company said.

• Indian Overseas Bank: The bank has exited RBI’s prompt corrective action framework. It is no longer in breach of PCA triggers based on FY21 earnings. IOB has provided a written commitment that it will comply with regulatory requirements. It has also apprised RBI of systemic improvements.

• GMR Infrastructure: The company’s equity shareholders and secured creditors have approved the composite scheme of amalgamation and arrangement amongst GMR Power Infra, GMR Infrastructure and GMR Power and Urban Infra and their respective shareholders during the NCLT convened meetings.

• Zee Entertainment Enterprises: Institutional investor, Invesco Fund, has moved NCLT asking Zee Entertainment to call an extraordinary general meeting of shareholders to induct its nominees on the company’s board.

• Blue Dart Express: The company will raise average shipment price by 9.6% from January 1, 2022.

• HCL Technologies: The company has launched a 5G Open Radio Access Network lab in India to help telecom companies with 5G transition.

• Axis Bank: The bank has accepted Executive Director Rajesh Dahiya’s early retirement. The said retirement will be effective after the close of business hours on December 31, 2021.

• Ashoka Buildcon: The company has acquired balance 40% stake in Ashoka Bettadahalli Shivamogga Road for Rs 2 lakh. ABSRPL is a special purpose vehicle incorporated to execute the project awarded by NHAI.

• Adani Total Gas: Supreme Court has dismissed company’s appeal in Ahmedabad distribution area. The company in addition to Ahmedabad and Daskori area had claimed authorisation for Sanand, Bavla & Dholka.

• Radico Khaitan rated new Buy at Batlivala & Karani. Price target set to Rs 1,300, implies a 47% increase from last price.

• AGMs: NMDC (11:30 a.m.); Jindal Steel & Power (11 a.m.); National Aluminium Co. (11 a.m.); Just Dial (11:30 a.m.); Housing & Urban Development Corp. (3:30 p.m.); NBCC India (2 p.m.); Bajaj Healthcare (1 p.m.); Natco Pharma (9 a.m.); Dilip Buildcon (11 a.m.); JK Cement; DB Corp; Kaveri Seed; Datamatics Global

Offerings

• Export Credit Guarantee Corporation IPO gets cabinet approval, likely by next fiscal.

• Aditya Birla Sun Life Asset Management Co.'s initial public offering subscribed 0.58 times on first day.

• Veeda Clinical Research seeks approval for Rs 832 crore IPO

Pledge Share Details

• Apollo Hospitals Enterprise: Promoters (Suneeta Reddy and Preetha Reddy) revoked pledge of 6 lakh shares on September 28.

• Bharat Forge: Promoter Sundaram Trading & Investment created a pledge of 75 lakh shares on September 27.

• Jindal Steel & Power: Promoter Siddeshwari Tradex revoked pledge of 10.25 lakh shares on September 24.

  As reported on September 29.

Bulk Deals

• Max Healthcare Institute: Veritas Funds PLC bought 52 lakh shares (0.54%) at Rs 350 per share. SBI Mutual Fund bought 4.28 crore shares (4.44%) at Rs 350 per share. HDFC Mutual Fund bought 57 lakh shares (0.59%) at Rs 350 per share. Kayak Investments Holding Pte sold 6.02 crore shares (6.23%) at Rs 350 per share and another 2.42 crore shares (2.51%) at Rs 350.13 per share.

• HDFC Asset Management Company: Standard Life Investments sold 1.06 crore shares (5%) at Rs 2,873.79 per share. T. Rowe Price Emerging Markets Stock Fund bought 15.19 lakh shares (0.71%) at Rs 2,871.05 per share.

• Just Dial: Nalanda India Equity Fund sold 10.18 lakh shares (1.64%) at Rs 990.01 per share.

• Karur Vysya Bank: Olympus India Holdings sold 2.10 crore (2.63%) at Rs 46.62 per share.

• Sunteck Realty: Tata Mutual Fund bought 11 lakh shares (0.75%) at Rs 465.12 per share.

Insider Trades

• Adani Green Energy: Promoter Infinite Trade and Investments bought 38 lakh shares between September 27-28.

• Aegis Logistics: Promoter Trans Asia Petroleum Inc. bought 74,000 shares on September 27.

• Gujarat Fluorochemicals: Promoter Inox Chemicals LLP sold 60,017 shares between September 24-28.

• Lincoln Pharmaceuticals: Promoters (Mahendrabhai Patel and Ashish Patel) bought 55,000 shares on September 27.

• Sequent Scientific: Promoters (Chayadeep Ventures LLP and Hemalatha Pillai) sold 1.34 lakh shares between September 24-28.

• Vaibhav Global: Promoter Kusum Bardiya sold 50,000 shares on September 28. Promoter Brett Enterprises bought 50,000 shares on September 28.

Block Deal

• Reliance Industries: Societe Generale bought 22.59 lakh shares (0.03%) at Rs 2,525 per share. Credit Suisse (Singapore) sold 22.59 lakh shares (0.03%) at Rs 2,525 per share.

Who’s Meeting Whom

• CARE Ratings: To meet Birla Mutual Fund on September 30

• Graphite India: To meet Fidelity Management Research on September 30.

• Persistent Systems: To meet investors and analysts on September 30.

Trading Tweaks

• Record Date Buyback: eClerx Services

• Move Into ASM Framework: Hindustan Oil Exploration Company

Money Market Update

• RBI to conduct Rs 15,000 crore ($2b) of Operation Twist-style special open-market operations

  • It plans to buy Rs 15,000 crore of 7.26% 2029 bond, 6.1% 2031 bond, and 6.64% 2035 bond as part of its government securities acquisition program (GSAP)

  • It plans to sell an equivalent amount of 8.15% 2022 bond, 8.08% 2022 bond, and 8.13% 2022 bond, the statement said

F&O Cues

• Nifty September futures ended at 17,710.35, a discount of 0.95 points

• Nifty September futures shed 28.42% and 51,521 shares in Open Interest

• Nifty Bank September futures ended at 37,879.40, a premium of 136.4 points

• Nifty Bank September futures shed 32.30%, and 14,822 shares in Open Interest

• Securities in the ban list: Sun TV

• Securities removed from the ban list: Vodafone Idea, SAIL, Zee Entertainment