All You Need To Know Going Into Trade On September 7
Asian stocks were bolstered Tuesday by a further rally in Japan, with traders also weighing the outlook for central bank stimulus support and the impact of the delta virus strain on economic reopening.
Japan’s Nikkei 225 hit 30,000 for the first time since April. Equities slipped in South Korea but were steady in Australia. S&P 500 and Nasdaq 100 futures advanced ahead of a resumption in U.S. markets after a holiday. Treasury yields climbed and dollar dipped.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.13% to 17,396.50, as of 6:50 a.m.
In China, traders will monitor trade data for guidance on the state of the economy. Australia is due to revisit the question of whether to delay a planned taper of bond purchases as lockdowns sap the nation’s recovery.
Oil extended losses amid Saudi Arabia’s price cut for Asian buyers and demand threats from the outbreak of the delta virus variant.
Earnings Post Market Hours
Nuvoco Vistas Corporation Q1FY22 (Consolidated, QoQ)
Revenue down 16% at Rs 2,202.97 crore Vs Rs 2,631.61 crore
Net profit up 2.05 times at Rs 114.28 crore Vs Rs 37.52 crore
Ebitda down 1% at Rs 514.29 crore Vs Rs 522.06 crore
Margins at 23.3% Vs 19.8%
Stocks To Watch
Dish TV India: YES Bank, which holds a 25.63% stake in Dish TV India, has sought the removal of five directors in the company, including Managing Director Jawahar Lal Goel. YES Bank has given a special notice under Section 169 of the Companies Act, 2013. The bank said the current board of directors of the company had approved a rights issue process despite the bank's objections solely to dilute its shareholding and to prejudice the interests of the bank.
Cochin Shipyard: Has emerged as the lowest bidder in the 6-vessel tender from the Indian Navy for the next generation missile vessels worth about Rs 10,000 crore and the formal contract signing is expected shortly, said Madhu Nair, Chairman & Managing Director.
VST Tillers Tractors: The company has entered into an agreement with Export Trading Group, for distribution of its tractors, power tillers, power reapers and diesel engines in the Southern African markets including South Africa, Namibia, Botswana, Zimbabwe, Swaziland, and Zambia.
Triveni Turbine: Due to multiple disputes for over two years amongst joint venture partners, Triveni Turbine and DI Netherlands BV and Baker Hughes and its affiliates, General Electric Company and its affiliates, these parties agreed to terminate the joint venture agreement and finally resolved the multiple disputes amongst them. The JV stands terminated, as do all technology and brand licenses executed among the former JV partners. Further, the entire shareholding held by DI Netherlands BV in the equity share capital of GE Triveni has been acquired by the company for Rs 7.99 crore.
SVP Global Ventures: Approved the appointment of OP Gulia as CEO of the company.
Ashapura Minechem: Operations in Guinea continue to be normal despite certain political developments in Conakry, the capital of Guinea, since September 5, the company said. We continue to monitor the situation closely; all the employees of the Ashapura Group in Guinea remain safe and are in contact with the company, it added.
Starteck Finance: The company approved to sell 100% stake in subsidiary Starteck Housing Finance to Paripurna Trust and/or Matrabhav Trust for Rs 11.45 crore.
Auto stocks: FADA releases auto retail data for August
AGMs: Capacit’e lnfraprojects (11:30 a.m.); JK Agri Genetics (3 p.m.); Kitex Garments (11 a.m.)
Pledge Share Details
Arvind Fashions: Promoter Aura Securities created a pledge of 26 lakh shares on September 3.
Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 17.10 lakh shares on August 31. Promoter Siddeshwari Tradex created a pledge of 2.50 lakh shares on September 3.
Orient Cement: Promoter Shekhavati Investments and Traders revoked pledge of 19.50 lakh shares on September 3.
As reported on September 6.
Elpro International: Promoter IGE (INDIA) bought 1.34 crore shares (7.95%) at Rs 55 per share. Promoter International Conveyors sold 1.34 crore shares (7.95%) at Rs 55 per share.
Balrampur Chini Mills: The company bought 11.29 lakh shares (0.54%) at Rs 366.53 per share.
Wonderla Holidays: Promoter Valuequest India Moat Fund sold 3.48 lakh shares (0.62%) at Rs 238.11 per share.
Adani Green Energy: Promoter Infinite Trade and Investments bought 5.20 lakh shares on September 3.
Jindal Steel & Power: Promoter Urmila Bhuwalka bought 27,736 shares between August 31-Spetember 3.
Lincoln Pharmaceuticals: Promoters (Munjal Patel and Ashish Patel) bought 60,000 shares on September 6.
Mangalore Chemicals & Fertilizers: Promoter Adventz Finance bought 5,000 shares on September 3.
Man Infraconstruction: Promoter Mansi Shah bought 1.94 lakh shares on September 3.
Pidilite Industries: Promoter Mrudula Parekh sold 2 lakh shares between September 2-3.
RPSG Ventures: Promoter STEL Holdings bought 25,000 shares on September 3.
SBI Cards and Payment Services: Promoter SBI Life Insurance Company sold 3 lakh shares on September 3.
Sasken Technologies: Promoter Bharat Mehta bought 2,500 shares on September 3.
Who’s Meeting Whom
UltraTech Cement: To meet Amundi Asset Management on September 7.
Indoco Remedies: To meet Sameeksha Capital on September 16.
Rail Vikas Nigam: To meet Canara HSBC OBC Life, New Horizon, ITI MF, and TruEquity Adviors on September 8.
Ex-Date AGM: Prince Pipes And Fittings, Capri Global Capital, Shivalik Bimetal Controls, Dynamatic Technologies, Kewal Kiran Clothing, Swan Energy, Navkar Corporation, RSWM
Ex-Date Final Dividend: Anjani Portland Cement, Ashok Alco-Chem, KIOCL, Parag Milk Foods, Prince Pipes and Fittings, Shivalik Bimetal Controls, Triveni Turbine
Ex-Date Dividend: Axtel Industries, Capri Global Capital, Goodricke Group, Swan Energy
Record Date Final Dividend: Engineers India, Deccan Cements, CARE Ratings
Record Date Dividend: Heranba Industries
Price Band Revised From 20% To 10%: Delphi World Money
Move Into Short-Term ASM Framework: Repro India, Tinplate Company of India, BLS International Services
Money Market Update
Indian bonds may extend Monday’s losses as the central bank announced plans to drain excess liquidity from the banking system. Traders will also look forward to Rs 14,730 crore ($2b) of debt sales by the state governments.
10-year yields rose 1bps to 6.17% on Monday; the yield on 5.63% 2026 bonds climbed 2bps to 5.60%
READ: RBI Announces Additional Operations to Mop Up Excess Liquidity
The Reserve Bank of India will drain Rs 50,000 crore ($6.8 billion) via seven-day variable-rate reverse repo or VRRR on Tuesday; RBI is already scheduled to conduct a 14-day reverse repo worth Rs 3.5 lakh crore on Thursday as part of its program announced early August, taking liquidity withdrawal operations to as high as Rs 4 lakh crore by end of September
“The past experience suggests this level of liquidity creates an exuberance in the credit market, which never ended well in India,” says Pankaj Pathak, fund manager at Quantum Asset Management Co.
USD/INR rose 0.1% to 73.1050 on Monday
Implied opening from forwards suggest spot may start trading around 73.12
Nifty September futures ended at 17,408, a premium of 30.2 points
Nifty September futures added 0.42%. and 1,257 shares in Open Interest
Nifty Bank September futures ended at 36,734, a premium of 141.65 points
Nifty Bank September futures added 3.13%, and 2,422 shares in Open Interest
Securities that continue to be on the ban list: Indiabulls Housing Finance
Securities added to the ban list: National Aluminium Company