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All You Need To Know Going Into Trade On September 9
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
09 Sep 2020, 10:35 AM IST 
Pedestrians walk along on Wall Street near the New York Stock Exchange in New York, U.S. (Photographer: Mark Kauzlarich/Bloomberg)
Asian markets have opened lower in mid-week trade on concerns that a Covid-19 vaccine, which was the key catalyst for the strong rally in global equities from the lows in March, can be delayed.
Brent Crude has fallen below $40 per barrel for the first time since June as stalling consumption recovery in Asia and increased supply from OPEC+ signalled a bleak short-term outlook.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.42% to 11,264 as of 6:55 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 declining this morning, though losses are narrower than their peers on Wall Street.
- Futures on the Dow Jones are trading lower by 60 points while Nasdaq futures are trading 70 points higher. The Dow fell over 2.2% overnight while the Nasdaq fell over 5% as sell-off in technology shares continued.
- There were concerns among the investor community after AstraZeneca Plc stalled the hunt for a Covid-19 vaccine, after a trial participant fell ill.
- “We don’t know exactly if this is the bottom, there could be more volatility. We are taking the froth out of the market,” Laila Pence of Pence Wealth Management told Bloomberg Television.
- Yield on the 10-year treasuries stood at 0.67%
- West Texas Intermediate crude fell 0.2% to $36.67 per barrel while Gold was little changed at $1,929.8/Oz.
Get your daily fix of the global markets here.
Stocks To Watch
- Wipro: To set up a digital innovation hub in Germany. The proposed hub will serve as the company's flagship hub in Europe and will offer digital transformation expertise to German companies.
- Power Grid: Cabinet approves asset monetisation of subsidiaries through an Infrastructure Investment Trust. Proceeds from the asset monetisation can be utilised for fresh investments in the expansion of transmission network and other capital schemes. The company will be able to monetise five tariff-based competitive bidding assets worth Rs 7,164 crore in the first block.
- Edelweiss: Arm Edelweiss Broking is exploring various alternatives to expand its client base and has entered into non-disclosure agreements with target entities.
- Bharat Dynamics: Offer for Sale to non-retail investors gets 1.4 times the demand. The government will exercise the oversubscription option. The OFS for retail investors opens today with a discount of Rs 20 per share on the cut-off price.
- IDBI Bank: Sells remaining 10.26 lakh shares or 0.21% stake in the National Stock Exchange of India.
- NTPC: Signs pact to implement 27 solar projects overseas. To add another 5GW solar capacity over the next two years.
- JSPL: The company in its annual report has stated that it is confident of producing 7-7.5 million tonnes of steel in FY21, implying a 15% volume growth for its standalone business. The report also said that the demand for long products may remain strong going ahead as the lockdown eases and government spending rises.
- Indian Hume Pipe: Gets work orders worth Rs 134.8 crore from the government of Odisha for rural water supply projects.
- Teamlease: Increased its stake in edu-tech company Schoolguru to 76.37% from 40%.
- Happiest Minds Technologies IPO: Overall subscription of 8.4 times at the end of day 2. Institutional investor subscription at 0.47 times while non-institutional investor subscription at 3.96 times. Retail subscription at 38.85 times.
- Route Mobile: IPO opens for subscription today. The company has raised Rs 180 crore from 15 anchor investors be allocating 51.43 lakh shares at Rs 350 per share. Anchor investors include Goldman Sachs, Franklin Templeton, SBI Mutual Fund, ICICI Prudential, Kuwait Investment Authority among others.
- Non-Nifty Earnings Today: Eveready Industries, Indiabulls Ventures, Shriram EPC.
Earnings Reported After Market Hours
Dishman Carbogen Amcis Q1FY21
- Revenue down 9.1% to Rs 474.4 crore
- Net loss of Rs 21.4 crore from net profit of Rs 34.3 crore
- Ebitda down 63.9% to Rs 43.1 crore
- Ebitda margin at 9.1% from 22.9%
- All numbers are consolidated and compared on a year-on-year basis
Future Consumer Q1FY21
- Revenue down 63.7% to Rs 380.5 crore
- Net loss widens to Rs 68.4 crore from Rs 14.9 crore
- Ebitda loss of Rs 27.9 crore from Ebitda gain of Rs 35.9 crore
- All numbers are consolidated and compared on a year-on-year basis
Brokerage Radar
IDFC Securities On Fortis Healthcare
- Reinitiate coverage with outperformer rating
- Price target of Rs 170
- Unique business model with strategic hospital locations
- Business poised for a turnaround
- Undergoing a consolidation phase with sharp focus on controlling overheads
- See 17.8% CAGR for operational Ebitda over FY20-23E
- Healthy growth outlook and attractive valuations
Jefferies On Indian Real Estate
- Residential sales pick-up has spread widely
- High-end pricing hit but sales improve
- Pricing should sustain given good affordability in mid-income segment
- Slow launch pace an issue and challenge for faster sales recovery
- Stamp duty cut in Maharashtra, Madhya Pradesh signals rising government support
- Housing cycle turn can provide additional boost to demand
- Top Picks: Godrej Properties, DLF
Jefferies On Indian Life Insurance
- New retail premiums were down 2% in August
- Flows are back to pre-Covid levels
- LIC gained share indicating absence of ULIPs and a strong brand recall
- Market share of private players likely to contract in FY21
- Expect resumption of trend of private players gaining share from FY22
- Smaller private players see positive growth on lower base
- Maintain buy rating on HDFC Life with price target of Rs 730
- Maintain buy rating on ICICI Prudential with price target of Rs 560
- Maintain buy rating on SBI Life with price target of Rs 1,040
- Maintain hold rating on Max Financial Services with price target of Rs 610
HSBC On Tata Motors
- Upgrade to buy from hold
- Price target raised to Rs 200 from Rs 120
- Leaner and focused JLR recovery in domestic M&HCV industry to create value
- Expect decent net debt reduction in FY22 and FY23
- Debt reduction led by free cash flow of 1 billion pounds from JLR
Pledged Share Details
- Ajanta Pharma: Promoter Aayush Agrawal created pledge of 5 lakh shares on September 7.
- Max India: Promoter Max Venture Investment Holdings released pledge of 7 lakh shares on September 4.
- Emami: Promoters released pledge of 46.81 lakh shares between September 7-8.
- JSW Steel: Promoter JTPM Metal Traders created pledge of 35 lakh shares between September 2-5.
- JSPL: Promoters revoked pledge of 16.5 lakh shares between August 27-September 3.
- Jamna Auto: Promoter Pradeep Jauhar created pledge of 8.5 lakh shares on September 4.
- Adani Transmission: Promoter SB Adani Family Trust released pledge of 4.5 crore shares on September 7.
(As Reported On September 8)
Who’s Meeting Whom
- Indraprastha Gas: To meet Principal Asset Management, Hong Kong on September 11.
- Mahindra Holidays & Resorts: To meet Motilal OMC, Bavaria Group and Tata Mutual Fund from September 9-11.
Bulk Deals
- Strides Pharma Science: Brookdale Mauritius sold 6.26 lakh shares (0.70%) at Rs 612 per share and Societe Generale acquired 6.26 lakh shares (0.70%) at Rs 612 per share.
- Future Consumer: Enam Finance sold 1 crore shares (0.52%) at Rs 10.13 per share.
- Future Supply Chain Solutions: Dhunseri Ventures sold 2.28 lakh shares (0.52%) at Rs 129.2 per share and Edelweiss Mutual Fund sold 4.22 lakh shares (0.96%) at Rs 129.33 per share.
- Tejas Networks: Mayfield Mauritius sold 53.68 lakh shares (5.81%) at Rs 67.19 per share.
Trading Tweaks
- AGM Date: Allcargo Logistics, Astra Microwave, Century Ply, Ashoka Buildcon, KEI Industries, Sagar Cement, Shilpa Medicare, Music Broadcast, Supreme Industries, HSIL, Shipping Corporation,
- Price Band Revision From 10% To 5%: Ksolves, RS Software.
- Price Band Revision From 20% To 10%: Indiamart Intermesh.
- IPO Issue Opens: Route Mobile.
- IPO Issue Closes: Happiest Minds Technologies.
- Move Into ASM Framework: Automotive Stampings and Assemblies,
- Move Into Short Term ASM Framework: AstraZeneca Pharma, Future Retail, Tata Motors DVR, Cheviot, HLE Glascoat, NHC Foods.
- Move Out Of Short Term ASM Framework: Repco Home Finance, Shree Rama Multi-Tech, Manaksia Coated Metals & Industries.
Insider Trades
- JSW Steel: Promoter JTPM Metal Traders acquired 15.25 lakh shares between September 3-7.
- Alembic: Promoter Nirayu acquired 1.22 lakh shares on September 4.
- Jamna Auto: Promoter Map Auto acquired 2.45 lakh shares on September 4.
- Trident: Promoter Trident Capital acquired 15 lakh shares on September 7.
- Mindtree: Promoters sold 2.1 lakh shares between September 3-4.
- IRB Infra Developers: Promoter Virendra Mhaiskar acquired 3.6 lakh shares between September 4-7.
(As Reported On September 8)
Money Market Update
- The rupee declined for the second straight day on Tuesday, ending at 73.6 against the U.S. Dollar as compared to Monday's close of 73.35.
- The currency was the worst performer in Asia on Tuesday as well.
F&O Cues
- Nifty September futures closed at 11,302; discount of 15 points from premium of 35 points
- Nifty September futures shed 2% and 2 lakh shares in Open Interest
- Nifty Bank September futures closed at 22,657; discount of 87 points from premium of 70 points
- Nifty Bank September futures add 10% and 1.4 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.32
- Enters F&O Ban: Bank of Baroda
- Stocks In F&O Ban: Bank of Baroda, BHEL, Canara Bank, Indiabulls Housing Finance, JSPL, PNB, Vodafone Idea
Nifty Weekly Expiry: September 10
- Maximum Open Interest on Call side at 11,600 strike (33 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (31.1 lakh shares)
- Active Options: 11,000 Put (5 lakh shares) and 12,000 Call (-7.6 lakh shares)
Nifty Monthly Expiry: September 24
- Maximum Open Interest on Call side at 11,500 strike (20.2 lakh shares)
- Maximum Open Interest on Put side at 11,000 strike (29.8 lakh shares)
