All You Need To Know Going Into Trade On September 28

Indian Open

Asian stocks rose in early trade on Thursday by optimism over the health of the U.S. economy and President Donald Trump’s tax-cut plan.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 9,735 as of 7:00 a.m.

Here’s a quick look at all that could influence equities on Thursday.

Global Cues

• U.S. stocks rallied on Wednesday, the dollar extended gains and Treasuries slumped on speculation President Donald Trump’s tax-cut plan will become law this year.

• The Bloomberg dollar index hit a six-week peak, and 10-year note yields climbed to the highest in two months.
• The Stoxx Europe 600 Index advanced 0.4 percent to the highest since July.

Asian Cues

• Japan’s Topix index advanced 0.4 percent. Australia’s S&P/ASX 200 Index gained 0.3 percent, while South Korea’s Kospi index was 0.2 percent lower.
• Hang Seng Index futures slid 0.5 percent.
• Futures on the S&P 500 were slightly lower.

What to watch out for the rest of this week:

• Japan August industrial production and retail sales are due Friday as is South Korea’s current account balance for August.
• U.S. data on GDP and personal spending Thursday will provide further clues as to the potential Fed policy path.
• The euro-area inflation rate may have accelerated a touch to 1.6 percent in September from 1.5 percent but the core will probably remain at 1.2 percent. The data is out on Friday.
• Focus remains on the outlook for some of the world’s biggest economies, with central bank policy makers from the U.S., U.K. and Australia among speakers at a Bank of England conference starting in London on Thursday.

Commodity Cues

• West Texas Intermediate crude declined 0.15 percent to $52.06 after climbing 0.5 percent on Wednesday.
• Gold was at $1,284.41 an ounce, near the weakest level since mid-August, after declining 0.9 percent.
• ICE Sugar ended lower for the fourth consecutive session at 13.83 cents a pound; down 0.58 percent

Shanghai Exchange

• Steel trades higher for third day; up 0.47 percent
• Aluminium trades lower; down 0.37 percent
• Zinc trades higher for third day; up 0.14 percent
• Copper trades higher; up 0.02 percent
• Rubber trades at its lowest level in a decade; down 6.39 percent

Indian ADRs

Stocks To Watch

• Power Grid begins commercial operations of Pole II of the Champa-Kurukshetra HVDC Terminal
• Air India ties up with Punjab National Bank, IndusInd Bank for Rs 3,250 crore loan (PTI)
• Govt plans to sell stake in ONGC oilfields to private firms (PTI)
• IDBI Bank sells 9 percent stake in SIDBI
• Reliance Industries won a bid to buy all the gas from its coal-bed methane block till March 2021
• APL Apollo Tubes entered into a JV with Singapore-based One to One Holdings PTE, for manufacturing of in-line galvanized tubes
• Vista Pharma Board to meet on September 30 to consider fund raising options
• Lakshmi Vilas Bank Board approves raising up to Rs 800 crore via rights issue
• Jain Irrigation says Mandala Rose Co-investment acquired 3.62 crore shares (7.26 percent) in the company
• Ashiana signs pact to develop group housing project in Pune
• GE Power India won an order worth Rs 328 crore from Doosan Power India
• Deep Industries got an order worth Rs 2.2 crore from ONGC
• Andhra Bank to cut base rate by 15 basis points to 9.55 percent from Sunday

Corporate Announcements

• Bharat Electronics Ex-date for 1:10 bonus. F&O lot size revised to 4,950
• BHEL Ex-date for 1:2 bonus. F&O lot size revised to 7,500
• Bharat Forge Ex-date for 1:1 bonus. F&O lot size revised to 1,200
• Transformers & Rectifiers Ex-date for stock split from Rs 10 to Re 1 each

Bulk Deals

Cyient

• Carrier International Mauritius sold their entire 1,36,92,960 shares or 12.16 percent stake at Rs 475.17 each
• Amansa Holdings Pvt Ltd bought 30.8 lakh shares or 2.7 percent stake at Rs 475 each
• Birla Sun Life 95 Fund bought 16.9 lakh shares or 1.5 percent stake at Rs 475 each
• Government Pension Fund Global bought 14.5 lakh shares or 1.3 percent stake at Rs 475 each
• DSP Blackrock Small and Mid Cap Fund bought 8.32 lakh shares or 0.7 percent stake at Rs 475 each
• Birla Sun Life Pure Value Fund bought 6.30 lakh shares or 0.6 percent stake at Rs 475 each

The Mandhana Retail Ventures

• Edelweiss Commodities Services Ltd sold 7 lakh shares or 3.2 percent stake at Rs 140 each
• Mentor Capital bought 6.75 lakh shares or 3.1 percent stake at Rs 140 each
• Kajaria Ceramics
• Westbridge crossover Fund LLC sold 18.8 lakh shares or 1.2 percent stake at Rs 719.4 (average)

LKP Finance

• Prime India Investment Fund sold 1.06 lakh shares or 0.9 percent stake at Rs 118 each
• India Max Investment Funds bought 1.06 lakh shares or 0.9 percent stake at Rs 118 each

LKP Securities

• India Max Investment Fund sold 7.34 lakh shares or 1 percent stake at Rs 12.75 each
• New Berry Advisors bought 4.23 lakh shares or 0.6 percent stake at Rs 12.75 each

Mukand

• Promoter Jamnalal Sons bought 20.41 lakh shares or 1.4 percent stake at Rs 91.19 each
• Rakesh Sajjan Gupta sold 9.95 lakh shares or 0.7 percent stake at Rs 87.5 each

RattanIndia Infrastructure

• Rajasthan Global Securities bought 1.95 crore shares or 1.4 percent stake at Rs 6 each
• UAL Industries sold 2.23 crore shares or 1.6 percent stake at Rs 6 each

Who’s Meeting Whom?

• Eris Life to meet Tata MF, SBI Life, IL&FS, ICICI Securities on September 28
• Vakrangee to meet analysts and investors on September 28
• PNB Housing to meet investors on September 28
• Astral Poly to meet ICICI Prudential AMC on September 28
• APL Apollo Tubes to meet investors on September 28
• S Chand and Company to meet investors on September 28 - 29
• Pennar Engineered Building Systems to meet Birla Sun Life on September 29

Rupee

Rupee ended at 65.71 against the dollar, its lowest closing level since March 14.

Top Gainers And Losers In Last 30 Days

Index Trends

F&O Cues

• Nifty September Futures closed with a premium of 3.9 points from a discount of 4.5 points
• Nifty October Futures trading with a premium of 36.6 points from 28 points at 9,772
• Rollover: Nifty at 46 percent, Bank Nifty at 41.6 percent
• Nifty Futures open interest across series up 3 percent & Bank Nifty up 4 percent
• India VIX closed 7 percent higher at 13.8
• September series highest Call base at 9,900 (open interest at 58.8 lakh shares, up 17 percent)
• September series highest Put base at 9,700 (open interest at 37.7 lakh shares)
• September call strikes 9750, 9800, 9850 see open interest addition
• September put strikes 9800, 9900 see open interest unwinding
• October series highest call base at 10,000 & put base at 9700 strike

F&O Ban

• In ban: DHFL, DLF, GMR Infrastructure, Indiabulls Real Estate, JP Associates, JSW Energy, Reliance Communications
• New in ban: GMR Infrastructure
• Out of ban: Bharat Earth Movers, Indo Count Industries, Reliance Capital

Only intraday positions can be taken in stocks which are in F&O ban. There will be a penalty in the case of a rollover.

Put-Call Ratio

• Nifty PCR at 0.99 from 1.10
• Nifty Bank PCR at 0.66 from 0.86

Stocks Seeing High Open Interest Change

• Siemens saw open interest addition of 26 percent on short side
• Bharat Forge saw open interest addition of 18 percent on short side
• GMR Infra saw open interest addition of 11 percent on short side
• Canara Bank saw open interest addition of 8 percent on short side
• NIIT Tech saw open interest shedding of 15 percent, short covering was seen
• Shriram Transport saw open interest shedding of 11 percent, short covering was seen
• Reliance Capital saw open interest shedding of 10 percent, long unwinding was seen
• Godfrey Phillip saw open interest shedding of 9 percent, long unwinding was seen

Fund Flows

Brokerage Radar

Macquarie on HDFC Bank

• Maintain Outperform; Hiked price target to Rs 2,200 from Rs 1,735
• Growth can still sustain at high levels
• EPS, loan book, book value per share to grow at CAGR of 21 percent, 22 percent and 17 percent respectively over FY17-20
• Return on asset and return on equity to expand by 20 basis points and 140 basis points respectively

Kotak Securities in L&T

• Upgrade to Add from Reduce; hiked price target to Rs 1,300 from Rs 1,190
• EPS accretive divestments on the anvil; E&C business generating cash
• EPS estimates hiked by 4 percent, 6 percent and 5 percent for FY18, FY19 and FY20
• Divestment and monetisation to expand return on equity by 160 basis points
• Private capital expenditure to bottom out in FY18

Nomura on LIC Housing Finance

• Upgrade to Buy from Neutral; hiked price target to Rs 720 from Rs 700
• Net interest income and loan book to grow at CAGR of 14 percent and 11 percent over FY17-19
• Return on equity around 18-19 percent in FY18 and FY19
• LICHF’s spreads have bottomed out; expect spreads to compress by another 15-20 basis points in FY18 and FY19

CLSA on IPCA

• Maintain Sell; hiked price target to Rs 430 from Rs 410
• Continued challenges for IPCA in FY18 could result in a profit decline of 11 percent YoY
• Expect gradual recovery in operations in FY19
• EPS for FY18 and FY19 cut by 15-30 percent to factor challenges and weak Q1FY18 results
• Trigger:- Malaria tender outcome and U.S. FDA resolution

HSBC on UPL

• Maintain Buy rating with price target of Rs 978
• Global crop downcycle allowing UPL to gain market share as farmers switch to generics
• Dealer checks suggest UPL to outperform peers in domestic markets in second quarter
• UPL expected to meet the 12-15 percent to sales growth over