All You Need To Know Going Into Trade On September 8

Asian stocks were little changed in early Friday trading, while dollar held losses as investors braced for damage that Hurricane Irma may inflict on Florida. The euro was near a 20-month high after the European Central Bank stopped short of attempting to jawbone it lower.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.10 percent to 9,967 as of 6:50 a.m.

Here's a quick look at all that could influence equities on Friday.

Global Cues

• The S&P 500 Index, Nasdaq Composite Index and Dow Jones Industrial Average barely budged on Thursday, as traders remain alert to a potential escalation of North Korea risks amid concerns Pyongyang may fire a ballistic missile.
• The Bloomberg Dollar Spot Index fell for a seventh day and reached the lowest in more than than two years.
• U.S. jobless claims surged last week by the most since November 2012 because of benefit claims from Hurricane Harvey. They increased to 298,000 versus an estimate of 245,000.

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Asian Cues

• The Topix index fell 0.2 percent in early trade, while South Korea's Kospi index was down 0.2 percent and Australia's main gauge was 0.1 percent lower.
• Hang Seng Index futures were up 0.4 percent.

Commodity Cues

• West Texas Intermediate crude was steady at $49.12 a barrel.
• Gold was little changed at $1,349.5 an ounce, and touched its highest in a year. It advanced 1.1 percent on Thursday.

Shanghai Exchange

• Steel trades higher after closing lower for past three trading sessions; up 0.10 percent
• Aluminium trades lower for fourth day; down 0.83 percent
• Zinc trades higher; up 0.12 percent
• Copper trades lower; down 0.49 percent
• Rubber snaps the six-day winning streak as it trades over 1.7 percent lower

Indian ADRs

Earnings To Watch

• Anuh Pharma
• Asian Oilfields
• Everest Kanto
• Federal Mogul
• Fortune Financial
• Honda Siel
• Hotel Leela
• Kirloskar Electric
• Kernex Micro
• Linc Pens
• Lambodhara Textiles
• Omax Auto
• Poddar Housing

Earnings Reaction To Watch

Shreyans Industries (Q1FY18, YoY)

• Revenue up 12 percent to Rs 113 crore
• EBITDA grew 60 percent to Rs 12 crore
• Margin stood at 11.2 percent compared to 7.9 percent
• Profit grew 75 percent to Rs 7 crore

Vaibhav Global (Q1FY18, YoY)

• Revenue up 5 percent to Rs 330 crore
• EBITTDA grew 5.7 percent to Rs 18.5 crore
• Margin flat at 5.6 percent
• Profit went up 36.4 percent at Rs 15 crore

Global Vectra Helicorp (Q1FY18, YoY)

• Revenue up 5.3 percent to Rs 100 crore
• EBITDA grew 13.3 percent at Rs 17 crore
• Margin at 17 percent compared to 15.8 percent
• Profit down 50 percent at Rs 1 crore

Uttam Sugar (Q1FY18, YoY)

• Revenue grew 52.4 percent at Rs 375 crore
• EBITDA went up 56.8 percent at Rs 58 crore
• Margin at 16.4 percent compared to 15.7 percent
• Profit up 92 percent to Rs 23 crore

Action Construction Equipment (Q1FY18, YoY)

• Revenue went up 22.6 percent to Rs 201 crore
• EBITDA fell 10 percent to Rs 9 crore
• Margins at 4.8 percent compared to 6.5 percent
• Profit grew 26.7 percent to Rs 3.8 crore

Stocks To Watch

• Bharat Financial assigns Rs 519 crore of receivables to a bank as per RBI guidelines
• TCS partners with GE to integrate intelligence into services data lake platform
• Punj Lloyd gets Rs 870 crore order for canal work in Maharashtra
• Biocon's insulin facility in Malaysia receives EU GMP compliance certificate
• Gammon India sells stake in Gammon Infrastructure Projects (GIPL) in various tranches in the open market. GIPL ceases to be subsidiary of company, post the sale
• CCL Products FII/FPI limit raised to 40 percent from 24 percent
• GTPL Hathway FII limit hiked to 49 percent from 24 percent
• Bombay Dyeing sold 48.457 acres land in Pune for Rs 13.57 crore
• Bank of India cuts marginal cost of lending rates to 8.3 percent
• Sharda Motor filed petition against Toyo Sharda before NCLT.
• Crest Ventures acquired 3.16 percent in Classic Mall Development for Rs 43.50 crore. Holding increased to 49 percent from 45.84 percent post acquisition
• Jindal Worldwide acquired 84 lakh shares of Balaji Weft for Rs 8.41 crore taking their holding in the company to 60.44 percent
• Vista Pharmaceuticals received EIR from U.S. FDA for its formulation facility in Telangana
• SpiceJet looking at jets for planned low-cost, long-haul move.
• Majestic Auto shuts down Electric Motor Division due to lack of viable orders
• Talwalkar promoter Vinayak Gawande sells 1 lakh shares in open market on September 6
• Government allows 300,000 tonne of sugar import at 25 percent duty for 60 days
• SEBI seeks views on mandatory physical settlement of equity F&O
• Shares of Aditya Birla Capital shall be permitted under ‘B' group with effect from September 15
• Circuit filters: Jindal Photo to 10 percent, Future Retail DVR to 10 percent
• Tata Elxsi fixes September 19 as record date for bonus
• Monsanto exits cotton seeds business in India (Economic Times)
• Brookfield joins race to buy Vodafone and Idea Cellular's stakes in Indus Towers (Economic Times)
• IDBI Bank seeks bids to sell 13.71 percent stake in SIDBI (Financial Express)
• Merger talks between energy companies Orient Green Power and IL&FS Wind hit a snag (Economic Times)

IPO

• Dixon Technologies IPO Day 3. Issue subscribed 4.25 times at end of Day 2.
• Bharat Road Network IPO Day 3. Issue subscribed 0.69 times at end of Day 2.
• ICICI Lombard General Insurance IPO price band set at Rs 651-Rs 661 per share.

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Bulk Deals

Equitas Holdings: Morgan Stanley bought 1.03 crore shares (3 percent) at Rs 172 each. Cinnamon Capital sold 1.65 crore shares (4.9 percent) at Rs 172 each

Mayur Uniquoters:

• Kotak Funds – India Midcap Fund bought 15.50 lakh shares (3.4 percent) at Rs 360 each.
• L&T MF bought 20 lakh shares (4.4 percent) at Rs 360 each.
• Westbridge Crossover Fund LLC sold 29.72 lakh shares (6.5 percent) at Rs 360.02 each.
• Jwalamukhi Invesment Holdings sold 17.50 lakh shares (3.8 percent) at Rs 360 each.

Religare Enterprises: Yes Bank Sold 10.45 lakh shares (0.6 percent) at Rs 38.44 each

HFCL: GMO Emerging Markets Quality Fund bought 87.49 lakh shares (0.7 percent) at Rs 28.13 each

Syngene International

• Camas Investments PTE bought 47.85 lakh shares (2.4 percent) at Rs 461 each
• Silver Leaf Oak (Mauritius) sold 47.84 lakh shares (2.4 percent) at Rs 461 each

GKW Ltd: IDBI bank sold 67,500 shares at Rs 433.79 each

Who's Meeting Whom?

• AU Small Finance Bank met L&T MF and Malabar Investments on September 6
• Yes Bank met Thomas White, Artisan Partners and William Blair in Chicago on September 6
• eClerx met General Atlantic in Mumbai on September 7
• Indiabulls Housing met RBC Hong Kong in Mumbai on September 7
• Dr Lal Pathlabs will meet Highbridge Capital in Gurgaon on September 8
• Crompton Consumer has a conference call with Canara HSBC OBC Life on September 12
• Kaveri Seeds will be meeting several funds/investors between September 11 and 15 in U.S.

Source: Company Filings

Rupee

• Rupee ends at 64.04/$ versus 64.09/$ on Wednesday

Top Performers This Month

• HFCL: Up 38.33 percent
• Future Consumer: Up 26.32 percent
• Bombay Dyeing: Up 25.42 percent
• Jai Corp: Up 25.07 percent
• Ruchi Soya: Up 21.85 percent

Worst Performers This Month

• Kwality: Down 15.53 percent
• Religare: Down 14.73 percent
• Srei Infra: Down 11.21 percent
• Idea Cellular: Down 9.02 percent
• Vijaya Bank: Down 7.17 percent

Index Trends

F&O Cues

• Nifty Sept Futures closed with a premium of 24.7 points versus 19 points
• Nifty Sept Futures open interest (OI) up 1 percent and Bank Nifty OI up 6 percent
• India VIX closed down 0.8 percent at 13
• Sept series highest Call base at 10,000 (OI at 47 lakh, up 9 percent)
• Sept series highest Put base at 9,700 (OI at 50.4 lakh, up 8 percent)
• Call strikes 9,900, 10,000, 10,200 see OI addition
• Put strikes 9,700, 9,800, 9,900 see OI addition

F&O Ban

• In Ban: Indiabulls Real Estate, JSW Energy, Just Dial
• No new changes to ban list

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

Put-Call Ratio

• Nifty PCR at 1.35 versus 1.33
• Nifty Bank PCR at 0.99 versus 1.02

Stocks Seeing High Open Interest Change

• Cadila sees OI addition of 31 percent on long side
• VGuard sees OI addition of 29 percent on long side
• Nalco sees OI addition of 17 percent on long side
• Arvind sees OI addition of 14 percent on long side
• Tata Elxsi sees OI addition of 13 percent on long side
• ITC sees OI addition of 11 percent on short side
• Srei Infra sees OI addition of 11 percent on short side
• Raymond sees OI addition of 11 percent on long side
• Just Dial sees OI shedding of 17 percent, long unwinding seen

Fund Flows

Brokerage Radar

Credit Suisse on Glenmark Pharma

• Cut target to Rs 650 from Rs 700, Maintain Neutral
• Annual report shows debt surprise driven by sharp increase in inventories
• Near-term overhang is guidance of further increase in debt in second quarter of FY18
• Cut FY18/19 EPS 4 percent/5 percent on higher Zetia competition, Taro's entry into Mupirocin

Citi on L&T

• Raise target to Rs 1452 from Rs 1341; Maintain Buy
• L&T is top India industrial pick with limited downside but tremendous upside
• Inexpensive valuations with the stock trading at a cons P/E of 19.6x FY19
• Asking rate to meet order inflow guidance is not easy but management remains confident
• Defence prospects could also fructify in the next 12-15 months

JPMorgan on Metals

• Raise Vedanta target to Rs 350 from Rs 310; Maintain Overweight
• Raise Hindalco target to Rs 270 from Rs 255; Maintain Overweight
• Strong multi-year earnings growth not being priced in Vedanta
• Hindalco a re-rating candidate; near-term news flow on potential U.S. M&A to weigh

HSBC on Hindalco

• Raise target to Rs 285 from Rs 240; Maintain Buy
• Aluminium breaches $2,100 per tonne mark on improving fundamentals
• Potential acquisition in VAP space should help Novelis consolidate its position
• China's commodity demand continues to surprise while supply reforms should support prices

IDFC on Tata Motors

• Maintain Neutral rating on Tata Motors with a target price of Rs 404
• Car makers are offering high discounts to scrap older, polluting vehicles in U.K., Germany
• JLR faces a choice of either losing market share or joining the bandwagon with profitability impact

Edelweiss on SpiceJet

• Maintain Buy; hiked target price to Rs 150 from Rs 138
• Expect revenue from passenger per km and EPS to grow at CAGR of 18 percent and 49 percent over FY17-19
• Expects 16 percent dilution risk on conversion of warrants
• New aircrafts to lead to 15 percent fuel savings and low maintenance
• Raised FY19 EV/EBITDAR to 8.5x from 8x

IIFL on Motherson Sumi

• Maintain Buy and target price of Rs 350
• Expect revenues to see a leg-up in FY19 as it starts executing order from Daimler
• Higher growth and margins expected as new plants scale up
• Expect EPS to grow at CAGR of 24 percent over FY17-FY20

IIFL on Sun TV

• Maintain Add and target price of Rs 892
• Expect subscription revenue to grow at CAGR of 20 percent over FY17-22
• FY19 revenue estimates raised by 4 percent due to IPL
• New IPL rights deal value accretive but not significantly

CLSA on HDFC Bank

• Maintain Buy; Hike target price to Rs 2,150 from Rs 2,000
• Bank to leverage its strength on CASA/capital/asset quality/size to gain market share
• Earnings to grow at CAGR of 20 percent over FY17-20
• Key Challenges: Maintain credit quality and manage transition well

CLSA on Eicher Motors

• Maintain Buy; hike target price to Rs 39,300 from Rs 31,500
• Order inflow remains above production and is growing at 15 percent level
• Enfield's production capacity will rise 40 percent over FY17-19
• Earnings to grow at CAGR of 29 percent over the next 3 years
• Positive on strong long-term growth outlook and low competitive threat

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