All You Need To Know Going Into Trade On October 3 

Stocks in Asia opened higher on Tuesday after strong factory data and the prospect of American tax cuts boosted confidence in the global economy.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.20 percent to 9,860 as of 7:00 a.m.

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

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Global Cues

• U.S. equities closed at record highs on Monday as Wall Street kicked off the fourth quarter on a high note.
• The Bloomberg dollar index was near strongest since mid-August, and the S&P 500 Index closed at an all-time high after data showed U.S. manufacturing expanded at the fastest pace in 13 years.

#BQMarketsNow | U.S. stocks, dollar gain as manufacturing surges.https://t.co/nBGe60VCDt pic.twitter.com/gvUCqOFvev

Asian Cues

• Futures on the S&P Index were little changed. The underlying gauge climbed 0.4 percent Monday. It's fallen on just three of the past 16 trading sessions.
• Japan's Topix index added 0.3 percent. Australia's S&P/ASX 200 Index slid 0.3 percent.
• Hang Seng futures were up 0.2 percent with traders returning after a long weekend.
• Markets in China and South Korea remain shut.

Commodity Cues

• Gold was little changed at $1,272.53 an ounce, after falling 0.7 percent on Monday.
• West Texas Intermediate crude slipped 0.2 percent to $50.47 a barrel after sliding 2.1 percent on Monday.
• ICE sugar ended higher for third day at 14.31 cents a pound, up 1.49 percent

Shanghai Exchange*

• Steel ended lower for second day; down 1.04 percent
• Aluminium ended lower for third day; down 0.46 percent
• Zinc ended higher; up over 1 percent
• Copper ended higher for second day; up 1.67 percent
• Rubber ended to its lowest level in a decade; down 5.42 percent

Prices as per Friday's close. Chinese markets remain closed for the country's National Day Golden Week holiday

Among the key events this week:

• Australia's central bank on Tuesday is forecast to keep its benchmark interest rate unchanged at a record low of 1.5 percent.
• Investors will monitor progress toward forming coalition governments in Germany and New Zealand after elections last month left no party in either country with a majority.
• Other American data this week include trade, durable goods and Friday's September non-farm payrolls report, which may have less predictive power than usual for the economic outlook due to likely distortions from hurricanes that hit from late August.
• The Reserve Bank of India on Wednesday is projected to keep benchmark rates unchanged.
• China is due to report monthly foreign-exchange reserves Thursday.
• Fed Chair Janet Yellen speaks at an event on Wednesday.
• Minutes of the last ECB meeting are the European economic highlight this week.

Indian ADRs

Stocks To Watch

• Dr. Reddy's launched the Sevelamer Carbonate Tablets in the U.S. markets
• Energy Efficiency Services Ltd. (EESL) to procure 10,000 electric vehicles from Tata Motors
• Power Grid enters into a term loan agreement for Rs 3,270 crore with ICICI Bank
• Alok Industries: ECL Finance agrees to give Rs 150 crore as interim finance to the company
• Radha Madhav Corporation to pay Rs 35.25 crore under one-time settlement scheme to Bank of Baroda
• GP Petroleums to shift operations of its Daman plant to Vasai plant
• Tata Teleservices: Lock-in on shares held by promoters Tata Sons extended to September 29, 2018
• SH Kelkar acquired 100 percent stake in VN Creative Chemicals Pvt Ltd
• Jagran Prakashan: HDFC MF increases stake in the company to 7.09 percent from 5.01 percent
• Government sets domestic natural gas price at $2.89 per mBtu for October-March (Bloomberg)
• Hinustan Unilever's board agrees to divest its entire stake in Kimberly-Clark Lever in order to focus on its core business
• Phoenix Mills acquires further 6.07 percent stake in Offbeat Developers for Rs 34 crore
• Bombardier inks $1.7 billion deal with SpiceJet for the sale of 50 aircrafts (Bloomberg)
• Jindal Poly Films' Netherlands unit completes acquisition of Apeldoorn Flexible Packaging Holding for 86.9 million euros
• Punjab Chemicals sold its Argentina unit through its subsidiaries
• Jubilant Life Sciences receives approval from Health Canada for RUBY Elution System and proprietary RUBY consumable accessories
• Peninsula Land entered into an agreement for the sale of company's property located in Pune for Rs 226 crore
• Indiabulls Ventures to raise Rs 2,000 crore via rights issue

• Reliance Communications said merger with Aircel 'lapse by mutual consent'
• PNC Infratech declared lowest bidder for Rs 2,160 crore road order in UP
• GMR Infra to raise up to Rs 2,500 crore via issuing securities
• Jet Airways in talks with Air France-KLM for joint venture (La Tribune)
• Aviation turbine fuel prices hiked for the month of October by 5-6 percent
• U.S. district court halves compensatory and punitive damages to $420 million in Epic case for TCS
• Apollo Tyres says no intention of making attempts to buy Kumho
• Greenko makes $2.1 billion bid for Reliance Infra's Mumbai's power business (Economic Times)

Auto Sales For September

• Maruti Suzuki Sales at 163,071 units versus 149143 units last year, up 9 percent (estimate of 162,000)
• Tata Motors sales at 57,852 units versus 48648 units last year, up 19 percent (estimate of 54,100)
• Bajaj Auto sales at 428,752 units versus 376,765 units last year, up 14 percent (estimate of 392,000)
• Eicher Royal Enfield sales at 70,431 units versus 57,842 units last year, up 22 percent (estimate of 71,000)
• Eicher VECV sales at 6,083 units versus 4843 units last year, up 26 percent (estimate of 5,000 units)

Bulk Deals

Tourism Finance Corporation of India

• IFCI sold 1.93 crore shares or 24 percent stake at Rs 150 each
• Redkite Capital bought 1.07 crore shares or 13.3 percent stake at Rs 150 each
• India Opportunities III PTE bought 32.28 lakh shares or 4% stake at Rs 150 each
• Koppara Sajeeve Thomas bought 20.50 lakh shares or 2.5 percent stake at Rs 149.92 each
• Centrum Capital bought 16.15 lakh shares or 2 percent at RS 150 each

Gulf Oil Corp

• Hinduja Power Ltd bought 8 lakh shares or 1.6 percent stake at RS 518 each
• Dilipkumar Vishindas Lakhi sold 4.49 lakh shares or 0.9 percent stake at Rs 518 each
• IAM Ltd sold 3.50 lakh shares 0.7 percent stake at Rs 518 each

CDSL

• FID Funds (Mauritius) sold 7.58 lakh shares at Rs 344.74 each

Radico Khaitan

• Reliance Capital Trustee Co. Ltd account Reliance Growth Fund sold 11.7 lakh shares or 0.9 percent stake at Rs 160.19 each
• OHM Investment Corp bought 9.50 lakh shares or 0.7 percent stake at Rs 160 each

NCC

• Promoter Alluri Gopala Krishnamraju sold 30 lakh shares or 0.5 percent stake at Rs 82.5 each
• Sirisha Projects pvt ltd bought 50 lakh shares or 0.9 percent stake at Rs 82.6 each

IPO Watch

• SBI Life Insurance lists. Issue price Rs 700 per share.

Who's Meeting Whom?

• Tata Steel Analyst day on October 4 -6
• Tata Motors to meet GIC on October 4 and CLSA on October 5
• Eris Life to meet Systematix shares on October 3

Rupee

• The rupee extends gains for a second day. The local currency closed Friday's trade at 65.28 against the U.S. dollar, up 0.3 percent

Top Gainers And Losers (Week-To-Date)

Top Gainers And Losers (Month-To-Date)

Top Gainers And Losers (Quarter-To-Date)

Index Trends

F&O Cues

• Nifty Oct Futures premium at 12 points versus 18 points previous day
• October Futures-Nifty OI up 4 percent, Bank Nifty OI 6 percent
• India VIX closed lower by 5.2 percent at 12.48
• October series highest Call base at 10,000 (OI at 48.3 lakh, up 19 percent)
• October series highest Put base at 9,700 (OI at 35.2 lakh, OI up 4 percent)
• October call strikes 9900, 10,000 and 10,100 see OI addition
• October put strikes 9600, 9,700 and 9,800 see OI addition

F&O Ban

In Ban: Indiabulls Real Estate

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 1.19 versus 1.24
• Nifty Bank PCR at 0.91 versus 0.94

Stocks Seeing High Open Interest Change

• JSW Energy sees OI addition of 24 percent on long side
• Indiabulls Real Estate sees OI addition of 20 percent on long side
• Canara Bank sees OI addition of 19 percent on short side
• GAIL sees OI addition of 17 percent on long side
• Titan sees OI addition of 15 percent on long side
• Ramco Cement sees OI addition of 14 percent on long side
• JP Associates sees OI addition of 12 percent on long side
• Escorts sees OI addition of 9 percent on long side

Fund Flows

Brokerage Radar

Jefferies on ONGC

• Maintains Buy Rating with a price target of Rs 200
• Expect another revision of 10-15 percent in the next 12 months
• Expect natural gas EBITDA to rise 39 percent over FY17-21
• Oil prices still more critical; expect oil prices to rise to $65 a bbl

IDFC Securities on Coal India

• Initiates Outperformer rating with target price of Rs 310
• Back on growth path after subdued FY17; expect coal price and volumes to grow at CAGR of 3 percent and 6 percent respectively over FY17-20
• Rise in coal prices to lead EBITDA CAGR of 21 percent over FY17-20
• Net sales and profit to grow at CAGR of 9 percent and 17 percent over FY17-20
• Expect dividend per share of Rs 19 and Rs 23 for FY18 and FY19 respectively
• Return on equity to double to 82 percent in FY20

Brokerages on Dr Reddy's Renvela Launch

• Morgan Stanley: Estimate sales of $70 – 80 milllion assuming 30 percent market share, 50 percent price drop. Product will have high margins of above 80 percent
• Nomura: Expect sales of $30 million in FY18 and $40 million in FY19
• Goldman Sachs: gRenvela can add around 5 percent to net income over next 12 months

Nomura on GAIL (India)

• Maintains Buy; hiked price target to Rs 600 from Rs 470; Potential Upside of 43 percent
• Unified tariff biggest positive for GAIL in recent years
• Unified tariffs to boost overall gas demand
• Hike FY19 EPS estimates by 7 percent
• Expect 37 percent and 31 percent earnings growth in FY18 and FY19 respectively

Credit Suisse on Pidilite Industries

• Maintains Outperform; cut price target to Rs 910 from Rs 920
• Input cost headwinds to impact near term margins; cut EPS estimates by 3 percent for FY18
• Expect second quarter to see recovery in sales; stronger recovery in second half FY18 aided by a weak base of demonetisation
• Recent correction provides a good entry point
• Expect 9 percent sales growth, 220 basis points decline in margins and 5 percent decline in net profit in second quarter.

Brokerages on Monetary Policy

• JPMorgan: RBI likely to adopt “wait and watch” strategy due to increased macroeconomic and inflation uncertainty. Markets likely to focus on the tone and guidance of policy, and how RBI looks at the various moving parts.
• Edelweiss: Expect RBI to leave rates unchanged while maintaining a dovish bias. Continue to expect another 25 basis points rate cut in FY18, although more may be warranted.

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