All You Need To Know Going Into Trade On October 5

Asian equities began the session with a muted start, with markets in Hong Kong, China, and South Korea all closed for holidays.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.22 percent to 9,925 as of 7:10 a.m.

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

Global Cues

• U.S. stocks ended a meandering session at fresh records, while the dollar and Treasuries were little changed as a host of events vied for investor attention.
• The S&P 500 Index got a slight boost from data showing American services industries climbed at the fastest pace in 12 years, while private jobs numbers met expectations.

#BQMarketWrap | Dollar, Bonds are listless as oil drops below $50.https://t.co/11CqBsWRTr pic.twitter.com/IUvQgZnp0j

October 5, 2017

Europe

• Most of the European markets ended Wednesday's session lower amid concerns over further political upheaval in Spain.
• The pan-European Stoxx Europe 600 index weakened by 0.12 percent after eurozone retail sales decreased for the second straight month in August, defying economists' forecast for a rebound.

Asian Cues

• Japan's Topix index was little changed. Australia's S&P/ASX 200 Index added 0.1 percent.
• Futures on the S&P 500 Index were little changed in Tokyo.

Commodity Cues

• West Texas Intermediate crude dropped 0.9 percent to $49.98 a barrel on Wednesday.
• Brent crude trades lower for the eight-consecutive session at $55.71 a barrel, down 0.16 percent
• Gold was little changed at $1,275.39 an ounce.
• ICE sugar ended 1.5 percent higher at $14.25 cents per pound

Here are the key events coming up during the remainder of this week:

• Australia's trade balance and retail sales data are due Thursday.
• Minutes of the last ECB meeting are also scheduled for Thursday.
• The U.S. September nonfarm payrolls report, likely to be affected by the impact of hurricanes on southern states, comes out on Friday.

Indian ADRs

Stocks To Watch

• Rajnish Kumar named SBI chairman for 3 years
• Reliance Communications withdraws plan to demerge towers; Will file new application later
• NMDC set lump ore price at Rs 2,300 a tonne and fines price at Rs 2,060 a tonne from October 5
• Force Motors September domestic sales at 2,798 units
• ONGC completed acquiring 30 percent participating interest in Namibia offshore blocks
• HDFC said it expects Rs 65 crore profit on sale of investments for September-ended quarter
• FPI investment limit in Parag Milk Foods raised to 40 percent from 24 percent earlier
• EESL confirmed an order where Tata Motors will supply 250 electric vehicles and Mahindra and Mahindra to supply 150 electric vehicles.
• Mukand promoters released pledge on 11.6 lakh shares, or 0.82 percent stake
• Satin Creditcare QIP opened yesterday at floor price of Rs 308.56. Issue size:- Rs 125-150 crore
• Future Retail Board meet today to discuss issue of equity shares on pref basis
• Future Retail set to buy Shoppers Stop's Hypercity for Rs 700 crore (Economic Times)
• SEBI questions Raymond over real estate deals (Mint)

Corporate Announcements

• Jamna Auto: Ex date for stock split from Rs 5 to Re 1 per share
• Zee Media: Ex entitlement date for demerger
• Shivalik Bimetal Controls: Ex date for 1:1 bonus
• Dishman Carbogen Amcis: Last trading day under T group

IPO

• Prataap Snacks lists today at a base price of Rs 938. The issue was subscribed 47.4 times.
• Godrej Agrovet IPO continues on day 2. The issue has been subscribed 0.53 times till now.

Bulk Deals

Kiri Industries:

• GMO Emerging Markets Fund sold 1.39 lakh shares (0.5 percent) at Rs 374.19.
• GMO held 17.54 lakh shares (6.30 percent) as per June filing

India Grid Trust:

• Reliance Venture Asset Mgmt sold 65.57 lakh shares at Rs 95 each
• Shine Star Build Cap bought 63.83 lakh shares at Rs 95 each

Bigbloc Construction:

• Meinl India Growth bought 74,000 shares at Rs 90 each

Kerala Ayurveda:

• Equity Intelligence India (Porinju Veliyath) bought 1.4 lakh shares (1.3 percent) at Rs 72.95 each
• Anil Kumar Kunjupanicker sold 1.38 lakh shares (1.3 percent) at Rs 72.92 each

Pankaj Polymers

• Garnet International sold 2 lakh shares (3.6 percent) at Rs 12.13 each.
• Garnet held 3.59 lakh shares (6.49 percent) as per June filing
• Kedia Prabha bought 2 lakh shares (3.6 percent) at Rs 12.13 each

Omkar Speciality Chemicals

• Promoter Omkar Herlekar sold 3 lakh shares (1.5 percent) at Rs 88.51 each

Who's Meeting Whom?

• Eicher to meet Morgan Stanley Investment Management on October 5
• FIEM Industries to meet Singular Capital on October 5
• JMC Projects to meet Kotak AMC on October 5
• Magma Fincorp to meet 28 investors including GMO, RIL Treasury, DSP on October 5
• Cochin shipyard to meet ICICI Lombard on October 5
• TBZ to meet Enam and India First life insurance on October 5
• Eris life to meet Reliance Mutual Fund on October 5
• Mahindra life to meet Edelweiss on October 5
• HPCL to meet CIMB Securities on October 6

Insider Trades (On October 4)

• Apollo Hospitals promoters bought 8,100 shares from open market
• Dhunseri Petrochem promoters bought 30,600 shares from open market
• Ashapura Minechem promoters sold 39,688 shares in open market
• Emami promoters revoked 3,61,360 shares
• Dish TV promoters revoked 32.2 lakh shares from pledge
• Adani Power promoters bought 40 lakh shares from open market

Rupee

Rupee ended at 65.01/$ on Wednesday from 65.50/$ on Tuesday

Top Gainers And Losers In October

F&O Cues

• Nifty October Futures premium at 15.5 points versus 9 points at 9930.4
• Rollover: Nifty open interest up 6 percent, Bank Nifty open interest down 1 percent
• India VIX closed lower by 5.3 percent at 11.8
• October series highest Call base at 10,000 (open interest at 43 lakh, down 7 percent)
• October series highest Put base shifts to 9800 (open interest at 44.9 lakh, up 27 percent)
• October Call strikes 10,000 saws unwinding & addition sawn for 10050, 10,100
• October put strikes 9800 & 9900 saw open interest addition

F&O Ban

• In ban: Indiabulls Real Estate, JP Associates, JSW Energy
• New in ban: JP Associates

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

Put-Call Ratio

• Nifty PCR at 1.29 from 1.24
• Nifty Bank PCR at 0.89 from 0.90

Stocks Seeing High Open Interest Change

• Bata India saw open interest addition of 23 percent on long side
• Page Industries saw open interest addition of 20 percent on long side
• Apollo Tyres saw open interest addition of 18 percent on short side
• Dish TV saw open interest addition of 11 percent on short side
• Infratel saw open interest addition of 9 percent on long side
• JP Associates saw open interest addition of 8 percent on long side
• BEML saw open interest addition of 7 percent on long side
• South Indian Bank saw open interest addition of 5 percent on long side

Fund Flows

• Foreign institutions sold Rs 632 crore in the cash market
• Domestic institutions bought Rs 584.4 crore in the cash market
• Foreign institutions bought Rs 1,832 crore in the F&O market
• Foreign institutions had sold Rs 437.5 crore on Tuesday, according to NSDL.

Brokerage Radar

CLSA On Mahindra And Mahindra

• Upgrade to ‘Buy' from Outperform; Hiked target price to Rs 1,610 from Rs 1,585
• Volume growth is on an uptrend led by strong demand in tractors
• Volumes/EPS to grow at 11 percent/13 percent CAGR over FY17-20
• SUVs recovering as well; Upcoming MPV launch can boost growth
• Pick-up in rural economy to benefit M&M

ICICI Securities On Torrent Pharma

• Upgrade to ‘Add' from ‘Hold'; Hiked target price to Rs 1,374 from Rs 1,342
• Expect growth recovery from H2FY18 led by India, Brazil, U.S. business
• Cut Revenue/Net profit estimates by 1-3 percent/5-6 percent for FY18-20 to factor in weak India growth in FY18 and increase in R&D spend
• Expect Revenue/Net Profit to grow at CAGR of 13 percent/21 percent over FY18-20
• Higher contribution from India to help in faster growth recovery compared to peers

HDFC Securities On United Spirits

• Downgraded to Sell from Neutral; Cut target price to Rs 2,060 from Rs 2,340
• Reasons: persistent structural hurdles, increase in cost due to GST and rising competition
• Current rich valuations offer a decent EXIT point
• Expect earnings to grow at 57 percent CAGR over FY18-22 led by recovery in volumes, price increase and improvement in mix
• HDFC Securities says, “This is a great business, but we suspect the hangover is persistent”

Macquarie On Tata Motors

• Maintains Outperform; Cut target price to Rs 525 from Rs 550
• FY18/FY19 EBITDA estimates cut by 4-5 percent on lower JLR sales volume
• Management confident of improvement in JLR margins in H2FY18 and FY19
• With Nexon seeing good response management expects market share gain and PBT breakeven in FY18
• Expect JLR Volumes/Revenue/EBIT/Net Profit to grow at CAGR of 11 percent/14 percent/36 percent/34 percent over FY17-20

HSBC On Kajaria Ceramics

• Maintains Buy; Hiked target price to Rs 800 from Rs 785
• Industry facing headwinds on demand side post GST but slowly returning to normalcy
• GST alongwith residential completions and government initiatives to help gain market share
• Cut FY18-20 EPS estimates by 8-9 percent to factor slower volume and real estate sector recovery

Macquarie On HDFC

• Maintains Outperform with target price of Rs 1,890
• RERA may cause a temporary slowdown in the mortgage business, according to management
• Still loan growth of 15 percent in core mortgage book possible
• IPOs of the life insurance and AMC likely in 3-6 months
• Life-insurance business to be listed in Q3FY18
• Warrant conversion to yield Rs 5,000 crore and add 180 bps to Tier-1 ratio of 12 percent

Macquarie On Jubilant FoodWorks

• Maintains Outperform with target price of Rs 1,465
• Channel check suggests uptrend in SSSG; Top pick in consumer discretionary space
• Demand boost on enhancing quality & value for money factor
• Stock price is building in 6-7 percent SSSG
• Expect 14 percent revenue CAGR over Fy17-19; Margins to expand by 390 bps over FY17-19

JPMorgan On HCL Technologies

• Maintains Overweight with target price of Rs 1,000
• HCL remains confident of meeting FY18 CC revenue guidance of 10.5-12.5 percent is key positive
• HCL's acquisition dependent growth strategy should not bother investors
• On an organic basis expect FY18 revenue to grow 5-6 percent, suggesting 550-650 bps growth coming from acquisitions
• HCL only overweight rated stock in coverage list
• Key Triggers: Improving client mining, increasing share of U.S. nationals in workforce and bright outlook in financial services

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