All You Need To Know Going Into Trade On September 22

Asian stocks dropped in early trade on Friday with U.S. equity-index futures after a report that North Korea could respond to fresh sanctions with a hydrogen bomb in the Pacific.

The fresh threats diverted attention from the monetary-policy decisions that have dominated markets' focus this week. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, declined 0.54 percent to 10,086 as of 7:06 a.m.

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

Global Cues

• Benchmark U.S. equity indexes gave back ground on Thursday, with tech, consumer, and health care stocks faring particularly poorly.
• The Bloomberg Dollar Spot Index fell 0.2 percent after touching the highest in more than two weeks on Thursday.

#BQMarketsNow | U.S. stocks retreat from record highs, oil trades above $50 a barrel.https://t.co/eAZgk57kv6 pic.twitter.com/D3ZTWegRBc

Europe

• European markets closed higher on Thursday, after the Federal Reserve announced a plan to begin unwinding its balance sheet and signaled one more interest rate hike for this year
• Europe's banking index led the gainers yesterday, up more than 1.6 percent amid reports of a potential merger between Commerzbank and BNP Paribas

Asian Cues

• Japan's Topix index fell 0.4 percent and South Korea's Kospi index slid 0.6 percent. Australia's S&P/ASX 200 Index added 0.1 percent.
• Futures on the S&P 500 Index retreated 0.3 percent.
• The MSCI Emerging Markets Index was little changed after dropping 0.4 percent, its worst performance in two-and-a-half weeks.

Commodity Cues

• West Texas Intermediate crude was little changed at $50.59 a barrel.
• Gold rose 0.4 percent to $1,296.18 an ounce.
• Copper, aluminum, zinc, nickel and tin all fell on the London Metals Exchange.
• ICE Sugar ended higher for second day at 14.73 $/lb; up 0.2 percent

Shanghai Exchange

• Steel trades lower for third day; down 2.31 percent
• Aluminium snaps three-day winning streak; down 2.59 percent
• Zinc trades lower for second day; down 2.34 percent
• Copper trades lower for second day; down 0.66 percent
• Rubber trades lower for seventh consecutive session; down 1.6 percent

Indian ADRs

Stocks To Watch

• InterGlobe Aviation approves allotment of 3.35 crore shares pursuant to QIP of 2.23 crore shares are fresh issue and 1.11 crore shares are offer for sale
• KNR Construction JV bags order worth Rs 884.47 crore from Government of Telangana
• Cox and Kings owned Meininger Hotels signs agreement with a Swiss developer for the construction of a hotel in Geneva
• De Nora Promoter Madhu Khanna sold her entire holding of 20,000 shares or 0.37 percent during last week
• Somany Ceramics acquires controlling stake in Sudha somany ceramics. To setup a vitrified tiles manufacturing unit in Andhra Pradesh
• REC to incorporate five project specific SPVs for the development of Intra-state Transmission lines in Jharkhand
• A2Z Infra Engineering to issue 8 crore equity shares aggregating to Rs 850 crore (74 percent of the company's total debt) towards One Time Settlement to its lending banks
• Bharti Airtel gets shareholders nod for merger of Telenor with company
• Adani Power shareholders nod to Mundra plant hive-off plan to subsidiary
• Bhagyanagar India and Bhagiradha Chemicals & Industries: Circuit limit changed to 10 percent
• Ravi Uppal to step down as managing director and group CEO of JSPL
• Reliance Capital in focus as Reliance Home Finance will list today
• Infosys delays second quarter earnings announcement to 24 October
• To cut debt, Usha Martin to sell wire ropes business (Economic Times)

Bulk Deals

A2Z Infra Engineering Ltd.

• IL&FS Financial Services Limited sold 18.34 lakh shares or 1.3 percent stake at Rs 42.13 each

Matrimony.com

• BNP Paribas Arbitrage sold 1.34 lakh shares at Rs 957.47 each

IOL Chemicals and Pharma

• IndiaStar (Mauritius) Ltd sold 14 lakh shares or 2.5 percent stake at an average of Rs 51.1 a piece
• Had sold 11 lakh shares or 2 percent stake on Sept 20
• Stock ended the day down 9.77 percent

GOCL Corporation Ltd

• Promoter Hinduja Power Ltd bought 8 lakh shares or 1.6 percent at Rs 500 each
• Manish Lakhi sold 2.53 lakh shares or 0.5 percent at Rs 500 each. Held 5.13 lakh shares or 1.04 percent stake as per June filing
• Dilipkumar Lakhi sold 4.19 lakh shares or 0.8 percent at Rs 500 each. Held 15.76 lakh shares or 3.18 percent as per June filing

Singer

• Promoter Singer (India) B.V. sold 1.82 lakh shares or 1.7 percent at Rs 261.19 each

Who's Meeting Whom

• Dixon Technologies to meet Steadview Capital & Dragoneer on September 22
• SQS BFSI to meet investors and analysts on September 22
• Escorts to meet investors in Delhi on September 22
• Astral Poly to meet Centrum and Shareholder Value Fund on September 22
• Eris Life to meet DHFL Pramerica on September 22
• HT Media will meet investors and analysts on September 22
• Adani Ports to meet investors on September 25
• Apollo Tyres roadshows with JM Financial on September 25-26
• Finolex Industries to meet analysts and investors on September 26 - October 3

IPO

• Prataap Snacks IPO opens today. Issue price of Rs 930 - Rs 938 per share
• SBI Life Insurance IPO day three. Issue subscribed 0.6 times

Rupee Check

• The currency slumped the most since May on Thursday amid worries that public finances will worsen as Prime Minister Narendra Modi's government considers measures to boost growth after last quarter's shock slowdown.
• Rupee ends at 64.80 against the dollar, versus 64.26 On Wednesday

Must Read: Rupee Doubters Emerge as Cracks Appear in India's Macro Picture

Top Movers & Shakers This Month (NSE 500)

Index Trends

F&O Cues

• Nifty Sep Futures closed with a premium of 16.9 points versus 21 points
• September Nifty Futures OI down 1 percent & Bank Nifty OI down 2 percent
• India VIX closed flat at 11.6 after surging to 12.18 in the session
• September series highest Call base at 10200 (OI at 51.6 lakh, down 8 percent )
• September series highest Put base shifts to 9900 (OI at 54.1) from 10,000
• Call strike 10,100 sees OI addition & unwinding seen for 10,200 & 10,250
• Put strikes 10,000, 10,150, 10,100 & 10,200 sees OI unwinding

F&O Ban

• In Ban: BEML, DHFL, HDIL, Indiabulls Real Estate, Indo Count Industries, India Cements, Infibeam, Jaiprakash Associates, JSW Energy, Reliance Communications, Just Dial, Wockhardt
• New In Ban: Reliance Communications, Wockhardt
• Out of Ban: Just Dial

Alert: 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.

PCR

• Nifty PCR at 1.51 versus 1.57
• Nifty Bank PCR at 0.83 versus 1.28

Stocks Seeing High OI Change-September Series

• Torrent Pharma sees OI addition of 30 percent on long side
• Strides Shasun sees OI addition of 17 percent on short side
• Ajanta Pharma sees OI addition of 14 percent on long side
• Wockhardt sees OI addition of 10 percent on long side
• Reliance Capital sees OI addition of 6 percent on short side
• Century Textiles sees OI shedding of 17 percent, long unwinding seen
• BEML sees OI shedding of 13 percent, long unwinding seen
• Divis Lab sees OI shedding of 12 percent, short covering seen

FUND FLOWS

Brokerage Radar

BoFA-ML on Godrej Properties

• Initiate Buy with price target of Rs 756; Potential Upside of 26 percent
• Robust sales completion of legacy projects to drive 44 percent EPS CAGR over FY17-20
• 'Godrej' brand + JV model = GPL best placed to gain share
• Return on equity to expand by 907 basis points to 20 percent in FY20
• Ability to add new projects not priced in by consensus

BoFA-ML on Oberoi

• Initiate Neutral with price target of Rs 432
• Revenue recognition of projects launched in FY15-16 to grow EPS at 77 percent CAGR over FY17-19
• Key triggers:- launches of new projects in Mumbai and robust outlook for office/retail
• Expect rental income from office space to witness 33 percent CAGR over FY17-20

BoFA-ML on Prestige Estates

• Initiate Buy with price target of Rs 334
• Rental income to double in 4 years given renewal of existing contracts and upcoming lease assets
• EPS to grow at CAGR of 40 percent over FY17-19; Return on equity to rise to 10 percent in FY19
• Triggers:- foray into affordable housing and potential strategic sale of commercial assets

BoFA-ML on DLF

• Initiate Underperform with price target of Rs 163
• Sales expected to remain weak over FY17-20 as it plans to launch projects only after obtaining occupancy certificate
• This will lead to negative free cash flows of Rs 2,000 crore over FY18-20
• Potential risk of 6 percent equity issuance; Valuations look expensive for 3 percent FY19 return on equity

Morgan Stanley on Future Retail

• Maintain Overweight; Hiked price target to Rs 660 from Rs 500
• Implementation of GST, continuing strong SSSG and private label brands offer good opportunity for margin expansion
• Small-format stores could drive further expansion in valuation multiples
• EPS estimates for FY18, FY19 and 20 hiked by 17 percent, 4 percent and15 percent

Deutsche Bank Markets Research On MRF

• Initiate Buy with price target of Rs 80,000; Potential Upside of 25 percent
• MRF commands a leadership position across key tyre segments
• Expect EPS to grow at CAGR of 16 percent over FY17-20
• Volumes to grow 10 percent per annum over FY17-20
• Expect free cash flow of Rs 2,500 crore over FY17-20

Deutsche Bank Markets Research On Ceat

• Initiate Buy with price target of Rs 2,150; Potential Upside of 22 percent
• Expect revenue and EPS to grow at 13 percent and 16 percent CAGR respectively over FY17-20
• Volumes to grow at CAGR of 9 percent over FY17-20
• Triggers:- strong growth in replacement and market-share gains in OEMs

Deutsche Bank Markets Research On Apollo Tyres

• Maintain Buy; Hiked price target to Rs 325 from Rs 275; potential upside 23 percent
• Apollo's capacity expansion to drive volumes and EPS
• Volumes and EPS to grow at CAGR of 11 percent and 12 percent respectively over FY17-20
• FY18 earnings to be weak due to negative price/raw material mix and capacity ramp-up costs

Motilal Oswal on United Breweries

• Upgrade to Buy from Neutral; Hiked price target to Rs 980 from Rs 875
• Impact of alcohol ban on highway, GST, and alcohol prohibition in a few states not as bad as feared
• GST impact on margins to be 100 basis points versus earlier expectation of 200 basis points in FY18
• Demand appears to be on the cusp of revival

Nomura on GSK Consumer Healthcare

• Maintain Neutral; Cut price target to Rs 5,271 from Rs 5,538
• Cut on the back of slowing rural growth, GST and demonetisation
• Cut FY18-19 earnings estimates by 7-8 percent
• Building in revenue growth of 10.3 percent for FY18
• EDITDA margins to decline by 110 basis points for FY18

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.