Sensex, Nifty Fall For Second Day As Banks, FMCG Stocks Drag

The broader indices outperformed their larger peers with the S&P BSE MidCap gaining over 0.6% and S&P BSE SmallCap adding 0.4%. Twelve of the 19 sectoral indexes compiled by BSE Ltd. advanced, with the S&P BSE Utilities index rising nearly 4% and S&P BSE Power index adding over 3.5%.

The market breadth was skewed in favour of bulls. About 1,930 stocks advanced, 1,351 declined and 153 remained unchanged.

• Cabinet approves Rs 4,400 crore extra capital injection in Export Credit Guarantee Corporation of India.

• Government planning to list ECGC

- Piyush Goyal, Minister of Commerce & Industry

NSE Nifty 50 Index is now up 0.1%; dropped as much as 0.8% earlier; S&P BSE Sensex -0.1%.

• State Bank of India +2.3%, Sun Pharmaceutical +4.5% are the biggest boosts to the Nifty gauge

• MSCI Asia Pacific Index down 1.2%

• Fifteen of 19 sector indexes compiled by BSE Ltd. advanced, led by a gauge of utilities

• Shares of City Union Bank Ltd. rose nearly 7% in intraday trade, the most in over 5 months, to Rs 160.7 apiece.

• Trading volume on the stock was triple the 20-day average for this time of the day.

• City Union Bank trades at 17 times its estimated earnings per share for the coming year.

• Analysts have 21 'buy', five 'hold' and two 'sell' recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 21.8%.

• Shares of City Union Bank crossed the 50-day simple moving average, indicating potential upward price momentum.

• Adani Power Ltd. has 1.57 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

Shares of ABB India Ltd. rose over 2% to Rs 1,838.8 apiece after the company announced it will provide electromagnetic brake systems for two compact strip production casters at Tata Steel’s plant in Jamshedpur.

In an exchange filing, ABB India said that the scope of supply also included DCS800 DC drives, dry type transformers, water cooling systems, commissioning services and metallurgical performance evaluation.

The two ABB electromagnetic brake systems to be installed at Tata Steel’s plant is expected to improve the quality and lower production costs for the plant.

Of the 32 analysts tracking the company, 14 maintained ‘buy’, nine maintained ‘hold’ and nine maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 5%.

• SBI Cards & Payments Services Ltd. has 1 million shares change hands in a bunched trade.

• Details of buyers and sellers are not immediately known.

Source: Bloomberg

• India is planning to list ECGC Ltd., a state-run export credit insurer, as part of a broader asset divestment plan

• The proposal will be sent for approval of the cabinet of ministers soon

Source: People Familiar With The Matter

• A spokesman for the commerce ministry couldn’t be immediately reached for a comment

Reliance Industries Ltd. has clarified that the appointment of Yasir Al Rumayyan as an additional director on June 24, 2021 has no connection with the contemplated transaction with Saudi Aramco. In an exchange filing, RIL said that the O2C business of the company is being spun off into a subsidiary and Saudi Aramco will participate in the equity of the O2C subsidiary, which may have nominees of Saudi Aramco to protect its interest.

RIL will continue to adhere to the best practices of corporate governance with regard to appointment of independent directors, the company said in the exchange filing.

• Tata Group is likely to receive the approval from Indian government to take control of Air India since it is capable of pouring large sums to revamp the flag carrier.

• Tatas have been very, very passionate about Air India.

• JRD Tata on record had once said that Air India is his only creation, rest of the Tata companies came to him and he was only managing them.

• There was a lot of passion, lot of emotional connection between Tatas and Air India, and that has made them bid for it.

• The government should not hope for a large sum of money and must take a pragmatic view in selling Air India because keeping the ailing flag carrier would mean straining state finances year after year.

Source: Former Air India Director Jitender Bhargava to Bloomberg TV

Shares of Morepen Laboratories Ltd. rose 3.30% in intraday trade to Rs 57.9 apiece after the company announced plans to carve out its point of care (POC) medical devices into a newly incorporated wholly owned subsidiary Morepen Devices Ltd.

In an exchange filing before market hours Wednesday, the company said that shareholders have given their nod for the creation of a new subsidiary on Tuesday, in the 36^th Annual General Meeting.

The transfer of the business would happen according to the terms of the Business Transfer Agreement to be signed between Morepen Labs and the subsidiary.

The medical devices business has delivering exponential growth over the past few years. In the financial year ending March 2021, the medical devices segment grew 71%. In Q1FY22, the POC business grew 187%. The company expects the growth drivers for the business to remain intact in the future.

The global POC market is expected to cross $51 billion by 2025 and Morepen Devices is well placed to utilize the opportunity, the CEO of Medical Devices Business, Anubhav Suri was quoted as saying in the exchange filing.

• India aims to narrow budget deficit to 6.3% of GDP this fiscal year.

• Government had set FY22 deficit target at 6.8%.

• Target reset is buoyed by expectations of robust tax collections in the coming months and achievement of assets-sale target.

• Government is expected to maintain its spending targets, with a focus on capital expenditure.

Source: People Familiar With The Matter

• HDFC Bank to re-launch three new products that target 75% of the existing market.

• Lender focusing on onboarding young users who are in the 20-25 age group.

• Two new products launched for users who prefer rewards or cashback.

• HDFC Bank launches three new credit cards in association with Visa.

• Freedom credit card offers 5x cash points and 0.99% interest for the first 90 days.

• Moneyback credit card accrues 10x cash points along with various partner offers.

• Millennia credit card will provide 5% cashback on 10 partner brands and cashback on other spendings.

Source: HDFC Bank Briefing

Shares of Sun Pharmaceutical Industries Ltd. rose 4.5% in intraday trade, the most in nearly two months, to Rs 809.75 apiece, higher than any close in over five years since September 8, 2016.

• Trading volumes was six times the 20-day average for this time of the day.

• Sun Pharma trades at 28 times its estimated earnings per share for the coming year.

• Analysts have 33 ‘buy’, three ‘hold’ and three ‘sell’ recommendations on the stock. The overall consensus price of analysts tracked by Bloomberg implied an upside of 6.4%.

• On Tuesday, Sun Pharmaceutical Industries Ltd. announced the launch of novel formulation in cough management – Chericof 12, in India. This is the first prescription cough syrup in India which gives relief for up to 12 hours.

• In an exchange filing, Sun Pharma said that the syrup is approved for patients of age group six years and above.

• Over the past two sessions, shares of Sun Pharma have risen over 6%.

SpiceJet Ltd. and Easy Trip Planners Ltd. announced an exclusive partnership to offer customized experience for holiday bookings for the upcoming season.

In an exchange filing, Easy Trip Planners said that the holiday booking services of SpiceJet will be exclusively powered by EaseMyTrip. Further, EaseMyTrip will offer a holiday booking platform to SpiceJet.

Shares of companies linked to India’s power sector surged, as a near-complete reopening of businesses increased demand for electricity.

• S&P BSE Utilities Index climbed to a record intraday, while the S&P BSE India Power Index, a group of 14 stocks, rose about 3% to its highest level since Nov. 2010

• Tata Power Ltd. gained as much as 8.9%, set for its highest level since January 2008; PTC India up as much as 11%, NTPC Ltd. +5.8, Torrent Power Ltd. +3.9%, Power Grid Corp. of India up 3.2%

• Govt data showed power demand for provincial utilities rose more than 10% in July and 18% in August from a year earlier as economic activity rebounded

• Coal India Ltd., which sells nearly three-fourth of output to local power firms, climbed as much as 12.9%

Indian bonds gain amid a retreat in crude prices. Traders will closely monitor yield cutoffs at a treasury bill sale Wednesday for signs on policy tightening from the RBI after it drained cash from the banking system at a sharply higher rate Tuesday.

• 10-year yield falls 2bps to 6.21%; 5-year yield drops 3bps to 5.65%

• The 10-year benchmark bond swung to a loss Tuesday after the RBI withdrew liquidity through its seven-day variable rate reverse repo at 3.99%. That’s 57 basis points higher than the previous auction and just a shade lower than the benchmark policy rate of 4%

• USD/INR rises 0.2% to 74.1613

Shares of Bharat Heavy Electricals Ltd. rose nearly 5% to Rs 63.35 apiece after the company procured goods and services over Rs 1,500 crore in the first six months of the current fiscals, through the government e-marketplace portal (GeM).

In an exchange filing, BHEL said that the major procurements included steel, cement, cables, various sub-assemblies. BHEL has not only procured goods and services through GeM, but also registered as a ‘seller’ for various products on the platform.

Of the 26 analysts tracking the company, one maintained ‘buy’, four maintained ‘hold’ and 21 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 42%.

HCL Technologies Ltd. has signed a multi-year strategic deal with Belgium’s Proximus Group, to transform its data center business.

In an exchange filing, HCL Tech said that it will help Proximus achieve higher flexibility and reliance and will launch the Hybrid Next-Generation Cloud portfolio to support the large customer base of Proximus. In addition, the Benelux region’s mid-market and government businesses will gain access to join solution offerings of HCL Tech and Proximus.

Of the 49 analysts tracking the company, 42 maintained ‘buy’, four maintained ‘hold’ and three maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 2.2%

Tata Consultancy Services Ltd. has been selected as strategic partner by Sweden’s pharma retailer, Apoteket, to accelerate its digital transformation plans.

In an exchange filing, TCS said it will provide end-to-end IT services and consulting across Apoteket and help drive innovation by leveraging the TCS Pace Port in Amsterdam. TCS has been working with Apotoket since 2014.

Apotoket stores draw 34 million customers annually, making it the leading pharma retailer in the country.

• Shares of Computer Age Management Services Ltd. shed over 9%, the most since its listing, to Rs 3,135.7 apiece.

• Trading volume was five times the average for this time of the day.

• CAMS trades at 59 times its estimated earnings per share for the coming year.

• Analysts have five 'buy', no 'hold' and two 'sell' recommendations on the stock.

• The decline in shares of CAMS comes ahead of the end of the equity lockup period on 39 million shares of the company on October 1.

Aditya Birla Sun Life AMC IPO Subscription Status: Day 1 Updates

Yields fell across the India sovereign yield curve in Wednesday morning trading.

• The 4-year yield fell 3bps to 5.299%

• The 10-year yield fell 2.1bps to 6.207%

• The 14-year yield fell 1.8bps to 6.715%

• The 4-year-10-year yield spread was 90.8bps, vs previous close 89.9bps

Shares of Blue Star Ltd. rose over 5% to Rs 939.2 apiece after the company’s subsidiary Blue Star Climatech Ltd announced that it is setting up a new state-of-the-art manufacturing facility in Sri City in Chittoor district in Andhra Pradesh. The company laid the foundation stone at the site, according to an exchange filing by Blue Star.

• Blue Star plans to invest Rs 550 crore on this planet over the next few years, in a phased manner, over the next few years. The company also intends to acquire IGBC Gold Rated Green Building Certification for the plant. The construction is expected to be completed by July 2022.

• Blue Start has filed an application to manufacture heat exchangers and sheet metal components at the plan, by leverage the PLI scheme of the government.

• Of the 23 analysts tracking the company, 11 maintained ‘buy’, seven maintained ‘hold’ and five maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 6%. The relative strength index on the stock was 73, suggesting it may be overbought.

• Karur Vysya Bank Ltd. has 25 million shares (accounting for 3.1% equity) change hands in 10 bunch trades.

• Buyers and sellers were not immediately known.

Source: Bloomberg

Shares of BLS International Services Ltd. rose nearly 5% to Rs 266 apiece after the company won the contract with Embassy of Italy in Russia for processing visa for a period of five years. Under the contract, the company is estimated to process 1.4 lakh applications annually in 20 centres across Russia, BLS International said in an exchange filing.

Shares of Godrej Properties Ltd. rose 2.5% to Rs 2,290 apiece after the company announced that it entered into an agreement to redevelop a land parcel in Wadala, Mumbai. The project, spread across 7.5 acres, will offer 0.15 million square metre of saleable area primarily comprising of residential apartments.

• In an exchange filing, Godrej Properties said that the land parcel is situated in a marquee residential location and is very close to Matunga Five Gardens. The project has connectivity via road, rail and monorail services.

• Of the 20 analysts tracking the company, five maintained ‘buy’, six maintained ‘hold’ and nine maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 35.9%.

• The relative strength index on the stock was 85, suggesting it may be overbought.

• Trading volume was 1.9 times the 30-day average volume for this time of the day.

• Godrej Properties was the top gainer among peers in the S&P BSE Realty Index in September so far with the shares gaining 53% compared to 31% gains for the realty index

Shares of NBCC India Ltd. rose nearly 9% to Rs 51 apiece after the company said that the estimated cost of construction for development of various land parcels of Delhi Transport Corporation rose to Rs 1,942 crore from the earlier Rs 1,000 crore.

Trading volume on the stock was 13.6 times the 30-day average volume for this time of the day.

Of the four analysts tracking the company, two maintained ‘hold’ and two maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 15.2%

Max Healthcare Shares Fall After 9% Equity Changes Hands In Block Trades

Shares of Lupin Ltd. rose nearly 2% to Rs 964.05 apiece after the company launched Droxidopa capsules, 100 mg, 200 mg and 300 mg in the U.S., after receiving the regulatory approvals. The product is manufactured at Lupin’s facility in Nagpur.

In an exchange filing post market hours Tuesday, Lupin said that the Droxidopa capsule is a generic equivalent of Northera capsules, used to treat orthostatic dizziness, light headedness in adults with symptomatic neurogenic orthostatic hypertension.

Droxidopa capsules had an estimated annual sales of $294 million in the U.S., as of July 2021, according IQVIA.

Of the 41 analysts tracking the company, 19 maintained ‘buy’, eight maintained ‘hold’ and 14 maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 11.4%

The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap shedding over 0.5% . Fourteen of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Bankex shedding over 1%

The market breadth was skewed in favour of bears. About 870 stocks advanced, 1,142 declined and 114 remained unchanged.

Morepen Laboratories Ltd. has announced carving out its point of care (POC) medical devices into a newly incorporated wholly owned subsidiary Morepen Devices Ltd.

In an exchange filing before market hours Wednesday, the company said that shareholders have given their nod for the creation of a new subsidiary on Tuesday, in the 36^th Annual General Meeting.

The transfer of the business would happen according to the terms of the Business Transfer Agreement to be signed between Morepen Labs and the subsidiary.

The medical devices business has delivering exponential growth over the past few years. In the financial year ending March 2021, the medical devices segment grew 71%. In Q1FY22, the POC business grew 187%. The company expects the growth drivers for the business to remain intact in the future.

The global POC market is expected to cross $51 billion by 2025 and Morepen Devices is well placed to utilize the opportunity, the CEO of Medical Devices Business, Anubhav Suri was quoted as saying in the exchange filing.

• Reliance Industries Ltd. has 2.26 million shares change hands in pre-market trade.

• Buyers and sellers were not immediately known.

Source: Bloomberg

SEBI Tightens Screws On Related-Party Transactions

Aditya Birla Sun Life AMC IPO: All You Need To Know

 Veeda Clinical Research Ltd. is seeking to raise as much as Rs 332 crore ($44.8 million) selling new shares, while its shareholders plan to sell Rs 500 crore worth of shares in an offer-for-sale as part of the IPO, according to its draft prospectus.

Founder Basil Pvt. will sell Rs 142 crore worth shares; investors Bondway Investments Inc. will sell Rs 260 crore of shares and Arabelle is offering Rs 90.2 crore worth of shares in the IPO

The Ahmedabad-based clinical research company provides services for drug development and drug launch value chain in markets including North America, Europe and Asia

SBI Capital Markets, ICICI Securities, JM Financial and Systematix Corporate Services will manage the sale

Indian bond traders will closely monitor yield cutoffs at a treasury bill sale on Wednesday for signs on policy tightening from central bank after it drained cash from the banking system at a sharply higher rate on Wednesday.

• The 10-year benchmark bond swung to a loss after the RBI withdrew liquidity through its seven-day variable rate reverse repo at 3.99%, it said in a statement on Tuesday. That’s 57 basis points higher than the previous auction and just a shade lower than the benchmark policy rate of 4%

• 10-year yields rose 2bps to 6.23% on Tuesday after declining to 6.18% earlier

• USD/INR rises 0.3% to 74.0462 on Tuesday

• Global funds sell net Rs 1,960 crore of India Stocks Tuesday: NSE

  • They sold Rs 484 crore of sovereign bonds under limits available to foreign investors, and added Rs 326 crore of corporate debt

  • State-run banks bought Rs 2,000 crore of sovereign bonds on Sept. 28: CCIL data. Foreign banks sold Rs 370 crore of bonds.

Godrej Properties Ltd. announce that it has entered into an agreement to redevelop a land parcel in Wadala, Mumbai. The project, spread across 7.5 acres, will offer 0.15 million square metre of saleable area primarily comprising of residential apartments.

In an exchange filing, Godrej Properties said that the land parcel is situated in a marquee residential location and is very close to Matunga Five Gardens. The project has connectivity via road, rail and monorail services.

Indian drugmaker Zydus Cadila aims to start trials on a mRNA-based vaccine, Mint newspaper reported, citing people it didn’t identify. The company is in early stages of scouting for partners for the trial Cadila didn’t respond to the newspaper’s request seeking a comment, according to the report.

All You Need To Know Going Into Trade On September 29