Sensex, Nifty Log Worst Week In Over Five Months

The broader indices outperformed their larger peers with the S&P BSE MidCap falling 0.1% and S&P BSE SmallCap rising nearly 0.5%. Eleven of the 19 sectoral indexes compiled by BSE Ltd. declined, with the S&P BSE Realty shedding over 1.5%

The market breadth was skewed in favour of bulls. About 1,814 stocks advanced, 1,416 declined and 178 remained unchanged.

India sold Rs 24,000 crore ($3.2 billion) of bonds at a weekly auction as planned, the Reserve Bank of India said in a statement.

• India sold Rs 13,000 crore of 6.1% 2031 bond at a cutoff yield of 6.2324% vs. 6.24% est.

• Sold Rs 7,000 crore of 6.76% 2061 bond at a cutoff yield of 6.9892% vs. 6.99% est.

• Sold Rs 4,000 crore of new 2028 floating rate bond

TVS Motor Company Ltd. reported vehicle sales for September of 347,156 units vs. 327,692 YoY.

• Sept. vehicle sales 347,156 units, +5.9% YoY

• Sept. sales +6% YoY

• Sept. exports 102,259 units, +20% YoY

• Sept. motorcycle sales 166,046 units, +19% YoY

• Mahindra & Mahindra Ltd. reported automotive sales for September at 28,112 units vs. 35,920 YoY.

• September automotive sales 28,112 units, -22% YoY

• Sept. exports 2,529 units, +61% YoY

• Sept. tractor sales 39,053 units, -7.8% YoY

• Sept. passenger vehicle sales 13,134 units, -12% YoY

Mahindra & Mahindra said that chip supply issues continued to pose difficulties. The company also added that it has taken several steps to mitigate chip supply effect

Bata India, Relaxo Footwears gain as proposed reopening of schools in various states boosts their sales outlook, according to A. K. Prabhakar, head of research at Mumbai-based IDBI Capital Market.

• A number of states in India including Karnataka, Delhi and Maharashtra have announced plans to reopen schools as Covid infections remain under control

• “Reopening of schools in Mumbai was a surprise, while it was expected for other states,” Prabhakar said via phone

Source: Bloomberg

Zee Entertainment Enterprises Ltd. said that its board considered the requisition notice of Invesco and deemed it 'not valid', as it suffered from multiple legal infirmities.

“Accordingly in the best interests of the company including stakeholders and shareholders, we express our inability to convene the EGM on the lines requisitioned by you (Invesco)”, Zee Entertainment said in an exchange filing.

• Tata Motors reported 28% YoY rise in sales for September

• September local sales 59,156 units, +28% YoY

• September passenger vehicle sales 25,730 units, +21% YoY

• September commercial vehicle sales 33,258 units, +34% YoY

• Registered Total Sales of 1,71,270 Units in 2Q

• On a MoM basis, Tata motors domestic passenger vehicle sales fell 8.16% in September.

• September passenger vehicle sales at 25,730 units vs 28,018 units in August

Shares of AurionPro Solutions Ltd. rose over 4% in intraday trade to Rs 210 apiece after the company signed two deals in its Data Centre business. The orders pertained to the setting up and designing of data centres for two marquee names in Indian market. The first order is from Tata Power. Aurionpro will power Tata Power to design and build Data Centre and Disaster Recovery Centre for its power plants. The data centre will manage the entire power management and critical operations technology for Maharashtra.

The second order is from IIT Guwahati, for whom Aurionpro is setting up a high performance computing data centre, as part of Indian government’s national supercomputing mission.

Trading volume on the stock was 2.1 times the 30-day average volume for this time of the day.

Shares of SML Isuzu Ltd. climbed over 6.8% in intraday trade to Rs 602 apiece after the commercial vehicle manufacturer reported a 99% growth in sales YoY in the month of September.

• September Cargo vehicles sales at 540 units vs 280 units YoY

• September Passenger Vehicles sales at 176 units vs 80 units YoY

• Total sales at 716 units vs 360 units YoY

Trading volume on the stock was 4.1 times the 30-day average for this time of the day. Shares of SML Isuzu crossed above the 50-day simple moving average, indicating potential upward price momentum.

Shares of VST Tillers Tractors Ltd. rose 10% to Rs 2,962.5 apiece after the company entered into a Master Service agreement with Zimeno Inc., USA to develop integrated tractor powertrain for electric tractor of Zimeno, Inc.

The company also shared its business update for September. Sales quantity in September for power tillers was 2,441 units vs 2,246 units YoY. Tractors sales at 666 units vs 1,004 units YoY.

Of the four analysts tracking the company, three maintained ‘buy’ and one maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 11.6%.

The relative strength index on the stock was 71, suggesting it may be overbought. Trading volume was 2.7 times the 30-day average volume for this time of the day.

• Total VECV sales at 6,070 units vs 3,506 units YoY

• Total Eicher Trucks & Buses sales at 6,014 units vs 3,450 units YoY

• Total domestic sales at 5,226 units vs 2,940 units YoY

• Total exports at 788 units vs 510 units YoY

Source: Exchange Filing

Ambuja Cements Ltd. has successfully started the commercial production of Clinker and Cement at the newly commissioned Marwar Greenfield Project in Nagaur district in Rajasthan.

Source: Exchange Filing

Ipca Laboratories Ltd. has announced that its wholly owned subsidiary Ipca Pharmaceuticals Inc, USA has acquired a further 20% share capital in Bayshore Pharmaceuticals LLC, a New Jersey based firm for $1.2 million.

In an exchange filing, Ipca laboratories said that Bayshore will now be wholly owned by Ipca Pharmaceuticals. The acquisition was completed upon signing of SPA on Thursday. Ipca will be able to use Bayshore’s platform for commercialization of registered generic drug products in the U.S. in future.

Bayshore reported a net income of Rs 164.07 crore and EBITDA of Rs 15.83 crore in the financial year ended March 31, 2021.

Of the 24 analysts tracking the company, 19 maintained ‘buy’, five maintained ‘hold’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 3.1%.

• August : 9,360 units

• September : 9,533 units

• Rise : 1.8%

• September local sales at 8,787 units

Source: Exchange Filing

ICICI Bank Ltd. has announced the acquisition of stake of Midland Microfin Ltd., a non-deposit taking non-banking financial company-microfinance institution (NBFC-MFI) for Rs 52.42 crore. Post the investment, ICICI Bank holds 9.9% of the share capital of Midland and 7.3% of the total share capital, as well.

About 45.08 lakh equity shares were acquired for a face value of Rs 10 each at a premium of Rs 106.27 apiece, ICICI Bank said in an exchange filing. The equity shares were allotted to ICICI Bank on Thursday.

Midland Microfin has posted a revenue of Rs 115.89 crore, Rs 184.1 crore and Rs 192.34 crore, in FY2019, FY2020 and FY2021, respectively.

Retail pharmacy chain Wellness Forever Medicare Ltd. seeks to raise as much as Rs 400 crore ($53.9 million) selling new shares in an initial public offering, while its shareholders plan to sell up to 16.04 million shares in an offer-for-sale as part of the IPO, according to its draft prospectus.

• IIFL Securities, Ambit Pvt., DAM Capital and HDFC Bank are managing the IPO

GST Collections Stay Above Rs 1 Lakh Crore For Third Straight Month In August

Shares of Sterling & Wilson Solar Ltd. rose 9.40% in intraday trade to Rs 437.6 apiece after the company secured its first order worth Rs 1,500 crore for its waste-to-energy business from a leading developers of energy assets in the United Kingdom and Europe.

In an exchange filing, Sterling & Wilson Solar said that the order pertained to processing 23.3 tonnes of non-recyclable, solid municipal waste per hour, diverting over 1.86 lakh tonnes of waste every year to produce 19.6 Mega Watt of energy, enough to power over 30,000 homes.

The relative strength index on the stock was 74, suggesting it may be overbought. Trading volume was 3.8 times the 30-day average volume for this time of the day.

• Maruti Suzuki India Ltd. has posted total sales of 86,380 units in September 2021.

• September total sales at 86,380 units vs 1,60,442 units YoY

• September domestic sales at 66,415 units vs 1,50,040 units YoY

• September sales to other OEM at 2,400 units vs 2,568 units YoY

• September sales exports at 17,565 units vs 7,834 units YoY

In an exchange filing, Maruti Suzuki said that the sales volume was adversely impacted due to shortage of electronic components.

Indian bonds are largely steady ahead of the first weekly debt auction of the fiscal second half. The rupee is headed for its biggest weekly loss since June on the global dollar strength.

• 10-year yields rose 1bp to 6.23%; 5-year yield steady at 5.66%; 6.64% 2035 yield also little changed at 6.73%

• USD/INR steady at 74.2425; up 0.8% so far in week, most since June

Shorter-term India sovereign securities gained in Friday morning trading.

• The 4-year yield fell 3bps to 5.308%

• The 10-year yield rose 0.9bps to 6.231%

• The 14-year yield was little changed at 6.729%

• The 4-year-10-year yield spread was 92.3bps, vs previous close 88.4bps

Shares of Natco Pharma Ltd. rose 2.29% in intraday trade to Rs 912 apiece after it announced that its marketing partner Breckenridge Pharmaceutical, Inc., has launched the 10 mg strength of Everolimus tablets in the U.S. market. Everolimus is a generic for Afinitor, a prescription medicine used to treat adults with neuroendocrine tumor of the stomach and intestine. It is also used in the treatment of breast cancer and renal cell carcinoma.

According to industry sales data, the 10 mg strength of Afinitor generated annual sales of $392 million during the twelve months ending July 2021.

• Tata Sons Pvt. is set to take over ailing Air India Ltd. again, more than half a century after the country's biggest conglomerate ceded control to the state, ending the government's hold over the airline.

• A panel of ministers accepted a proposal from bureaucrats, who recommended the conglomerate’s bid ahead of an offer from entrepreneur Ajay Singh.

• An official announcement is expected in coming days.

Source: People With Knowledge Of The Matter

A civil aviation ministry spokesman did not immediately respond to a request for comment.

Ramkrishna Forgings Ltd. has secured an order worth Rs 50 crore from a leading tractor OEM in India for the supply of tractor and farm equipments.

In an exchanging filing, the company said that the order would strengthen their presence in tractor industry in India, which has shown significant recovery amid the pandemic, and boded well for growth prospects.

All three analysts tracking the companymaintained ‘buy’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 9%.

• India Manufacturing PMI expands at a quicker pace in September.

• Manufacturing PMI rises to 53.7 in September from 52.3 in August.

• This is the third consecutive month of expansion for manufacturing PMI

Source: IHS Markit

Oravel Stays Ltd. seeks to raise as much as Rs 7,000 crore ($943 million) via new shares in an initial public offering, while its shareholders plan to sell Rs 1,430 crore of shares in an offer-for-sale as part of the IPO, according to a copy of its draft prospectus seen by Bloomberg News.

• Oravel may also consider a pre-IPO placement of up to Rs 1400 crore

• A company representative declined to comment on the filing

Source: Bloomberg

Shares of Jubilant Foodworks Ltd. rose 1.71% to Rs 4,109.95 apiece after the company said that its wholly owned subsidiary Jubilant Foodworks Netherlands B.V will acquire up to 17.18% ordinary shares of DP Eurasia N.V. through a reverse bookbuild process from certain professional investors of DP Eurasia. Post-acquisition, the company will indirectly hold up to 49.99% ordinary shares of DP Eurasia. Further, the company has exercised a call option for acquiring 39% equity stake in Jubilant Golden Harvest. Post-acquisition, the company will own 90% of the total shareholding of JGH.

Of the 32 analysts tracking the company, 23 maintained ‘buy’, five maintained ‘hold’ and four maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 13.6%

Shares of Steel Strips Wheels Ltd. rose nearly 3.70% to Rs 1,770 apiece after the company reported highest ever quarterly net sales above Rs 900 crorre. This is the third consecutive month in which the sales crossed Rs 300 crore.

For the month of September alone, sales was up 80% YoY to Rs 301.21 crore. Gross turnover rose by over 76% to Rs 354.86 crore, the company said in an exchange filing.

• Bajaj Auto reported vehicle sales for September of 402,021 units vs. 441,306 YoY.

• Sept. vehicle sales 402,021 units, -8.9% YoY

• Sept. sales -9% YoY

• Sept. motorcycle sales 361,036 units, -11% YoY

• Sept. exports 209,673 units, -1.4% YoY

BVG India Ltd. seeks SEBI's approval to raise as much as Rs 200 crore selling new shares, while its shareholders plan to sell up to 7.2 million shares in an initial public offering, according to its draft prospectus.

• Investor Strategic Investments FM (Mauritius) Alpha Ltd., part of 3i Group Plc, is selling up to 3.38 million shares; founders Hanmantrao Ramdas Gaikwad selling up to 1.7 million shares and Umesh Gautam Mane selling 300,523 shares

• The Pune-based company is considering a pre-IPO placement to raise Rs 40 crore ; fresh share issue in the IPO will be lower if the pre-IPO sale happens

• ICICI Securities, JM Financial and HSBC Securities will manage the offer

The broader indices outperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap declining 0.2% . Fifteen of the 19 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal index shedding nearly 1.5%.

The market breadth was skewed in favour of bears. About 955 stocks advanced, 1,131 declined and 113 remained unchanged.

Escorts Ltd reported sales for Sept. of -25.6%.

• Sept. sales -25.6% YoY

• Sept. vehicle sales 8,816 units, -26% YoY

• Sept. local sales 7,975 units, -30% YoY

• Sept. exports 841 units vs. 398 YoY

Reliance has 2.76 million shares change hands in a pre-market trade

Rupee bond traders will assess FTSE Russell’s decision to keep India on its watchlist for bond index inclusion. Traders are also waiting to gauge demand at the first bond auction of the fiscal second half.

FTSE Russell said it would continue to keep Indian government bonds on its watch list for possible inclusion in its debt index

• India will stay on the watch list, which it got on in March, given “the ongoing market structure reforms intended to enhance accessibility for foreign investors and the progress made to date,” the index provider said

• Indian states to borrow Rs 2.02 lakh crore in Oct.-Dec. quarter: RBI

• India’s current-account balance swung to a surplus last quarter, thanks to robust services exports and a narrower trade deficit

  • The current account, the broadest measure of overseas trade, was in a surplus of $6.5 billion, or 0.9% of gross domestic product, in the three months ended June, the Reserve Bank of India said in a statement on Thursday. The median in a Bloomberg survey of 11 economists was for a surplus of $2 billion

• USD/INR rises 0.1% to 74.2388 on Thursday

  • Implied opening from forwards suggest spot may start trading around 74.28

• 10-year yields rose 2bps to 6.22% on Thursday

• State-run banks bought Rs 5,490 crore of sovereign bonds on Sept. 30: CCIL data. Foreign banks sold Rs 1,750 crore of bond

China Orders Top Energy Firms to Secure Supplies at All Costs

India’s gas related equities will be in focus after government raises price of fuel produced from domestic fields for the first time in two years following a global rally.

• The price of gas produced from fields operated by state explorers has been increased by 62% to $2.9 per million British thermal units while the ceiling price for gas produced from difficult fields will be higher by 69% to $6.13/mmBtu, according to the oil ministry’s Petroleum Planning & Analysis Cell

• In Focus: Oil & Natural Gas Corp, Oil India, Reliance Industries, Hindustan Oil Exploration

• Also In Focus: City-gas retailers, other related companies: Gujarat Gas, Mahanagar Gas, Indraprastha Gas, Adani Total

• Ceramic, fertilizer makers will also be in focus: Kajaria Ceramics, Cera Sanitaryware, Chambal Fertilizers, EID Parry, Coromandel International, Rallis India, Deepak Fertilisers.

Zee - Invesco Case: NCLT Directs Zee's Board To 'Positively Consider' EGM

All You Need To Know Going Into Trade On October 1