PRE MARKET REPORT SEPTEMBER 10 - 2020
 


1.  US Markets are Negative

2.  EUROPEAN Markets are also Negative

3.  ASIAN Markets are Mixed

4.  Yesterday when our markets closed, Dow future was down more than 300 points.

5.  Then when their markets opened, Dow was up more than 300 points.

6.  Then markets fell and Dow closed more than 300 points down.

7.  A total swing of more than 1000 points.

8.  Dow broke Sep 8 low, but Nasdaq did not break.

9.  But right now US Futures are higher.

10. Asian markets are mostly down, except Japan and Hong Kong.

11. SGX Nifty is down by about 50 points.

12. Yesterday Nifty was up about 170 points of which 110 points was just due to Reliance.

13. Reliance is planning a 20 billion dollar stake sale to Amazon.

14. Reliance in an Exchange filing, neither denied, nor confirmed it.

15. Markets will take this statement as affirmative.

16. FIIs have bought for Rs 838 crores in Cash market.

17. But DIIs continue to sell, they have sold for more than Rs 300 crores.

18. Interest on interest case postponed by 2 weeks as Govt asked for 2 weeks time for its response.

19. Bank Nifty seems to be over sold.

20. There may be one short covering rally.

21. But do not know when that will happen.

22. Nifty has recovered about 250 points from low but Bank Nifty did not recover proportionally.

23. HDFC Bank is looking weak. That is the main reason for Bank Nifty under performance.

24. For any meaningful recovery, HDFC Bank has to go up.

25. India China Foreign Ministers meet, Interest on Interest case may be going in favour of Banks as Govt asking for 2 26. weeks time for its response, over sold nature of Bank Nifty, all pointing towards some short covering, it may happen       in the last one hour of today.

27. Though US markets were down, Asian markets are not reacting proportionally.

28. Nifty future may trade between 11380 and 11520.

--> The BSE Sensex surged 646.40 points or 1.69 percent to close at 38,840.32, while the Nifty50 jumped 171.30 points or        1.52 percent to 11,449.30 and formed a bullish candle on the daily charts

--> The broader markets also gained momentum as the Nifty Midcap index was up 1.23 percent and Smallcap climbed 1.6      percent.

Key support and resistance levels on the Nifty

According to pivot charts, the key support levels for the Nifty is placed at 11,363.07, followed by 11,276.93. If the index moves up, the key resistance levels to watch out for are 11,499.67 and 11,550.13.

Nifty Bank

The Bank Nifty snapped a five-day losing streak on September 10, rising 199.20 points to 22,466.20. The important pivot level, which will act as crucial support for the index, is placed at 22,234.7, followed by 22,003.2. On the upside, key resistance levels are placed at 22,688.2 and 22,910.2.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 838.37 crore, whereas domestic institutional investors (DIIs) net offloaded shares worth Rs 317.3 crore in the Indian equity market on September 10, as per provisional data available on the NSE.

Stock under F&O ban on NSE

Seven stocks -- Apollo Tyres, Bank of Baroda, BHEL, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power and Punjab National Bank -- are under the F&O ban for September 11. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

Stocks in the news

HealthCare Global Enterprises: V-Sciences Investments Pte Ltd sold 83,20,805 equity shares representing 9.38 percent of share capital of the company pursuant to the open offer on September 8.

National Fertilizers: The company reported total fertilizer sale of 23.81 lakh MT and production of 16.11 lakh MT urea in April-August, 2020.

Hindustan Aeronautics: The company reported profit at Rs 148.65 crore in Q1FY21 against Rs 564.69 crore, revenue fell to Rs 1,736.7 crore from Rs 3,289.5 crore YoY.

SRG Housing Finance: The company reported profit at Rs 3.53 crore in Q1FY21 against Rs 4.15 crore, revenue declined to Rs 15.8 crore versus Rs 16.3 crore YoY.

Jay Bharat Maruti: The company reported loss at Rs 21.04 crore in Q1FY21 against profit at Rs 7.8 crore, revenue declined to Rs 70.2 crore versus Rs 442.9 crore YoY.

Mirc Electronics: The company reported loss at Rs 10.74 crore in Q1FY21 against profit at Rs 0.88 crore, revenue dropped to Rs 94.54 crore versus Rs 177.57 crore YoY.

Vaibhav Global: The company successfully commissioned 1MW solar PV power generation project.

  Result Summary

Hindustan Aeronautics The company reported profit at Rs 148.65 crore in Q1FY21 against Rs 564.69 crore, revenue fell to Rs 1,736.7 crore from Rs 3,289.5 crore YoY.

SRG Housing Finance The company reported profit at Rs 3.53 crore in Q1FY21 against Rs 4.15 crore, revenue declined to Rs 15.8 crore versus Rs 16.3 crore YoY.

Jay Bharat Maruti The company reported loss at Rs 21.04 crore in Q1FY21 against profit at Rs 7.8 crore, revenue declined to Rs 70.2 crore versus Rs 442.9 crore YoY.

Mirc Electronics The company reported loss at Rs 10.74 crore in Q1FY21 against profit at Rs 0.88 crore, revenue dropped to Rs 94.54 crore versus Rs 177.57 crore YoY.


#UPDATES

China, India reach 5-point consensus to de-escalate border tension


 


·   Chinese and Indian foreign ministers issued a joint press release with a five-point consensus reached to de-escalate the current border tensions, after their highly anticipated meeting in Moscow Thursday evening.


·   China’s State Councilor and Foreign Minister Wang Yi elaborated China’s solemn position on the bilateral border situation at the meeting, and stressed that the key task at the moment is to stop firing, provocation and all dangerous acts that violate the commitments, withdraw all trespassing personnel and equipment, and disengage as soon as possible to cool down the situation.


·   In the five-point consensus, Wang and Indian Foreign Minister Subrahmanyam Jaishankar agree that China and India should follow the guidance of the consensus reached between leaders of the two countries including that divergence should not be escalated into conflicts.


·   The current conflict in the border areas does not serve the interests of either side. The border troops of the two countries should continue dialogue, disengage as soon as possible, maintain necessary distance and ease the current situation.


·   The two foreign ministers also agreed that as the situation eases, the two sides should speed up the completion of new measures to build mutual trust, and maintain and enhance peace and tranquility in the border areas.


·   China supports the border troops to strengthen onsite dialogue and solve specific issues. China is also ready to maintain diplomatic and military communication with India to restore peace and tranquility in the border areas.


·   Jaishankar said at the meeting that India does not want to see the escalation of tension in the border area and India's policy toward China has not changed. He said the India does not want to repeat the old path and India is ready to work with China to ease the border tension through dialogue and negotiation


AD/GDR, Pledge, Bulk Deal and Others


 


ADR/GDR


·   HDFC Bank down 1%, Ambuja Cement up 2%, L&T up 2%, Dr Reddy declined 1.5%, M&M down 1%, Tata Steel down 3%, Reliance gained 6% and ICICI Bank down 1%


·   Earnings Today – BHEL, IRCTC, Mishra Dhatu, Rail Vikas Nigam, Puravankara, Adani Green, Future Supply Chain, Premier Explosives and Orissa Mineral


Pledged Share Details


·   Future Consumer promoter Future Capital Investment invoked pledge of 1 crore shares on Sept.8


Insider Trades


·   Alembic promoter Nirayu acquired 2.82 lakh shares on Sept.8


·   ADF Foods promoter Bhavesh Thakkar sold 90,739 shares on Sept.8-9


·   Jamna Auto promoters acquired 2.8 lakh shares from Sept.7-9


·   Trident promoter Trident Capital acquired 1.5 lakh shares on Sept.9


·   Maruti Suzuki promoter Suzuki Motor Corporation acquired 2.84 lakh shares from Sept.8-9


·   Man Infra promoter Manan Shah acquired 2 lakh shares on Sept.9


Who’s Meeting Whom


·   BSE to meet Quantum AMC on Sept.11


·   Cummins to meet IIFL, Nomura and other investors on Sept.11


·   Mahindra & Mahindra to meet Sanford C Bernstein on Sept.11


·   EIH to meet Nippon India MF and Sundaram MF from Sept.11-12


·   Tata Steel to meet Bank of America Merrill Lynch on Sept.14


·   Heidelberg Cement to meet Sundaram MF on Sept.12


AGM Date:


·   IIFL Wealth Management, HEG, Jubilant Lifesciences, JK Paper, Anuh Pharma, Suven Life Sciences, VA Tech Wabag, Tata Steel Bsl, Bajaj Consumer Care.


·   Fund Raising: Puravankara. Deepak Fertilizers and Petrochemicals.


·   Record Date Rights Issue: Rushil Décor (Rights at 1:3, at a premium of Rs40 per share)


·   IPO Closes: Route Mobile



Economic Times

  Business Standard

Ø  Government planning incentives worth $23 billion to boost manufacturing

Ø  Yes Bank repays entire Rs 50,000 crore special liquidity facility dues to RBI

Ø  Two-thirds of Crisil-rated companies eligible for one-time loan recast

Ø  FTA talks with Russia, US, EU on, trade policy not planned around one nation: Piyush Goyal

Ø  Nabard to disburse Rs 1.20 lakh crore crop loan this fiscal

Ø  TRAI's R S Sharma calls for speedy liberalisation of satcom policy

Ø  India's exports in September first week jump 13% to $6.12 billion

Ø  States may cut FY21 capex by Rs 3 trillion due to GST shortfall: Icra

Ø  PE investments worth $1.9 bn in August, dipping 53% from July deals

Ø  ONGC, OIL earnings hinge on upside in crude prices as production stagnates

Ø  Reliance to offer $20-bn stake in retail business to Amazon: Report

Ø  Stressed firms accuse ARCs of asset stripping in complaint to RBI

Business Line
   
 Mint

Ø  GDP to contract 9% in FY21, says Crisil

Ø  KPMG, Khaitan & Co to assist in Ordnance Factory Board corporatisation

Ø  Gujarat Pipavav Port awaits extension of concession term

Ø  ITI bags ₹7,796-cr optical fibre cable project for the Army

Ø  Motherson Sumi charts 5-year plan with $36-billion revenue target

Ø  Dalmia Cement buys shares worth ₹98 crore of Indian Energy Exchange

Ø  Saudi sovereign fund PIF weighs investing in Ant IPO: Report

Ø  Expert panel to assist govt for assessment of relief to bank borrowers

Ø  Route Mobile IPO subscribed 4.21 times on day 2

Ø  Hindalco to recover to pre-Covid levels by H2FY21: Birla

Ø  Crisil slashes India FY21 GDP estimate to worst since 1950

Ø  Banks tap consultants for debt recast assessment

Financial Express

Deccan Chronicle

Ø  Covid crisis: IMF says further fiscal stimulus warranted in India

Ø  PM Modi launches Rs 20,050-cr scheme for fisheries sector

Ø  Capital India Finance gets forex business licence from RBI

Ø  Zomato plans to file for IPO in first half of 2021

Ø  NBFCs witness 15-20 per cent improvement in retail lending in last 2 months

Ø  Fuel consumption in August witnesses biggest monthly dip since April

Ø  States may cut FY21 capex by Rs 3 lakh crore, says ICRA


MARKET CLOSING REPORT 10 SEP :



Equity indices finished higher with the benchmark Index rising led by gains in banking, Reliance Industries and financial stocks amid positive global cues.


 Nifty climbed up 171 points (1.5%) to close at 11449 led by Reliance Industries. 


Moreover, Asian Paints, Axis Bank, Ultratech Cement, IndusInd Bank and Bajaj Finance were the other gainers with their shares rising as much as 4%. 


While Tata Steel, Bharti Airtel, Kotak Bank, HDFC Bank and Titan were the major losers with their shares falling up to 2%.  


PSU Bank and Media gained 2.5% and 1.3% respectively. 


Sentiment has been boosted on account of smart rally in the global market, fall in oil price and good monsoon. 


Among the global markets, Asian stock markets advanced after Wall Street rebounded from a three-day slump for tech stocks. 


However, European markets open on a soft note ahead of ECB meeting will be held today. India VIX declined 4% to close at 21.26.


 Reliance Industries was the top gainer in the Nifty pack rising up to 7% to close at Rs2314 amid 6.5cr shares traded on NSE after announcement that US private equity firm Silver Lake Partners would buy 1.75 per cent stake in RIL's retail arm for Rs 7,500 crore.


 Media reports that Reliance Industries is willing to sell as much as 40% stake in the subsidiary to Amazon worth $20 billion. Reliance Industries became the first listed Indian firm to cross $200 billion in market capitalization. 


Cement stocks witnessed fresh buying - ACC, Ambuja Cement and UltraTech Cement gained 2% each. 


Metal stocks like Tata Steel, JSW Steel and Hindalco declined 1-2% on account of profit booking. 


Banking stocks like Axis Bank advanced around 4% to close at Rs447 on account of bargain hunting. 

Oil marketing stocks like BPCL surged 6% to close at Rs430 as benefit of fall in oil price. Both IOC and HPCL gained 4% each.