Market Closing: SEP 11


Nifty gained marginally by 15 points to close at 11464 on a range bound trading day.


 However, Bank Nifty recovered more than 1% from its intra-day low of 22206 on account of short covering. 


There was action shifted to mid-cap and small-cap counters. 


Select Pharma, Tech and FMCG stocks gained. While Oil marketing and Cement stocks declined. 


Reduce geo-political tension between India and China, fall in oil price, rally in the US Future and favorable government policy boosted market sentiment. 


Among the Global markets, Asian markets gained over half percent and U.S. stock futures marched higher on Friday, as a bruising week for investors came to a finish, with the hard-hit technology sector set to lead the way higher.


 Elsewhere, European equities struggled for direction as a Brexit standoff loomed.  


India VIX declined over 2.5% to close at 20.7 levels. 


Select banking stocks recovered in the later part of the day on account of short covering. 


SBI gained over 2% to close at Rs203 while it has touched intra-day low of Rs197. ICICI Bank and Axis Bank recovered from their intra-day lows. 


Pharma stocks like Strides Pharma climbed up 13% to close at Rs685. Cadila gained 2% to close at Rs370 after the news that the company gets USFDA approval for Hydrochloride Liposome injection. 


Both Laurus Labs and Glenmark gained 2% and 3% respectively. FMCG stocks like Britannia, Hindustan Unilever, Dabur India and Colgate gained 1-2% on account of bargain hunting. 


Tech stocks like Wipro surged 3% to close at Rs293. Coforge climbed up 9% to close at Rs2091. Infosys, TCS, Tech Mahindra, gained 1-2% each.



Its a Greatt News for MID CAP And SMALL CAP STOCKS


SEBI comes out with a circular on the Asset allocation of Multicap funds, to partly modify the scheme characteristics of the funds- Positive for Midcap and Small cap stocks


In order to diversify the underlying investments of Multi-Cap Funds across the large, mid and small-cap companies and be true to label, it has been decided by SEBI via enclosed circular dated 11th Sep to partially modify the scheme characteristics of Multi Cap Fund Fund as under:


Minimum investment in Equity & Equity related instruments - 75% of total assets in the following manner:


o Minimum investment in equity & equity related instruments of large-cap companies - 25% of total assets


o Minimum investment in equity & equity related instruments of mid-cap companies- 25% of total assets


o Minimum investment in equity & equity related instruments of small-cap companies - 25% of total assets


All the existing Multi-Cap  Funds shall ensure compliance with the above provisions within one month from the date of publishing the next list of stocks by AMFI, i.e. January 2021.


Size of Average AUM in Multicap Funds as on 31st Aug was 1.46 Lakh crore, so at least ~30000 crore is likely to move to Small Cap stocks as most of the Multi cap fund has negligible exposure in Small Caps and even Midcaps need to be at minimum 25% of total assets of the fund.


This could be the turning point for small / mid cap stocks. Many large Multi cap funds are mainly invested in large caps. They will have to re-allocate portfolios to have minimum mid and small cap  allocation to align with the new SEBI circular.



TOP SMALL CAPS


Just some picks which may see upmove due to new SEBI regulations


1. TATAELXSI

2. AFFLE

3. KAJARIA

4. STRIDES PHARMA

5. RITES

6. RAYMOND

7. INFIBEAM

8. BAJAJ ELEC

9. AEGIS LOGISTICS

10. GMM PFAUDLER

11. KALPATARU

12. PGHL

13. CENTURY TEX

14. COCHIN SHIPYARD

15. GODFREY PHILLIPS

16. RALLIS

17. INOX

18. EID PARRY

19. GNFC

20. HEIDELBERG

21. STERLING & WILSON

22. LUX

23. CESC

24. TIMKEN

25. MIDHANI

26. DIXON

27. GALAXY SURFACANTS

28. DEEPAK NITRATE

29. PVR

30. CYIENT

31. GRANULES

32. AMBER

33. INDIAMART

34. APL APOLLO


Following 12 stocks likely to get impacted in a big way with SEBI rule. 

Following are stocks to see significant unwinding by Multicap Fund Managers in coming days-


1. Asian Paints Ltd

2. Pidilite Ltd

3. Nestle India Ltd

4. Hind Unilever Ltd

5. DMART

6. HDFCBANK

7. HDFC LTD

8. Britannia Ltd

9. Titan Ltd

10. JUBL Foodworks

11. Bajaj Finance Ltd

12. Bajaj FinServ Ltd



Market update – Rangebound market … Pharma and Tech stocks gains … US Future surges half percent  (SEP 11 12PM)


 ·   Market is trading flat and Nifty is moving narrow range most part of the days. Stock specific action continued in the market. Mid-cap and small cap stocks are in the green. Select Pharma and Tech stocks are witnessing fresh buying. US Dow Future gained half percent. Favorable government policy, impressive quarterly results, fall in oil price and good monsoon will be positive for the market.


·   Increased volumes and expects momentum today (buying opportunity) – Manppuram Finance, Ashok Leyland, Bajaj Finance, Maruti, Reliance Industries, Grasim and Page Industries


·   Strides gained 8% - Today's volumes are 68% higher than its 20-day average


·   InfoEdge is trading flat - Zomato (Company’s stake in Zomato stands at 22.2%) has closed primary fundraise of $100 million from Tiger Global and $60 million from Temasek Holdings. Transaction valued Zomato at a post-money valuation of $3.3bn (Rs25000cr). – Positive


·   Dilip Buildcon declined 1% - Company received a Letter of Acceptance from the National Highway Authority of India for a new Hybrid Annuity Model project worth Rs1905cr


·   Saregama is trading flat. Company announced a global licensing deal with ShareChat


·   Route Mobile IPO final day today and it has been oversubscribed by 9 times


Brokers Radar –


·   Morgan Stanley TGT on IndusInd Bank at 710


·   Bajaj Finance Credit Swiss TGT at 2900


·   Cummins India UBS reduce TGT to 390


·   Phoneix Mills TGT cut from 690 to 670


·   HCL Tech TGT by Macquarie at 668


·   Infosys TGT by Macquarie at 1130


·   BEL TGT by JP Morgan at 125


·   CLSA TGT on Hero Motocorp 3315,


·   CLSA BUY on ICICI Bank with TGT at 500.


·   D-Mart new initiation by Jefferies with TGT at 2600.


·   Morgan Stanley TGT on ICICI Bank at 525,


·   Morgan Stanley TGT on HDFC Bank TGT at 1450,


·   Morgan Stanley TGT on Axis Bank at 600



     Still bullish on $3,000 gold price target: BofA Securities (cnbc report) … positive for gold finance stocks –        Muthoot and Mannapurm


 Expects positive for gold finance stocks as gold price spiked to nearly $1950/ounce recovered from the low of $1900/ounce levels. Gold is facing rising pressure and might hit around $3,000 over an 18-month period eventually, says Bank of America Securities’ Francisco Blanch. Expects positive for gold finance stocks like Muthoot Finance and Mannupuram Finance.



     RIL first Indian co to hit $200 bn m-cap


Reliance Industries Ltd on Thursday became India’s first company to cross $200 billion in market value, with shares surging nearly 166% since mid-March, driven by its retail and telecom operations. RIL shares have gained 54.33%, beating benchmark indices.

RIL, India’s largest company, now has a market capitalization of ₹14.67trillion, followed by Tata Consultancy Services ( ₹8.75 trillion), HDFC Bank (₹6 trillion), Hindustan Unilever Ltd ( ₹5.01 trillion), and Infosys ( ₹4trillion).


Among global stocks, Apple Inc. is the world’s most-valued company with a market value of $2 trillion, followed by Saudi Aramco with $1.91 trillion, Amazon.com Inc ($1.58 trillion), Microsoft Corp. (1.53 trillion), and Alphabet Inc ($1.04 trillion).


Adani Green Energy Q1FY21    RESULT


 ·   Revenue up 17.8% to Rs 778.5 crore


·   Net profit of Rs 45.3 crore from net loss of Rs 96 crore


·   Ebitda up 13.5% to Rs 514 crore


·   Ebitda margin at 66% from 68.5%


·   Net exports up 24% to 1,382 million units


·   Revenue from power supply up 10% to Rs 609 crore


·   Current capacity under operation stands at 14 GW


·   On track to achieve 25 GW renewable power target by 2025



IAM Data For The Month of August – Two wheeler sales improves … positive for Heromotocorp, Bajaj Auto


 ·   Total Passenger Vehicle sales up 14.1% to 2,15,196 units


·   Passenger sales up 14.1% to 1,24,715 units


·   April-August Passenger Vehicle sales down 49.1%


·   April-August Passenger Car sales down 54.3%


·   Two wheeler sales flat at 15,59,665 in August


·   Scooter sales down 12.3% to 4,56,848 units


·   Utility Vehicle sales up 15.5% to 81,842 units


·   Motorcycle sales up 10.1% to 10,32,476 units


·   Three-wheeler sales down 75.3% to 14,534 units


Vedanta In Talks To Boost Funding For Delisting –stock gains 1%

Vedanta Resources Ltd. is in talks with lenders to raise another $600 million to fund the planned de-listing of its Indian unit, In case the financing is secured, it will take the total fund raising for the delisting to $3.75 billion. The additional $600 million is likely to be a 3-6 month loan, backed by dividend or cash accrued from the company's subsidiary Hindustan Zinc. Final decision on additional funding will depend on the tender offer price the company offers shareholders. Vedanta had signed a three-month bridge loan for $1.75 billion with five banks and raised another $1.4 billion in bonds to fund the delisting


Mid-market update – European markets open on a flat note … US Nasdaq Future gains 1%


 ·   European equities were little changed on Friday, as investors took a breather following a roller-coaster week, with Altice and Arytza jumping on takeover news. The FTSE 100 Index was little changed supported by recent weakness in the pound as the U.K. and as the European Union appears to be headed for a chaotic split with no trade deal in place.


·   US Dow Future gained half percent, Nasdaq Future gained 1%


·   It was a decent day for stocks in Asia considering the declines in the U.S., but quiet overall. Japan’s Topix index rose about 0.4% to approach its highest level since February. The Nikkei is in striking distance of erasing its loss for the year and a drop in daily new coronavirus cases may be helping. Stocks in Hong Kong rose.


·   Oil headed for its first back-to-back weekly losses since April’s price rout as swelling U.S. stockpiles added to signs that the global energy demand recovery will take longer than previously anticipated. Brent Crude declined 1% to below $40/bll.


·   Mannapuram Finance gained 6% and Today's volumes are more than double its 20-day average






UPDATE SOON - IF I MAKE NEW UPDATES