Pre market Analysis 04-10-2021

Market Opening - An Overview

Nifty futures on the Singapore Exchange were trading 0.3% higher at 17,598.50, signalling that Dalal Street was headed for a positive opening on Monday.

Asian shares opened lower as Hong Kong stocks fell as investors were in the sideline keeping an eye on developments in the crisis with respect to China Evergrande after the firm suspended trading in its shares. Tokyo stocks pared gains and slipped into negative territory, as investors eyed the unveiling of Japan’s new cabinet later in the day. Japan’s Nikkei was down 0.95%, Topix fell 0.61%. Hang Seng dropped 1.77%, while China’s CSI 300 gained 0.67%.

Indian rupee rose 11 paise to close at 74.11 against the US dollar on Friday.

FII/DII trading data on Friday (01-10-2021)

CategoryBuy ValueSell ValueNet Value
*All numbers are in INR crore

Stocks in News Today

NTPC: The company said it would list its three subsidiary companies on exchanges, in order to meet the government’s target of Rs 15,000 crore worth of asset monetisation. The three companies are North Eastern Electric Power Corporation (NEEPCO), NTPC Vidyut Vyapar Nigam (NVVN) and NTPC-Renewable Energy (NREL). Senior executives at NTPC said NREL would be listed before October 2022.

Avenue Supermarts Ltd: The company operating D-MArt retail chains has posted a 46.6% increase in its standalone operating revenue at Rs 7,649.64 crore for the second quarter ended September 2021, compared with Rs 5,218.15 crore in the year-ago period. Its total number of stores as of September 30, 2021 stood at 246.

HDFC Bank: NSE International Exchange (NSE IFSC) said it has listed HDFC Bank’s additional masala bonds on its debt securities market platform. “HDFC Bank has raised Rs 739 crores under $3 Billion Medium Term Note Programme,” NSE IFSC said.

Aurobindo Pharma & Glenmark Pharmaceuticals: Both the companies recalled multiple products from the US market due to various reasons like deviation from standard manufacturing protocols and presence of foreign substance in one of the affected lots. Among various products, Glenmark is recalling 28,658 cartons of Fulvestrant injection (250 mg/5 ml), a medicine used to treat breast cancer, due to “lack of assurance of sterility”, the USFDA noted. Meanwhile, Aurobindo’s Us unit is recalling 2,820 bottles of Metoprolol tartrate tablets “due to presence of foreign substance: product complaints received for the presence of metal wire in one tablet”.

Federal Bank: The lender said it has posted a 10% growth in advances at Rs 1,37,309 crore for the second quarter ended September 30 and the total advances stood at Rs 1,25,209 crore. The bank’s deposits also rose by 10% (Y-o-Y) to Rs 1.72 lakh crore in the quarter from Rs 1,57 lakh crore in the same period a year ago, it said.

Zydus Cadila: The pharma company is likely to have proposed a price of Rs 1,900 inclusive of taxes for its three-dose jab to treat coronavirus that can be given to those above 12 years of age. However, the government is negotiating for decreasing the price and a final decision on it is likely to be taken this week, according to sources, as per PTI report.

Zee Entertainment Enterprises: The company has moved Bombay High Court requesting the demand to convene an EGM by its top investor Invesco to be deemed as “illegal and invalid”. Meanwhile, the petition filed by the minority shareholders is scheduled to be heard by the National Company Law Tribunal on October 4.

Grasim Industries: The Income Tax department has raised a demand of Rs 8,334 crore to be paid by the company as capital gains tax in a transaction with regard to the demerger of its financial services business. However, the company said it would take “appropriate action” against the order, which was “against the spirit of tax laws”.

Indian Bank: The lender picked up 13.27% stake in the proposed bad bank National Asset Reconstruction Company Ltd (NARCL). The lender has subscribed to 1.98 crore equity shares of NARCL for cash consideration of Rs 19.80 crore, according to its regulatory filing.

Tejas Network: Tata Group is planning to buy 26% in domestic telecom gear firm Tejas Networks for about Rs 1,038 crore. The offer is a bid to acquire a controlling stake in Tejas Networks. Under the open offer, Tata Sons and its subsidiaries Panatone Finvest, Akashastha Technologies have made a cash offer at a price of Rs 258 apiece.

Tech Mahindra: The company will acquire Germany-based IT consultancy service provider Beris Consulting Gmbh for about Rs 60 crore through its German subsidiary, the company said in a regulatory filing. Beris has over 125 employees and the company had revenues of 10.1 million euros for the fiscal year ended December 31, 2020.

Vodafone Idea: The telecom provider has promoted chief enterprise business officer Abhijit Kishore as its new chief operating officer. He replaces Ambrish Jain who superannuated after 20 years of service.

CEAT Ltd: The company said it is planning to increase its stake in Tyresnmore Online to 46% with a further investment of Rs 1.4 crore. Tyresnmore Online is a digital platform for purchasing tyres and fitting services. The said investment of Rs 1.4 crore is scheduled to be made in the third quarter of FY22.

Birla Corporation Ltd: The shareholders of the company have approved resolutions supported by the management with overwhelming majority at its annual general meeting (AGM). Among the resolutions approved are re-appointment of Dilip Ganesh Karnik as director and appointment of Arvind Pathak as MD and CEO of the company for a period of 3 years with effect from March 31, 2021.

Tata Motors: The automaker said its total domestic wholesales increased 28% year-on-year (y-o-y) to 55,988 units in September. Its total passenger vehicle sales in the domestic market stood at 25,730 units in September, compared with 21,199 units in the year-ago period. Commercial vehicle sales in the domestic market was 30,258 units, up 30% from 23,211 units in the corresponding period last year.