Closing Index

 07 Oct 2020 

BSE CLOSED @ 39821.84 ✅ 247.27 Points 

NSE CLOSED @ 11738.85 ✅ 76.45 Points

BankNifty Closed 22964.80 ✅ 111.10 Points 

India VIX Closed 20.0600 ✅ 0.4250 Points.

Stocks to watch in trade today

Dixon Tech’s arm Padget Electronics has been chosen as domestic mobile phone manufacturing partner in the production linked scheme. The company had applied for two slots and won one. Optiemus Infracom was also allotted a slot under the afore-mention scheme.

Reliance Industries: ADIA to invest Rs 5,512.5 crore in Reliance Retail Ventures for 1.20% equity stake. Reliance Retail Ventures has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.

Raymond: Care Ratings revised ratings for long term bank facilities from CARE AA- to CAE AA, with outlook remaining at credit watch with developing implications.

DHFL: Administrator has filed third application on past frauds. The current application is related to undervaluation and fraudulent nature of certain agreements made by the company during its stake sale in Pramerica Life Insurance to DHFL Investments and few inter-corporate deposits given by the co. to certain entities. As per transaction auditor Grant Thornton India LLP’s report,which has been shared with Dewan Housing’s administration, the monetary impact of such transactions amounts to Rs 1,865 crore and also cites transfer of Rs 230 crore in the form of ICDs which used to repay a promoter linked entity The transactions took place during fiscal 2017-19 period, the report said. Application was filed against 10 respondents, including Kapil Wadhawan, Wadhawan Global Capital Limited and few more entities.

Tata Motors: Jaguar Land Rover Automotive Plc is planning to sell U.S. dollar-denominated bonds more than seven months after its first attempt stalled due to concerns about the impact of the coronavirus on its business in China. The British carmaker is offering $500 million of notes, with Bank of America Corp. as lead global coordinator and Citigroup, Goldman Sachs Group Inc. and JPMorgan Chase & Co. acting as global coordinators. (Bloomberg News)

Cox & Kings: Enforcement Directorate has arrested Group CFO Anil Khandewal and company’s internal auditors in a money laundering case.

Bajaj Finance Sept. Quarter Update (YoY): New loans booked at 3.6 MM versus 6.5 MM. Capital adequacy ratio at 26.5% and liquidity surplus at Rs 22,300 crore on Sept.30. Deposit book at Rs 21,600 crore versus Rs 17,633 crore. To continue to accelerate its Covid-19 provisioning in the Sept. quarter.

Matrimony.com: Management clarified that that in its conference call that it is expecting double digit growth in billing (sales) in its matchmaking business and not in revenue.

Indo Rama Synthetics: OFS for non-retail gets 112% on day 1.

Linde India: Subhabrata Ghosh resigned from post of CFO with effect from Oct.16. 

Appointment of new CFO will be considered in the month of Nov.

Som Distilleries & Breweries: Record date for share split (1:2) set as Oct.16.

Indiabulls Ventures: Company’s name to be changed to Dhani Services with effect from Oct.6. Company has allotted 84 lakh shares to NWI Emerging Market Fixed Income Master Fund at Rs 175 per share.

PSP Projects: Tender for EPC project in GIFT City, Gujarat in which the company emerged as the lowest bidder has been cancelled at the tender inviting authority.

VA Tech Wabag has dissolved its Brazilian arm. 

Fno Analysis

 F&O Cues

Nifty October futures closed at 11,672; premium of 10 points vs premium of 24 points

Nifty October futures Open Interest up 6%, adds 6 lakh shares in Open Interest

Nifty Bank October futures closed at 22,910; premium of 56 points vs premium of 73 points

Nifty Bank October futures Open Interest up 4%, adds 53,000 shares in Open Interest

Options

Nifty PCR at 1.44

Nifty Monthly Expiry: Oct. 8

Max Open Interest on call side at 11,800 (30.7 lakh shares)

Max Open Interest on put side at 11,500 (32.8 lakh shares)

Active options: 11,600 Put (24.3 lakh shares), 11,500 Call (-9.1lakh shares)

Nifty Monthly Expiry: Oct. 29

Max Open Interest on call side at 12,000 (19.7 lakh shares)

Max Open Interest on put side at 10,500 (35.3 lakh shares) 

Fno Ban Stocks 07.10.2020

 Stock under F&O ban on NSE 07-Oct-20

1 IDEA

2 VEDL

Dividends & Results

 Today's Corporate Action 7th Oct Ex Date

GDL Interim Dividend - Rs. - 2.0000

KDML Bonus issue 1:1

Today's Analyst/Board Meetings 07-Oct-20

Tata Consultancy Services,

Majesco, 

MIC Electronics, 

Unity Infraprojects and 

Zee Learn 

will announce their quarterly earnings on October 7.

Stocks in the news

Reliance Industries: Abu Dhabi Investment Authority will invest Rs 5,512.50 crore into Reliance Retail Ventures.

PSP Projects: Tender for EPC design and build construction of proposed GIDC Tech-Hub at GIFT City, Gujarat in which the company emerged as L-1 Bidder has been cancelled by authority.

GMR Infrastructure: Promoter GMR Enterprises released pledge on over 15 crore equity shares.

Zodiac Clothing: ICRA revised the short term rating for Rs 65 crore line of credit of the company to A3+ from A2.

Linde India: Subhabrata Ghosh resigned as Chief Financial Officer of the company.

Indian Energy Exchange: Company approved the further investment of Rs 6.25 crore in subsidiary Indian Gas Exchange, by way of subscription to equity shares through rights issue.

Some of the main moves in markets

Stocks

The S&P 500 Index declined 1.4% to 3,360.75 as of 4:00 p.m. New York time, the largest drop in almost two weeks.

The Dow Jones Industrial Average declined 1.3% to 27,770.65, the biggest drop in almost two weeks.

The Nasdaq Composite Index dipped 1.6% to 11,154.61.

The Nasdaq 100 Index sank 1.9% to 11,291.27.

The Stoxx Europe 600 Index gained 0.1% to 365.88, the highest in more than two weeks.

Currencies

The Bloomberg Dollar Spot Index gained 0.4% to 1,173.78, the biggest rise in almost two weeks.

The euro fell 0.3% to $1.1751.

The British pound decreased 0.6% to $1.2907, the biggest dip in two weeks.

The Japanese yen strengthened 0.1% to 105.60 per dollar.

Bonds

The yield on 10-year Treasuries decreased four basis points to 0.75%, the biggest tumble in four weeks.

Germany’s 10-year yield advanced less than one basis point to -0.51%, the highest in more than a week.

Britain’s 10-year yield declined less than one basis point to 0.287%, the first retreat in a week.

Commodities

West Texas Intermediate crude climbed 2.3% to $40.13 a barrel.

Gold weakened 1.3% to $1,888 an ounce, the biggest drop in almost two weeks.

Copper declined 0.7% to $2.94 a pound.

World Indices

Stocks Fall, Bonds Rise After Stimulus Talks Ended: Markets Wrap

U.S. stocks tumbled and bonds soared after President Donald Trump said he is ending stimulus talks until after the election, just hours after Federal Reserve Chairman Jerome Powell renewed his warning that the economy will stumble without additional fiscal support.

The benchmark S&P 500 slumped 1.4% after Trump tweeted his comments late in the trading session, erasing a gain of as much as 0.7%. The Dow Jones Industrial Average and Nasdaq Composite indexes also turned negative. Treasuries surged and the dollar jumped against most its major peers.

Asian stocks looked set to follow U.S. equities lower after Trump said he is ending stimulus talks until after next month’s election. Treasuries gained. Futures in Japan and Australia declined and the S&P 500 fell over 1%. Treasury yields fell and the dollar jumped against most of its major peers.

Oil prices drop as Trump calls off stimulus negotiations; Asia-Pacific stocks mixed

SINGAPORE — Oil prices fell in the morning of Asian trading hours as U.S. President Donald Trump called off stimulus negotiations till after the November election.

International benchmark Brent crude futures dropped 2.06% to $41.77 per barrel while U.S. crude futures slipped 2.31% to $39.73 per barrel.

Meanwhile, Asia-Pacific markets were mixed in Wednesday morning trade.

Japan’s Nikkei 225 dipped 0.5% in early trade while the Topix index shed 0.57%. 

South Korea’s Kospi also declined 0.39%. 

The S&P/ASX 200 in Australia bucked the overall trend as it gained 0.12%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.26% lower.

Trump’s ‘big gamble’

Investor reaction to Trump’s move to halt stimulus talks will be watched.

The U.S. president tweeted Tuesday: “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,”

“President Trump’s decision to halt negotiations until after the elections is a big gamble,” Rodrigo Catril, a currency strategist at National Australia Bank, wrote in a note.

“History tells us that the state of the economy is a big factor that can determine election outcomes, going into an election with a weakening economy more often than not means Presidents don’t get re-elected,” Catril said. “Of course there is a blaming game going on here and whether Trump can convince the electorate that this is not his fault, but the Democrats, it remains to be seen.”

Trump’s latest move came as U.S. Federal Reserve Chairman Jerome Powell on Tuesday called for continued aggressive fiscal and monetary stimulus for an economic recovery he said still “has a long way to go.”

Stocks on Wall Street fell overnight following Trump’s announcement. The Dow Jones Industrial Average closed 375.88 points lower, or 1.3%, at 27,772.76. The S&P 500 ended its trading day 1.4% lower at 3,360.95 while the Nasdaq Composite dropped 1.6% to close at 11,154.60.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.824 after an rise from levels below 93.6.

The Japanese yen traded at 105.64 per dollar, off levels around 105 against the greenback seen last week. The Australian dollar changed hands at $0.7107 after seeing levels above $0.715 yesterday.