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View on market: Stay Cautious, be with quality business:

Asian stocks started October on the back foot, after their U.S. peers capped their biggest monthly selloff since March 2020 with further losses. Shares dropped in Japan and Australia, while U.S. futures fluctuated in early Asia trading. China begins a week-long holiday and Hong Kong’s market is shut Friday. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, fell 0.95% to 17,435.50 as of 8:05 a.m. U.S. benchmarks fell Thursday even after confirmation that the House passed a nine-week spending bill to avert a U.S. government shutdown. The S&P 500 closed at the lowest level since July, extending its September losses to almost 5%.

Economic Calender:

  • INR:  FX Reserves on 1st October, 2021
  • INR:  Nikkei Markit Manufacturing PMI (Sept) on 1st October, 2021
  • INR:  Nikkei Markit Services PMI on 5th October, 2021
  • USD: ISM Manufacturing PMI (Sept) on 1st October, 2021

Brokerage Radar:

CLSA ON HUL: Maintain buy at the price of Rs 2701.8 for the target price of Rs 3070. Margin pressure progressively easing. Strategy gradually shifting from volume to profitable growth. Margin may recover on improved mix, urban mkt recovery & price hikes. Volume share gained in the past few quarters, should aid profitable growth company remain their preferred stock in consumer sector.

MACQUARIE ON ZOMATO: Maintain outperform at the price of Rs 136.60 for the target price of Rs 183.Bull case target at Rs 260, bear case target at 95.Duopoly industry set-up ensures healthy take rates. Co could enter white spaces with hyperlocal delivery services. $1.7 bn cash could help fund growth into new areas. Expect co to quadruple its rev in under-penetrated online food delivery. Online food delivery to deliver a 40% CAGR over FY21-26.

MACQUARIE ON GAS PRICE HIKE: Domestic Natural Gas price hiked by 62%, largely along expected lines. Expect a 110% hike in domestic gas price for next revision in Apr 2022. Concerned on CGDs & see peak margin, peak valuation, & high-cost infln risk. Most impacted is Gujarat Gas, followed by IGL & Mahanagar Gas. Fundamentally like Gail, and tactically positive on ONGC.

International Markets:

U.S & Europe

Particulars 30th Sept Chg Chg(%)
Nasdaq 14,448.58 -63.86 -0.44
Dow 33,843.92 -546.80 -1.59
FTSE 7,086.42 -21.74 -0.31
CAC 6,520.01 -40.79 -0.62
DAX 15,260.69 -104.58 -0.68
Dow Fut.* 33,510.00 -212.00 -0.63

Asian markets:

Particulars 1st Oct Chg Chg(%)
SGX Nifty 17,435.50 -166.50 -0.95
Nikkei 28,845.97 -606.69 -2.06
Straits Times 3,052.59 -34.11 -1.11
Hang Seng 24,575.64 -87.86 -0.36
Shanghai 3,568.17 31.88 0.90

ADR Watch:

Particulars 30th Sept Chg Chg(%)
Dr Reddy 65.14 -0.04 -0.06
HDFC Bank 73.09 -0.15 -0.20
ICICI Bank 18.87 -0.34 -1.77
Infosys 22.25 -0.23 -1.02
Tata Motor 22.41 0.08 0.36
Wipro 8.83 -0.06 -0.67

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 74.49 0.07
Brent 78.15 -0.20
Gold 1755.55 -0.08
Silver 21.062 0.07

FIIs & DII

Particulars 30th Sept 29th Sept
FIIs -2225.60 -1446.02
DIIs 97.18 3262.16

News Update:

Maruti Suzuki India: The company expects adverse impact on vehicle production in Haryana and at its contract manufacturing unit, Suzuki motor Gujarat Pvt Ltd, Gujarat in October due to chip shortage. Total production volume across both the locations to be around 60% of normal production.

Jubilant Foodworks: Jubilant Foodworks Netherlands B.V. to 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.

Adani Green Energy: The wholly owned subsidiary Adani Renewable Energy (MH) Energy has completed acquisition of 100% of the share capital and all the securities of Vento Energy Infra from Essel Green Energy.

Phillips Carbon Black: Co. launched its QIP issue on Thursday and approved the floor price of Rs 255.85 per share. The floor price is at a discount of 4.31% to Thursday’s closing price.

Jain Irrigation Systems: The company’s wholly owned subsidiary, Jain International Trading BV, Netherlands, has completed the restructuring of $200 million bonds listed on Singapore Stock Exchange.

SBI, Bank of Baroda and Union Bank of India: have each subscribed to 1.98 crore shares of National Asset Reconstruction Company. However, the four banks will reduce their stake in NARC to 9.90% from 13.27% by December 31. Canara Bank has subscribed to 2.40 crore shares of NARC. It will reduce its stake in the asset reconstruction company to 12% from 16.09% by December 31. PNB has subscribed to 1.80 crore shares of NARC. It will reduce its stake to 9% from 12.06% by December 31.

Punjab National Bank: The bank has reduced Marginal Cost of Funds Based Lending Rate by 0.05% across tenors effective today. The Base Rate has been reduced from 8.55% to 8.50%.

IIFL Wealth Management: IIFL Asset Management’s asset base has crossed Rs 50,000 crore-mark. The fund house’s aggregate AUM comprising alternative assets and mutual fund rose to Rs 50,019 crore from Rs 37,372 on March 31, FY21. IIFL AMC is a wholly owned subsidiary of the company.

Source: Moneycontrol, Livemint,, Bloomberg, Investing

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