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

Asian stocks were steady Wednesday as traders evaluated the resilience of the global recovery to the delta virus strain and the outlook for central bank stimulus support.Shares made gains in Japan, fluctuated in South Korea and fell in Australia. U.S. equities edged back from all-time highs amid some mixed data, including a drop in consumer confidence to a six-month low and a record jump in home prices. S&P 500 and Nasdaq 100 futures were little changed.Hawkish comments from some European Central Bank officials highlighted the prospect of a tapering in the monetary-policy largesse that has helped financial markets. Treasury yields advanced following losses in European sovereign debt. Australian government bond yields rose. The dollar was steady.The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, climbed 0.06% to 17,135 as of 8:12 a.m.

Major economic Data:

  • INR: Import & Export (USD) (Aug) on2nd September, 2021
  • INR: FX Reserves, USD on 3rd September, 2021
  • INR: Bank Loan & Deposit Growth on 3rd September, 2021
  • USD: Crude Oil Inventories on 1st September, 2021
  • USD: Initial Jobless Claims on 2nd September, 2021

Brokerage Radar:

CLSA ON PIRAMAL ENT: Initiates coverage with a target of Rs 2960/sh (CMP-2606.65).Financial services on a different path, long revenue stream for pharma. It is a top-three lender to the real estate segment. DHFL acqn is expected to enlarge its loan book, improve return on equity. Co. should see an 18% FY21-24 EBITDA CAGR for its pharma business.

CREDIT SUISSE ON GDP:Real GDP up 20.1% YoY, in-line with consensus. Gross fixed cap ormation up only 3.6% due to weak state govt spending. 2-yr CAGR for agri GVA growth stable at 4%, while industry is weak at -3%. Svcs GVA 2-yr CAGR fell 6% as trade, hotels & trans is 30% lower vs june ‘19 lvls. Most high frequency indicators have been strong in Q2 so far. Q2 GDP can be 6% higher than FY20 avg, implying 15% YoY growth. Continue to expect a 5 ppts upgrade to consensus FY23 GDP forecasts.

International Markets:

U.S & Europe

Particulars 31stAug Chg Chg(%)
Nasdaq 15,259.24 -6.65 -0.04
Dow 35360.73 -39.11 -0.11
FTSE 7,119.70 -28.31 -0.4
CAC 6,680.18 -7.12 -0.11
DAX 15,835.09 -52.22 -0.33
Dow Fut.* 35,434.00 93.00 0.26

Asian markets:

Particulars 1stSept Chg Chg(%)
SGX Nifty 17,135.50 10.00 0.06
Nikkei 28,446.81 357.27 1.27
Straits Times 3,079.90 24.85 0.81
Hang Seng 25,821.48 -57.51 -0.22
Shanghai 3,524.09 -19.85 -0.56

ADR Watch:

Particulars 31stAug Chg Chg(%)
Dr Reddy 64.21 1.03 1.63
HDFC Bank 78.31 0.15 0.19
ICICI Bank 19.62 0.33 1.71
Infosys 23.82 0.1 0.42
Tata Motor 19.68 -0.08 -0.4
Wipro 9.34 0.15 1.63

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 73.20 -0.43
Brent 71.91  0.39
Gold 1815.15     -0.16
Silver 23.883 -0.52

FIIs & DII

Particulars         31st Aug         30th Aug
FIIs 3881.16 1202.81
DIIs -1872.40 688.85

News Update:

Maruti Suzuki India: Expects output to plunge in September as the semiconductor shortage hits production. Total vehicle production volume could be around 40% of normal output, the company said. Vehicle production to be affected at Haryana plant and contract manufacturer, Suzuki Motor Gujarat Pvt.’s Gujarat facility. The company cited “a supply constraint of electronic components due to the semiconductor shortage situation” for the impact on production.

BHEL: Secured order worth Rs 10,800 crore from NPCIL for EPC of Turbine Island for 6 units of 700 MWe. Six orders, received from NPCIL on August 30, envisage setting up of 4 units of 700 MWe at Gorakhpur, Haryana and 2 units of 700 MWe at Kaiga, Karnataka

Wipro: Partnered with HERE Technologies to offer location-based services, to customers from energy & utilities, manufacturing, transport & logistics, telecom and automotive industry verticals. Wipro and HERE will jointly develop solutions in the areas of asset tracking, logistics, supply chain, smart-metering and analytics, field workforce management, and private mapping-as-a-service for indoor and outdoor real-time asset tracking.

AU Small Finance Bank: Clarified on recent exits at the bank. SumitDhir, head of internal audit resigned due to changes in personal circumstances following Covid second wave, the bank said. Dhir continues to be on the bank’s rolls as head of internal audit. The bank remains in discussions with him for a possible retention. In March, Nitin Gupta, who had been with the bank since 2015, resigned as the chief risk officer.

ONGC: Begins gas production from deepwater well in KG Basin block.

HDFC Life Insurance Company: To consider issue of equity shares and/or other securities of the company by way of preferential allotment on September 3.

Yes Bank: CRISIL Ratings has upgraded the rating on Tier-II bonds (under Basel III) and infrastructure bonds to ‘CRISIL BBB+/Stable’ from ‘CRISIL BBB/Stable’. CRISIL Ratings has also upgraded the rating on the Rs 20,000 crore certificates of deposit (CD) of the bank to ‘CRISIL A1’ from ‘CRISIL A2+’.

Bharat Electronics: The Indian Navy sealed a contract with the company for the supply of the first indigenously developed Naval Anit Drone Sysytem.

Mastek: The company partnered with fulfillmenttools to deliver modern Omni channel fulfillment solutions to customers worldwide

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