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

Asian stocks were mixed Monday amid an ongoing rally in Japan sparked by the planned exit of the prime minister and as traders assessed the challenges for reopening underscored by slower U.S. hiring.Japanese shares climbed more than 1%, following a three-decade high for the Topix on hopes of better pandemic management and more spending by Prime Minister YoshihideSuga’s successor. But equities retreated in Australia and South Korea and S&P 500 futures slipped. The dollar ticked up.The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, was little changed at 17,395 as of 8:20 a.m.The S&P 500 was little changed Friday, the Nasdaq 100 edged up to a record and Treasury yields rose as investors digested disappointing U.S. payroll growth and faster-than-projected wage increases.

Major economic Data:

  • INR: Industrial Production (YoY) (Jul) on 10th September, 2021
  • INR: Deposit Growth and Bank Loan Growth on 10th September, 2021
  • USD: Initial Jobless Claims on 9rd September, 2021
  • USD: Crude Oil Inventories on 9th September, 2021

Brokerage Radar:

CLSA ON HDFC LIFE:Maintain outperform at the price of Rs 734 for the target price of Rs 790. Accretive deal but mixed view on rationale .Believe deal is not a game changer as distribution benefits are limited. Since it is largely a stock swap deal, it becomes marginally EV accretive.

CLSA ON M&M FINANCIAL: Maintain buy at the price of Rs 165.10 for the target price of Rs 210.Raise EPS estimates by 4-9%. Had a strong collection efficiency of 97% in august. Co. also had some reduction in NPLs. Excess NPL provisions should reverse in H2FY22 and the rest in FY23.

International Markets:

U.S & Europe

Particulars 3rd Sept Chg Chg(%)
Nasdaq 15,363.52 32.34 0.21
Dow 35369.09 -74.73 -0.21
FTSE 7,138.35 -25.55 -0.36
CAC 6,689.99 -73.09 -1.08
DAX 15,781.20 -59.39 -0.37
Dow Fut.* 35,325.00 -28.00 -0.08

Asian markets:

Particulars 6thSept Chg Chg(%)
SGX Nifty 17,395.00 35.5 0.2
Nikkei 29,638.17 510.06 1.75
Straits Times 3,092.39 8.54 0.28
Hang Seng 26,003.47 101.48 0.39
Shanghai 3,592.13 10.4 0.29

ADR Watch:

Particulars 3rdSept Chg Chg(%)
Dr Reddy 67.09 0.39 0.58
HDFC Bank 76.64 -1.61 -2.06
ICICI Bank 19.79 0.04 0.2
Infosys 24.03 0.33 1.39
Tata Motor 20.2 0.29 1.46
Wipro 9.6 0.11 1.16

Commodities & Currency

Particulars Current Price Chg(%)
USD/INR 73.18 -0.03
Brent 71.68 -1.28
Gold 1829.45     -0.23
Silver 24.805 0.01

FIIs & DII

Particulars 3rd Sept         2nd Sept
FIIs 768.58 348.52
DIIs 668.60 381.70

News Update:

Dr. Reddy’s Laboratories: The company, along with its subsidiaries, has entered into a definitive agreement with Citius Pharmaceuticals, Inc. to sell its rights to anti-cancer agent E7777 and certain related assets. Dr. Reddy’s will receive $40 million upfront upon the closing of the transaction, followed by approval milestone payment of up to $40 million related to the cutaneous T-cell lymphoma indication approval and up to $70 million for additional indication approvals.

Mahindra & Mahindra Financial Services: The company’s disbursements in August were at Rs 2,150 crore, 57% higher from a year earlier. Collection efficiency was at about 97%, compared with 95% in July. The company witnessed a meaningful reduction in the NPA contracts in August as customer cash flows improved. It expects downward trajectory to continue in September and in months to come. Liquidity position comfortable as on date, Mahindra Financial said.

Reliance Industries: The wholly owned subsidiary of the company, Reliance Strategic Business Ventures, has acquired 2.28 crore equity shares of Strand Life Sciences for Rs 393 crore. A further investment of up to Rs 160 crore is expected to be completed by March 2023. The total investment will translate into 80.3% of equity share capital in Strand on a fully diluted basis. The investment is part of Reliance’s digital health initiatives.

ICICI Lombard General Insurance Company: IRDAI has granted the final approval for the demerger of the general insurance business of Bharti AXA General Insurance Company to ICICI Lombard by way of a scheme of arrangement. The demerger and transfer of general insurance business, as envisaged in the scheme, shall be effective within three days from the date of the final approval, the insurer said. IRDAI has also granted approval to ICICI Bank to bring down its stake in ICICI Lombard to 30%.

Jindal Steel and Power: Shareholders have approved divestment of entire shareholding of the company in its subsidiary Jindal Power. More than 90% of the minority shareholders voted in the favour of the deal.

HFCL: The board has approved raising up to Rs 750 crore by way of issue of equity shares/preference shares/ bonds/debentures/non-convertible debt instruments/warrants/any other securities.

PNB: The meeting of board of directors to consider the proposal for raising of capital through issuance of Basel-III Compliant Additional Tier-1 Bonds and/or Tier-II Bonds or combination thereof has been re-scheduled to September 10.

Source: Moneycontrol,Livemint,, Bloomberg,Investing

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