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Markets Ahead with EZWealth – 4th Oct, 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Bears retained charge at Dalal Street for fourth straight day. The market closed with around half a percent loss on October 1, the first day of October series, as the selling pressure was seen in banking & financials and technology stocks.
Maximum Call open interest of 19.57 lakh contracts was seen at 18000 strike, followed by 17500
Maximum Put open interest of 29.90 lakh contracts was seen at 17000 strike, followed by 17500
Wall Street stocks surged to a higher close on Friday, entering the final quarter of 2021 in a buying mood boosted by positive economic data, progress in the battle against COVID, and Washington developments on the potential passage of an infrastructure bill.
Over the past week, data has sent mixed signals on recovery. Key indicators of economic activity, including auto sales and capex, showed a contraction. While a global semiconductor shortage hurt vehicle sales, investment sentiment may have been hit by uncertainty regarding a potential third wave. The country’s energy demand also lost steam during the month. On the other hand, exports, GST Collection, and manufacturing PMI improved in September, indicating a recovery is underway.
Asian stocks started the week on the back foot, as investors weighed prospects for a pickup in growth against concern over inflationary pressures.
Japanese and Hong Kong shares dropped alongside U.S. futures. Earlier gains pared after trading of China Evergrande Group shares was suspended in Hong Kong, along with those of its property management unit. Mainland Chinese markets are closed through Thursday for the Golden Week holidays. Australian shares bucked the trend.
Shares in China Evergrande Group and its property management unit were suspended from trading Monday, as a fresh debt test loomed for the developer underscoring broader risks that have left credit markets on edge.
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Top news to start the day with:
Merck & Co’s Covid-19 antiviral pill molnupiravir reduced the risk of hospitalisation or death by 50 per cent in an interim analysis of a late-stage trial, findings that could give doctors another potent virus-fighting tool.
The company is halting the study and will seek an emergency-use authorization from the US Food and Drug Administration as quickly as possible, Chief Executive Officer Rob Davis said in an interview. Merck also plans to submit applications to regulators in other countries. “We couldn’t be more thrilled with the results,” Davis said. “You don’t have to go to the hospital, you don’t have to go to a center to have it infused. It’s a pill you can take at home.”
A global supply chain shortage of semiconductors has adversely impacted the passenger vehicle segment ahead of festival season, with automobile companies showing a steep decline in the September sales volumes.
The country’s largest carmaker, Maruti Suzuki India (MSI), on Friday reported a 46.16 per cent decline in sales at 86,380 units in September. It had sold 1,60,442 units in the same period last year. The second largest carmaker, Hyundai, too reported a 23.6 per cent decline in total sales at 45,791 units in September. Hyundai had sold 59,913 units in the same month last year. However, domestic sales of Tata Motors showed 26 per cent growth at 55,988 units compared with 44,410 units in September 2020. Its numbers were pushed by the surge in commercial vehicle segment where the company sold 30,258 units in the domestic market, marking a 30 per cent growth from 23,211 units sold last September.
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The Gurugram-based travel technology company filed the draft red herring prospectus (DRHP) for its Rs 8,430 crore ($1.2 billion) IPO with the Securities and Exchange Board of India (Sebi) on Friday. According to sources, Oyo is looking for a valuation of $11-12 billion. The company was valued at $9.6 billion after it raised $5 million from Microsoft in August. The offer comprises a fresh issue of equity shares worth Rs 7,000 crore and an offer for sale (OFS) of up to Rs 1,430 crore. According to the draft papers, investors including Agarwal, Lightspeed Venture Partners, Sequoia Capital, Star Virtue Investment (Didi), Greenoaks Capital, AirBnB, HT Media, and Microsoft will not dilute their shareholding.
The credit profile of Indian companies appeared to have strengthened as rating upgrades outpaced downgrades in the first half of financial year 2021-22 (H1FY22) despite the devastating second wave of Covid-19, according to rating agencies. CRISIL Ratings saw its credit ratio (of upgrades to downgrades) increase further in the H1FY22, with 488 upgrades and 165 downgrades. This was the second consecutive rise in the credit ratio, at 2.96 times. It had risen to 1.33 times in H2FY21 from 0.54x in H1FY21. ICRA upgraded the ratings of 303 entities, with only 163 downgrades in H1FY22. This was a marked improvement over the torrent of downgrades in the past (483 in FY21, and 584 in FY20).
With talks underway between the central government and Zydus Cadila over the pricing of the COVID-19 vaccine ZyCov-D, the pharma company is learnt to have proposed a price of Rs 1,900 for its three-dose jab that can be given to those above 12 years of age. However, the government is negotiating for a reduction in price and a final decision on it is likely to be taken this week. Another source said the ZyCoV-D has to be differently priced than Covaxin and Covishield as, apart from being a three-dose vaccine, there is a needle-free jet injector used for administering the vaccine that costs Rs 30,000.
Economists and bond market participants do not expect the monetary policy committee (MPC) to change its accommodative stance or the repo rate on October 8 but they will keenly look for hints on policy normalisation, starting with the removal of excess liquidity. The repo rate is now at 4%, while the reverse repo rate is at 3.35%. The rates have remained at a record low because of the pandemic and the RBI seems not to be in a mood to hike rates. A data-dependent RBI has officially taken a stance to continue with accommodative policy for “ as long as necessary” until signs of durable growth are visible
Stocks in the news today:
Avenue Supermart which owns and operated DMart, one of India’s largest retail chains in India, has reported a standalone revenue of ₹7,650 crore for the quarter ending September, 2021 (Q2FY22). This is a rise of 46% from ₹5,218 crore reported in the same quarter last year.
Zee Entertainment Enterprises board on Friday rejected Invesco Fund’s demand to hold and EGM to remove current MD and CEO Puneet Goenka and induct its six nominees. The board came to a conclusion that the requisition was illegal and invalid.
Reliance Retail Ventures has for the second time extended the timeline for completing its deal with Future Group to Mar 31, 2022 as it awaits regulatory and judicial clearances.
The Income-Tax (I-T) department has raised a demand of Rs 8,334 crore against Grasim Industries as capital gains tax in a transaction related to the demerger of its financial services business. The Aditya Birla Group company, however, said it would take “appropriate action” against the order, which was “against the spirit of tax laws”.
NTPC would list on exchanges its three subsidiary companies, in order to meet the government stipulated target of Rs. 15k crore worth of asset monetisation. The three companies are NTPC Vidyut Vyapar Nigam, North Eastern Power Corporation and NTPC Renewable Energy
Glenmark Pharma and Aurobindo Pharma are recalling multiple products in the US markets due to various reasons like deviation from standard manufacturing protocols and presence of foreign substance in one the affected lots
KPI Global Infrastructure | The company has signed an O & M Agreement & Land Lease Agreement for the period of 25 years, aggregating amount of Rs 39 crore with Anupam Rasayan India for 12.50 MW solar power plant under CPP category.
NIIT | The company acquired 70 percent stake in RPS Consulting to strengthen its training solutions in emerging digital technologies.
Tech Mahindra | The company through its wholly owned subsidiary Tech Mahindra GmbH approved the proposal to acquire 100 percent equity shares in Beris Consulting GmbH.
Dalmia Bharat Sugar and Industries | ICRA upgraded the long-term rating to AA from AA-, and has reaffirmed the short-term rating at A1+. The outlook on the long-term rating is Stable.
Ceat | The company has entered into a Fourth Addendum Agreement, for making a further investment of upto Rs 1,40,00,000 in Tyresnmore, to acquire additional 1.83 percent stake in Tyresnmore. Upon completion of the investment, the total holding of Ceat in Tyresnmore would be 46 percent.
Ambuja Cements | The company commenced commercial production at its Marwar Cement plant in Nagaur district of Rajasthan.[/vc_column_text][vc_column_text]
Disclosure:
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