Market Update for 03/09/2020:

green and white concrete building

WORLD MARKET

  • India banned over a hundred Chinese apps including versions of Tencent’s popular game PUBG, search engine leader Baidu, and online payments giant Ant Group’s Alipay as tensions escalated on the nations’ disputed border.
  • Most Asia-Pacific stock markets rose after U.S. equities set a fresh all-time high, with investors assessing signs the rally that took global shares to a record high is broadening into other sectors and away from technology.
  • The rotation away from the tech titans that have led gains this year — with Apple, Tesla and Zoom Video all slumping Wednesday — could signal confidence in a broader economic recovery from the pandemic and hopes for a vaccine.
  • The online trading platform Robinhood is allegedly facing SEC probe.


STOCK WISE NEWS


VODAFONE IDEA: Amazon, Verizon may buy a stake in co for $4b Stake. Sale talks have resumed post outcome of SC verdict on AGR. The board meet scheduled tomorrow to consider fundraising.

IndusInd Bank: To allot 4.76 crore shares aggregating to Rs 2,495.8 crore on a preferential basis to qualified institutional buyers. Key investors in the issue include Route One Fund, ICICI Prudential, Tata Investment Corporation and AIA. The allotment price of Rs 524 per share is an 18% discount to Wednesday’s closing.

Tata Motors: Total sales in the domestic and international market up 13.3% to 36,472 vehicles. Domestic sales up 21.6% to 35,420 vehicles. CV sales down 28% while PV sales up 154% year-on-year to 18,583 vehicles.

Vedanta: Arrives at a book value of Rs 89.38 for its equity shares.

Bharat Forge: Sebi gives exemption to open offer in a deal with Kalyani Forge.

North America Class 8 truck orders up 91% YoY.

INFO EDGE: Zomato has raised around $250 million collectively from Tiger, Kora and Singapore’s sovereign wealth fund Temasek, an existing investor. Tiger may pump in another $100 million if Zomato is able to regain pre-COVID business volume valuing Zomato at $3Billion.

LUPIN: The company launches Leflunomide tablets used to treat rheumatoid arthritis, in the US market. Leflunomide tablets had annual sales of around USD 42 million in the US.

Electricity demand improves to 98% of the pre-COVID-19 level in August: ICRA

Rossari Biotech: Plutus Wealth Management acquired 3 lakh shares or 0.58% stake at Rs 773.82 per share.

Max India: Promoter Max Ventures Investment Holdings released pledge of 91.25 lakh shares on August 31.

The government allows domestic airlines to operate with 60% capacity. At present domestic airlines are allowed to operate with 45% capacity.

PAPER STOCKS: Finance Ministry issues guidelines to promote digitisation in government offices. Bans printing of diaries, greeting cards, coffee table books, calendars in physical form. All such items will now be issued only in the digital format.

ASHOK LEYLAND: Defence, LCV and buses to be key growth levers at Ashok Leyland: says, Chairman.

BROKERAGE UPDATE

CLSA On Vedanta

  • Outperform rating maintained Price target of Rs 133
  • Lower book value per share may temper expectations
  • Funds secured by promoters indicate the ability to offer Rs 128 per share for delisting
  • Delisting price can also be outside the range of Rs 89-128 per share
  • If Vedanta finds the Reverse Book Building price to be higher, it can make a counteroffer which cannot be less than the book value

CLSA On UPL

  • Buy rating maintained Price target of Rs 620
  • Improved market position and healthy innovation pipeline
  • Arysta acquisition boosted shares in FY20
  • See 28% earnings CAGR in FY20-23 on improved product breadth, balanced geographic mix and cost competitiveness
  • The pipeline of 14 late-stage and 38 early-stage products with peak sales of $1-1.5 billion in 5-8 years

JPMorgan On Jubilant Foodworks

  • Overweight rating maintained Price target raised to Rs 2,450 from Rs 1,800
  • Competitive moats widen during pandemic Long-term growth opportunity is intact
  • Focused cost reduction program coupled with delivery charges will aid margin expansion
  • Pace of revenue recovery is encouraging
  • Raise FY22 Ebitda margin forecast to 26%

FII bought 991 cr
GOLD- 1954
DXY- 92.8
CRUDE- 44.5

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