Nifty Futures Indicates Tepid Start; Bandhan Bank, Infibeam In Focus

RBI Provides Calendar Of Bond Purchases Under Open Market Operations
RBI to infuse Rs 36,000 crore through bond purchases in October
Bond purchases spread across three tranches in second, third and fourth week
Bond purchases based on liquidity assessment, expected pick up in currency in circulation.

Money Market Heads Up: Rupee Seen Opening At 72.70/$ 

Government bonds may find support after the government reduced its borrowing for the second time in the current fiscal year. However, the surging oil prices could temper the good cheer.

Borrowing is just one part of the picture. There are genuine concerns on fiscal health right from GST collections, direct taxes, divestment targets etc. Kotak Mahindra Bank is calling for yield to stay in a range of 7.75-8.25 percent in the rest of the year.

In the currency market, implied opening from forwards suggest the pair may open at 72.70 a dollar. With high oil prices, there is little in terms of support for the rupee and it may trade in a range of 72.50-73 a dollar in the day.

Brokerage Radar: UBS, JPMorgan Maintain Stance On Indian Hotels, Macquarie Upgrades ITC

Macquarie on ITC

Upgrades to ‘Outperform’ from ‘Neutral’; Raises target price to Rs 367 from Rs 304.
See improving cigarette volume trends based on channel checks.
Expect higher visibility of margin improvement in FMCG business.
Believe potential double-digit cigarette EBIT growth will lead to valuation re-rating.

JPMorgan on Bandhan Bank

Maintains ‘Neutral’ for target price of Rs 670.
RBI curbs new branch opening pending clarity on stake reduction plan.
Promoter needs to take exception approval from regulators to reduce stake.
Above regulation should not be a drag on operating growth near term.

PhillipCapital on Engineers India

Maintains ‘Neutral’; Raises target price to Rs 150 from Rs 145.
HPCL order much anticipated and far higher than estimates.
Expect margins to be higher for the order as it is a greenfield project.
Raise earnings estimate by 4 percent and 9 percent for FY19 and 20 respectively.

Brokerages On Indian Hotels
UBS

Maintains ‘Buy’; Raises target price to Rs 175 from Rs 170.
Taj Mansingh at higher bid but still strategically important.
Increase earnings estimate to include Mansingh’s estimates.
Core business generates superior operating RoCE.

JPMorgan

Maintains ‘Overweight’ for target price of Rs 150.
Increased revenue share from Mansingh largely in line with expectations.
Expect improving hotel cycle to drive strong earnings growth.

F&O Cues: Maximum Open Interest At 11,000 Strike Price Call Option

Nifty futures end trade at 10,954, with a premium of 24 points.
Maximum open interest on call side at 11,000 strike price call option, OI at 24.3 lakh shares.
Maximum OI on put side at 11,200 strike put option, OI at 29.4 lakh shares.

Bulk Deals, Trading Tweaks And Insider Trades To Watch

Insider Trades
Bajaj Holdings & Investment promoter Shekhar Bajaj acquired 66,400 shares from Sept. 25-26.
Trident promoter group Lotus Global Foundation acquired 8.15 lakh shares from Sept. 26-27.
Mannapuram Finance promoter and director VP Nandakumar acquired 14 lakh shares on Sept. 24.
KEC International promoter acquired 50,000 shares from Sept. 26-27

Trading Tweaks
Indiabulls Real Estate Ltd. circuit filter revised to 10 percent
ICRA buy back of worth Rs 84.5 crore at maximum price of Rs 3,800 per share starts today.

Bulk Deals

Veto Switchgear Cable: Reliance Wealth Management Ltd. sold 1.15 lakh shares or 0.63 percent equity at Rs 118.92 each.

Rane Engine Valve

TRW Automotive JV LLC sold 2.52 lakh shares or 3.54 percent equity at Rs 454 each.
Promoter Rane Holdings acquired 2.52 lakh shares or 3.54 percent equity at Rs 454 each.