Opening Bell: Here’s what you need to know before the market opens on October 04, 2021.

Opening Bell.
by 5paisa Research Team 04/10/2021

Will markets sustain these early gains or traders will utilize this pullback to offload their positions?

The SGX Nifty indicates that domestic markets may open with modest gains as it trades with gains of 3.5 points at 17,533.50. What’s important is will markets sustain these early gains or will traders utilize this pullback to offload their positions. As per the sentiments prevailing among the Asian peers, we believe the latter might be seen on Monday. On the downside, the level of 17,440-17,450 is an important support level. Hence, keep a close watch on this level.

Cues from Asian markets: Asian stock markets are in a sea of red on Monday as Japan’s Nikkei 225 and Hong Kong’s Hang Seng is down by over 1%.

Overnight cues from US markets: After a highly volatile session in the early part of the trading session, US stocks turned buoyant as bargain buying was seen on Wall Street as a result US markets ended Friday’s session firmly in positive terrain. The Dow lead from the front as it jumped nearly 1.43% and it reclaimed its important psychological mark of 34,000. Despite this strong rebound from the lower levels, the Dow is still trading below its 50 and 100-DMA. The S&P 500 advanced 1.15% to ended above the 4,350 mark. Meanwhile, the tech-heavy Nasdaq rose nearly 0.82% to 14,566.70.

Last session summary: On Friday, the same old story continued on D-Street as the Nifty extended losses for the fourth straight day as it dropped nearly 0.5%, while Sensex lost 0.61%. However, the broader markets outperformed the frontline benchmark indices as Nifty Midcap and Smallcap added 0.04 and 0.13%, respectively. Overall, market breadth was slightly positive.

Among the sectoral indices, Nifty Pharma and Media were top gainers, on the flipside, Nifty Realty lost more than 1.5%. India VIX witnessed a significant drop of over 6% as a result it slipped below the 18-mark.

FII’s and DII’s activity on Friday: FIIs were net buyers to the tune of Rs 131.39 crore on Friday. On other hand, DIIs were net sellers to the tune of Rs 613.08 crore.

Important Corporate events to watch out: Man Infraconstruction to consider dividend and bonus. Ganesh Benzoplast, the meeting of Board of Directors of the company will be held on Monday to consider and approve the job work agreement and other terms for conducting the chemical business between the parent company- Ganesh Benzoplast and its 100% subsidiary GBL Chemical without transferring any immovable property owned by the company as approved by the member in the AGM.

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Adar Poonawalla-backed Wellness Forever files for IPO. Find out more

by 5paisa Research Team 04/10/2021

Wellness Forever Medicare Ltd, a pharmacy retail company backed by Adar Poonawalla-led vaccine maker Serum Institute of India (SII) Pvt. Ltd, has filed its draft red herring prospectus for an initial public offering (IPO).

The IPO comprises a fresh issue of shares to raise Rs 400 crore and an offer for sale of 1.6 crore shares, as per the DRHP filed with the Securities and Exchange Board of India. The total IPO size could be around Rs 1,500-1,600 crore.

The Mumbai-headquartered omnichannel retail pharmacy chain follows Hyderabad-based pharmacy chain MedPlus, which submitted its IPO papers in August.

Wellness Forever’s founders Ashraf Biran, Gulshan Bakhtiani, and Mohit Chavan are among those selling shares of the company in the IPO. Biran and Bakhtiani are offering 7.20 lakh shares each while Chavan is offering 1.20 lakh shares. Other shareholders will sell the remaining 1.44 crore shares.

Poonawalla’s SII, the world’s biggest vaccine maker, plans to sell 35.5 lakh shares in the IPO. It owns 66.98 lakh shares, or a 13.2% stake, in the company. Rising Sun Holdings Pvt. Ltd, another company owned by Poonawalla, will sell 15.22 lakh shares. Rising Sun holds 36.4 lakh shares, or a 7.17% stake, in the company.

Wellness Forever has raised around $21 million till date in three funding rounds from investors including Serum Institute, Adar Poonawalla, Singapore Angel Network, Amit Patni and Rajiv Dadlani.

As per the DRHP, the company plans to use Rs 100 crore to repay its loans and Rs 70.20 crore to fund capital expenditure for setting up new outlets. In addition, it will use Rs 121.90 crore to meet working capital requirements.

IIFL Securities, Ambit Pvt Ltd, DAM Capital Advisors and HDFC Bank are managing the IPO.

Wellness Forever’s business and financials

The Mumbai-based company was founded in 2008. It is the third-largest chain of pharmacy and wellness stores that sell 91,500 pharmaceutical and wellness products.

It opened its first drugstore in 2008, and has expanded its retail footprint to a total of 236 stores in 23 cities across Maharashtra, Karnataka and Goa. It serves a registered customer base of 6.7 million users as of June 30, 2021.

Citing Technopak, it said that Wellness Forever generated the highest revenue per retail square foot in the Indian pharmaceutical retail industry for 2019-20 and 2020-21.

The brand aims to strengthen its presence in tier-2 and tier-3 cities, particularly in the pharmacy e-commerce segment, a sector that is projected to grow at an annualised pace of 45%.

The company has been increasing the share of non-pharmaceutical and premium wellness products, which offer gross margins higher than 30%, in its total revenue. The share of non-pharmaceutical products rose from around 37% in 2018-19 to almost 46% in 2020-21 while the share of premium wellness products increased from 10.47% to 16.32%. Its total revenue for 2020-21 was Rs 924.02 crore, up from Rs 863.25 crore in the previous fiscal year.

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An Investment of Rs 1 lakh in this multibagger scrip would have fetched you more than Rs 15 lakh in just six months.

Multi-bagger Stocks
by 5paisa Research Team 04/10/2021

We often come across companies that have delivered stellar returns in a short period. Stocks that give returns that are several times their costs are called Multibaggers. These are essentially stocks that are undervalued and have strong fundamentals, thus presenting themselves as great investment options. Multibagger stock companies are strong on corporate governance and have businesses that are scalable within a short time.

Let us have a look at the multibagger stock which has delivered 15X returns in just six months.

Amid Indian indices soaring to their record highs, a handful of shares have entered into the list of multibagger stocks in 2021, Kwality Pharmaceuticals Limited is one of them. This pharma stock has beaten the S&P BSE Healthcare index by a huge margin. In Year to Date (YTD) terms, the BSE Healthcare index has risen around 22% while this pharma stock has delivered a stellar 1,500% return in the same period. In the last 6 months alone, this multibagger stock has shot up 1,527%.

Kwality Pharmaceuticals Ltd (formerly Kwality Pharmaceuticals Pvt Ltd) is a pharmaceutical formation company. It is engaged in manufacturing finished pharmaceutical formulations in the dosage form. The company manufactures and exports pharmaceutical formulations in liquid orals, powder for oral suspension, tablets, capsules, sterile powder for injections, small volume injectables, ointments, external preparations in various categories like beta-lactam and non-beta-lactam, hormones, cytotoxic (oncology) and effervescent as per new GMP norms. The company was founded in 1983 and is based in Amritsar, Punjab with an additional office in Kangra.

This multibagger pharma stock has given a robust 89.89% return in the last one month alone while in the last 6 months, it has given a stellar 1,527 % return to its shareholders after rising from Rs 54 per stock level to Rs 879 apiece currently. In Year to Date (YTD) terms, this pharma stock has given the same kind of returns.

Impact on one's investment

Taking a cue from Kwality Pharmaceuticals share price history, if an investor had invested Rs 1 lakh in this pharma stock one month ago, today its Rs 1 lakh would have become Rs 1.89 lakh. Similarly, if an investor had invested Rs 1 lakh in this multibagger stock 6 months ago and had remained invested in the counter throughout this period, its Rs 1 lakh would have become near Rs 15.25 lakh as the stock has risen 1,527% during this period.

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Trending Company D-Mart

D-Mart reports a strong jump in revenues in Q2FY22.
by 5paisa Research Team 04/10/2021

D-Mart reports a strong jump in revenues in Q2FY22.

D-Mart, the one-stop supermarket chain that offers customers a wide range of basic home and personal products like - food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and more at competitive prices.

The company opened its first store in Mumbai in 2002. At the end of Q2 2022, the D-Mart has 246 stores with a Retail Business Area of more than 10 million sq ft (approx) across Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh and Punjab.

The company has added eight stores in the second quarter of FY2021-22. For the same quarter, it has reported Standalone Revenue from operations at Rs 7,649.64 crore which has seen a jump of 46.6% against Rs 5218.15 crore in the same quarter last year. In the pre-pandemic Q2 of FY 2019-20, revenue from operations stood at Rs 5949.01 crore, the company reported in its regulatory filing.

One of India’s largest retailers, D-Mart is the preferred supermarket of lower-middle, middle, and transitioning middle to upper-middle-income consumers. Its brick to mortar stores is always bustling with customers. By the end of October 2020, it has also forayed into online business to cope with the lockdown restrictions and limited mobility of the public.

The company sees humongous potential on both sides, offline as well as online. And with the post-pandemic surge in the buying due to pent up demand for non-essential goods, fueled by the upcoming festive seasons, the outlook for coming quarters is positive for the company.

The company is currently trading at very rich valuations of 240x Price to Earnings ratio. Also competition from Reliance Groups debut JioMart, Walmart-owned Flipkart and global e-commerce giant Amazon as one of the key risks for Avenue Supermarts, especially in its e-commerce segment.

The stock was trading at Rs 4257.10 up at 0.51% on Monday, October 4, 2021, at 11.02 am. 

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Superstar Stocks: BTST Trading and stocks that could deliver good returns till October 5, 2021.

superstar stocks for tomorrow!
by 5paisa Research Team 04/10/2021

Watch out for these stocks, Stocks that are in focus, Stocks to buy for tomorrow, Superstar Stocks selected on basis of a three-factor model, SAIL, NTPC, Can Fin Home.

Many times market participants see a stock opening with a gap-up and wish they should have bought this superstar stock a day before to take advantage of the gap-up move. To fulfil this wish, we have come out with a unique system, which would help us to get the list of candidates that can be probable superstar stocks for tomorrow.

The superstar stocks for tomorrow selected are based on a three-factor prudent model. The first important factor for this model is price, the second key factor is pattern, and last but not least is the combination of momentum with volume. If a stock passes all these filters it would flash in our system and as a result, it will help traders to spot the superstar stocks for tomorrow at the right time!.  

Here are the superstar BTST stocks for October 5, 2021.

SAIL: The stock of SAIL has gained nearly 4% on Monday and was seen trading near the day’s high. Interestingly, almost two hours are remaining in Monday’s session and the stock has already surpassed the volume of its previous trading session. The RSI on the daily time frame has marked a fresh 14-period high. Meanwhile, on the hourly time frame, it’s in bullish territory. The stock can probably test levels of Rs 123 followed by Rs 125 on the upside, while on the downside, support is seen around Rs 116.80.

NTPC: The stock of NTPC has hit a fresh 52-week high on Monday. The stock has jumped nearly 5%. The stock has formed a bullish candle and it has been trending high with the formation of higher highs on the lower time frame and volume activity is seen picking up in the last hour or so. The daily volume so far has already surpassed its previous day volume and it is greater than its 20-days average volume. The 14-period RSI is in the bullish territory on hourly, daily and weekly time frame. The stock has the potential to test levels of Rs 151.5 followed by Rs 154 on the upside. On the downside, the level of Rs 144 is likely to act as immediate support for the stock.   

Can Fin Home: The stock has hit a fresh all-time high with a bull wide range bar. Interestingly, the stock has seen its highest single-day volume since September 23 and in addition to this, the volume is greater than its 20-days average volume. The RSI is in the bullish territory on the hourly, daily and weekly time frame. The stock has the potential to test levels of Rs 750 and immediate support for the stock is placed at Rs 690.

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Everything you should know about National Pension Scheme!.

Everything you should know about National Pension Scheme!
by 5paisa Research Team 04/10/2021

National Pension Scheme (NPS) is a voluntary retirement savings scheme that aids an individual to save and enjoy returns during their retirement.

National Pension Scheme (NPS) was launched to promote the security of income to pension fund subscribers in their old age. The fundamental objective of the scheme is to aid in saving for life after retirement and to provide good returns when individuals stop earning.

NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA). It is a good investment option for retirement for employees working for Government as well as private employees. Any citizen of India can subscribe to NPS be it be resident or non-resident. Applicant should be between 18-65 years of age as of the date of submission of his/her application and should comply with KYC norms prescribed. NPS is available in three approaches – Tier I, Tier II and Swavalamban Scheme. NPS is already available for government employees and now it is extended to other citizens of India with effect from May 1, 2009.

Benefits of NPS:

  1. Low-Cost Structure: The primary advantage of NPS is its low-cost structure. NPS is considered the world’s lowest-cost pension scheme. Also, administrative charges and fund management fees are minimal. Along with this, one can expect better returns from the fund over a longer duration as compared to other financial investments.

  1. Transparency: There is complete transparency in the charge structure and the subscriber knows exactly how much he/she is paying for what costs.

  1. Simple: One can subscribe to NPS through various Point of Presence (PoP) which mostly covers banks and certain other financial entities.

  1. Flexibility: NPS offers flexibility to choose options including the auto-choice that allows one to choose the investment option based on the subscriber’s age and risk appetite.

  1. Tax Benefits:

  • Employee’s contribution - Eligible for tax deduction up to 10% of Salary (Basic + DA) under Section 80 CCD (1) within the overall ceiling of Rs 1.50 lakh under Sec 80 CCE.

  • Employer’s contribution – The employee is eligible for tax deduction up to 10% of Salary (Basic+DA) contributed by the employer under Sec 80 CCD (2) over and above the limit of Rs 1.50 lakh provided under Sec 80 CCE.

Types of Accounts:

  1. Tier I: This is a non-withdrawable account in which your contributions will be deposited. For Tier I account, the minimum contribution is Rs 1000 in a year excluding charges and taxes.

  1. Tier II: Tier II account is voluntary savings account in which you can deposit as well as withdraw at any point. It works like a mutual fund. However, one cannot have a Tier II account without Tier I account.

  1. Swavalamban Account: This type of NPS is provided for encouraging poor workers. Under this scheme, the Government of India would pay Rs 1000 per year for the first 4 years as its contribution.

Investments:

Asset Class E: Pre-dominantly investments in equity market instruments.

Asset Class C: Investments in fixed-income instruments other than Government securities.

Asset Class G: Investments in Government securities.

Asset Class A: Investment in Alternative Investment Schemes including instruments like CMBS, MBS, REITS, AIFs, InvIts etc.