Market Overview - Wall Street remains largely unfazed by the U.S. government shutdown, with the S&P 500 rising 0.2%, the Dow Jones Industrial Average adding 20 points, and the Nasdaq composite increasing by 0.3% [1] - The bond market saw a significant drop in Treasury yields, influenced by disappointing employment data [2][11] Employment Data - The ADP Research survey indicated a loss of 32,000 jobs outside the government, with the Midwest particularly affected, and a downward revision of August's employment figures from a gain of 54,000 to a loss of 3,000 [2][4] - The upcoming Labor Department report is expected to be delayed due to the government shutdown, increasing uncertainty in the job market [4][5] Company Performance - Peloton Interactive's stock fell by 8.6% following a lukewarm reception to its new AI and computer vision system [6] - Corteva's shares dropped 8.3% after announcing a split into two companies, one focusing on seeds and the other on crop protection [7] - Cal-Maine Foods experienced a 2.4% decline as its quarterly profit and revenue fell short of analysts' expectations [7] - Conversely, Nike's stock rose 4.9% after exceeding profit expectations, driven by strong apparel sales in North America [8] - Lithium Americas saw a significant stock increase of 26.1% after the U.S. government approved a $2.26 billion loan, with the Department of Energy taking an ownership stake [9] Economic Indicators - The yield on the 10-year Treasury fell to 4.11% from 4.16%, reflecting expectations for potential interest rate cuts by the Federal Reserve due to weaker-than-expected payroll and manufacturing data [11]

Core Viewpoint - The Indian market has underperformed compared to the US and other emerging markets, presenting a long-term equity investment opportunity as it trades at a 49% PE premium to the EM index, which is attractive historically [2][3] Market Performance - Year-to-date, the Indian market has lagged behind the US and other emerging markets, with a notable 49% PE premium to the EM index, down from a peak of 97% in September 2024 [2] - Domestic Institutional Investors (DIIs) have invested $65.2 billion in the Indian market, while Foreign Institutional Investors (FIIs) have sold $17.4 billion, indicating a shift towards domestic investment [2] Investment Strategy - The focus remains on "Growth at a Reasonable Price," emphasizing quality stocks, monopolies, and market leaders in domestic sectors [1][3] - A cautious stance is maintained on export-oriented sectors due to tariff concerns and macroeconomic uncertainties [3] Sector Preferences - The market outlook favors sectors such as BFSI (Banking, Financial Services, and Insurance), Telecom, Consumption, Hospitals, and interest-rate proxies [3] - Positive views are held on retail consumption plays and certain capex-oriented stocks that show growth visibility for FY26 [3] Stock Recommendations - Recent changes in top picks include booking profits in Varun Beverages and adding Mahanagar Gas, reflecting a preference for growth at reasonable prices [4] - Recommended stocks include HDFC Bank, Bajaj Finance, Shriram Finance, Avenue Supermarts, State Bank of India, Lupin, Hero Motocorp, Max Healthcare, Kirloskar Brothers, Kalpataru Projects, APL Apollo Tubes, Mahanagar Gas, Bharti Airtel, Prestige Estates, and Sansera Engineering [5]

Group 1 - Dow Jones futures, S&P 500 futures, and Nasdaq futures fell as a government shutdown commenced [1] - Nike reported a revenue beat, indicating improvement in turnaround efforts [4] - Nvidia stock reached a bullish trigger amid significant AI deals, raising questions about its buy potential [4] Group 2 - Tesla rivals XPeng, Xiaomi, and Nio reported record electric vehicle sales in China, while BYD is expected to follow [4] - CoreWeave stock surged due to an expanded cloud computing agreement with Meta [4] - Spotify's CEO announced a leadership change, resulting in a decline in stock value [4]

Group 1 - The US government has agreed to acquire a stake in Lithium Americas, boosting the company's development of the Thacker Pass lithium project in Nevada [1][2] - This acquisition is part of the Trump administration's strategy to enhance domestic supply chains for critical metals, aiming to reduce reliance on China [2] - The Thacker Pass project is expected to become a significant lithium source for the US, which currently has limited production of this battery metal [3] Group 2 - Lithium Americas is in discussions with General Motors regarding the terms of a $2.26 billion government loan for its lithium mining project in Nevada [3] - The US-listed shares of Lithium Americas have increased by 92% this year, with a notable rise of 32% to $7.53 in after-hours trading [4]

Market Performance - Benchmark indices Sensex and Nifty closed lower, marking the eighth consecutive session of decline due to foreign fund outflows and caution ahead of the RBI's interest rate decision [1][3] - The BSE Sensex declined by 97.32 points or 0.12% to settle at 80,267.62, with a high of 80,677.82 and a low of 80,201.15 during the day [3] - In eight trading days, the Sensex has decreased by 2,746.34 points or 3.30% [3] - The NSE Nifty fell by 23.80 points or 0.10% to 24,611.10 [3] Sector Performance - Metal and banking stocks advanced, while realty and consumer durables faced selling pressure [5] - Major laggards among Sensex firms included ITC, Bharti Airtel, Trent, Bajaj Finserv, Titan, and Reliance Industries [5] - Major gainers included UltraTech Cement, Adani Ports, Tata Motors, Bharat Electronics, Bajaj Finance, and Hindustan Unilever [5] Foreign Investment Activity - Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,831.59 crore, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,845.87 crore [7] Upcoming Events - The RBI rate-setting panel's decision is expected to be announced on Wednesday [8]

Report Industry Investment Rating - There is no information provided regarding the report industry investment rating in the given content. Core Viewpoints - The fair initial price talk (IPT) for the new VEDLN 32s is 9.5% [3][6]. - The new USD bonds issuance by VEDLN will notably lower its funding cost and relieve its near - term refinancing pressure [6][8]. - Maintain a buy rating on VEDLN 9.475 07/24/30 due to its better risk - adjusted profile and higher trading liquidity [9]. Summary by Relevant Catalogs Trading Desk Comments - On recent new issues PINGIN 35/CKHH 30/MITSET 30, there were balanced two - way flows. MEITUA widened 1bp amid two - way flows [2]. - There was better buying on Chinese/Japanese/Middle Eastern financial FRNs because of cash - parking demand, and the rest of Asia IG space was unchanged to a touch tighter [2]. - Some PB sold HYSAN Perps amid the latest NWDEVL headlines, with HYSAN 4.85 and 7.2 Perps unchanged to 0.1pt lower, and NWDEVL complex 0.6pt lower to 0.3pt higher [2]. - There was demand on MTRC Perps from AMs due to firmer rates, with MTRC 5 5/8 and 4 7/8 Perps 0.1 - 0.2pt higher [2]. - LASUDE 5 07/28/26 was up by 0.9pt, and Lai Sun Development is close to signing HKD3.5bn secured five - year loan refinancing facility due Oct'25 [2]. - EHICAR 26 - 27s were unchanged to 0.4pt higher, and the two bonds have moved up 2.6 - 3.5pts since last week. EHICAR released moderately better 1H25 results with yoy improvement in profit margin, lower net debts and consistent rebound in utilization rate [2]. - In Chinese properties, VNKRLE 27 - 29s declined by 1.1pts, GRNLGR 29s were 0.9 - 1pt lower, and FUTLAN 28 was down by 0.2pt [2]. - There was better selling on Japanese insurance hybrids and Yankee AT1s in the morning from institutions, and moderately better buying from PBs during the London session [2]. - In Southeast Asia, there were some month - end rebalancing flows on Indian CBKIN/EXIMBK/HDFCB/SBIIN curve. VEDLN 28 - 33s were unchanged to 0.3pt lower [2]. - SMCGL Perps were unchanged to 0.2pt lower, and PCORPM 5.95 and 7.35 Perps were up by 0.1pt. There was little traction in the LGFV space [2]. Morning Update - The new DAESEC 4.375 10/14/28 was largely unchanged from RO at 99.6. AMs bought FRNs to park cash ahead of the Golden Week [3]. - CKINF 4.85 Perp was down 0.7pt. QDJZWD 6.95 03/31/28 and NUFAU 5 01/27/30 were 0.4 - 0.5pt higher [3]. - VEDLN 28 - 33s were largely unchanged this morning, and the IPT of 9.5% for the new VEDLN 32s is fair [3]. - Rakuten plans to issue USD PerpNC5 in mid - Oct'25 to refinance RAKUTN 5.125 Perp first callable in Apr'26. RAKUTNs were unchanged this morning [3]. Top Performers and Underperformers - Top Performers: LASUDE 5 07/28/26 up 0.9pt, JAPTOB 3.3 09/14/51 up 0.7pt, CBAAU 3.9 07/12/47 up 0.7pt, XIAOMI 4.1 07/14/51 up 0.6pt, BABA 5 5/8 11/26/54 up 0.6pt [4]. - Top Underperformers: VLLPM 9 3/8 07/29/29 down 1.3pt, VNKRLE 3.975 11/09/27 down 1.1pt, CCAMCL 4 3/4 12/04/37 down 1.0pt, GRNLGR 6 1/8 04/22/29 down 1.0pt, GRNLGR 6 3/4 09/26/29 down 0.9pt [4]. Macro News Recap - On Monday, S&P (+0.26%), Dow (+0.15%) and Nasdaq (+0.48%) were higher, and UST yield was lower. 2/5/10/30 yield was at 3.63%/3.74%/4.15%/4.71% [5]. Desk Analyst Comments on VEDLN - Vedanta Resources (VRL) proposes to issue 7NC2 144A/Reg S USD bonds (B2/ - /B+) to extend debt maturity and lower funding costs. Proceeds will prepay USD550mn due - Apr'26 private credit facility (PCF) in Oct'25, with excess for debt repayment and general corporate purposes [6]. - The new VEDLN 32s will be issued by Vedanta Resources Finance II Plc and guaranteed by VRL, Twin Star, Welter Trading, and a newly added Vedanta Holdings Mauritius II which holds 12.6% of Vedanta Limited (VEDL). The subsidiary - guarantor group's stake in VEDL increases to 53.6% from 40.99%, and the incurrence debt cap for subsidiary guarantors increases to USD5.2bn (excluding inter - company loans) from USD4.0bn. The new bonds will rank pari passu with existing USD bonds [7]. - Assuming new issue of USD500mn, draw down of USD250mn syndicate facility and prepayment of USD550mn PCF, VEDLN's near - term refinancing pressure will be largely relieved, with no major maturity in the remaining of FY26, cUSD300mn in FY27 and cUSD450mn in FY28. The increase in gross debts at its standalone level to USD4.8bn on a pro - forma basis from USD4.6bn in Sep'25 is manageable, considering LTM dividend income of USD1.3bn and brand fees of USD386mn in FY25 [8]. Offshore Asia New Issues Priced - International Finance Corp issued 20mn USD 10 - yr bonds with a 4.56% coupon at 4.56% priced, unrated [13]. - Mirae Asset Securities issued 300mn USD 3 - yr bonds with a 4.375% coupon at T + 88, rated Baa2/ - /BBB [13]. Pipeline - Rentenbank plans to issue 5 - yr USD bonds with pricing of SOFR MS+41, rated - /AAA/AAA [14]. - Vedanta Resources plans to issue 500mn USD 7NC2 bonds at 9.5%, rated B2/ - /B+ [14]. News and Market Color - There were 31 credit bonds issued yesterday onshore with an amount of RMB27bn. Month - to - date, 2,238 credit bonds were issued with a total amount of RMB1,998bn raised, representing a 30.5% yoy increase [15]. - China is setting up a dedicated department for government debt management and prioritizing deleveraging [15]. - GLP has identified sufficient sources to handle its cUSD2.5bn debt due over the next 12 months [15]. - Indonesia Asahan Aluminium (Inalum) delayed its IPO plan [15]. - JD.com supply chain arm plans to raise USD500mn from Hong Kong IPO [15]. - Medco Energi cancelled its share buyback program [15]. - Nissan Motor is in discussions to sell its 75% stake in Japanese soccer team for cost - cutting [15]. - POSCO International will invest KRW1.6tn (cUSD1.2bn) in new LNG power plants [15]. - Fitch revised the outlook of PTT Public Company and PTT Exploration and Production Public to negative from stable and affirmed BBB+ rating after Thailand's sovereign rating outlook revision [15]. - Italy cleared Sinochem of breaching government's golden power rules regarding Pirelli [22]. - TSMC denied reports of talks with Intel [22]. - Moody's affirmed Tata Motors' Ba1 corporate family rating and changed its outlook to negative from positive [22]. - Vedanta plans to deleverage by calling its outstanding bonds as early as Jun'26 [22].

Core Insights - AI stocks are currently attracting significant investor interest due to their potential impact on various industries and strong growth prospects [1][2] - There is a growing concern regarding the valuations of AI stocks, with some analysts suggesting that the market may be overly aggressive in its pricing [2][3] - Specific companies like Oracle and Broadcom are being highlighted as key players in the AI and cloud sectors, potentially warranting inclusion in elite stock groups [2] AI and Technology Sector - AI stocks are capturing investor imagination, with strong growth reported in the sector [1] - Market nervousness is evident regarding the stretched valuations of AI stocks, leading to a cautious outlook despite bullish sentiments on certain themes [2][3] - The AI power generation trade is viewed as a reliable investment, although there are concerns about the tactical valuations being high [3] Energy Sector - Baker Hughes Co (NASDAQ:BKR) is noted for its strong recovery and demand in power-generation solutions, despite recent oil price declines [8][7] - EQT Corp (NYSE:EQT) is positioned to benefit from rising energy demand driven by AI and data centers, being the largest gas producer in the US [10][11] Entertainment Sector - Walt Disney Co (NYSE:DIS) faces challenges with its ABC network, which is negatively impacting its growth; shutting down ABC could unlock significant value [13][14] - Netflix Inc (NASDAQ:NFLX) is expected to see long-term growth due to its expanding content and advertising revenue, with analysts recommending significant positions during pullbacks [16][18] Automotive Sector - Tesla Inc (NASDAQ:TSLA) has faced a downgrade due to high earnings expectations and stock valuation concerns, particularly after the loss of emissions tax credit revenue [15] - Despite challenges, Tesla's advancements in AI technologies and the rollout of its robotaxi business are seen as potential growth drivers [15]

Group 1 - DeepSeek has released version V3.2-Exp of its model, significantly reducing service costs, with API prices dropping by over 50% [2][29] - The new pricing structure for DeepSeek API includes costs of 0.5 yuan for cache hits and 4 yuan for cache misses, effective from September 29, 2025 [3] - Jaguar Land Rover is set to resume production after a month-long halt due to a cyber attack, with operations gradually restarting [5] Group 2 - Apple CEO Tim Cook confirmed his personal investments in cryptocurrencies like Bitcoin and Ethereum but stated that Apple will not accept crypto payments for products [5] - Xiaomi's public relations manager announced that there are no plans to cut orders for the Xiaomi 17 series, which is expected to see an increase in overall product orders [12] - The total import and export value of automotive goods in August 2025 was reported at $25.81 billion, with a month-on-month increase of 3.3% [30] Group 3 - AstraZeneca plans to list its shares on the New York Stock Exchange while maintaining its headquarters in the UK [22] - Linghou Robotics has completed over 100 million yuan in Series A financing, focusing on core components for industrial automation and general robotics [22] - The new ZEEKR 9X luxury SUV has been launched with a starting price of 465,900 yuan, featuring advanced electric and AI technologies [23]

Core Viewpoint - Equity benchmark indices Sensex and Nifty rebounded in early trade on September 29, 2025, following a sharp decline the previous week, driven by value-buying at lower levels and a positive trend in global markets [1]. Group 1: Market Performance - The 30-share BSE Sensex increased by 255.46 points to reach 80,681.92 [1]. - The 50-share NSE Nifty rose by 89.05 points, reaching 24,743.75 [1]. - Last week, the BSE benchmark fell by 2,199.77 points or 2.66%, while the NSE Nifty dropped by 672.35 points or 2.65% [3]. Group 2: Sector Performance - Major gainers in the Sensex included Bharat Electronics, Eternal, Tata Steel, Tata Motors, Titan, and Mahindra & Mahindra [1]. - Lagging stocks included Hindustan Unilever, Axis Bank, Larsen and Toubro, and Bharti Airtel [2]. Group 3: Global Market Influence - Asian markets showed positive performance with South Korea's Kospi, Shanghai's SSE Composite index, and Hong Kong's Hang Seng trading higher, while Japan's Nikkei 225 index was lower [2]. - U.S. markets ended higher on September 26, 2025, with the Dow snapping a 5-day losing streak [3].

Core Points - More than one million kitchen appliances, specifically Oster French Door Countertop Ovens, have been recalled due to a burn hazard [1][6] - The recall affects seven different model numbers sold at major retailers in the U.S. and Canada [1][9] - The U.S. Consumer Product Safety Commission (CPSC) reported fewer than 100 injury reports out of over 1.2 million units in use, with two cases involving second-degree burns [2] Product Details - The countertop ovens were sold at retailers such as Walmart, Costco, and Bed Bath and Beyond, with prices ranging from $140 to $250 [6] - The affected appliances were available for purchase between August 2015 and July 2025 [6] - The specific models impacted include TSSTTVFDXL, TSSTTVFDDG, TSSTTVFDMAF, TSSTTVFDDAF, TSSTTVFDDGDS, TSSTTVFDDAF-033, and TSSTTVFDXLPP-033 [9] Consumer Guidance - Consumers are advised to stop using the recalled ovens and contact Sunbeam Products Inc. for a free repair kit [10] - The repair kit includes a clip-on device to enhance door stability and installation instructions, with no tools required for installation [10][11]