Stocks in Asia retreated along with U.S. equity futures after U.S. health authorities said they found the first case of coronavirus that does not have ties to a known outbreak.
Japanese shares were down more than 1.5 percent, with shares in Seoul and Sydney also lower. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.79 percent to 11,725 as of 6:55 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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Here’s a quick look at all that could influence equities today
- U.S. stocks fell for a fifth day, the longest losing streak since August, while Treasury 10-year note yields dropped to another record low as investors weathered a barrage of reports on the widening coronavirus outbreak.
- Oil extended declines to the lowest in a year on fears the fast-spreading coronavirus will take a major toll on the global economy.
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Indian ADRs
Stocks To Watch
- The Chandigarh NCLT bench today approved the merger of GSK Consumer Healthcare and Hindustan Unilever. The effective date of the merger is likely to be communicated soon.
- Thomas Cook to buyback upto 2.60 crore equity shares at Rs 57.5 each. Post buyback, promoter holding in the company will increase to 70.46 percent from 65.60 percent.
- RITES: The Government proposed to sell 1.25 crore shares (5 percent equity) in the company via offer for sale with an option to sell an additional 5 percent stake. The floor price for the offer has been fixed at Rs 298 per share, a discount of 6.6 percent to the current market price).
- InterGlobe Aviation denies allegations of wrongdoing or avoidance of process. The company said it has not received any communication from SEBI.
Brokerage Radar
Citi on Federal Bank
- Maintained ‘Buy’ with a price target at Rs 110
- Management reiterated its target of RoA of 1.25 percent by March 2021.
- Credit cards, other yield accretive products to ramp up.
- FedServ, 100 percent subsidiary, to lower cost, treasury business expanding.
- Continue to build strong liability franchise.
- Bank does not see issue in corporate asset quality.
HSBC on Havells
- Maintained ‘Buy’ with a price target at Rs 700.
- At an infection point of a major turnaround.
- Havells’ weak results in recent quarters drove earnings downgrade and weighed on its share price
- Q4 results should be a share price catalyst.
- Expect ~24 percent PBT CAGR over FY20e-22e. Strong growth will be driven by both top line growth as well as margin improvement.
Macquarie on IndusInd Bank
- Maintained ‘Outperform’ with a price target at Rs 1,558.
- Hosted a call for investors with the CEO of the bank.
- Have sent a list of candidates for CEO position five months in advance
- MFI exposure is just Rs 40 crore, repayment rates are 93 percent.
- No deterioration in portfolio quality in Hong Kong, China.
- Probability of guarantees being invoked in telecom exposure is low.
UBS on Nestle
- Maintained ‘Buy’; raised price target to Rs 19,250 from Rs 17,000.
- Revenue growth momentum continues, margin upside potential.
- Price increases, new product innovation, operating leverage ahead.
- Distribution led growth to continue, we prefer packaged food.
Edelweiss on Metals
- Domestic HRC price slipped further last week primarily due to subduedreal demand.
- International HRC prices have increased USD10/t on average as some provinces in China have resumed operations.
- Record-high steel inventory continues to be an overhang.
- Scope for a further correction in domestic HRC prices if exports from China pick up.
- Coronavirus is likely to keep up the pressure on domestic steel prices in the near term.
Bulk Deals
- Tata Chemicals: Tata Sons Pvt Ltd buys 14.96 lakh shares (0.6 percent equity) at Rs 742.44 each
India Cements
- Radhakishan Damani buys 27.25 lakh shares (0.9 percent equity) at Rs 104.16 each
- Gopikishan Damani buys additional 85.22 lakh shares (2.7 percent equity) at Rs 98.42 each
Sadbhav Engineering
- Blue Diamond Properties Private Limited buys 42 lakh shares (2.4 percent equity) at Rs 74.99 each
- Aditya Birla Sun Life Mutual Fund sells 26.92 lakh shares (1.6 percent equity) at Rs 75 each
- Hdfc Standard Life Insurance Co Ltd sells 8.90 lakh shares (0.5 percent equity) at Rs 80.13 each
Who’s Meeting Whom
- Aster DM to meet Thornburg Asset Management on Feb. 27.
- Chalet Hotels to meet Fidelity International & HDFC Standard Life on Feb. 27.
- Finolex Industries to meet Bajaj Allianz Life Insurance and Tokio Marine Singapore on Feb. 27 and 28 respectively.
Insider Trades
- Ultramarine & Pigments promoter Sridhar Sundarrajan sold 10,104 shares on Feb 25
- Steel Strips Wheels promoter Sunena Garg buys 4950 shares from Feb. 24 – 25
- Aarti Industries promoters sold 56,061 shares from Feb. 19 – 25
- Greenply Industries promoter Rajesh Mittal & Sons, HUF buys 25,000 shares on Feb. 24
- Hindustan Tin Works promoter Parikshit Bhatia buys 24,284 shares from Feb. 20 – 24
- Bajaj Finserv promoter Neelima Bajaj Swamy sold 23,500 shares on Feb. 25
- S Chand & Co-promoter Himanshu Gupta buys 5,000 shares from Feb. 24 – 25
- Shalby Ltd promoter Kairav Kirit Shah buys 8,206 shares on Feb. 24
(As Reported on Feb. 26)
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F&O Cues
Index Futures
- Nifty February futures closed at 11,695.6 premium of 17 points
- Nifty futures across series open interest rose 10 percent, added 16.6 lakh shares in open interest
- Nifty Bank February futures closed at 30,315, premium of 8.7 points
- Nifty Bank futures open interest rose 1 percent, added 16,600 shares in open interest
- Rollover: Nifty at 61 percent, Nifty Bank 55 percent
Options
- Nifty PCR at 1.01 Vs 1.05 (across all series)
Nifty Monthly Expiry: Feb 27
- Max open interest on call side at 12,000 (47.4 lakh shares)
- Max open interest on put side at 11,600 (26.7 lakh shares)
- Open interest addition seen in 11,750C (+14.4 lakh shares), 11,800C (+13.8 lakh shares), 11,700C (+12.8 lakh shares)
- Open interest shedding seen at 11,800P (-15.9 lakh shares)
Stocks In F&O Ban
- Yes Bank