Closing Bell
India's stock benchmark S&P BSE Sensex logged its second worst week in three months, while it was the worst week for NSE Nifty 50 since the end of November. The weekly decline came despite the advance in Friday's session which recouped some of the steep losses from the seven-day losing streak, longest in two years.
The Sensex and Nifty rose nearly 2.5% on Friday, the biggest gain in eight sessions.
The Sensex added over 1,300 points to close at 55,858.52. The NSE Nifty 50 gained 2.53% to 16,658.40.
Coal India Ltd. had the largest increase, rising 9%. On Friday, 47 of 50 shares rose, while three fell.
The broader indices outperformed their larger with both the S&P BSE MidCap and S&P BSE SmallCap rising over 4%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal rising nearly 6%.
The market breadth was skewed in the favour of bulls. About 2,638 stocks advanced, 732 declined and 94 remained unchanged.
In fact, Friday's session is the best session for the benchmarks since Feb. 15, the day after which the seven-day losing streak began. Over the seven sessions, the two measures shed over 6%. Partially offset by Friday's gains, the benchmarks closed the week with over 3.5% losses.
For the week, Nifty Media was the biggest sectoral laggard, followed by PSU Banks and auto stocks.
"Markets have been sharply volatile and the drop in Nifty from its high’s is certainly not indicative of the wealth erosion in many retail investor portfolios. Even global equity markets witnessed sharp selling in the aftermath of Russia invading Ukraine. On the economy front, MPC minutes attributed its status quo on rates and stance to the uneven domestic economic recovery and the need to complement fiscal policy" Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd. wrote in a note. "With earnings season behind us and given the overall sentiments, markets are expected to move in sync with global peers in the coming week. A close eye will be kept on the developments concerning the Russia – Ukraine crisis and considering the inflation overhang, market participants will also observe movements in energy prices".
Bharat Electronics Jumps The Most In Four Months After Securing Rs 1,075 Crore Order From Defence Ministry
Shares of Bharat Electronics Ltd. rose over 7%, the most in four months.
Indian Defence Ministry signed Rs 1,075 crore contract with Bharat Electronics Ltd. on Thursday, for the supply of 957 commander thermal imager-cum-day-sights for T-90 tanks.
The DRDO and BEL have designed and developed an advanced mid-wave thermal image based sight, as per the needs of the Indian army.
Of the 29 analysts tracking the company, 25 maintain 'buy', three recommend 'hold' and one suggests 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 25.1%.
Source: PIB, Bloomberg
Surging In Trade
Coal India shares up 6%, most in seven weeks.
Natco Pharma shares up most in two months.
NTPC shares rise the most in more than seven weeks.
Source: Bloomberg
PNC Infratech Secures NHAI Project Of Value Rs 885 Crore
PNC Infratech bagged a new hybrid annuity highway project of Rs 885 crore.
The company has been declared the L1 (lowest) bidder for NHAI projet in Uttar Pradesh.
The project is to be completed in 24 hours and operated for 15 years post construction.
Shares of PNC Infratech rose nearly 5% in intraday trade. The stock is trading with 0.8% gains as of 2:55 p.m.
Of the 24 analysts tracking the company, 23 maintain 'buy' and one suggests 'hold'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 55.8%.
Source: Exchange Filing, Bloomberg
AIA Engineering Jumps After Nomura Says Impact Due To Russia-Ukraine Will Be Minimal
Shares of AIA Engineering Ltd. rose over 1.8% in intraday trade after Nomura said that the company's exposure to eastern Europe, Russia and Ukraine has been declining.
The brokerage said that the impact of Russia-Ukraine crisis on AIA Engineering has been overdone.
Even if the geopolitical conflict were to spread and have larger footprint in the region, the impact of AIA Engineering's sales volumes will be limited, according to Nomura.
Nomura maintains 'buy' on the stock with the target price unchanged at Rs 2,340; an implied return of 42.75%.
Shares of AIA Engineering have fallen 12% in the past month compared to 3.5% decline for Nifty 50.
Of the 17 analysts tracking the company, nine maintain 'buy', four suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 29.7%.
Source: Brokerage note, Bloomberg
India's Pharmaceutical Market Grew At The Fastest Pace In Five Months In January, Here Are The Factors That Aided The Growth
Economists Flag Major Challenges To India's Macroeconomic Stability Amid Russia-Ukraine Crisis
Kabra Extrusiontechnik Surges 10%
Shares of Kabra Extrusiontechnik surged 10% after the pipes and plastic products maker allotted warrants to investors including University of Notre Dame Du Lac.
Kabra Extrusiontechnik allotted 1.1 million warrants to three investors at a conversion price of Rs 329 per share.
This is the biggest intraday gain for the stock in two months.
Source: Bloomberg
Sunflower Oil Shipments To India Are At Risk Due To Ukraine Conflict
Sunflower oil shipments to India are at risk due to Ukraine conflict, says Sandeep Bajoria, president of International Sunflower Oil Association.
Shipments of more than 3,50,000 tonnes of sunflower oil to India are at risk.
Traders in India have contracted to import 5,50,000 tonnes of sunflower oil from Ukraine and Russia for deliveries in February and March.
About 1,80,000 tonnes have already left, but the fate of the rest is now uncertain.
World over, there is going to be a shortage of sunflower oil and prices will rise.
- Sandeep Bajoria, President, International Sunflower Oil Association
Source: Bloomberg
European Markets Open Higher
India's Largest Hedge Fund Believes Volatility In Markets Is Here To Stay
Former Group COO Of NSE Anand Subramanian Arrested By CBI
RBI's Decision To Hold Back On Interest Rates Is Right, Says A Top Official At BofA
Russia, Ukraine Troops Clash Outside Kyiv, Reports AFP
Ukraine's army says it is fighting Russian forces just outside capital city Kyiv.
Source: AFP
Mid-Day Market Update: Sensex Adds 1,400 Points; Nifty Hovers Around 16,700
India's stock benchmarks rebounded after the steep decline in Thursday's session, aided by gains in metal, power, realty and banking stocks. This comes amid escalation of Russia-Ukraine crisis, which has prompted U.S., UK, EU sanctions on Russia. Moscow's energy supplies, however, have been spared from sanctions.
The S&P BSE Sensex rose 2.53% (1,382 points) to 55,911.76. The 30-stock gauge added over 1,650 points to an intraday high of 56,183.70. The NSE Nifty 50 also surged by similar magnitude to 16,672.95. The two measures have recouped over half of yesterday's losses.
The broader indices outperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap rising over 3.5%. All the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Metal, Realty, Power, Basic Materials, Finance and Bankex leading the gains.
The market breadth was skewed in the favour of bulls. About 2,548 stocks advanced, 722 declined and 107 remained unchanged.
Bharat Forge Jumps As Analysts Spot Synergies From JS Auto Acquisition
Shares of Bharat Forge jumped the most in four weeks after analysts expected the company's acquisition of Coimbatore-based casting and machining company JS Auto Cast Foundry India Pvt Ltd.
The acquisition was announced during market hours Thursday. JS Auto is a supplier of critical machined ductile iron castings for wind, hydraulic, off-highway and automotive applications.
Analysts concurred that the synergies from the deal are visible as the two companies have common clients already. They added the acquisition of JS Auto Cast and earlier acquisition of Sanghvi Forgings in June 2021 would expand Bharat Forge's growth in industrial segment and renewables.
Bharat Forge entered into a definitive agreement to acquire 100% stake in JS Auto Cast Foundry India for an upfront consideration and a fixed deferred payment at the end of third year of operations. However, the management did not disclose deal valuations.
Of the 32 analysts tracking the company, 25 maintain 'buy', three suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 31.3%.
Trading volume was 1.6 times the 30-day average volume at this time of the day.
Source: Exchange Filing, Brokerage note, Bloomberg
Rupee Rebounds, Bonds Gain On Dovish RBI Minutes
Rupee recoups some of Thursday's steep losses as risk sentiment revived in Asia. Bonds are higher after RBI's minutes showed policy makers continue to remain fixated on supporting economic growth.
USD/INR down 0.6% to 75.22; rose 1.4% on Thursday, the steepest rise in over ten months.
Source: Bloomberg
Ukraine President Says Russia Targeting Civilian Areas
President Zelensky says Russian forces are targeting civilian areas.
He urged Russians to protest against the invasion.
Zelensky hailed Ukrainians for their “'heroism” and said Ukraine forces are “doing everything possible” in the situation.
Source: AFP
Adani Power Surges After Supreme Court Orders Rajasthan To Pay Dues Worth Rs 3,048 Crore To Firm
Shares of Adani Power climbed nearly 15%, the sharpest advance in over two weeks after the company won the case in Supreme Court on power dues from three Rajasthan-based discoms.
Supreme Court has asked Rajasthan state to pay dues worth Rs 3,048 crore, along with 9% interest in four weeks to Adani Power.
Court says Rajasthan state official may face contempt of court case if the dues remain unpaid.
Trading volume was 3.5 times the 30-day average volume at this time of the day.
Source: Bloomberg
India Yield Curve Steady; Stocks Up
Maturities across the India sovereign yield curve were little changed in Friday morning trading.
The 4-year yield fell 1.4bps to 5.947%.
The 10-year yield was little changed at 6.759%
The 14-year yield fell 0.9bps to 7.014%
The 4-year-10-year yield spread was 81.2bps, vs previous close 79.9bps.
Source: Bloomberg
Tata Motors Leads The Gains In NSE Nifty Auto Index
Motilal Oswal Expects "Unlimited" Stores To Drive V-Mart's Growth; Shares Advance
Shares of V-Mart Retail rose over 5.4%, the biggest rise in nearly three months as Motilal Oswal identified "Unlimited" stores as a potential driver of recovery and contribute to earnings growth in the near term.
Motilal Oswal expects the acquisition of 74 stores of "Unlimited" from Arvind Fashion to aid profitability.
V-Mart has huge growth opportunity in the fashion segment, says Motilal Oswal report.
The brokerage maintains 'buy' with the target price unchanged at Rs 4,450; an implied upside of 35%.
Of the 24 analysts tracking the company, 20 maintain 'buy' and four recommend 'hold'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 24.4%.
Source: Brokerage note, Bloomberg
Broader Indices Outperform Their Larger Peers
Rupee Appreciates Against The U.S. Dollar
Saregama India Approves Stock Split; Shares Advance
Shares of Saregama India rose nearly 4.5% after the company approved sub-division of one equity share of the company having face of Rs 10 each to 10 equity shares of face of Rs 1 each.
The share split is intended to improve the liquidity of the company's shares in the market.
The share split is expected to be completed within two months from approval of shareholders.
Source: Exchange Filing, Bloomberg
Apollo Hospitals Surges The Most In A Month As Stock Set To Replace Indian Oil In Nifty 50
Shares of Apollo Hospitals Enterprise rose 4.3%, the biggest surge in nearly a month.
The company will replace Indian Oil Corporation in Nifty 50 index from March 31, 2022.
This rejig comes as part of semi-annual index review.
Of the 24 analysts tracking the company, 23 maintain 'buy' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 20.2%.
Source: Bloomberg
UPL Surges The Most In 15 Weeks; Firm To Consider Share Buyback Proposal On March 2
Shares of UPL Ltd. rose nearly 4.8%, the most in 15 weeks after the company said it will consider proposal for buyback of equity shares on March 2.
Trading volume was nearly thrice the 30-day average volume at this time of the day.
Shares of UPL have risen after seven days of decline in which the stock shed 12%
Source: Bloomberg, Exchange Filing
Russia-Ukraine Conflict: Where To Put Your Money?
Top Sectoral Gainers This Friday
Opening Bell: Sensex, Nifty Open Higher; UPL Surges
India's stock benchmarks advanced, amid rise in global equities after the U.S., UK, EU imposed sanctions on Russia, including action against five major banks to impair their access to foreign currency. Russian energy supplies have been spared from sanctions.
The S&P BSE Sensex rose 1.88% to 55,553.86. The NSE Nifty 50 advanced by similar magnitude to 16,524.55.
The broader indices outperformed their larger peers with S&P BSE MidCap gaining 2.69% and S&P BSE SmallCap adding over 3%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty, S&P BSE Metal, S&P BSE Finance and S&P BSE Information Technology leading the gains.
The market breadth was skewed in the favour of bulls. About 2,030 stocks advanced, 560 declined and 66 remained unchanged.
'Time To Appreciate Asset Allocation In Portfolios'
Days like Thursday (Russia - Ukraine war) remind us that consistency of thoughts & advice is so important and hence this is a time to appreciate asset allocation in portfolios. We always recommend keeping at least 20% cash in the portfolio and to have diversification across asset classes that are less correlated with each other. A substantial impact on markets & portfolios has already taken place and this is not at all a time to sell in panic. If there is deployment as per equity allocation, investors could have deployed 15%-20% on drawdowns like today. However, if risk appetite permits they could dip into the cash reserves and invest in equity as a part of tactical asset allocation. Investors should look at investments keeping in mind standard deviation, drawdown, and recovery i.e., investment products that have a better & higher possibility of recouping the losses.Rahul Bhutoria, Director, Valtrust Capital
Analyst Actions: Siemens, Mindtree
Siemens India raised to 'add' from 'reduce' at Axis Capital; price target set at Rs 2,520.
Mindtree raised to 'buy' from 'hold' at Anand Rathi Securities; price target set at Rs 5,010.
Source: Bloomberg
In Focus: New Tech Listings On Nifty Next 50 Index Inclusion
New age technology listings are in focus today as FSN E-Commerce Ventures, Zomato and One 97 Communications are set to be included in Nifty Next 50 index effective March 31.
MindTree, SRF and Indian Oil will be new inclusion to Nifty Next 50.
Apollo Hospitals will also be in focus as it will be included in Nifty 50 index.
Source: Bloomberg
IndusInd Bank In Talks To Acquire IDFC Mutual Fund, Reports Mint
IndusInd Bank is one of the top contenders to acquire IDFC Asset Management, Mint newspaper reported citing two people aware of the development it did not identify.
IDFC Asset Management has Rs 1.3 lakh crore of assets under management.
IndusInd Bank may be well-placed with about $1 billion of funds for the planned acquisition, according to the report.
Formal bidding process will be completed in March and announcement will be made afterward, the newspaper said.
Spokespersons for IndusInd Bank and IDFC declined to comment to the newspaper.
European Commission President Unveils Broad Sanctions On Russia
The EU package includes financial sanctions, targeting 70% of the Russian banking market and key state owned companies, including in defence.
Sanctions will also target the energy sector, a key economic area for Russia. “Our export ban will hit the oil sector by making it impossible for Russia to upgrade its refineries.”
The EU has also banned the sale of aircrafts and equipment to Russian airlines.
Russia's access to crucial technology, such as semiconductors or cutting-edge software is also being limited.
Sanctions being imposed on visas as well. “Diplomats and related groups and business people will no longer have privileged access to the European Union.”
Source: Ursula von der Leyen’s Twitter.
Max Ventures' Phase 1 Okhla Project Is 100% Leased Out To Marquee Clients
Max Ventures & Industries Ltd.'s Max House - Phase 1 project in Okhla is now 100% leased out to marquee domestic and international clients, the company said in an exchange filing.
Max House is the 2nd Grade A+ commercial real estate offering by Max Estates.
Average rental rate for Max House Phase 1 is Rs 125 per square feet per month.
Samsung India Electronics, Nykaa Fashion, Religare Enterprises, Dhampur Sugar Mills are some of the key occupiers.
Source: Exchange Filing
Dhani Loans and Services: Behind The Fraudulent Loans
Analyst Actions: DLF, Jubilant Food
DLF: Axis Capital initiated coverage of the stock with a 'buy' recommendation; price target set at Rs 430.
Jubilant Food: Raised to 'buy' at Canara Bank; price target set at Rs 3,815.
Source: Bloomberg
Trade Setup For Friday
India Bond Traders Weigh RBI Minutes, Global Yields
Indian bond traders are likely to weigh dovish comments from minutes of the latest policy meeting and direction of global yields. A Rs 23,000 crore bond sale, the last scheduled offering for this fiscal year, is also on the radar.
USD/INR rises 1.4% to 75.6537 on Thursday.
10-year yields rose 2bps to 6.76% on Thursday.
Global funds bought Rs 216 crore of sovereign bonds under limits available to foreign investors and withdrew Rs 24 crore of corporate debt.
State-run banks bought Rs 2,080 crore of sovereign bonds on Feb. 24: CCIL data. Foreign banks sold Rs 44.96 crore of bonds.
Source: Bloomberg
In Focus: Energy Stocks On Sector's Russia Sanctions Reprieve
Shares of energy companies are in focus after oil prices pared gains as Russian energy supplies were spared from sanctions.
In Focus: Reliance Industries, HPCL, BPCL, Indian Oil, ONGC, Oil India.
Source: Bloomberg
Thousands In Russia Protest Invasion Of Ukraine, Hundred Detained, Reports AFP
Up to 1,000 people gathered in the former capital Saint Petersburg to protest the invasion of Ukraine.
Several detained by police officers.
Source: AFP
137 Casualties On First Day Of Fighting, Says Ukraine President
Ukraine president Volodymyr Zelensky says 137 of the country’s soldiers died on the first day of the Russian invasion of the country.
Russia troops have attacked Ukraine from the north, south and east.
Source: Bloomberg
U.S. President Joe Biden In "Full Agreement" With G7 Leaders On Sanctions On Russia
We will limit Russia’s ability to be part of the global economy. We will stunt their ability to finance and grow Russia’s military. We will impair their ability to compete in a high-tech, 21st century economy.Joe Biden’s Twitter
Stocks To Watch
Apollo Hospitals will replace Indian Oil in the benchmark Nifty 50 from March 31, 2022, as part of the semi-annual index review. The changes will also be applicable to Nifty 50 Equal Weight Index. The Nifty 50 is reconstituted twice every year in March and September.
Bharat Electronics: The Ministry of Defence has signed a contract worth Rs 1,075 crore with the company for the retro-modification of commander sight of battle tanks-T-90. The company will supply 957 commander thermal imager cum day sights for T-90 tanks of the Indian Army.
Infosys: The company launched Infosys metaverse foundry to ease and fast track enterprises’ exploration of the metaverse, including virtual and augmented environments, for its customers, workplace, products and operations.
Panacea Biotec: The Coalition for Epidemic Preparedness Innovations will partner with a consortium comprising Translational Health Science and Technology Institute and the company to develop vaccine candidates that could provide broad protection against SARS-COV-2 variants and other beta-coronaviruses. CEPI will provide funding of up to $12 million to support the development of multi-epitope, nano particle-based vaccine candidates and advance the manufacturing process.
Hinduja Global: The company bagged a contract worth Rs 2,100 crore (£211 million) by the U.K. Health Security Agency to provide critical customer support to U.K. citizens for an initial period of two years, with an option to extend further.
JSW Ispat: The company has completed acquisition of 100% equity share capital of Mivaan Steels Ltd.
Minda: The company has acquired stakes in four partnership firms including YA Auto Industries (87.5%), Auto Components (95%), Samaira Engineering (87.5%) and S.M. Auto Industries (87.5%).
Wipro: To hire more than 500 employees in Brazil over next fiscal.
Arihant Capital: To consider splitting each share into five on March 3.
SGX Nifty Gains 1.6%; Infosys, Apollo Hospitals, Indian Oil, JSW Ispat In Focus
Stocks rose in Asia on Friday, while U.S. equity futures were volatile amid escalation of the Russia-Ukraine crisis and Western sanctions on Moscow.
Shares rose in Japan, South Korea and Australia. U.S. contracts slipped after a choppy Wall Street session on Thursday that left the S&P 500 with a 1.5% gain and the tech-heavy Nasdaq 100, which briefly fell into a bear market, up 3.4%.
Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 1.62% to 16,499.50 as of 7:45 a.m.
U.S. President Joe Biden imposed stiffer penalties on Russia. The sanctions included action against five major Russian banks to impair their access to foreign currency.
Oil advanced, the U.S. dollar was steady. Gold has slipped from a 17-month peak but remains above $1,900 an ounce, while bitcoin hovered around $38,300.
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