KEY HIGHLIGHTS
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Hindalco Jumps To Record
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Madhabi Puri Buch Appointed As SEBI Chairperson
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Bharti Airtel's Decision To Buy 4.7% Stake In Indus Tower Raises Questions Over Capital Allocation At A Crucial Time: Jefferies
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Future Retail Rises The Most In A Month On Extension Of Sale Deal With Reliance
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Biocon To Acquire Viatris' Biosimilar Assets
Closing Bell
India's stock benchmarks advanced after recovering from nearly 2% decline in morning session, aided by gains in metal stocks. Geopolitical developments from Ukraine-Russia crisis have intensified the volatility in stock markets, triggered a shift to safe havens and aided an uptick in crude prices.
Focus shifts to December-quarter GDP numbers scheduled to be released post-market hours Monday. The markets will be shut for a local holiday on Tuesday. This is the second straight session in which the benchmarks advanced after a losing streak of seven sessions.
The Sensex rose 0.7% to 56,247.28. The 30-stock gauge trade in a broad range of 1,500 points between intraday low of 54,833.5 and intraday high of 56,324.54. The NSE Nifty 50 also advanced by similar magnitude to 16,793.90. Hindalco Industries Ltd. had the largest increase, rising 7.5%. Today 34 of 50 shares rose, while 16 fell.
The broader indices almost mirrored their larger peers. Sixteen of the 19 sectoral indices compiled by BSE Ltd. advanced, lead by S&P BSE Metal which rose nearly 5.5%.
The market breadth was skewed in the favour of bulls. About 2,120 stocks advanced, 1,323 declined and 149 remained unchanged.
"After the negative opening, the nifty index recovered in the early session and continued the upside move throughout the day", noted Sachin Gupta, AVP, Research at Choice Broking.
"At present, Nifty has immediate support around 16,650/16,500 levels while upside the resistance around 17,000 levels. On the other hand, Bank nifty has support at 35,500 levels while resistance at 36,800 levels".
Key Sectoral Gainers In Today's Session
NSE Nifty Metal Index Extends Gains For The Second Session
Hindalco Jumps To Record
Shares of Hindalco Industries rose over 8.6% to a record Rs 580.05 apiece.
Trading volume on the stock was quadruple the 30-day average volume at this time of the day.
Of the 28 analysts tracking the company, 27 maintain 'buy' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 13.5%.
The company signed a share purchase agreement with Brazilian firm Terrabel Empreedimentos Ltd. to divest entire equity shareholding in Hindalco Do Brasil Industria Comercio de Alumina, a wholly owned step-down subsidiary for a consideration of R$ 1 (one Brazilian real).
Source: Bloomberg, Exchange Filing
India To Roll Out Policy For Regional Airlines, Helicopters
India will formulate rules to increase last-mile connectivity via regional airlines and helicopters and make flying more economical, Civil Aviation Minister Jyotiraditya Scindia said in New Delhi on Monday.
Emphasis has to be on smaller town airports as well as regional connectivity.Jyotiraditya Scindia, Union Civil Aviation Minister
Policy will make it possible for helicopters to fly in the northeast region, island states and hilly states where last-mile transport is needed. Penetration of helicopters in India is negligible.Jyotiraditya Scindia, Union Civil Aviation Minister
India should expand wide-body operations and increase direct flights in the 6-8 hour flying range.Jyotiraditya Scindia, Union Civil Aviation Minister
Source: Bloomberg
Madhabi Puri Buch Appointed As SEBI Chairperson
Madhabi Puri Buch has been appointed for an initial term of three years.
Appointments Committee Of The Cabinet Approves Appointment Of Madhabi Puri Buch As SEBI Chairperson.
SEBI rules allow for a term of up to five years.
Madhabi Puri Buch is a former whole time member of SEBI.
Madhabi Puri Buch is the first woman to head the market regulator SEBI since theinstitution was established in 1988 as a non-statutory body to regulate securities market.
Madhabi Puri Buch becomes the tenth SEBI chairperson.
Source: Government notification
Also Read: Madhabi Puri Buch Appointed SEBI Chairperson
European Markets Decline Ahead Of Ukraine-Russia Delegations Meet In Belarus
Madhabi Puri Buch Appointed New SEBI Chairperson, Reports All India Radio.
BloombergQuint has not yet received independent verification of this news.
JUST IN
Madhabi Puri Buch has been appointed the new chairperson of India’s markets regulator SEBI.
Incumbent SEBI chairman Ajay Tyagi is set to retire after a five-year stint.
Source: All India Radio
Bloomberg also reported the appointment of Madhabi Puri Buch as the SEBI Chairperson, citing an official declining to be identified citing rules.
Analyst Actions: Apollo Tyres, Ceat
Apollo Tyres: ICICI Securities initiated coverage of the stock with a recommendation of 'buy'; price target set at Rs 317.
Ceat raised to 'buy' from 'add' at ICICI Securities; price target set at Rs 1,273.
Source: Bloomberg
Russian Army Says Ukrainians Can "Freely" Leave Kyiv, According To AFP
All civilians in the city can freely leave along the Kyiv-Vasylkiv highway. This direction is open and safe,” Russia’s army said.
Russia claims it has air superiority over Ukraine.
Source: AFP
Ukraine-Russia Delegations Set To Meet In Belarus: Foreign Ministry, Belarus
Talks are expected to start at 2:30 p.m. IST, according to Russian news agencies TASS, Interfax and Sputnik.
Mid-Day Market Update: Sensex, Nifty Rise; Hindalco Shares Up 7%
India's stock benchmarks reversed losses in a volatile session, aided by gains in metals, amid reports that Russian troops slowed down the pace of the offensive even as the attacks by Russia entered the fifth day. Focus will also be on the GDP data for the quarter-ended December, which is scheduled to be released post-market hours Monday.
The S&P BSE Sensex rose 0.39% to 56,077.85. The 30-stock gauge fell over 1,000 points (equivalent of 1.8%) to an intraday low of 54,833.50, before staging a recovery. The NSE Nifty 50 also advanced by similar magnitude to 16,720.05.
The S&P BSE MidCap underperformed its larger peers, as it remained little changed, while S&P BSE SmallCap almost mirrored Sensex and Nifty. Eleven of the 19 sectoral indices compiled by BSE Ltd. advanced, with S&P BSE Metal rising over 4.5%.
The market breadth was skewed in the favour of bulls. About 1,944 stocks advanced, 1,398 declined and 159 remained unchanged.
Biocon Shares Decline The Most In 13 Months
Shares of Biocon fell over 8.75%, the most in 13 months
Trading volume on the stock was nearly quadruple the 30-day average volume at this time of the day.
Share price crossed below the 50-day simple moving average and 200-day simple moving average, indicating potential downward price momentum.
Source: Bloomberg
Russian Troops Have Slowed Down "The Pace Of The Offensive", AFP Reports Citing Ukrainian Military
“The Russian occupiers have reduced the pace of the offensive, but are still trying to develop success in some areas,” Ukraine’s forces said.
Attacks by Russia have entered the fifth day.
Source: AFP
Bank Of Russia Raises Key Rate To 20% From 9.5%
Russia’s central bank raises rate effective today due to “drastically-changed” external conditions.
Rate hike necessary to make deposits attractive, it says.
Central bank governor to speak at 4 p.m. Moscow time.
Source: Media statement
Bharti Airtel's Decision To Buy 4.7% Stake In Indus Tower Raises Questions Over Capital Allocation At A Crucial Time: Jefferies
Bharti Airtel's decision to buy 4.7% stake in Indus Towers from Vodafone Group Plc can be justified finally but raises questions over its capital allocation at a time 5G auctions are due in a few months and heavy investments still required for network fiberization, according to Jefferies.
The brokerage added that the decision could de-rate Bharti Airtel's multiples.
Source: Brokerage note
Investcorp Appoints Veteran Investor Mark Mobius To Its India Advisory Board
Investcorp appoints veteran investor Mark Mobius to its India advisory board.
Private equity firm Investcorp has appointed emerging markets investor Mark Mobius as an advisor to its India business.
Looking forward to working with the team in exploring and expanding investment opportunities in India,” Mobius said.
Source: Press release
Analyst Actions: Tata Power, CRISIL, Lal Pathlabs
Tata Power cut to 'reduce' from 'hold' at HSBC; price target set at Rs 150.
CRISIL raised to 'add' from 'reduce' at IIFL; price target set at Rs 2,908.
Lal Pathlabs raised to 'add' from 'reduce' at Spark Capital Advisors; price target set at Rs 2,655.
Source: Bloomberg
'Equally Worried About Exporters', Finance Minister Discusses Impact Of Ukraine Crisis On Trade
On the larger issue of what's happening in Ukraine, as regards to bearing an impact on imports and exports to Ukraine, I'm equally worried if not more about our exporters. We are looking at emergent situations, the discussions are on with the ministries and we are seized of the matter.Source: Post-budget interaction with TN industry, Chennai.
Aurobindo Pharma Initiates Recall Of Ophthalmic Solution Bottles, Sun Pharma Recalls Tablets To Treat High BP In The U.S.
According to the latest USFDA enforcement report, the U.S.-based arm of Aurobindo Pharma is voluntarily recalling 1,15,776 bottles of Moxifloxacin Ophthalmic Solution, used to treat infections of the eye, including baterial conjuctivitis.
The drug regulator flagged failed impurities/degradation of specifications-Out of Specification(OOS) results as reasons for the recall. The class-II recall was initiated on Jan. 14.
Meanwhile Sun Pharmaceuticals' U.S. arm has initiated voluntarily recall of 59,232 bottles of Chlorthalidone tablets, used to treat high blood pressure.
The reason for recall was the 'foreign matter identified as stainless steel microscopic wear particles mixed with punch lubricant oil and silicone particles from the dust cup', according to the latest enforcement report by U.S. FDA. The recall was initiated on Feb. 7.
Source: U.S. FDA Enforcement Report
India Yield Curve Steady, Stocks Volatile
Maturities across the India sovereign yield curve were little changed in Monday morning trading.
The 3-year yield remained unchanged at 5.573%
The 10-year yield rose 1.1bps to 6.76%
The 14-year yield rose 0.9bps to 6.999%
The 3-year-10-year yield spread was 118.7bps, vs previous close 117.6bps
Source: Bloomberg
Volatile Start To The Week
DGCA Extends Ban On Scheduled Commercial International Passenger Flights
DGCA extends ban on scheduled commercial international passenger flights until further orders.
Flights under air bubble arrangements, international cargo to continue.
Source : DGCA
Rupee Drops As Oil Prices Soar On Russia Sanctions
India's rupee fell as the spike in oil prices threaten to inflate the country's import bills. The rise in crude oil prices was triggered by fresh sanctions on Russia by western countries.
USD/INR gains 0.4% to 75.6100 on Monday.
10-year bond yields up 1bp to 6.76%
India's Q4GDP data will be released after markets close on Monday.
Source: Bloomberg
Bank Of Russia Reports Further Measures To Prop Up Banks
Bank of Russia releases capital buffer to free up 733 billion rubles.
Until the end of 2022, the central bank has allowed lenders to not take into account worsening financial position of borrowers if deterioration is related to sanctions and happened after Feb. 18.
Source: Bloomberg
Unichem Labs Pares Losses On U.S. FDA Nod For Drug To Treat Bipolar Disorder
Unichem Laboratories pared 3.4% losses to trade little changed after it received U.S. FDA approval for its divalproex sodium extended-release tablets, 250 mg, and 500 mg.
The tablets are indicated for treatment of acute manic or mixed episodes associated with bipolar disorder.
The product will be commercialised from Unichem's Goa plant, the company said in an exchange filing.
Source: Exchange Filing, Bloomberg
Talking Point: In Conversation With JM Financial's MD & Chief Strategist Dhananjay Sinha
Analyst Action: PB Fintech
PB Fintech: Ambit Capital initiated coverage of PB Fintech with a recommendation of 'buy'; price target set at Rs 944.
Source: Bloomberg
Future Retail Rises The Most In A Month On Extension Of Sale Deal With Reliance
Shares of Future Retail rose nearly 13%, the most in nearly a month after the firm agreed to extend its asset sale deal with Reliance Industries by another six months, in an exchange filing on Saturday.
Trading volume on the stock was over 15 times the 30-day average volume at this time of the day.
The development comes amid legal challenges to the proposed acquisition from Amazon.
Future group stocks, Future Lifestyle, Future Supply Chain rose 17% while Future Enterprises gained 9%.
Source: Bloomberg
Rupee Depreciates Against The U.S. Dollar
Metal Stocks Surge; S&P BSE Metal Index Rises Over 1.5%
Rain Industries Tumbles After Reporting Net Loss In December Quarter
Shares of Rain Industries tumbled 14% after the company reported net loss for the December quarter, post market hours Friday.
Company posted net loss of Rs 72.31 crore in December quarter
Trading volume on the stock was over eight times the 30-day average volume, at this time of the day.
Source: Exchange filing, Bloomberg
IAEA Says Missiles Have Hit A Radioactive Waste Disposal Site In Kyiv
JUST IN
Ukraine informed the IAEA that missiles hit the site of a radioactive waste disposal facility in Kyiv overnight but there were no reports of a radioactive release.
The incident came a day after Ukraine said an electrical transformer at a similar disposal facility near Kharkiv had been damaged, also without any reports of a radioactive release.
Source: IAEA
Analyst Actions: Reliance Industries, RSteel Authority of India
Reliance Industries raised to 'buy' from 'accumulate' at Elara Securities; price target set at Rs 2,981.
Steel Authority of India: Axis Capital initiated coverage of the company, with a recommendation of 'reduce'; price target set at Rs 85.
Source: Bloomberg
Auto, Banking, Telecom Stocks Decline
Biocon To Acquire Viatris' Biosimilar Assets
Shares of Biocon Ltd. fell over 4% in intraday trade. Trading volume on the stock was nearly thrice the 30-day average volume at this time of the day. Of the 21 analysts tracking the company, 10 maintain 'buy', six recommend 'hold' and five suggest 'sell'.
Biocon Biologics will acquire the biosimilars business of its partner Viatris for up to Rs 26,079 crore ($3.335 billion), including cash up to Rs 17,559 crore ($2.335 billion) and compulsorily convertible preference shares (CCPS) in BBL, d Rs 7,520 crore ($1 billion).
Viatris is a global healthcare company formed in November 2020, through the combination of Mylan and Upjohn (a unit of Pfizer earlier).
It has a global biosimilars franchise with 150 marketing authorisations in over 85 countries with focus on oncology, immunology, endocrinology, ophthalmology and dermatology.
Sensex Sheds Over 900 Points, Nifty Slips Below 16,400; Broader Indices Underperform
Weak Rural Demand, Supply Woes Hurt Auto Sales In February, Say Analysts
India Abstains From Voting On Calling On Emergency Session In The UNSC Over Ukraine Crisis
India, along with China and UAE, abstained from a procedural vote taken in the UN Security Council to call for a special emergency session of the UN General Assembly on Russia's attacks against Ukraine.
India said it welcomed the countries’ decision to hold talks.
The resolution was adopted with 11 votes in favour, the General Assembly could meet on Monday.
Source: Ambassador of India to United Nations
Opening Bell: Sensex, Nifty Open Lower; Banks, I.T., Realty Stocks Decline
India's stock benchmarks declined, dragged by losses in banking, information technology, telecom and realty stocks, amid slide in global equities and surge in crude price. Volatility has risen due to uncertainty after the western nations unveiled harsher sanctions on Russia for the invasion of Ukraine.
The S&P BSE Sensex fell 1.25% (equivalent to nearly 700 points) to 55,168.17. The NSE Nifty 50 also fell by similar magnitude below 16,500.
The broader indices almost mirrored their larger peers. Barring S&P BSE Metal, all the other 18 sectoral indices compiled by BSE Ltd. declined with S&P BSE Telecom shedding over 2%.
The market breadth was skewed in the favour of bears. About 699 stocks advanced, 1,904 declined and 131 remained unchanged.
Rupee May Drop As Crude Price Rises On Russia Sanctions
India's rupee could decline as the spike in oil prices following fresh sanctions on Russia threaten to inflate the import bill for the net oil importing nation. The nation’s 4Q GDP data to be released after markets close will be in focus
USD/INR falls 0.5% to 75.2925 on Friday.
10-year yields fell 1bp to 6.75% on Friday
Global funds sell net Rs 4,470 crore of Indian stocks Friday: NSE
They bought Rs 1,160 crore of sovereign bonds under limits available to foreign investors, and added Rs 520 crore of corporate debt
State-run banks sold Rs 891 crore of sovereign bonds on Feb. 25: CCIL data. Foreign banks bought Rs 3,410 crore of bonds
Source: Bloomberg
Analyst Actions: M&M Financial, Cholamandalam, Ashok Leyland
M&M Financial Services: Jefferies reinstated coverage of the stock with a recommendation of 'underperform'; target price at Rs 125.
Cholamandalam Investment & Finance Co: Jefferies initiated coverage of the stock with a recommendation of 'buy'; price target set at Rs 820.
Ashok Leyland raised to 'outperform' from 'neutral' at Credit Suisse; price target set at Rs 158.
Source: Bloomberg
Russian Ruble Slumps To Record Low In Offshore Trade
Biocon Biologics To Buy Biosimilar Assets Of Viatris
Biocon Biologics will acquire the biosimilars business of its partner Viatric for up to $3.335 billion, including cash up to $2.335 billion and compulsorily convertible preference shares (CCPS) in BBL, d $1 billion.
The deal enables Biocon to create fully integrated biosimilars enterprise. The transaction is expected to close in second half of calendar year 2022.
Biocon and Viatris will enter into a transition services agreement for a two-year period.
Post the deal, Biocon Biologics will realise full revenue and associated profits from its partnered products, an improvement from the current arrangement with Viatris.
Th deal is expected to lead to uptick in operational efficiency across the chain, and lead to improvement in overall financials.
U.S. announces $54 million in aid for Ukraine
“We are announcing the provision of nearly $54 million in humanitarian assistance to those affected by Russia’s further invasion,” the U.S. Department of State said.
This funding includes nearly $26 million from the Department of State and $28 million from the U.S. Agency for International Development.
“Our humanitarian assistance now amounts to nearly $405 million to vulnerable communities since Russia invaded Ukraine eight years ago,” it said.
Source: U.S. Department of State statement
Stocks To Watch
Bharti Airtel: The company has entered into an agreement with Vodafone Group Plc to buy a 4.7% stake in Indus Towers on the principal condition that the amount paid shall be inducted by Vodafone as fresh equity in Vodafone Idea and simultaneously remitted to Indus Towers to clear Vi’s outstanding dues.
Vodafone Idea: To consider raising funds by different modes or a combination of modes on March 3.
SJVN: The public sector undertaking has received in-principal approval for development of 400 MW solar park at District Kinnaur under Mode-8 of the Solar Park Scheme from the Ministry of New and Renewable Energy.
Bharat Petroleum: The company has appointed Sanjay Khanna as additional director and director (refineries) for five years.
Hindalco: The company has signed a share purchase agreement with Terrabel Empreedimentos Ltda, a Brazilian firm to divest entire equity shareholding in Hindalco Do Brasil Industria Comercio de Alumina, a wholly owned step-down subsidiary for a consideration of R$ 1 (one Brazilian real).
Metro: To consider declaration of interim dividend on March 7.
BEML: Shareholders approved demerger of identified surplus/non-core assets between the company and BEML Land Assets (Resultant company).
Shriram City Union Finance: To consider declaration of second interim dividend on March 8.
Sandhar: The company has infused additional funds of Rs 2,88,64,510 in Sandhar Amkin Industries, a joint venture between the company and Amkin Group, in return for 28,86,451 equity shares of Rs 10 each. Its shareholding in the JV now stands at 74.9%.
Patel Engineering: The company’s subsidiary Patel Energy Resources has sold its entire stake in Naulo Nepal Hydroelectric for Rs 11.53 crore.
Clariant Chemicals: Ashish Agarwal, interim chief financial officer, tendered his resignation effective from April 20.
Sun TV: To consider declaration of interim dividend on March 7.
Duocon: The company has increased authorised share capital from Rs 25 crore to Rs 30 crore and recommended a bonus issue in proportion of 1:10. It also received fine notice from stock exchanges Rs 3 lakh for regulatory violation. The company has filed a waiver application.
SGX Nifty Hints At Muted Start; Bharti Airtel, Vodafone Idea, Hindalco In Focus
U.S. equity futures slid on Monday, while bonds and crude oil surged amid heightened market uncertainty after Western nations unveiled harsher sanctions on Russia for the invasion of Ukraine.
An Asia-Pacific equity index wavered as Japanese stocks fluctuated.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, was little changed at 16,663.50 as of 8 a.m.
Rallies in a dollar gauge, gold and Treasuries underlined the demand for havens. The euro fell on worries about risks for Europe’s economy. Bitcoin held losses after retreating below $38,000.
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