All You Need To Know Going Into Trade On April 7
Asian equities are edging higher in mid-week trading as markets trade near all-time high levels.
Benchmark indices in Japan, Australia and South Korea advanced, even as peers on Wall Street ended lower overnight. Volumes on U.S. exchanges slipped below 10 billion shares for the first time this year.
Treasuries held gains, oil prices fluctuated while the U.S. Dollar was steady.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 14,810, as of 7:10 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are trading 50 points higher. The index fell 0.3% on Tuesday.
- “Central banks are continuing to keep interest rates so low so people are looking for some place to put their money where they can get a return,” Sarah Hunt, Alpine Woods Capital Investors associate portfolio manager, said on Bloomberg TV. “I think that’s also why you have stocks priced somewhat for perfection.”
- The latest labor-market data showed that U.S. job openings rose to a two-year high in February, led by industries hit hardest during the pandemic.
- Credit Suisse unloaded another $2 billion worth of shares in the latest block trades stemming from the liquidation of Bill Hwang's fund.
- The Federal Reserve will publish minutes from its March meeting today.
- The Reserve Bank of India will also be announcing its credit policy today.
- Yields on the 10-year treasuries stood at 1.66%.
- West Texas Intermediate crude was little changed at $59.3 per barrel.
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Stocks To Watch
- Bharti Airtel: Announced an agreement with Reliance Jio to transfer the Right to Use of the company's 800 MHz spectrum in Andhra Pradesh, Delhi and Mumbai to Jio. Airtel will receive a consideration of Rs 1,037.6 crore for the proposed transfer. Jio will also assume future liabilities of Rs 459 crore, related to the spectrum. The sale is in-line with the company's strategy to unlock value from the spectrum that was unutilised.
- Tata Steel: India business achieved highest ever quarterly crude steel production of 4.75 MT, up 3% quarter-on-quarter. Delivery volumes for the quarter stood at 4.67 MT, up 16% year-on-year. The India business also achieved highest ever delivery volume of 17.3 MT in FY21. Production for the European business rose to 2.65 MT. Sales volumes for the European business rose 18% quarter-on-quarter and 4% year-on-year. Steel production and sales volumes for the European business were lower in FY21 due to the pandemic. The company remains focused on aggressively managing costs and cash flows while pursuing deleveraging.
- Tata Steel Long Products: The company saw highest ever quarterly crude steel production of 1.86 lakh tonnes, up 7% quarter-on-quarter and 19% year-on-year led by debottlenecking and arcing. Production for FY21 was also the highest ever, registering a growth of 11% over the previous year. Sales volumes rose 4% quarter-on-quarter and 25% year-on-year to 1.72 lakh tonnes led by higher production and improved market conditions. Annual sales volume of 6.39 lakh tonnes was also the highest ever, up 25% year-on-year. Sales volume of Direct Reduced Iron during the quarter rose 6% quarter-on-quarter and 12% year-on-year.
- Tata Steel BSL: The company achieved highest ever crude steel production and sales volume during the January-March period. Production rose 6% quarter-on-quarter and 5% year-on-year to 1.18 MT. Sales volumes rose 4% quarter-on-quarter and 22% year-on-year to 1.19 MT.
- IDFC First Bank: Announces closure of the QIP issue. Approved issue and allotment of 52.31 crore shares at Rs 57.35 per share to eligible buyers. The lender has raised Rs 3,000 crore through the QIP. The issue price of the QIP is at a 5% discount to the floor price. BNP Paribas Arbitrage, Bajaj Allianz Life Insurance, HDFC life Insurance, City of New York Group Trust are some of the shareholders to whom shares were allotted during the QIP.
- Inox Leisure: To raise funds up to Rs 300 crore through issue of securities either by way of public issue, rights issue or private placement but not limited only to QIP. The fund raising is subject to shareholders and other necessary approvals.
- Max Financial Services: Axis Bank and its two subsidiaries, Axis Capital and Axis Securities, have become the co-promoters of Max Life Insurance after the completion of acquisition of 12.99% equity stake in the company. The Axis Entities have a right to acquire an additional 7% stake in the company subject to regulatory approvals. Further, Max Life's board will be recast with three Axis nominees.
- Cholamandalam Investment & Finance: Partnered with Zoho, Razorpay, Zerodha, Ujjivan and Airpay to submit new umbrella entity application on March 31. The consortium, called Vishwakarma Payments Pvt. Ltd., will focus on retail payments systems. It expects to focus on creating an agile platform for seamless digital payments.
- Max Healthcare Institute: Board has approved incorporation of a wholly-owned subsidiary to provide range of diagnostic services including pathology lab services to retail and non-captive customers as well as third party Hospital Lab Management.
- Force Motors: The company's total production in March stood at 1,971 units. It reported domestic sales of 1,633 units and exports of 425 units.
Antique Stock Broking On Quick Service Restaurants
- Post Covid, chained QSRs should benefit from increase in share of organised restaurants
- Preference for chained QSRs should gain momentum with menu innovation, extensions, value for money proposition, higher operating efficiency and focus on delivery model
- Urbanisation and higher frequency of eating out to drive growth
- Jubilant Foodworks best placed among QSR peers and will continue to dominate the segment due to its store network and higher focus on delivery model
- Initiate coverage on Jubilant Foodworks with buy rating and price target of Rs 3,300
- Initiate coverage on Westlife Development with hold rating and price target of Rs 460
- Initiate coverage on Burger King India with a hold rating and price target of Rs 135
Antique Stock Broking On Laurus Labs
- Initiate coverage with buy rating
- Price target of Rs 574
- Growth story has entered its new phase on sustainably higher formulations business
- Custom synthesis business on the cusp of a major growth phase
- Can nearly double its earnings by FY24 with an aggressive capex program
- Expect formulations business from developed regions to grow faster from FY23
- Expect 28% EPS CAGR over FY21-24
Motilal Oswal On Britannia
- Maintains buy rating
- Price target raised to Rs 4,575 from Rs 4,122
- Offers attractive investment prospects for both long-term and near-term
- Opportunity for growth is significant
- Direct reach expansion in FY21 continues to deliver market share gains
- Recent traction in non-biscuit segment is encouraging
- Strong structural outlook, improving near-term narrative and inexpensive valuations
Pledge Share Details
- Aurobindo Pharma: Promoter Group revoked pledge of 36 lakh shares on April 5.
- Jindal Steel & Power: Promoter Siddeshwari Tradex revoked pledge of 13 lakh shares on March 25.
- Suryoday Small Finance Bank: Promoter Baskar Ramachandran created a pledge of 1.12 crore shares on March 30.
As reported on April 6.
- Reliance Infrastructure: HDFC sold 42.40 lakh shares (1.61%) at Rs 41.47 per share.
- Price Band Revised From 10% To 5%: Future Enterprises
- Price Band Revised From 20% To 10%: Adani Total Gas, NIIT
- Ex-Date Interim Dividend: Edelweiss Financial Services
- Record Date Interim Dividend: NACL Industries, Shriram City Union Finance
- Move Into ASM Framework: Adani Total Gas, NIIT, Adani Transmission
- Move Into Short-Term ASM Framework: United Drilling Tools
- Move Out Of Short-Term ASM Framework: ICRA
- Anant Raj Global: Promoter bought 13,500 shares on March 31.
- Godrej Industries: Arel Enterprise LLP bought 2.59 lakh shares between March 30-31.
- GMR Infrastructure: Promoter GMR Enterprises sold 1.65 crore shares on March 31.
As reported on April 6.
Money Market Update
- The rupee ended at 73.42 against the U.S. Dollar on Tuesday as compared to Monday's closing of 73.33.
- Nifty April futures ended at 14,763; premium of 80 points
- Nifty April futures shed 1.6% and 2,293 shares in Open Interest
- Nifty Bank April futures ended at 32,716; premium of 215 points
- Nifty Bank April futures shed 4.4% and 3,535 shares in Open Interest
- Nifty Put-Call Ratio at 1.62
- Enters & Only Stock In F&O Ban: SAIL