All You Need To Know Going Into Trade On August 18
Asian stocks wavered early Wednesday, U.S. futures slipped and the dollar held a rally on concern that a resurgent coronavirus will hurt the economic recovery.
Shares edged lower in Japan and South Korea, while Australia’s market was hampered by a slide in BHP Group. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, was little changed at 16,607 as of 6:55 a.m.
The S&P 500 snapped a five-day rally overnight and the tech-heavy Nasdaq 100 retreated. Chinese equities listed in the U.S. tumbled again after Beijing ramped up a regulatory crackdown, with Alibaba Group Holding Ltd., Baidu Inc. and JD.com Inc. among those suffering.
Treasuries were steady ahead of the release of the latest Federal Reserve minutes on Wednesday amid a highly uncertain outlook for yields. Traders are evaluating the spread of the delta virus variant, the prospect of reduced stimulus support and whether elevated inflation will prove transitory.
Crude oil held losses, pressured by the rising dollar and signs of an uneven U.S. recovery. Bitcoin was trading around $45,000.
Stocks To Watch
HDFC Bank: The Reserve Bank of India has allowed the bank to issue new credit cards, partially removing a months-long ban on the lender, a person with direct knowledge of the matter said. The central bank, however, retained the ban on bank launching new digital products.
Canara Bank: Opened its QIP on Tuesday to raise up to Rs 2,500 crore and set the floor price of the issue at Rs 155.58 per equity share. The floor price is at a premium of 1.91% to Tuesday’s closing price. A meeting of the sub-committee of the board will be held on August 23 to determine the issue price for the equity shares as well as the number of shares to be allotted to qualified institutional buyers, pursuant to the QIP.
HCL Technologies: Signed a five-year, end-to-end IT transformation services deal with Wacker Chemie AG, a German multinational chemical company. HCL Tech will help Wacker Chemie AG to establish a modernised digital workplace and improve its quality-of-service delivery.
Bharat Dynamics: The company has signed a licencing agreement with MBDA to establish a facility for the final assembly, integration, and test of Advanced Short Range Air-to-Air Missile (ASRAAM) missiles in India. Under the agreement, MBDA will transfer the equipment and knowledge to Bharat Dynamics for establishing the facility. The facility is expected to commence operations by 2022-23.
DCM Shriram Industries: The company has entered into an agreement with Zyrone Dynamics Havacilik Danismanlik Ve Ar-Ge San. Tic. A.S., Turkey—which manufactures and markets Unmanned Aerial Vehicles of different types. The company would subscribe to 30% of the capital of the foreign company comprising of 25,715 shares at a total investment of just over $1.05 million in five tranches over a period of about a year, subject to necessary approval. Zyrone Dynamics will provide to the company technological support for two variants of UAVs at different times during the subscription period. Further, the two companies will support each other in marketing the products in India and globally.
Isgec Heavy Engineering: Received an order for two Gas Fired Boilers from Naval Project, Indian Navy. The company will manufacture two 40 TPH Boilers on a turnkey basis.
Suzlon Energy: Approved allotment of 3.17 crore equity shares on conversion of bonds. The company allotted 1.36 crore equity shares on conversion of 1,470 US$ denominated Convertible Bonds due 2032 having a face value of $320 each. It allotted 1.80 crore equity shares on conversion of 2,031 US$546,916,000 Step-up Convertible Bonds due July 2019 of $1,000 each.
Dilip Buildcon: Dhrol Bhadra Highways, a wholly owned subsidiary of the company, has received the financial closure letter from the NHAI for four laning of Dhrol-Bhadra Patiya section of NH-151A in Gujarat. The project is expected to be completed in 2 years and will cost Rs 882 crore.
Kaveri Seed Company: Board to consider a proposal for buyback of equity shares of the company on August 25.
lnterGlobe Aviation: ICRA has downgraded the long-term rating of the company to A from A+; the outlook remains negative. The rating agency has attributed the downgrade to prolonged disruption caused by the Covid-19 pandemic on the company's financials. Further it has reaffirmed the company's short-term rating at A1.
IFCI: Care Ratings has downgraded the credit rating of Long-Term Bank Facilities to BB/Negative from BBB-/Negative. The credit rating of NCDs of the company has been downgraded to BB+/Negative from BBB+/Negative. Similarly Subordinate Bonds’ rating has been downgraded to BB/Negative from BBB-/Negative.
Manorama Industries: India Ratings and Research has upgraded the company’s Long-Term Issuer Rating to BBB+ from BBB. The outlook is stable.
Annual General Meetings: CESC, Honeywell Automation, ICICI Securities, South Indian Bank, UltraTech Cement
Pledge Share Details
Aurobindo Pharma: Promoters groups (RPR Sons Advisors and P Suneela Rani, and Axis Clinicals, Trident Chemphar, and RPR Sons Advisors) created a pledge of 22.05 lakh shares on August 13.
Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 7.55 lakh shares on August 13.
Omaxe: Promoter Guild Builders revoked pledge of 18.16 lakh shares on August 13.
SMC Global Securities: Promoter Pulin Investments created a pledge of 5 lakh shares between June 1 and August 16.
As reported on August 17.
Karda Constructions: Promoter Prem Karda sold 16 lakh shares (2.60%) at Rs 21.55 per share. Elara India Opportunities Fund bought 9.61 lakh shares (1.56%) at Rs 21.50 per share.
Poonawalla Fincorp: Leapfrog Financial Inclusion India Holdings sold 1.32 crore shares (1.73%) at Rs 180.27 per share.
Adani Green Energy: Promoter Infinite Trade and Investments bought 19.50 lakh shares on August 16.
Dabur India: Promoter Ratna Commercial Enterprises bought 25,000 shares on August 11.
JSW Energy: Promoter JSW Severfield Structures bought 5,000 shares between August 12-13.
Rattanindia Enterprises: Promoter Arbutus Consultancy LLP bought 7.50 lakh shares on August 17.
Sterlite Technologies: Promoter Ankit Agarwal bought 33,635 shares between August 12-13.
Ultramarine & Pigments: Promoters (Sridhar Sundararajan, Jayalakshmi Venkataraman, Sridhar Sundararajan HUF, Kala Sundarvedha and S Narayan) sold 9,800 shares on August 16.
Who’s Meeting Whom
DCW: To meet HDFC Securities Institutional Research on August 18.
Welspun India: To meet Systematix Group on August 18.
Ex-Date AGM: Zen Technologies, VST Tillers Tractors, Nath Bio-Genes (India), Info Edge (India), Nava Bharat Ventures, TCPL Packaging, Karnataka Bank, Orient Paper & Industries, Sharda Motor Industries, Solara Active Pharma Sciences, Solar Industries India, Berger Paints India, D-Link (India), Apollo Hospitals Enterprise, Emami Paper Mills, Arihant Superstructures, CCL Products (India), Gujarat Ambuja Exports, 3M India, Gujarat Narmada Valley Fertilizers and Chemicals
Ex-Date Interim Dividend: Astrazeneca Pharma India, Hinduja Global Solutions, Ircon International, Dr. Lal PathLabs, Page Industries, RITES
Ex-Date Dividend: Apollo Hospitals Enterprise, Berger Paints India, D-Link (India), Gujarat Narmada Valley Fertilizers & Chemicals, JK Tyre & Industries, Karnataka Bank, Orient Paper & Industries, Reliance Industrial Infrastructure, Solara Active Pharma Sciences, Zen Technologies
Ex-Date Final Dividend: Can Fin Homes, CCL Products (India), Gujarat Ambuja Exports, Himatsingka Seide, Indian Energy Exchange, Nath Bio-Genes (India), Nava Bharat Ventures, Sarda Energy & Minerals, Sharda Motor Industries, Solar Industries India, TCPL Packaging, VST Tillers Tractors, Welspun Enterprises
Ex-Date Bonus Issue: Redington (India)
Record Date Stock Split: Sagar Cements
Record Date Final Dividend: Privi Speciality Chemicals, KPIT Technologies, Everest Industries
Record Date Income Distribution: Brookfield India Real Estate Trust REIT
Move Into Short-Term ASM Framework: SVP Global Ventures
Move Out Of Short-Term ASM Framework: Hindustan Oil Exploration Company, Jindal Stainless
Money Market Update
The rupee ended at 74.34 against the U.S. Dollar on Tuesday as compared to Friday's closing of 74.24.
Nifty August futures ended at 16,602.20, a discount of 12.4 points.
Nifty August futures shed 1.96%, and 5,272 shares in Open Interest.
Nifty Bank August futures ended at 35,968.45, a premium of 101 points.
Nifty Bank August futures shed 3.33%, and 2,681 shares in Open Interest.
Securities that continue to be on the ban list: Cadila Healthcare, Nalco, Punjab National Bank, SAIL, Sun TV.
Securities added to the ban list: Canara Bank, Vedanta.
Securities removed from the ban list: Indiabulls Housing Finance, RBL Bank.