All You Need To Know Going Into Trade On Feb. 11

Asian equities opened higher Tuesday after U.S. stocks hit a record high as investors looked past the potential economic impact of the spreading coronavirus.

Australian shares climbed at the open and futures pointed to gains in Hong Kong. Japanese financial markets are shut for a holiday. U.S. equity futures were little changed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.38 percent to 12,088 as of 7 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.

Here’s a quick look at all that could influence equities today

• U.S. equities started the week strong as investors looked past the potential economic hit from the spreading coronavirus to prepare for more corporate earnings.
• Oil fell below $50 a barrel to the lowest level in more than a year as prospects for an emergency meeting by OPEC+ withered, raising fears of a supply glut at the same time that the coronavirus is hitting global demand.

Get your daily fix of global markets here.

Key Events To Watch

Delhi’s assembly election is likely to come to a decisive end today as counting begins at 8 a.m.

All prominent exit polls conducted after voting showed Arvind Kejriwal’s Aam Aadmi Party returning to power with a healthy majority. In the capital’s 70-member assembly, a party or alliance needs to secure 36 seats to form a government. In the 2015 elections, AAP had won 67 seats, the Bharatiya Janata Party 3 and the Congress drew a blank.

Catch all the live updates on Delhi election results here.

Nifty Earnings To Watch

• Coal India

Other Earnings To Watch

• Siemens
• Prince Pipes And Fittings
• Prism Johnson
• BSE
• IDBI Bank
• Ircon International
• CESC
• Cochin Shipyard
• BEML
• Gulf Oil Lubricants India
• Jindal Stainless
• Bharat Heavy Electricals
• HEG
• Heidelberg Cement India
• ITD Cementation India
• Syndicate Bank
• Novartis India
• J.Kumar Infraprojects
• Aster DM Healthcare
• Astral Poly Technik
• Greenply Industries
• GIC Housing Finance
• Godawari Power And Ispat
• Rashtriya Chemicals and Fertilizers
• CRISIL
• D B Realty
• Spencer's Retail
• SPML Infra
• Deep Industries
• Dollar Industries
• Lumax Auto Technologies
• Dredging Corporation of India
• Electrotherm (India)
• Harrisons  Malayalam
• Indo Count Industries
• Hexaware Technologies
• Man Industries (India)
• Fine Organic Industries
• Genus Paper & Boards
• Astron Paper & Board Mill
• Capri Global Capital
• Ballarpur Industries
• BASF India
• 3MIndia
• Allahabad Bank
• Solar Industries
• Aries Agro
• Arihant Superstructures
• Arvind Fashions
• Bliss GVS Pharma
• Gujarat Narmada Valley Fertilizers and Chemicals
• Jaypee Infratech
• JHS Svendgaard Laboratories
• Kesoram Industries
• KIOCL
• Kitex Garments
• Mangalam Organics
• Neuland Laboratories
• NRB Bearing
• Olectra Greentech
• Panama Petrochem
• PNB Gilts
• Power Mech Projects
• Somany Home Innovation
• TVS Srichakra
• V.S.T Tillers Tractors
• Zenlabs Ethica

Indian ADRs

Stocks To Watch

• ICICI Bank moved insolvency application against Mercator Ltd. to recover dues of above Rs 50 crore. Bank of Baroda and Axis Trustee have sought an intervention to ensure that assets pledged to them by Mercator's subsidiary are not included in the insolvency resolution process. Bank of Baroda and Axis Trustee have claimed that the subsidiary owes them dues exceeding Rs 200 crore. NCLT will hear the matter on Feb. 12.
• Avenue Supermarts QIP Issue closed on Feb. 10. Board approved the issue price at Rs 2049 per share, which is at a discount of 18 percent to the closing price as on Feb. 10.
• Cipla’s South African arm signed an agreement securing originator and authorized generic brands of an atypical antipsychotic drug, Quetiapine. Cipla to market and distribute the Medicine in South Africa and neighbouring countries.
• Info-Edge to acquire up to 25 percent stake in Sunrise Mentors for Rs 37.1 crore.
• Mahindra & Mahindra: CCI approved the formation of joint venture between Mahindra & Mahindra and Ford Motor and transfer the automotive business of Ford India to the JV.
• Setco Automotive: received notice from Bank of Baroda under SARFAESI Act for Rs 116.5 crore and also for notice on the aforesaid loan. The company said that it had taken up the matter with the Bank for withdrawal of notice after submitting a restructuring plan in December.
• Capacity Infraprojects received a contract worth Rs 350.17 crore from a private sector client in Mumbai under its commercial and institutional portfolio.
• GMR Infra’s arm GMR Airports has achieved a concession commencement date to design, build and operate a new airport at Crete, Greece.
• Camlin Fine Sciences’ manufacturing facility in Zhejiang, China is awaiting clearance from the Chinese Government to start its manufacturing. The delay has been caused due to the government’s direction to not open facilities in the province due to the outbreak of coronavirus.
• GMM Pfaudler: SEBI imposed a penalty of Rs 13.5 lakh on the promoters for contraventions in the Takeover Regulations from 2003 to 2012.
• DCM Shriram: 66MW power plant at Kota has become operational.
• Vikas Proppant & Granite received sanctioning of its mining agreement by Mining Engineering, Jodhpur.

Brokerage Radar

Emkay on Grasim Industries

• Maintained ‘Buy’ rating; price target at Rs 876, implying a potential upside of 16.2 percent from the last closing price.
• Q3 results impacted by margin pressure in both VSF and Chemical segments
• Global VSF prices declined 27 percent YoY/ 9 percent QoQ in Q3.
• Values standalone business at 5 times FY22E EV per Ebitda.
• Assigns 60 percent discount for its holding in listed investments.
• Holding company discount to narrow on clarity of no further fund infusion in Vodafone Idea.
• Cut FY20-22 EPS estimates by 22-27 percent due to weak outlook of both segment.

On Bharat Forge

Morgan Stanley

• Maintained ‘equal-weight’ rating with a price target of Rs 401, implying a potential downside of 20 percent from the last closing price.
• Slowdown in oil and gas segment, slowdown in CV lead to a weak Q3 show.
• Stock has corrected but valuations of FY21e PE at 22x still expensive.
• Slowdown in commercial vehicle exports could constrain revenue growth and margins over F20-21

Nomura

• Maintained ‘Neutral’ rating; raised price target to Rs 475 from Rs 458, implying a potential downside of 5 percent from the last closing price.
• Q3FY20 misses estimates; downcycle plays out and losses of overseas arms weigh.
• Expect recovery from H2FY21F; Q4 – seasonally strong quarter.
• OEMs in India do not build up inventory of BS-6 trucks.
• Cut consolidated revenue estimates for the current and the next financial year by 5 percent and 1 percent respectively and Ebitda by 12 percent and 10 percent respectively.

Bulk Deals

• HSIL: Promoter Paco Exports acquired 10.63 lakh shares (1.47 percent) at Rs 52.85 each
• Tourism Finance Corporation: Promoter Redkite Capital sold 30 lakh shares (3.72 percent) at Rs 68.01 each

Trading Tweaks

• Industrial Investment Trust to move into ASM Framework
• Caplin Point Laboratories, Tata Teleservices (Maharashtra), R Systems International to move into short term ASM Framework
• GTL Infra to move out of short term ASM Framework
• CIL Nova Petrochemicals, Schneider Electric Infrastructure, Tata Teleservices (Maharashtra) price band revised to 10 percent
• Shankara Building Products, Everest Organics price band revised to 5 percent

Who’s Meeting Whom

• Greaves Cotton to meet UTI MF, SAIF Partners and Franklin Templeton on Feb. 12
• Tata Chemicals to meet Mirae Asset Global Investment on Feb. 13
• Shriram City Union Finance to meet LGM Investments, Edelweiss Securities and Ventura Securities from Feb. 11-13
• Tata Steel to meet Granular Capital on Feb. 14
• CARE Ratings to meet MTS Capital, Centrum PMS and other investors from Feb.11-25
• Mahindra Lifespace Developers to meet Quantum Securities on Feb. 12

Insider Trading

• Pidilite Industries promoters sold 30,000 shares from Feb. 5-6.

(As Reported On Feb. 10)

Money Market Update

The rupee ended stronger at Rs 71.29 against the dollar versus Rs 71.41 against the dollar on Friday.

F&O Cues

Index Futures

• Nifty February futures closed at 12,040, a premium of 8.5 points versus a discount of 2.4pts
• Nifty February futures open interest up 1.6 percent, adds 2.2 lakh shares in open interest
• Nifty Bank February futures closed at 31,109.8, premium 51.8 points versus 38.5 points
• Nifty Bank futures open interest down 4 percent, sheds 44,600 shares in open interest.
• Nifty PCR at 1.39 versus 1.48 (Across all series)

Nifty Weekly Expiry: Feb 13

• Max open interest on call side at 12,100 (27.5 lakh shares)
• Max open interest on put side at 12,000 (21.4 lakh shares)
• Open interest addition seen at 12,100C (+13.5 lakh shares), 12,200C (+6.1lakh shares), 12,000P (+4.4 lakh shares)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,500 (26 lakh shares)
• Max open interest on put side at 12,000 (31.6 lakh shares)

Stocks In F&O Ban

• Yes Bank