A visitor uses a smartphone in front of an electronic ticker screen displaying current share prices in the reception of the Hellenic Exchanges - Athens Stock Exchange SA in Athens, Greece. (Photographer: Yorgos Karahalis/Bloomberg)

All You Need To Know Going Into Trade On Feb. 22

Asian stocks opened with modest losses following a weak U.S. session as investors mulled an uncertain economic backdrop and mixed signals on trade negotiations.

Shares in Japan and Korea retreated and Australian equities edged higher after weaker than expected data from Europe and the U.S. reignited worries about the world economy. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.22 percent to 10,790 as of 6:50 a.m.

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BQ Live

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

U.S Market Check

  • U.S. stocks fell in thin trading, while Treasuries also declined as investors grappled with concerns about economic growth and the latest twists in global trade.
  • The yield on 10-year Treasuries advanced four basis points to 2.69 percent.

Also read: Trump Plans Meeting With China’s Trade Chief on Friday, Sources Say

Also read: U.S. Jobless Claims Decline to Four-Week Low Following Shutdown

Asia Cues

  • Japan’s Topix index fell 0.4 percent.
  • The S&P 500 Index dropped 0.4 percent. Futures were flat.
  • Hang Seng futures earlier slid 0.5 percent.
  • Australia’s S&P/ASX 200 Index rose 0.2 percent.

Also read: China to Propose $30 Billion More U.S. Agriculture Purchases

Commodity Cues

  • Brent crude ended a little changed at $67.07
  • Gold declined 1.1 percent to $1,323.01 an ounce.
  • West Texas Intermediate crude fell 0.7 percent to $56.77 a barrel.

Also read: Government To Auction 66 Oilfields Of ONGC And Oil India For Private Firms

London Metal Exchange

  • Nickel halted a four-day rally, ended 0.43 percent lower.
  • Copper halted a six-day rally, ended 0.39 percent lower.
  • Aluminium ended higher for the second day, up 1.98 percent.
  • Lead ended higher for the second day, up 1.22 percent.
  • Tin ended higher for the third day, up 0.8 percent.
  • Zinc halted a two-day rally, ended 0.56 percent lower.

Also read: EPFO Fixes A Higher Interest Rate Of 8.65% For 2018-19

Indian ADRs

All You Need To Know Going Into Trade On Feb. 22

Stocks To Watch

  • Gabriel India’s Chief Financial Officer Rajendran Arunachalam resigned with effect from March 8.
  • Bharat Electronics signed a teaming agreement with Hughes India to provide satellite communication solutions for helicopter. The company also stated it has signed MoU with JSR Dynamics for manufacture and sale of Glide Weapons and Light Weight Cruise Missiles.
  • BEML signed a ‘Certificate of Partnership’ with Lockheed Martin Aeronautics to explore global and domestics opportunities.
  • Kaveri Seed clarified that the government of Andhra Pradesh had suspended the licenses of 14 Seed Companies including the Kaveri Seed Company on Jan. 28 . The Company said that filed the reply within the time period and the said suspension will have no impact on the budgeted sales of the company.
  • India plans to auction 66 small oil and gas fields of Oil & Natural Gas Corporation Ltd. and Oil India Ltd. as it tries to step up production to reduce the import bill of the world’s third-biggest consumer of fossil fuel.
  • Dyanamatic Technologies signed an MoU with SAAB Technologies to explore future joint opportunities in commercial and defense related work.
  • AU Small Finance Bank entered into an agreement with ACKO General Insurance to act as a corporate agent for insurance products.
  • HDFC updated its existing medium-term note program up to $2.8 billion in order to enable the company to issue foreign currency bonds in the international capital markets subject to regulatory approvals.

Media Reports

  • Adanis in race to buy 23.5 percent in Mumbai Airport (Economic Times)

Bulk Deals

  • Hinduja Global Solutions: Fidelity Funds acquired 2.8 lakh shares or 1.33 percent equity at Rs 591 each.

Trading Tweaks

  • Monte Carlo Fashions record date for share buyback .

Insider Trading

  • Mukand promoter Baroda Industries acquired 80,000 shares between Feb. 18-19.
  • GMR Infra promoters acquired 63.2 lakh shares between Feb. 18-19.
  • Asian Granito promoter and director Kamlesh Bhai Patel acquired 42,000 shares on Feb. 20.
  • Spencer’s Retail promoter Rainbow Investments acquired 7 lakh shares on Feb. 19.

Money Market Update

  • The rupee on Thursday closed at 71.25/$ versus Wednesday’s closing of 71.11/$.

F&O Cues

  • Nifty February futures closed trading at 10804, premium of 14 points.
  • Max open interest for Feb. 28 series at 11,000 Call (open interest at 41.1 lakh shares).
  • Max open interest for Feb. 28 series at 10,700 Put, (open interest at 35.3 lakh shares).

Stocks In F&O Ban

In Ban

  • Adani Enterprises
  • IDBI
  • Jet Airways
  • Kaveri Seed
  • Reliance Capital
  • Reliance Power
  • PC Jeweller
  • Reliance Infrastructure

New in Ban

  • Adani Power
  • Allahabad Bank

Put-Call Ratio

  • Nifty PCR at 1.38 versus 1.3.
  • Bank Nifty PCR at 1.18 versus 1.26.
All You Need To Know Going Into Trade On Feb. 22

Brokerage Radar

Citi on BHEL

  • Maintained ‘Neutral’; cut price target to Rs 70 from Rs 84.
  • Revise our EPS estimates downwards by 8-13 percent over FY19E-21.
  • Cut target multiple to 18 times from 20 times on sectoral derating.

Macquarie On Mahanagar Gas

  • Initiated Neutral with a price target of Rs 800.
  • Expect earnings to compound at 9 percent over the next five years.
  • Moderate volume growth but premium margins likely to sustain.
  • Prefer IGL as more constructive on the outlook for city gas in NCR.

On Life Insurance Companies

UBS

  • HDFC Life: Initiated ‘Neutral’ with a price target of Rs 390.
  • ICICI Prudential Life: Initiated ‘Buy’ with a price target of Rs 400.
  • Max Financial Services: Initiated ‘Neutral’ with a price target o Rs 425.
  • SBI Life: Initiated ‘Buy’ with a price target of Rs 740.

IIFL

  • HDFC Life: Initiated ‘Add’ with a price target of Rs 400.
  • ICICI Prudential Life: Initiated ‘Buy’ with a price target of Rs 380.
  • SBI Life: Initiated ‘Buy’ with a price target of Rs 760.