All You Need To Know Going Into Trade On Feb. 28
A pedestrian walks past men looking at an electronic monitor displaying shares prices outside a securities firm in Tokyo, Japan. (Photographer: Yuriko Nakao/Bloomberg)

All You Need To Know Going Into Trade On Feb. 28

The global slide in equity markets showed no signs of easing Friday, with Hong Kong, Japan and Australia all losing more than 2 percent amid fears about the coronavirus.

Global shares are on course for the worst week since the 2008 crisis, down more than 10 percent from this month’s peak. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.65 percent to 11,417.50 as of 8:10 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

  • The S&P 500 tumbled 4.4 percent to close at the lowest levels of the day. The decline of more than 10 percent since last Friday has the benchmark on pace for its worse week since the 2008 global financial crisis and helped push the index into what is known as a correction.
  • Oil fell for a sixth day in Asia as the coronavirus spread further outside of China, roiling financial markets.

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DataWatch

  • India to release GDP data for the quarter ended December, GDP estimate for FY20 and fiscal deficit for April-January.

Indian ADRs

All You Need To Know Going Into Trade On Feb. 28

Stocks To Watch

  • Bank of Baroda sold its entire 4.9 percent stake in Petronet MHB Ltd. for Rs 52.56 crore. The deal is expected to be completed in Q4FY20.
  • HPCL and ONGC will acquire 17.3 percent stake in Petronet MHB Ltd. for Rs 185.38 crore. After the acquisition, the companies will hold a 50 percent stake in Petronet MHB Ltd. The transaction is expected to be completed in Q4FY20.
  • HDB Financials plans to raise up to Rs 1,500 crore from bond sale.
  • Dhanlaxmi Bank has appointed Sunil Gurbaxani as Managing Director & Chief Executive Officer of the bank.
  • GTPL Hathway says promoter Jio Content Distribution Holdings Private Limited to sell up to 43.12 lakh shares of the company via OFS. The floor price for the OFS has been fixed at Rs 63 per share (4 percent discount from yesterday’s closing price).
  • Tata Motors: India CCI has reviewed antitrust complaint against Tata Motors: Reuters.
  • Lemon Tree Hotels announced its debut in Bhutan, with the launch of Lemon Tree Hotel, Thimphu. This hotel is the second international launch for the company, with an already operational hotel in Dubai. Further hotels will be signed in Nepal and Bhutan, which will open in the future, the company said in the press release.
  • RITES OFS in the non-retail portion was subscribed 1.32 times.
  • S&P has revised the credit outlook of Motherson Sumi’s subsidiary Samvardhana Motherson Automotive Systems Group B.V to Negative.
  • Sintex industries will not consider a stake sale in BVM overseas due to non-receipt of the favourable deal.
  • Pidilite Industries will acquire a 70 percent stake in Tenax India Stone Products Pvt. Ltd. (Tenax India) for Rs 80 crore. Tenax Italy (parent) is the leading manufacturer of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone Industry.
  • Mahindra Lifespace Developers will acquire land parcel in Pune for development of a residential project.
  • Petronet LNG and Tellurian Inc. will execute a supplementary MoU aimed at facilitating the terms of the pact signed by the two companies in Sept. 2019 for the driftwood project.

Brokerage Radar

Macquarie on Container Corp

  • Initiated ‘Outperform’ with a price target at Rs 625.
  • A rare combination of a market leader and a disruptor.
  • Dedicated freight corridor can shift 20 percent of road traffic to rail on North West route.
  • Further upside exists from end-to-end logistics play.
  • Divestment may fetch 20-25 percent control premium and trigger re-rating

UBS on Thermax

  • Maintained ‘Sell’ with a price target at Rs 895.
  • Revenue growth slows down, order book declines 16 percent YoY in the third quarter.
  • Order flow recovery to be gradual.
  • Flue gas desulphurisation (FGD) orders to help in the near term.
  • FY20-21 EPS cut by 18-19 percent on stagnating order book, margin pressure.

On IndusInd Bank

Macquarie

  • Maintained ‘Buy’ with a price target at Rs 1,558.
  • CEO clarity emerges, major overhang removed now.
  • Ensures continuity and stability, fears of kitchen sinking unwarranted.
  • View this appointment very favorably.
  • New CEO plans to address liability side, concentration of top 20 depositors.
  • Cheap valuations, time to buy the stock.

Citi

  • Maintained ‘Buy’ with a price target Rs 1,900.
  • CEO related uncertainty ends.
  • Focus on retail likely to increase, especially retail liabilities.
  • Near term asset quality stress likely.
  • Some mid-corporate/SME, loans under SMA 2 may slip into NPA.

Bulk Deals

Jai Corp

  • Standard Chartered Bank (Mauritius) Limited A/C Valiant Mauritius Partners Offshore Limited buys 70.56 lakh shares (4 percent equity) at Rs 94.1 each.
  • Morgan Stanley Mauritius Company Ltd sells 70.56 lakh shares (4 percent equity) at Rs 94.1 each.

Who’s Meeting Whom

  • Prince Pipes to meet several fund houses such as HDFC AMC, Principal MF, Quest Capital among others on Feb. 28.
  • Tata Steel to meet Macquarie Capital and Aditya Birla Life insurance on March 3 and 4 respectively.

Trading Tweaks

  • PNB Housing Finance’s price band revised to 20 percent.

Insider Trading

  • Godrej Industries promoter Anamudi Real Estates LLP bought 1.2 lakh shares from Feb. 24 -25.
  • L.G.balakrishnan & bros promoter V.Rajvirdhan sold 20,000 shares on Feb. 26.
  • Zensar Technologies promoter Instant Holdings Limited bought 25,908 shares on Feb. 24.
  • Ultramarine & Pigments promoter Sridhar Sundarrajan sold 5,473 shares on Feb. 26.
  • Som Distillieries & Breweries promoter Som Distilleries Private Limited bought 2000 shares on Feb. 26.
  • ADF Foods promoters acquired 2,400 shares on Feb. 26.
  • Aarti Drugs promoter Jay Manilal Savla (Momi's Trust) sold 500 shares on Feb. 24.
  • Bajaj Finserv promoter Kumud Bajaj bought 38,300 shares from Feb. 25 – 26
  • Astec Lifesciences Limited promoter Godrej Agrovet Limited bought 7424 shares from Feb. 20 – 24
  • Just Dial promoter Anita Mani bought 50,000 shares on Feb. 25.

(As Reported on Feb. 27)

F&O Cues

Index Futures

  • Nifty March futures closed at 11,629.2, a discount of 4 points
  • Nifty futures across series open interest rose 10 percent, added 17 lakh shares in open interest
  • Nifty Bank March futures closed at 30,255.7, a premium of 68.7 points
  • Nifty Bank futures open interest across series rose 2 percent, added 30,000 shares in open interest
  • Rollover: Nifty at 77.6 percent, Nifty Bank 75 percent

Options

  • Nifty PCR at 1.37 versus 1.01 (across all series)

Nifty Weekly Expiry: March 5

  • Max open interest on call side at 12,000 (17,700 shares)
  • Max open interest on put side at 11,600 (11.5 shares)
  • Open interest addition seen in 11,700C (+12.5 lakh shares), 11,600C (+8.7 lakh shares)

Nifty Monthly Expiry: March 26

  • Max open interest on call side at 12,000 (18.5 lakh shares)
  • Max open interest on put side at 11,800 (23.9lk shares)

Securities In Ban

  • None
All You Need To Know Going Into Trade On Feb. 28
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