All You Need To Know Going Into Trade On February 16
Asian equities advanced this morning while bonds declined. Some markets reopened after the Lunar New Year holiday while Chinese equities continue to remain closed.
Benchmarks in Japan, Australia and South Korea saw modest gains. Futures on the Dow Jones are trading 210 points higher.
An Arctic blast in the U.S. threatened to disrupt energy supplies, sending oil prices to their highest in 13 months.
The U.S. Dollar was little changed while yields climbed.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 15,354 as of 7:05 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.
Let’s take a look at the factors that may influence equities in today’s session:
- The price-to-earnings ratio for the MSCI World Index is at the highest level since 2009 as global equities continue to rally.
- Traders in Texas estimate an impact of a few thousand barrels per day of output being impacted due to well shutdowns, traffic jams and power outages.
- “Yields are a long way off causing damage to growth or the equity market outlook,” Chris Iggo, chief investment officer of core investments at Axa Investment Managers, said in a note. “Earnings are growing and secular themes are driving returns. However, complacency is dangerous.”
- Yield on the 10-year treasuries stood at 1.24%.
- West Texas Intermediate crude rose 1% to $60.09 per barrel while Bitcoin traded lower around the $47,600 mark.
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Stocks To Watch
- Wipro: Has announced a five-year strategic partnership with Telefónica Germany/O2. Wipro will work with Telefónica Germany/O2 and its wider ecosystem to transform its Business Support Systems and associated Quality Assurance to enable superior customer experience and growth in the B2B market segment. Wipro will also invest in developing a state-of-the-art digital Business Support platform that will fuel Telefónica Germany’s growth and provide the company with an outcome-based, committed plan.
- Tech Mahindra: Has announced a strategic partnership with Telefonica Germany/O2 to drive their end-to-end I.T. transformation. Tech Mahindra will provide a ‘digital first’ experience by leveraging out-of-the-box process libraries and its capabilities across digital technologies like Business Support Systems, Customer Experience, Cloud, Data & Analytics and Artificial Intelligence. This multi-year engagement involving modernisation of existing stacks based on cloud native products will accelerate Telefonica Germany’s digital journey.
- TCS: Has launched a Neural Automotive and Industrial Experience Center in Michigan, to help customers reimagine their businesses and accelerate innovation. The new center includes an automotive garage set-up with access to the latest technologies for customers and partners to experiment, co-innovate, build prototypes, and launch solutions in an agile manner.
- SIS India: Approves buyback of 18.18 lakh shares or 1.24% of the total equity. The total buyback consideration will be nearly Rs 100 crore. The buyback price of Rs 550 per share is a 29.1% premium to Monday's closing price.
- Poly Medicure: Launched QIP issue on Monday in order to raise funds. The floor price of Rs 550.79 is a 12% discount to Monday's closing price. The company may or may not offer a discount of 5% on the floor price as per its discretion. The board will meet again on February 18, 2021 to determine the issue price of the QIP.
- Shriram City Union Finance: Has approved the issue of secured NCDs of face value of Rs 10 lakh each each for an amount of Rs 30 crore with green shoe option upto Rs 95 crore aggregating up to 1,250 NCDs amounting to Rs 125 crore on Private Placement basis.
- Mazagon Dock Shipbuilders: Delivered the third Scorpene Submarine of Project P-75 on February 15 to the Indian Navy, subsequently to be commissioned into Indian Navy as INS Karanj.
- Titan: Subsidiary CaratLane Trading has incorporated a wholly-owned subsidiary 'StudioC Inc' in Delaware for retailing of jewellery. CaratLane will subscribe to 100% of the total share capital worth $1,50,000.
- Railtel Corporation of India: IPO opens for subscription today. It has allotted 2.6 crore shares to Anchor investors at Rs 94 each. Some key Anchor Investors include HDFC Life, Nippon Life India, Goldman Sachs India among others.
- Nifty Earnings: Nestle India
- Non Nifty Earnings: Varun Beverages, Schaeffler India, R Systems International
UBS On Tata Motors
- Maintains neutral rating
- Price target of Rs 360
- Remain neutral as profitability improvement for JLR is priced in but volume expectations can undershoot given its weak performance and rising competitive intensity
- Expect JLR to be 0.5 billion pounds net cash by FY23
- Unclear how JLR will achieve ambitious profitability goals with limited volumes and no platform sharing
Antique Stock Broking On Sadbhav Engineering
- Maintains buy rating
- Price target raised to Rs 96 from Rs 86
- Stage set for a turnaround in FY22E
- Working capital shows minor improvement
- Asset monetisation with PCOD in place, refinancing of debt to aid value
- Order backlog can surprise
- Expect revenue/Ebitda/net profit CAGR of 18%/19%/38% over FY20-23E
Motilal Oswal On Voltas
- Maintains neutral rating
- Price target raised to Rs 1,125 from Rs 820
- Recent market price adequately factors in franchise strength of the UCP business
- Large part of the margin surprise is due to cut in ad spends and low-cost inventory
- Valuations are likely to remain elevated going into the summer season
- Raise FY21E/22E/23E EPS estimates by 5%/11%/15% owing to the strong Q3 performance
- Voltas remains preferred play in the underpenetrated AC industry
Emkay On Amara Raja Batteries
- Downgrade to hold from buy
- Price target cut to Rs 860 from Rs 863
- Downgrade considering limited upside potential
- Lag in pass through of higher lead prices resulting in near-term margin pressures
- EV penetration remains a structural risk for the medium-term
- Entry of new players will increase competition and negatively impact margins
Pledge Share Details
- Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 2 lakh shares on February 11.
- Jamna Auto Industries: Promoters Map Auto and Pradeep Singh Jauhar revoked pledge of 36.39 lakh shares on February 11.
- Jindal Steel & Power: Promoter OPJ Trading created a pledge of 21.31 lakh shares on February 9.
- JSW Energy: Promoters JSW Investments and Indusglobe Multiventures revoked pledge of 5.44 crore shares on February 10.
- Adani Transmission: Promoter Adani Tradeline LLP revoked pledge of 10.90 lakh shares on February 12.
As Reported On February 15.
- JSW Holdings: Aquarius India Opportunities Fund bought 1.11 lakh shares (1%) at Rs 4,247.14 per share.
- Magma Fincorp: Param Capital sold 15 lakh shares (0.56%) at Rs 103.1 per share.
- Safari Industries (India): Motilal Oswal Equity Opportunities Fund bought 1.90 lakh shares (0.85%) at Rs 540 per share. Motilal Oswal Asset Management Company bought 6.10 lakh shares (2.73%) at Rs 540 per share. Sundaram Mutual Fund bought 1.41 lakh shares (0.63%) at Rs 540 per share. Tano India Private Equity Fund II sold 11 lakh shares (4.92%) at Rs 540 per share.
Who’s Meeting Whom
- Eicher Motors: To meet Janus Henderson on February 18 and Vontobel Asset Management and BFAM Partners on February 19.
- UTI AMC: To meet Lord, Abbett LLC on February 17.
- Trent: To meet Limiar Capital on February 17.
- Gland Pharma: To meet Mondrian Investment Partners on February 19.
- Titan Company: To meet Martin Currie Investment Management on February 16 and Fidelity Management & Research (Hong Kong) on February 18.
- Price Band Revised From 20% To 10%: Route Mobile
- Ex-Date Interim Dividend: Nilkamal, Acrysil, Share India Securities, TCI Express, GPT Infraprojects, Gulf Oil Lubricants India, Torrent Power
- Record Date Interim Dividend: Balkrishna Industries, Silly Monks Entertainment, Galaxy Surfactants, Torrent Pharmaceuticals, Hikal, Hero MotoCorp, Minda Industries, Minda Corporation, Praveg Communications (India)
- Move Into Short-term ASM Framework: Greenply Industries, Anant Raj Global, Olectra Greentech
- Move Out Of Short-term ASM Framework: Prince pipes and Fittings
- Move Into ASM Framework: Geojit Financial Services, Jain Irrigation Systems
- Adani Green Energy: Promoter Harmonia Trade and Investment acquired 25 lakh shares on February 12.
- CG Power and Industrial Solutions: Promoters A Venkatachalam, Arun Murugappan Children's Trust, Arunachalam Murugapan, MA Murugappan Holdings LLP and Vedika Meyammai Arunachalam acquired 2.38 lakh shares between February 11-12.
- Confidence Petroleum India: Promoter Essenn LPG Bottling acquired 5 lakh shares on February 10.
- BLS International Services: Promoter Shikhar Aggarwal acquired 73,200 shares on February 12.
- Godrej Agrovet: Promoter Godrej Industries acquired 7,755 shares on February 10.
As Reported On February 15.
Money Market Update
- The currency ended at 72.68 against the U.S. Dollar as compared to Friday's close of 72.74.
- Nifty February futures ended at 15,348; premium of 34 points
- Nifty February futures shed 1% and 1,249 shares in Open Interest
- Nifty Bank February futures ended at 37,540; premium of 234 points
- Nifty Bank February futures add 13% and 9,106 shares in Open Interest
- Nifty Put-Call Ratio at 1.4
- Stocks In F&O Ban: BHEL, SAIL