All You Need To Know Going Into Trade On February 19
Most Asian equities have opened lower this morning after a weak session on Wall Street overnight. Treasuries and oil prices extended losses while the U.S. Dollar was steady against most peers.
Benchmarks in Australia and Japan fell while those in South Korea saw modest gains.
The pound hit the highest level against the Euro since March last year, amid continued optimism over vaccine rollout in the U.K. Bitcoin fell below the mark of $52,000.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.3% to 15,065 as of 7:15 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:
- Futures on the Dow Jones are little changed this morning. The index fell 0.4% on Thursday.
- Initial jobless claims rose more than expected in the U.S., rising by over 13,000 to 8.61 lakh last week.
- Lumber futures climbed to a record on Thursday while Copper in London hit a new eight-year high.
- Some companies in the Texas oil fields have begun to resume production, although Citigroup estimates that production of over 1 million barrels per day of the Permian oil basin can remain offline for at least 10 days. West Texas Intermediate crude fell 1.2% to $59.79 per barrel.
- Yield on the 10-year treasuries stood at 1.29%.
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Stocks To Watch
- Oil India: The company in consortium with Engineers India has decided to bid for acquiring 61.65% stake of BPCL in Numaligarh Refinery Limited. The exact percentage of the stake of OIL and EIL will depend on the extent of Right of First Offer to be exercised by Government of Assam which already holds 12.35% stake in NRL. Oil India says that the acquisition will add synergies to its portfolio.
- IDFC First Bank: Has approved raising of funds for an amount aggregating up to Rs 3,000 crore, in one or more tranches, by way of issuance of Securities, through one or more permissible modes, including but not limited to a Private Placement, Qualified Institutions Placement, Follow-on Public Offering or a combination thereof, subject to shareholders’ approval. The lender had earlier raised Rs 2,000 crore in June 2020 through a QIP.
- NMDC: Has resumed production of iron ore from Donimalai Mines in Karnataka. The company had, in December 2018, suspended mining in Donimalai due to a legal battle with the Karnataka government over the issue of imposition of premium on the sale price of the iron ore extracted from the mines.
- Poly Medicure: Poly Medicure: Approved closure of the QIP on Thursday. To allot 76.33 lakh shares to eligible bidders at a price of Rs 524 per share. The issue price is a discount of 4.9% to the QIP floor price of Rs 550.79 per share. At the issue price, the company would have raised Rs 400 crore through the QIP.
- ACC: The Audit Committee and the Board of Directors of the company has approved the renewal of the existing Master Supply Agreement with Ambuja Cements for a period of 3 years effective May 2, 2021, on the same terms of the existing MSA Agreement.
- Affle (India): The wholly-owned step down subsidiary of the company, Affle MEA FZ-LLC, has on February 17, 2021 completed the necessary closing conditions for acquisition of business assets of Discover Tech.
- Bajaj Finance: Has allotted 360 secured NCDs of face value of Rs 10 lakh each having issue price of Rs 9.97 lakh - aggregating Rs 35.92 crore on a Private Placement basis. The coupon rate is fixed at 6.92% per annum.
- DLF: A material subsidiary of the company, DLF Cyber City Developers, has completed the acquisition of 51.8% stake of Fairleaf Real Estate at a consideration of Rs 779.40 crore and consequently Fairleaf has become a wholly-owned subsidiary of DCCDL from February 18, 2021.
Ambuja Cements Q4FY20 (Standalone, YoY)
- Revenue up 12% at Rs 3,515.1 crore Vs Rs 3,135.9 crore
- Net profit up 9% at Rs 497.1 crore Vs Rs 454.9 crore
- Ebitda up 40% at Rs 767.8 crore Vs Rs 547.5 crore
- Ebitda margins at 21.8% Vs 17.5%
- Volumes saw growth of 7% during the quarter
- Greenfield project in Rajasthan will be commissioned this year
Jefferies On Indian Housing
- Housing affordability is at the best in the last 20 years and huge pent-up demand still exists
- Buyer sentiment - which was the missing link has now turned
- Unsold inventory is already trending down and should drive a positive price impact
- Upcycle can go on for the next 5-7 years
- Housing revival can drive India's GDP growth higher by 1% and create an additional 2.5 million jobs per annum incrementally over the next five years
- Top picks in the theme are Godrej Properties, HDFC, Kajaria, ACC, L&T and Supreme Industries
- Stocks can return 50-80% returns over the next three years
Motilal Oswal On Gujarat Gas
- Maintains buy rating
- Price target raised to Rs 560 from Rs 490
- Has clocked volume growth of ~8% QoQ each time since Q1FY20, despite Covid disruptions
- Any further pollution control measures will benefit Gujarat Gas significantly over peers
- Will benefit from increased volume offtake once gas is included under GST
- Stock demands an upgrade, thus closing the gap Vs IGL
- Possibility of further earnings upgrades going forward
Pledge Share Details
- JSW Steel: Promoters Sahyog Holdings and Vividh Finvest revoked pledge of 76.95 lakh shares on February 12.
- Max Financial Services: Promoter Max Ventures Investment revoked pledge of 4.82 lakh shares between February 15-16.
- Olectra Greentech: Promoter Trinity Infraventures revoked pledge of 12.22 lakh shares on February 15.
- Adani Ports & SEZ: Promoters Gautam Adani and Rajesh Adani revoked pledge of 9 lakh shares on February 17.
As Reported On February 18.
- Karda Constructions: Lotus Global Investments bought 3.25 lakh shares (0.53%) at Rs 125 per share.
- Jammu & Kashmir Bank: East Bridge Capital Master Fund sold 1.01 crore shares (1.42%) at Rs 31.09 per share.
- Matrimony.Com: CMDB II sold 2.50 lakh shares (1.10%) at Rs 880.15 per share.
Who’s Meeting Whom
- Paisalo Digital: To meet Motilal Oswal Securities on February 19.
- Symphony: To meet IIFL Asset Management on February 19.
- Price Band Revised From 20% To 10%: Adani Transmission, Central Bank of India, Neuland Laboratories
- Record Date Interim Dividend: Akzo Nobel India, Amrutanjan Health Care, BEML, BPCL, Computer Age Management Services, CARE Ratings, Firstsource Solutions, Hinduja Global Solutions, Indian Metals & Ferro Alloys, Metropolis Healthcare, MRF, NLC India, Page Industries, Polyplex Corporation, Rashtriya Chemicals & Fertilizers, Rishiroop, Sandesh, Shivalik Bimetal Controls, Sun TV Network, SVP Global Ventures, Vidhi Specialty Food Ingredients
- Record Date Rights Issue: Authum Investment & Infrastructure
- Record Date Bonus Issue: ASM Technologies
- Move Into ASM Framework: Deepak Nitrite, Somany Home Innovation
- Move Into Short-term ASM Framework: Linde India
- Move Out Of Short-term ASM Framework: TeamLease Services
- Vardhman Textiles: Promoter Vardhman Holdings acquired 13,430 shares between February 16-17.
- Gravita India: Promoter Rajat Agrawal acquired 1.24 lakh shares on February 17.
- Godrej Agrovet: Promoter Godrej Industries acquired 9,000 shares on February 15.
- Adani Green Energy: Promoter Harmonia Trade and Investment acquired 25 lakh shares on February 17.
As Reported On February 18.
Money Market Update
- The currency ended at 72.64 against the U.S. Dollar as compared to Wednesday's close of 72.75.
- Currency and bond markets will be closed on Friday on account of a holiday.
- Nifty February futures ended at 15,118 - the same level as the spot
- Nifty February futures shed 0.2% and 300 shares in Open Interest
- Nifty Bank February futures ended at 36,600; premium of 13 points
- Nifty Bank February futures add 2% and 1,247 shares in Open Interest
- Nifty Put-Call Ratio at 1.05
- Enters F&O Ban: Canara Bank, BHEL
- Out of F&O Ban: Punjab National Bank
- Stocks In F&O Ban: BHEL, Canara Bank, SAIL, Vodafone Idea