All You Need To Know Going Into Trade On February 2
Asian equities have opened higher this morning after peers on Wall Street saw their biggest rally in nearly 10 weeks.
Benchmark indices in Japan, Australia and South Korea are climbing.
Treasuries were steady, oil prices held gains while Silver futures retreated from its highest level in nearly eight years post some frantic retail trading.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.5% to 14,430 as of 6:55 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 trading with gains of over 60 points. The index rose 0.8% on Monday.
- Amazon and Google's parent Alphabet will be reporting their quarterly results today.
- JPMorgan Chase & Co. joined other strategists that believe the battle between retail traders and hedge funds is unlikely to cause a significant setback for markets.
- The total value that has been shorted right now across U.S. equities is a small percentage of the overall market cap, according to Barclays Plc. strategist Maneesh Deshpande. “Even if some fraction of that gets unwound and hence a corresponding long also gets unwound, the scale of the problem is not so much as to cause a systemic risk,” he said on Bloomberg TV.
- Yield on the 10-year treasuries stood at 1.08%.
- West Texas Intermediate crude was steady at $53.52 per barrel after a 2.6% jump overnight.
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Stocks To Watch
- Coal India: Production in January declined 4.1% year-on-year to 60.5 million tonnes while Offtake declined 4.6% year-on-year to 53.3 million tonnes.
- NMDC: Overall sales in the month of January up 26% year-on-year to 3.74 MT from 2.96 MT. Production up 16.6% to 3.86 MT from 3.31 MT.
- V.S.T Tillers: Power Tillers sales in January up 14.56% year-on-year to 2,258 units from 1,971 units. Tractor sales up 25.38% year-on-year to 647 units from 516 units.
- Torrent Power: To consider interim dividend at its board meeting on February 9. The record date for the interim dividend, if any will be February 17, 2021.
- Filatex India: The Department of Scientific and Industrial Research of the Government of India has accorded recognition to in-house R&D unit of the company located in Gujarat. This registration will entitle the company’s R&D unit to avail customs/Central Excise duty exemption on the purchase/import of equipment, instruments, spares thereof, consumables etc. used for Research & Development activities. The said registration is valid upto March 31, 2023.
- IRFC: To issue 155th Series of Secured Non-convertible Bonds through Private Placement during the current financial year amounting to Rs 500 crore plus green shoe option of Rs 2,500 crore.
- PVR: Declared the closure of issue period for the QIP and approved the issue price for 55.5 lakh equity shares to be allotted to eligible QIBs at a price of Rs 1,440 per share, including a premium of Rs 1,430 per share which takes into account a discount of 3.74% per share on the floor price of Rs 1,495.93.
- Indian Bank: The fully provided Non Performing Accounts of Cox & Kings, Era Infra Engineering, Supreme Tex Mart, RSAL Steel and Pune Buildtech have been declared as fraud and reported to RBI as per regulatory requirement.
- Power Grid: Declared successful bidder under Tariff-based competitive bidding to establish transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan under Phase-II, Part C on build, own operate and maintain basis.
- Dhanuka Agritech: Promoters to sell 83,000 equity shares or 0.18% of total equity in order to comply with Minimum Public Shareholding Norms.
- Centrum Capital: The company’s step-down subsidiary, Centrum Financial Services, a Non-Deposit taking Systematically Important NBFC, has made an offer for the revival and reconstruction of Punjab and Maharashtra Co-operative Bank to the administrators of the bank in response to their invitation to participate in the same. The offer would be evaluated by the bank and the Reserve Bank of India as per their process.
- EPL: Has completed the acquisition of 72.46% equity shares of Creative Stylo Packs as per the Share Purchase Agreement dated November 12, 2020 executed between the company and the shareholders of CSPL. The final consideration for the said acquisition is Rs 167.5 crore. CSPL has become a subsidiary of the company post this transaction.
- Sundaram Finance Holdings: Has approved the sale of its entire holding in TVS Investments, being 22.73 lakh equity shares of Rs 5 each, representing 14.98% of total equity, to Geeyes Family Holdings, for a total consideration of Rs 33 crore. The company will execute a Share Purchase Agreement with Geeyes Family Holdings for the purpose of effecting the transfer of shares.
- ISGEC Heavy Engineering: Has received two orders – one for a Cement Waste Heat Recovery Boiler, and another for conducting Remnant Life Assessment study. The order for CWHRB is from a leading Cement manufacturer for their Plant site in Meghalaya. The order for conducting the RLA study has been received from a Steel major in Jharkhand for their three boilers.
- Nifty Earnings: HDFC
- Non-Nifty Earnings: Ajanta Pharma, Alkyl Amines Chemicals, BLS International Services, Balrampur Chini Mills, Carborundum Universal, Cera Sanitaryware, Dhampur Sugar Mills, Dhanuka Agritech, Dixon Technologies (India), EPL, Escorts, Greenlam Industries, Gujarat State Fertilizers & Chemicals, IIFL Wealth Management, Intellect Design Arena, Ion Exchange (India), Neuland Laboratories, Nocil, Oriental Carbon & Chemicals, PI Industries, Ratnamani Metals & Tubes, Tata Consumer Products, Tata Investment Corporation, Vinati Organics, Wonderla Holidays.
Earnings Post Market Hours
MRPL Q3FY21 (Standalone, QoQ)
- Revenue up 46% at Rs 14,136 crore Vs Rs 9,686 crore
- Net loss of Rs 71 crore from net profit of Rs 35.8 crore
- Ebitda down 38% at Rs 146.5 crore Vs Rs 237.2 crore
- Ebitda margin at 1% Vs 2.4%
- GRM during the quarter at $3.26 per barrel
- Crude throughput at 3.08 MMT
- Focus on setting up on outlets to capture retail margins
Castrol India Q4CY20 (Standalone, QoQ)
- Revenue up 6% at Rs 935.2 crore Vs Rs 883.1 crore
- Net profit down 8% at Rs 187.7 crore Vs Rs 204.6 crore
- Ebitda down 11% at Rs 257.6 crore Vs Rs 288.2 crore
- Ebitda margin at 27.5% Vs 32.6%
- Gained good momentum in the second half with partial revival of demand
- Commercial vehicle portfolio yielded double digit volume growth
Finolex Industries Q3FY21 (Consolidated, YoY)
- Revenue up 53% at Rs 1,066.9 crore Vs Rs 699.4 crore
- Net profit up 163% at Rs 259.4 crore Vs Rs 98.5 crore
- Ebitda up 149% at Rs 346.6 crore Vs Rs 139 crore
- Ebitda margin at 32.5% Vs 19%
Pledge Share Details
- Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 31.46 lakh shares on January 29.
- Kellton Tech Solutions: Promoter Matnic Finvest LLP revoked pledge of 24 lakh shares between January 25-27.
As Reported On February 1.
- Price Band Revised From 10% To 5%: Hemisphere Properties India
- Price Band Revised From 20% To 10%: IIFL Finance
- Ex-Date Interim Dividend: Sundaram Finance, Sagar Cements, Kajaria Ceramics
- Record-Date Interim Dividend: Symphony, Phillips Carbon
- Vardhman Textiles: Promoter Vardhman Holdings acquired 30,075 shares on January 29.
- Ganesha Ecosphere: Promoter Charu Khandelwal acquired 8,621 shares on January 29.
As Reported On February 1.
Money Market Update
- The rupee ended at 73.03 against the U.S. Dollar as compared to Friday's close of 72.94.
- Nifty February futures closed at 14,394; premium of 113 points
- Nifty February futures added 8.1% and 9,874 shares in Open Interest
- Nifty Bank February futures closed at 33,415; premium of 326 points
- Nifty Bank February futures added 10.3% and 6,939 shares in Open Interest
- Nifty Put-Call Ratio at 1.42
- Stocks In F&O Ban: SAIL