All You Need To Know Going Into Trade On February 22
Asian equities have opened higher to start the new week on a positive note. The bond selloff however, continued as treasury yields rose and sovereign debt fell in Australia and New Zealand.
Benchmark indices in Japan outperformed while those in South Korea also advanced. Oil prices rose, Bitcoin trades lower this morning after notching another record over the weekend while Copper rose to the highest since September 2011.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 15,046 as of 6:50 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 50 points higher. The index ended unchanged on Friday.
- Bond traders will await testimony from Fed Chair Jerome Powell for any sign that he's troubled by steeper long-term borrowing costs.
- A stimulus package of $1.9 trillion is heading for a house vote this week and the Biden administration is likely to unveil a multi-trillion dollar recovery package in March.
- Yields on the 10-year treasuries rose to 1.36%.
- Copper prices rose to their highest level since September 2011. Goldman Sachs believes that the metal is likely to see its biggest deficit in a decade this year. Prices of Tin also hit a nine-year high.
- West Texas Intermediate crude rose 0.6% to $59.62 per barrel. Four of the largest refineries in Texas are likely to remain shut for weeks of repairs following damages due to the cold snap.
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Stock To Watch
- Adani Ports & SEZ: Incorporates wholly-owned subsidiary Aqua Desilting Pvt. Ltd. to carry out business of dredging, desiltation and sale / disposal of such desilted material from sea, river, dams and other water bodies.
- Torrent Power: Emerges highest bidder for 51% privatisation of Power Distribution Company in Dadra & Nagar Haveli and Daman & Diu. With the addition of Dadra & Nagar Haveli (including Silvasa) and Daman & Diu, Torrent will distribute nearly 25 billion units to over 3.8 million customers and cater to a peak demand of over 5,000 MW.
- Shriram City Union Finance: To consider the issue and allotment of Secured, Rated, Listed, Redeemable, Principal Protected Market Linked (PP-MLD) NCDs of face value of Rs 10 lakh each worth Rs 100 crore with a green shoe option of up to Rs 400 crore at its board meeting on February 24, 2021.
- PNB Housing Finance: Promoter PNB says that it will not participate in the company's capital raising plans. The company will continue to pursue the proposed capital raising plans through permitted modes. The company had approved raising an amount of Rs 1,800 crore as tier-1 capital through QIP, preferential issue, rights issue or any other combination thereof on January 27, 2021.
- Jagran Prakashan: Board meeting on March 2, 2021 to consider buyback of equity shares.
- NTPC: 5 MW, last part capacity for the 20 MW Auraiya Solar PV Project in Uttar Pradesh has been declared on Commercial Operation on February 20, 2021. The total installed capacity of NTPC and NTPC group now stands at 52,115 MW and 64,880 MW respectively.
- Suven Life Sciences: Board of Directors approved issuance of 1.81 crore fully convertible warrants on a preferential basis to the promoter / promoter group. The price at which the warrants will be issued shall be determined later.
- Inox Leisure: Commenced commercial operations of Multiplex Cinema taken on leave and license basis in Kolkata. The said multiplex has two screens and 422 seats.
- Tata Consumer Products: Has successfully completed the acquisition of 100% shares in Kottaram Agro Foods. Consequently, Kottaram Agro Foods has now become a wholly-owned subsidiary of the company.
- Jubilant Foodworks: A wholly owned subsidiary of the company, Jubilant Foodworks Netherlands B.V., has entered into a purchase agreement with Turkish Private Equity Fund II L.P. to fully acquire Fides Food Systems Coöperatief U.A. which holds 32.81% equity shares in DP Eurasia N.V. The cost of acquisition is approximately 24.80 million pounds. The company has also executed the Purchase Agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands B.V.
- Karnataka Bank: Has reported to RBI a fraud in the credit facilities extended earlier to IL&FS Transportation Networks with an outstanding balance of Rs 34.16 crore.
- Sheela Foam: Has received a closure order for its Jalpaiguri plant from the West Bengal Pollution Control Board. The company has suspended the operations at the unit.
- Aarti Drugs: Pinnacle Life Science LLC, a wholly-owned subsidiary of the company, incorporated at International Free Zone Authority, Fujairah, UAE, has been closed.
- Narayana Hrudayalaya: Health City Cayman Islands, a step-down subsidiary of the company running an existing hospital in the Cayman Islands is expanding to a new location in the Camana Bay Development area of Grand Cayman. The objective of the new facility is to expand the scope of superspecialty treatment options offered by HCCl's existing facility and offer medical services closer to the city center.
Motilal Oswal On Ambuja Cements
- Maintains Neutral rating
- Price target raised to Rs 275 from Rs 250
- Remain neutral due to weak growth visibility beyond CY22
- MSA with ACC has resulted in cost savings of Rs 250 crore and boosted PBT by 5% in CY20
- Capacity expansion to improve near-term volumes
- Offer 10% holding company discount for its stake in ACC
Emkay On Bharat Forge
- Maintains buy rating
- Price target of Rs 760
- CY21 demand outlook provided by 21 entities provides a positive read-through for Bharat Forge
- HCV segment is likely to rebound strongly in CY21 across regions
- Global and domestic PV segments are likely to witness a strong rebound driven by better macros and low channel inventory
- Expect revenue to grow 46% in FY22E driven by a strong rebound in automotive and industrial segments
- Significant potential for segments like defence, aerospace, E-mobility and railways in the medium-term
Emkay On Jubilant Foodworks
- Maintains buy rating
- Price target of Rs 2,750
- New acquisition looks inexpensive but the risks remain
- Acquisition gives Jubilant access to Domino's franchise in new markets at attractive valuations, adverse currency movements and high interest rates in Turkey remain a risk
- An elongated expected turnaround can result in earnings dilution for Jubilant
- Do not expect any meaningful upside / downside to forecasts given the size of the acquisition
Pledge Share Details
- Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 2 lakh shares on February 17.
- Zee Entertainment Enterprises: Promoter Essel Corporate LLP invoked pledge of 2.90 lakh shares on February 15.
- Motherson Sumi Systems: Promoter Samvardhana Motherson International revoked pledge of 2.12 crore shares on February 18.
- Sanghi Industries: Promoters Aditya Sanghi, Alok Sanghi, Ravi Sanghi and Samruddhi Investors Services created a pledge of 1.16 crore share between February 16-17.
- Mangalore Chemicals & Fertilizers: Promoter Zuari Agro Chemicals revoked pledge of 1.30 crore shares on February 17.
- Sun Pharma Advanced Research Company: Promoter Raksha Valia created a pledge of 8 lakh shares on February 17.
- JSW Energy: Promoter Indusglobe Multiventures created a pledge of 2.85 crore shares on February 16.
As Reported On February 19.
- Esab India: SBI Mutual Fund bought 3.41 lakh shares (2.22%) at Rs 1,865 per share. Bajaj Allianz Life Insurance Company sold 4 lakh shares (2.65%) at Rs 1,865 per share.
Who’s Meeting Whom
- Tata Chemicals: To meet RWC Partners Singapore and York Capital Hong Kong on February 23 and Jupiter Asset Management London on February 24.
- Indian Energy Exchange: To meet Highclere International, T Rowe Price and Nikko Asset Management on February 22 and to meet Amiral Gestion on February 26.
- Price Band Revised From 10% To 5%: Hindustan Foods, Tejas Networks
- Ex-Date Interim Dividend: Aurobindo Pharma, Mazagon Dock Shipbuilders, Tube Investments of India, Shanthi Gears, NHPC, Natco Pharma, Goldiam International, ITC, Selan Exploration Technology, DCM Shriram Industries, Mercury Laboratories, Panchsheel Organics
- Record Date Interim Dividend: Man Infraconstruction, Centum Electronics, Clariant Chemicals (India), JB Chemicals & Pharmaceuticals, Mahanagar Gas, Seamec, Suprajit Engineering, Vishal Fabrics
- Record Date Income Distribution: Embassy Office Parks REIT
- Record Date Buy Back: Suprajit Engineering
- Move Into Short-term ASM Framework: Repco Home Finance, HLE Glascoat
- Move Out Of Short-term ASM Framework: Savita Oil Technologies, Graphite India, Magma Fincorp, Neuland Laboratories
- Move Into ASM Framework: SORIL Infra Resources, Magma Fincorp, Neuland Laboratories, Dewan Housing Finance Corporation
- Move Out Of ASM Framework: Ruchi Soya Industries, Jaiprakash Associates, Cerebra Integrated Technologies, Shalimar Paints
- Axis Bank: Promoter General Insurance Corporation Of India sold 3 lakh shares on February 18.
- Vardhman Textiles: Promoter Vardhman Holdings acquired 10,000 shares on February 19.
- Aarti Industries: Promoter Jaya Gogri sold 13,000 shares on February 18.
- Renaissance Global: Promoter Amit Shah sold 1.36 lakh shares on February 16.
- Vardhman Special Steels: Promoter Sachit Jain acquired 9,786 shares between February 18-19.
- Adani Green Energy: Promoter Harmonia Trade and Investment acquired 25 lakh shares on February 18.
- Spandana Sphoorty Financial: Promoter Padmaja Gangireddy acquired 5,000 shares on February 18.
As Reported On February 19.
- Nifty February futures end at 15,006; premium of 25 points
- Nifty February futures shed 3% and 4,476 shares in Open Interest
- Nifty Bank February futures end at 35,922; premium of 81 points
- Nifty Bank February futures shed 2.2% and 1,396 shares in Open Interest
- Nifty Put-Call Ratio at 0.86
- Stocks In F&O Ban: BHEL, Canara Bank, SAIL, Vodafone Idea