All You Need To Know Going Into Trade On February 3
Asian equities opened higher in mid-week trading, extending a global rally that begun this week. A slew of corporate earnings that surpassed analyst expectations and crumbling of the retail trading frenzy has kept sentiment buoyant.
Benchmark indices in Japan, South Korea and Australia are advancing while the U.S. Dollar held losses.
Oil prices traded at the highest in over a year on tighter global supplies and signs of strength in the physical market.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 14,780 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 currently trading 70 points higher. The index gained 1.6% on Tuesday.
- Alphabet and Amazon reported better-than-estimated revenue with the online-retailer saying that CEO Jeff Bezos will be stepping down.
- “The fact that markets have cooled down a bit with the retail-trading frenzy, that’s giving a little bit of optimism,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “Anytime there’s more stability to markets, there’s a breath of relief of all investors.”
- The Senate will begin a process that will led democrats pass President Joe Biden's $1.9 trillion stimulus plan without republican votes.
- Yield on the 10-year treasuries stood at 1.11%
- West Texas Intermediate crude rose 0.5% to $55 per barrel while Silver rose 2% to $26.99 after Tuesday's 10% fall.
Get your daily fix of the global markets here.
Stocks To Watch
- Tata Consumer Products: Has signed definitive agreements to acquire 100% equity shares of Kottaram Agro Foods, owner of the brand Soulfull. The transaction is expected to be completed in the fourth quarter of FY21. The cost of acquisition is Rs 155.8 crore. In addition, the promoters will be entitled to a contingent consideration, which is payable upon the business achieving certain operational and financial milestones over a period of five years.
- Future Retail: Delhi High Court has ordered status quo until the order on interim relief sought by Amazon is pronounced. Amazon had sought enforcement of the Emergency Arbitrator's order which had put on hold the transaction between Future Retail and Reliance Retail. Future Retail has said that it will explore all legal remedies and take appropriate steps to pursue the scheme of arrangement.
- JSW Energy: The company has served a notice of Material Adverse Change to the Resolution Professional and the Committee of Creditors and terminated the Resolution Plan for the Corporate Insolvency of Ind-Barath Energy (Utkal) with immediate effect.
- Adani Enterprises: Has incorporated a wholly-owned subsidiary namely, Azhiyur Vengalam Road, to carry out the development, maintenance and management of the project Six Laning of Azhiyur to Vengalam section of NH-17.
- V-Mart Retail: Has approved the closure of the QIP Issue and allocation of 15,30,612 shares at an issue price of Rs 2,450 per share. The issue price is a 0.7% premium to the floor price of the QIP issue. At the issue price, the company would have raised Rs 375 crore from the issue.
- Endurance Technologies: The company’s new plant situated in Tamil Nadu has commenced commercial production. The plant will manufacture aluminium die-castings and carry out integration of disc brake components with control brake modulators. The plant has an installed annual capacity to manufacture 9,000 metric tonnes of aluminium die-casting components for application in two and four wheelers and the required infrastructure for machining of such castings and to integrate 7.2 lakh sets of disc brake components for application in two wheelers.
- PNC lnfratech: The company's wholly-owned subsidiary, PNC Unnao Highways, has received communication from National Highways Authority of India on confirming the achievement of Financial Closure for Unnao-Lalganj highway project on Hybrid Annuity Mode. The bid project cost was Rs 1,602 crore with a construction period of 910 days.
- HIL: Has declared the payment of interim dividend of Rs 15 per share of face value of Rs 10 each for the financial year 2020-21 and has fixed February 12, 2021 as the record date.
- Nifty Earnings: Bharti Airtel
- Non-Nifty Earnings: Adani Enterprises, Adani Green Energy, Apollo Tyres, Aptech, Arvind Fashions, Astral Poly Technik, Adani Total Gas, Bajaj Consumer Care, Butterfly Gandhimathi Appliances, City Union Bank, Deepak Fertilisers & Petrochemicals Corporation, Hawkins Cookers, Hindustan Copper, Indian Hotels, Inox Leisure, JMC Projects (India), Jubilant FoodWorks, K.P.R. Mill, Minda Corporation, National Peroxide, Navkar Corporation, Procter & Gamble Hygiene & Health Care, PNC Infratech, Prince Pipes and Fittings, Quick Heal Technologies, The Ramco Cements, Ramco Systems, Sequent Scientific, Sheela Foam, SIS, Solara Active Pharma Sciences, Transport Corporation Of India, Thermax, Ujjivan Small Finance Bank, Venky's (India), V-Guard Industries, V.I.P.Industries.
Earnings Post Market Hours
Tata Consumer Products Q3FY20 (Consolidated, YoY)
- Revenues up 23% at Rs 3,069.56 crore vs Rs 2492.26 crore (Bloomberg Estimate: Rs 2,836.0 crore)
- Net profit up 25% at Rs 237.03 crore vs Rs 189.23 crore (Bloomberg Estimate: Rs 227.1 crore)
- EBITDA up 14% at Rs 361.33 crore vs Rs 317.43 crore (Bloomberg Estimate: Rs 393.6 crore)
- Margins at 11.8% versus 12.7% (Bloomberg Estimate: 13.9%)
- Packaged Beverages business recorded a 43% value growth and 10% volume growth
- Foods business registered a 19% value growth and 12% volume growth.
Neuland Laboratories Q3FY21 (Standalone, YoY)
- Revenue up 21% at Rs 245.4 crore Vs Rs 203.6 crore
- Net profit up 143% at Rs 26.7 crore Vs Rs 11 crore
- Ebitda up 65% at Rs 46.5 crore Vs Rs 28.1 crore
- Ebitda margin at 18.9% Vs 13.8%
- Unit 3 has started commercial production and currently shipping 2 APIs from this facility
- Expect Unit 3 to be a major growth driver going forward
Vinati Organics Q3FY21 (Standalone, YoY)
- Revenue up 2% at Rs 223.5 crore Vs Rs 219.4 crore (BBG Estimate: Rs 259.3 crore)
- Net profit up 3% at Rs 64.1 crore Vs Rs 62 crore (BBG Estimate: Rs 76.1 crore)
- Ebitda down 14% at Rs 72.2 crore Vs Rs 84.1 crore (BBG Estimate: Rs 101.6 crore)
- Ebitda margin at 32.3% Vs 38.4%
Ajanta Pharma Q3FY21 (Consolidated, YoY)
- Revenue up 15% at Rs 748.7 crore Vs Rs 651.2 crore
- Net profit up 64% at Rs 176.6 crore Vs Rs 107.5 crore
- Ebitda up 30% at Rs 241.6 crore Vs Rs 186 crore
- Ebitda margin at 32.3% Vs 28.6%
- India business revenue up 13% at Rs 220 crore Vs Rs 195 crore
- EM branded generic sales up 19% at Rs 286 crore Vs Rs 240 crore
- U.S. Generic sales flat at Rs 161 crore Vs Rs 159 crore
- Africa sales up 58% at Rs 77 crore Vs Rs 49 crore
EPL Q3FY20 (Consolidated, YoY)
- Revenue up 8% at Rs 767.1 crore vs Rs 710.9 crore
- Ebitda remains flat at Rs 158.5 crore vs Rs 157.9 crore
- Ebitda Margins at 20.7% vs 22.2%
- Net profit up 18% at Rs 70.9 crore vs Rs 60.1 crore
Pledge Share Details
- Jindal Stainless: Promoters JSL and Virtuous Tradecorp created pledge of 1.38 crore shares on January 29.
- Ajanta Pharma: Promoter Ravi Agrawal revoked pledge of 5,000 shares on February 1.
- Aurobindo Pharma: Promoter RPR Sons Advisors, P.Suneela Rani created pledge of 90 lakh shares on February 1.
As Reported On February 2.
- Indigo Paints: India Acorn ICAV bought 5.38 lakh shares at Rs 2,719.79 per share. Nomura India Investment Fund bought 5.30 lakh shares at Rs 2,601.54 per share. AL Mehwar Commercial Investments LLC bought 4.13 lakh shares at Rs 2,774.47 per share. Abu Dhabi Investment Authority bought 6.41 lakh shares at Rs 2,730.29 per share. Edelweiss Finance And Investments sold 3.50 lakh shares at Rs 2,613 per share.
- PVR: Societe Generale bought 10.01 lakh shares (1.82%) at Rs 1,519.52 per share. Multiples Private Equity Fund sold 3.01 lakh shares (0.55%) at Rs 1,517.54 per share. Multiples Private Equity Fund I sold 8.78 lakh shares (1.59%) at Rs 1,517.91 per share.
- Ex-Date Interim Dividend: Wendt (India), Kewal Kiran Clothing, Menon Bearings, Bella Casa Fashion & Retail
- Record Date Interim Dividend: Sundaram Finance, Sagar Cements, Kajaria Ceramics
- Ex-Date Bonus Issue: KNR Constructions
- Move Into ASM Framework: NIIT, AGC Networks
Money Market Update
- The currency ended at 72.96 against the U.S. Dollar as compared to Monday's close of 73.04.
- The rupee was the third best performer in Asia on Tuesday.
- Nifty February futures closed at 14,711; premium of 64 points
- Nifty February futures shed 2.6% and 3,419 shares in Open Interest
- Nifty Bank February futures closed at 34,439; premuium of 172 points
- Nifty Bank February futures shed 11.9% and 8,836 shares in Open Interest
- Nifty Put-Call Ratio at 1.55
- Stocks in F&O Ban: SAIL