All You Need To Know Going Into Trade On March 11
Asian stocks were mixed on Monday following the worst week for global equities since mid-December. The dollar nudged up after Friday’s decline.
Shares in Hong Kong and Japan eked out small gains, while equities in South Korea and Australia retreated. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.2 percent to 11,037 as of 7:15 a.m.
Short on time? Well, then listen to this podcast for a quick summary of the article!
Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks dipped Friday on mixed U.S. employment data.
- The yield on 10-year Treasuries held at 2.63 percent.
- The MSCI Asia Pacific Index gained 0.1 percent.
- Japan’s Topix index rose 0.1 percent.
- South Korea’s Kospi fell 0.3 percent.
- Australia’s S&P/ASX 200 Index dropped 0.4 percent.
- Hong Kong’s Hang Seng Index added 0.1 percent.
- Futures on the S&P 500 Index slid 0.2 percent. The underlying gauge fell 0.2 percent Friday.
- The Shanghai Composite was little changed.
- West Texas Intermediate crude added 0.2 percent to $56.18 a barrel.
- Gold lost 0.1 percent to $1,297.10 an ounce.
Key Events To Watch This Week
- Chinese retail sales, investment, credit and industrial production data for January and February are all scheduled for release this week. The National People’s Congress is set to wrap up with a speech on Friday from Premier Li Keqiang.
- U.K. House of Commons votes Tuesday on May’s revised Brexit deal, 20 days before Britain is scheduled to leave the EU.
- U.S. President Donald Trump is expected to release his proposed fiscal 2020 budget on Monday. Its arrival is about a month later than usual due to the lengthy partial government shutdown.
- Bank of Japan Governor Haruhiko Kuroda will speak on Friday, after he and his board meet to decide on monetary policy. No change in stimulus settings is anticipated, though there’s likely to be a discussion of whether or not to downgrade assessments of industrial production, exports and overseas economies.
Stocks To Watch
- Sun TV Network announced a dividend of Rs 2.5 apiece.
- Oil India awarded two blocks as part of the Discovered Small Field Bid Round – II.
- Kwality will consider its December-ended period results on March 14.
- Delta Corp said it will buy 25 percent stake in Jalesh Cruises Mauritius for $10 million. Jalesh Cruises will acquire cruise ships and operate cruise services to various destinations from India and the Middle East. The cruise ships will have various entertainment and hospitality avenues, including casinos and gaming centres. As a part of the investment, Delta Corp has also obtained the right to be the preferred partner to manage and operate the casinos and similar gaming centres on such cruise ships.
- Nitish Estates reduced its debt by Rs 408 crore, i.e., 30 percent of the overall debt.
- Goa Carbon produced 18,026.8 MT of calcined petroleum coke, i.e., 54 percent higher compared to last year.
- Punj Llyod: NCLT admitted ICICI Bank’s petition under Insolvency and Bankruptcy Code in respect of an alleged default amount of Rs 853.8 crore.
- Dilip Buildcon: declared L-1 for the EPC project in Maharashtra costing Rs 480 crore to be completed in 24 months.
- Solara Active Pharma Sciences said it will allot 1.05 crore warrants to promoter group and TPG Growth.
- Dredging Corp: Government signed share purchase agreement with Visakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust to sell 73.5 percent stake in the company. The existing board of directors have resigned.
- CG Power and Industrial Solutions board decided to reclassify seven of its discontinued operations as continuing operations with effect from Jan. 1. The non-cash impact of such re-classification is expected to be around Rs 200 crore. Also, the company’s CFO VR Venkatesh, resigned due to personal reasons. He will continue as CFO till June 30, 2019.
- McLeod Russel India said it will sell assets of Boroi Tea Estate in Assam to Jatinga Agro Tech for Rs 28 crore.
- NCLT Ahmedabad approved Reliance Industries-JM Financial resolution plan for Alok Industries insolvency process.
- NCLT Ahmedabad approved ArcelorMittal’s bid to take over Essar Steel Ltd. ArcelorMittal will pay Rs 42,000 crore against financial creditors’ claims of more than Rs 49,000 crore.
- SBI linked interest on savings bank deposits above Rs 1 lakh to the Reserve Bank of India’s repo rate. The effective savings bank deposit rate for Rs 1 lakh and above stands at 3.5 percent.
- Tata Motors Group global wholesales, including JLR, was at 1,10,262 in February 2019. The group global was lower by 9 percent compared to the year-ago period. Global wholesales for Jaguar Land Rover were 49,695 vehicles last month.
- McLeod Russel signed an MoU with Jatinga Agro Tech to dispose Estate & Bearer Plant at Assam.
- Syndicate Bank reduced its MCLR by 10 bps across all the tenors .
- HG Infra Engineering: NHAI nullified the bidding process for Amritsar-Jamnagar Economic Corridor EPC Project for which the co had emerged as the L1.
- GMR Infrastructure: GMR Airports received letter of award to develop, operate and manage Nagpur airport at a revenue share of 14.49 percent of gross revenue.
- CG Power: Promoters 6.76 crore pledged shares or 10.8 percent equity invoked by lenders. Avantha Holdings will continue to have the right to re-transfer the shares to itself upon repayment of the debt. In the event of any sale of the equity shares by lenders, any amounts received by them over and above the outstanding amount of the debt will be payable to Avantha Holdings.
- Dredging Corp: Government sold its entire stake in company to four state owned ports. The centre sold 73.44 percent holding in the company at Rs 510 17 percent premium.
- State-run MSTC’s three-day initial public offering to open March 13. It will offer 1.76 crore shares at a price band of Rs 121-128 each.
Brickwork Ratings Downgrades DHFL
- Brickwork Ratings downgraded various debt instruments by one notch citing degrowth in business on account of inability to raise funds.
- NCDs worth Rs 41,000 crore downgraded to BWR AA from BWR AA+
- Subordinated debt worth Rs 2,250 crore downgraded to BWR AA from BWR AA+
- Perpetual debt worth Rs 1,300 crore downgraded to BWR AA- from BWR AA
- Fixed deposits worth Rs 12,000 crore downgraded to BWR FAA from BWR FAA+
Lenders Sell Promoters Pledged Shares In Reliance Group Companies
- Reliance Infrastructure: Promoters 50 lakh pledged shares or 1.9% percent equity were sold by lenders.
- Reliance Power: Promoters 2.15 crore pledged shares or 0.77 percent equity were sold by lenders.
- Reliance Communications: Promoters 19 crore pledged shares or 6.86 percent equity were sold by lenders.
- Jet Airways gets Rs 2,050 crore loan from Punjab National Bank (Mint)
- Laurus Labs: Amansa Holdings bought 22.3 lakh shares or 2.1 percent equity at Rs 350 apiece.
- Thermax: Reliance MF bought 10 lakh shares or 0.84 percent equity at Rs 940 apiece.
- Promoter group sold 81.3 lakh shares or 7.3 percent equity at Rs 177 apiece.
- Orbimed Asia III Mauritius bought 1.1 crore shares or 10 percent equity at Rs 176 apiece.
- Claricent Advisory Services LLP bought 6.8 lakh shares or 2.65 percent equity at Rs 24.8 apiece from Gagandeep Credit Capital.
- Sadbhav Infrastructure: promoters pledged additional 1.5 crore equity shares (4.26 percent) as additional security towards NCDs.
- Apollo Tyres: promoters pledged additional 9.8 lakh shares (0.2 percent) as security for a loan.
- Adani Ports: promoters release pledge on 2 crore shares (1 percent).
- Adani Enterprises: promoters release pledge on 62.6 lakh shares (0.6 percent).
- Adani Transmission: promoters release pledge on 81.3 lakh shares (0.74 percent).
Who’s Meeting Whom
- Allcargo Logistics to participate in analyst conference on March 11.
- Shreyas Shipping to participate in analyst conference on March 11.
- HFCL to participate in analyst conference on March 11.
- Mahindra and Mahindra to meet Renaissance PMS on March 11.
- Rallis India to meet AMC, investors and analysts on March 11.
- MCX to attend a conference call with Prusik Investment Management on March 11.
- Vedanta to meet Fidelity International on March 11.
- Ashutosh Khajuria, ED and CFO, Federal Bank, bought 2 lakh shares on March 6.
- Nirayu Private Limited, promoter of Alembic bought 50,000 shares on March 5.
- Krishna Prasad Chigurupati, promoter of Granules India sold 50 lakh shares on March 8.
- Bajaj Holdings and Investment, promoter of Bajaj Auto bought 73,000 shares on March 7.
(As reported on March 8)
Money Market Update
- The rupee on Friday ended at 70.15/$ versus Friday’s 70/$.
- Nifty March Futures closed trading at 11076, premium of 41 points.
- Max OI for Mar 28 series at 11,500 Call, OI at 22.5 lakh shares.
- Max OI for Marc 28 series at 11,000 Put, OI at 33.7 lakh shares.
Stocks In F&O Ban
- In Ban: IDBI, Jet Airways, Reliance Power
- New in Ban: Jet Airways
- Out of Ban: Wockhardt
- Nifty PCR at 1.6 versus 1.66.
- Bank Nifty PCR at 1.23 versus 1.05.
HSBC on Info Edge
- Upgraded to ‘Buy’ from ‘Reduce’, hiked price target to Rs 1,978 from Rs 923.
- Recruitment is driving growth after a temporary slowdown.
- Value of property and food business continues to increase.
- Hike estimates given that all major segments have seen marked improvements.
Credit Suisse on Wipro
- Maintained ‘Underperform’ with a price target of Rs 240.
- Margin expansion largely behind; focus now back on growth.
- Focus shifts back to closing growth gap to peers.
- Buyback announcement around the corner.
CLSA on ITC
- Maintain Buy with TP of Rs 400
- Weak earnings growth and concerns on capital allocations ailing stock
- Rising ESG focus and lower global valuations ailing ITC share price
- Expect ITC earnings growth to accelerate led by product price hike
Morgan Stanley on SBI
- Maintained ‘Overweight’ with a price target of Rs 375.
- Moving to floating rate on savings deposits – a big change.
- Move to reduce margin volatility over time.
- Key to monitor: impact on deposit growth/strategy of peers.