All You Need To Know Going Into Trade On March 12
Asian equities rose on the final trading day of the week as sentiment remains risk-on after the passage of the pandemic relief bill in the U.S.
The MSCI Asia-Pacific index rose along with an outperformance in South Korean equities, while those in Japan are fluctuating.
The U.S. Dollar has edged higher while oil prices are little changed this morning.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 15,427 as of 7:00 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 70 points. The index ended 0.6% higher on Thursday.
- The Biden administration informed some suppliers to Huawei Technologies of tighter conditions on previously approved export licenses.
- Key bond sales went smoothly, easing concerns about another possible spike in yields.
- “We’re headed to new highs because of all that stimulus money that’s being put out there and it’s more broad-based than the first couple of stimulus programs,” according to Chris Gaffney of TIAA Bank.
- The European Central Bank pledged to step up the pace of bond purchases to keep rising yields from derailing the region's economic recovery.
- Yield on the 10-year treasuries stood at 1.54%.
- West Texas Intermediate crude fell 0.2% to $65.89 per barrel while Bitcoin hit another all-time high this morning, crossing the $58,000 mark.
Get your daily fix of the global markets here.
Stocks To Watch
- SBI Life Insurance: BNP Paribas is looking to sell 3.5 crore shares of the company through an accelerated placement, according to terms of the deal obtained by Bloomberg News. Shares are offered at a price ranging between Rs 870 - Rs 917 per share, representing a discount of 2.5%-7.5% to Wednesday's closing price. There is also an option to increase the deal size by about 1.5 crore shares, according to the term sheet. As per the December quarter shareholding pattern, BNP Paribas held 5.2% stake in the company.
- Prestige Estates: Completes phase 1 of the transaction, which includes the sale of 12 retail, office and hotel assets to the Blackstone group. The enterprise value of the first phase is Rs 7,467 crore. Phase 2 of the transaction is likely to be completed by the end of the next quarter. Post the transaction, the company has now reduced net debt to the extent of Rs 4,594 crore.
- Infosys: Extends strategic collaboration with Newmont Corporation to standardise and digitise delivery models across mine sites. Newmont Corporation is the world's largest gold mining company. The renewed engagement, Infosys will provided enhanced end-to-end digital service to Newmont with its analytics-driven platform-as-a-service offering.
- REC: The board has approved launch of Capital Gains Tax Exemption Bonds (Series XV) on private placement basis for an amount of Rs 1,500 crore with green shoe option to retain over-subscription. The said bonds are secured debentures of face value Rs 10,000 each. The issue will open on April 1, 2021 and close on March 31, 2022. Further the board has approved market borrowing programme of Rs 1.10 lakh crore under different debt segments for FY21. It has also declared a second interim dividend of Rs 5 per equity share for FY21 and has fixed March 19 as the record date.
- India Glycols: Has entered into a business transfer agreement for the transfer of the company's specialty chemicals business to its wholly-owned subsidiary IGL Green Chemicals Pvt. Ltd. The transfer will be done at a value of Rs 646 crore, of which Rs 454.9 crore will be paid by IGCPL to the company at the time of transfer of the business, while the rest Rs 191 crore will be payable to the company over a period of three years. The board has also approved entering into a Joint Venture with IGCPL and Clariant International. Clariant will subscribe to 11,240 shares of IGCPL on a preferential basis, post which, it will hold 51% stake in the wholly-owned subsidiary. The JV will have a lock-in period of seven years for both shareholders.
- Power Grid: HVDC Bipole Link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) has been put under commercial operation from March 9. In a separate filing, the company has announced the separation of itself and the function of Central Transmission Utility from April 1, 2021.
- HCL Technologies: The company's wholly-owned step-down subsidiary HCL America Inc. has issued $500 million 1.375% senior notes due in 2026. The notes will be listed on the Singapore Exchange Securities Trading Ltd. The notes are guaranteed by the company and is capped at $525 million or 105% of the aggregate principal amount. The corporate guarantee will be treated as a contingent liability for the company.
- IDBI Bank: RBI has removed the bank from the Prompt Corrective Action framework subject to certain conditions and continuous monitoring. The regulator took the decision after taking into consideration the bank’s financial position as of December 31, 2020. The bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, Net NPA and Leverage ratio on an ongoing basis, RBI said. Further the bank has apprised RBI of structural and systemic improvements that it has put in place which would help the bank in continuing to meet these commitments.
- Karur Vysya Bank: Executed an agreement with Cholamandalam Investment and Finance Company for co-lending business.
- Premier Polyfilm: Intends to purchase assets like factory, land and building alongwith plant and machinery of Khushbu Vinyl Pvt. Ltd., which is currently undergoing liquidation. The company has participated in the auction/tender/bid process being conducted by the liquidator. Acquisition of the said assets will be useful for the growth of the company.
- NLC India: The company has issued 15,000 Commercial Papers of face value of Rs 5 lakh each, aggregating to Rs 750 crore on March 10.
- Wipro: The company has appointed Pierre Bruno as Chief Executive Officer for Europe. Bruno will lead Wipro’s business in six distinct regions across Europe.
- IL&FS Transportation Networks: Fagne Songadh Expressway, a subsidiary of the company, on March 9 received the compensation of Rs 707 crore for foreclosure of a development project--on Maharashtra Gujarat border section of National Highway No. 6-- and handed over the project to NHAI.
- AstraZeneca Pharma India: Has received Import and Market Permission in Form CT-20 from the Drugs Controller General of India for Osimertinib 40mg/80mg film coated tablets.
- JSW Steel: Crude steel production for February 2021 stood at 13.06 lakh tonnes, down 1% year-on-year. Average capacity utilisation during the month of February stood at 93%.
- Spandana Sphoorty Financial: Approves investment of up to Rs 50 crore in the equity share capital of a subsidiary Cris Financial Holdings in one or more tranches.
- NBCC: Awarded two work orders worth Rs 144 crore.
- Happiest Minds Technologies: Partners with Ilantus Technologies to deliver next generation identity and access management security services. The partnership will enable the company to manage and safeguard and organisation's intellectual property from identity and access theft while enhancing their risk and regulatory governance landscape.
- BPCL: Board to meet on March 16 to consider second interim dividend for FY21.
- Colgate-Palmolive (India): Board to meet on March 22 to consider interim dividend for FY21, if any. The record date for the same is fixed as March 31.
- GAIL (India): Board to meet on March 15 to consider second interim dividend for FY21. The record date for the same is fixed as March 23.
- IOC: Board to meet on March 16 to consider second interim dividend for FY21. The record date for the same is fixed as March 24.
- India Nippon Electricals: Board to meet on March 26 to consider and approve interim dividend for FY21.
- NMDC: The board declared interim dividend of Rs 7.76 per equity share.
- Engineers India: Declared interim dividend of Rs 1.4 per equity share.
Jefferies On Indian Midcaps
- Price-to-Earnings of Nifty Midcap has outpaced Nifty 50 but Price-to-Book is still lower
- Earnings growth could be aided by cyclical recovery in property, electrodes, auto, select industrials and healthcare
- Key growth catalysts can be government initiatives, housing revival, indigenisation, new product launches and balance sheet strength
- Recommend bottom-up stock picking approach
- Top Picks: Crompton Greaves Consumer, Blue Star, KEI Industries, Sobha, Supreme Industries, IPCA Labs, Max Healthcare
Antique Stock Broking On Godrej Properties
- Initiate coverage with buy rating
- Price target of Rs 1,979
- Well-placed to ride the ongoing consolidation
- Steadily gaining market share in the top four real estate markets
- Sales velocity as well as acquisition of new projects is expected to gain further pace
- Set for next round of growth with robust balance sheet and substantial cashflow expected from the QIP
Emkay On Indian Pharma
- Indian pharma market grew 2.6% year-on-year in February as compared to 6.6% in January
- All major therapies, except respiratory, continued to grow, albeit at a slower pace
- Sun Pharma grew at the fastest rate of 4% in February, followed by Lupin and Dr Reddy's at 2% each
- While volume growth may remain weak in the near-term, we expect IPM to grow at high-single to low double-digit rate in the coming months.
- Cadila Healthcare, Dr Reddy's and Cipla are our top picks
Pledge Share Details
- Steel Strips Wheels: Promoter Chandigarh Developers revoked pledge of 84,000 shares on January 1.
- Sun Pharmaceutical Industries: Promoter Shanghvi Finance revoked pledge of 1,500 shares on March 6.
- Emami: Promoter Sneha Enclave revoked pledge of 30 lakh shares on March 5. Promoter Sneha Gardens created a pledge of 14 lakh shares on March 8.
- Solara Active Pharma Sciences: Promoters have revoked pledge of 72.32 lakh shares between August 20, 2020 and February 19, 2021.
As reported on March 10.
- KPIT Technologies: Promoter Kishor Patil sold 19.55 lakh shares (0.71%) at Rs 156.05 per share and sold another 40.95 lakh shares (1.49%) at Rs 155 per share.
- Greenpanel Industries: Jwalamukhi Investment Holdings sold 12.35 lakh shares (1.01%) at Rs 166.39 per share.
- Take Solutions: Shriram Group Executives Welfare Trust sold 30 lakh shares (2.03%) at Rs 58.57 per share.
Who's Meeting Whom
- Chambal Fertilisers and Chemicals: To meet L&T Mutual Fund on March 12.
- Mahindra Lifespace Developers: To meet Consortium Securities on March 15, Canara Robeco AMC on March 16, and Wellington Management Singapore on March 19.
- Gujarat Pipavav Port: To meet Equirus Securities on March 12.
- Price Band Revised From 20% To 10%: Mahanagar Telephone Nigam
- Price Band Revised From 5% To 20%: Nureca
- Record Date Interim Dividend: Marico
- Record Date Final Dividend: DIC India
- Record Date Right Issue: WEP Solutions
- Move Out Of Short-term ASM Framework: Southern Petrochemicals Industries Corporation, Just Dial, Jaiprakash Associates, Shriram City Union Finance, HG Infra Engineering
- Move Into ASM Framework: Bajaj Electricals, GTPL Hathway, Suven Pharmaceuticals, Genus Power Infrastructures
- JSW Energy: Promoter Seema Jajodia sold 15 lakh shares between March 5-8.
- Aditya Birla Fashion and Retail: Promoter IGH Holdings bought 18.42 lakh shares between March 4-5.
- Karda Constructions: Promoter Manohar Karda sold 3 lakh shares on March 9.
- Godfrey Phillips India: Promoter KK Modi Investment And Financial Services bought 13,000 shares on March 10.
- Vardhman Textiles: Promoter Devakar Investment And Trading Company bought 5,000 shares on March 9.
- Prakash Industries: Promoter Ved Agarwal bought 20,000 shares on March 8.
- Oriental Carbon & Chemicals: Promoter Haldia Investment Co. bought 2,000 shares on March 9.
- Vardhman Special Steels: Promoter Sachit Jain bought 5,000 shares on March 9.
As reported on March 10.
Money Market Update
- The currency ended at 72.91 against the U.S. Dollar as compared to Tuesday's close of 72.92.
- Nifty March futures ended at 15,203; premium of 29 points
- Nifty March futures shed 3.5% and 5,405 shares in Open Interest
- Nifty Bank March futures ended at 35,995; premium of 57 points
- Nifty Bank March futures shed 3% and 1,670 shares in Open Interest
- Nifty Put-Call Ratio at 1.51
- Stocks In F&O Ban: Bank of Baroda, PNB, SAIL, Sun TV