All You Need To Know Going Into Trade On March 17
Asian equities have opened lower in mid-week trading ahead of the policy statement from the U.S. Federal Reserve.
Benchmark indices headed lower in Japan, South Korea and Australia. However, treasury yields continued to hover near their highest in over a year.
Oil prices are flat this morning while the U.S. Dollar is little changed.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,985 after cooling off from the sessions high as of 7:20 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 were flat this morning. The index fell 0.4% on Tuesday.
- Veteran bond investor Bill Gross predicted in a Bloomberg TV interview that inflation will rise to 3-4% in the coming months.
- “We’re inclined not to fight the Fed, at least until wage pressures show up,” Lauren Goodwin, portfolio strategist for New York Life Investments, wrote in a note. “That said, growing uncertainty over the front end of the curve will contribute to market volatility in the coming months.”
- Yield on the 10-year treasuries stood at 1.63%.
- West Texas Intermediate crude rose 0.2% to $64.92 per barrel while Bitcoin traded around the $56,000 mark.
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Stocks To Watch
- Vedanta: Vedanta Resources has raised the open offer price for buying shares in the company to Rs 235 per share, nearly 4% higher than the Tuesday's closing of Rs 226.55. In January, Vedanta Resources had offered to buy up to 10% in the company at Rs 160 apiece. The offer size has also been increased to 651 million shares representing 17.5% stake in Vedanta Ltd. The open offer will start on March 23 and will close on April 7.
- SBI Cards & Payment Services: CA Rover holdings is looking to sell 3.8 crore shares of SBI Cards and Payment services, according to terms of the deal obtained by Bloomberg News. The number of shares amount to 4% of the total equity. Shares will be offered between Rs 981 to Rs 1,020 each as per the terms. The price represents a discount of as much as 4% to Tuesday's closing price. As per the December quarter shareholding pattern, CA Rover Holdings held 15.8% stake in SBI Cards.
- Tata Communications: OFS for non-retail investors gets 220% the demand as compared to the shares on offer. There was demand for 5.63 crore shares as compared to the 2.56 crore on offer for the Non-retail investors. The OFS opens for retail investors today. The government will exercise the greenshoe option to sell another 6% of the total equity.
- BPCL: Has declared second interim dividend of Rs 5 per share of Rs 10 each for FY21. The record date for the same is March 27, 2021.
- State Bank of India: RBI has levied a penalty of Rs 2 crore on the bank for contravention of regulations on employee remuneration.
- BEML: Has received export orders worth $23 million from Cameroon and Bangladesh for supply of construction equipment. The Government of Cameroon has ordered 71 units of construction equipment consisting of Bulldozers, Excavators, Wheel Loaders, Motor graders and Compactors for their Cassava Farm Project. The order from Government of Bangladesh is for supply of construction equipment consisting of Wheel Dozer for their construction, Repair and Maintenance of Road and Infrastructure projects.
- GMM Pfaudler: To pay Rs 584.6 million to acquire assets of HDO Technologies Ltd. The transaction is for an 11.9 acre manufacturing facility located in Vatva, Ahmedabad. The acqusition will enhance capacity and augment capabilities in heavy engineering.
- India Grid Trust: Board has approved fund raising of up to Rs 5,300 crore in one or more tranches through various sources including term loans, public and private issuance of NCDs subject to receipt of necessary approvals from statutory, regulatory and other authorities. Further the board will meet on March 23 to discuss the matters related to the rights issue.
- HG Infra Engineering: Has been declared L-1 bidder by National Highways Authority of India for construction of greenfield highway project in Telangana.
- Magma Fincorp: Magma HDI General Insurance Company, insurance JV of the company, has approved capital raise of up to Rs 250 crore by way of preferential issue to third party investors subject to requisite statutory and regulatory approvals.
- Bharat Forge: Kalyani Rafael Advanced Systems, a joint venture between Kalyani Group and Rafael Advanced Defense Systems of Israel, has rolled out its first batch of Medium Range Surface to Air Missile for the Indian Army and the Air Force. Further the company has acquire Kalyani Powertrain, of Kalyani Group, which will act as the Special Purpose Vehicle to carry out the Electric Vehicle business.
- Ruchi Soya Industries: Has appointed Sanjay Aggarwal as Chief Financial Officer of the Company from March 15.
- IOL Chemicals and Pharmaceuticals: Has appointed Sanjay Chaturvedi as Chief Executive Officer of the company from March 16, 2021.
CLSA On Tata Communications
- Maintains buy rating
- Price target raised to Rs 1,475 from Rs 1,365
- Google partnership to drive cloud services
- Ownership of largest undersea cable network
- Has 756 acres of surplus land which can likely see value unlocking post OFS
- Include 33% of land value in revised price target
Emkay On Westlife Development
- Initiating coverage with buy rating
- Price target of Rs 600
- Bullish thesis rests on three pillars - Superior unit economics, Comparison with Domino's highlights a 3x store roll-out potential and strong case for upside in Ebitda margins
- Powerful brand franchise with long growth runway
- Poised for sustainable growth and profitability turnaround
- Expect revenue/Ebitda CAGR of 10%/20% through FY24
- RoE should see sharp improvement to mid-teens
Motilal Oswal On SBI Life Insurance
- Maintains buy rating
- Price target of Rs 1,050
- Continues to witness strong momentum in protection and annuity business while ULIPs see a recovery
- Expect growth to revive further from FY22E
- Persistency ratios are holding well across cohorts, while cost leadership continues.
- Expect VNB Margin to touch ~22% by FY23E enabling 23% VNB CAGR over FY20-23E
- Estimate 18% EV growth over FY20-23
Pledge Share Details
- LT Foods: Promoter Raghuvesh Holdings revoked pledge of 14.30 lakh shares on March 12.
As reported on March 16.
- Dhani Services: Promoter Sameer Gehlaut bought 27 lakh shares (0.44%) at Rs 266.02 per share.
- Infibeam Avenues: L7 Hitech bought 35.72 lakh shares (0.54%) at Rs 107.09 per share.
- Vardhman Special Steels: Promoter Sachit Jain bought 2.20 lakh shares (0.54%) at Rs 155 per share.
- Asian Granito India: Donroy Ceramics LLP sold 4.57 lakh shares (1.48%) at Rs 168.52 per share.
- Bliss GVS Pharma: Pallas Fincap sold 5.73 lakh shares (0.56%) at Rs 106.29 per share.
Who’s Meeting Whom
- UltraTech Cement: To meet Lazard Asset Management LLC on March 17.
- Adani Ports and SEZ: To meet Jefferies on March 17.
- Brigade Enterprises: To meet Ashmore, Birla Mutual Fund, Franklin Templeton and ICICI Prudential Mutual Fund on March 17.
- Price Band Revised From 10% To 5%: Edelweiss Financial Services
- Price Band Revised From 20% To 10%: Bliss GVS Pharma, Saregama India
- Ex-Date Interim Dividend: Kirloskar Oil Engines
- Record Date Interim Dividend: Mold-Tek Packaging, Mold-Tek Technologies
- Ex-Date Stock Split: Wardwizard Innovations & Mobility
- Ex-Date EGM: Parvati Sweetners and Power, Comfort Commotrade
- Record Date Bonus Issue: Smruthi Organics
- Move Into ASM Framework: Zen Technologies, RPSG Ventures, 3i Infotech
- Move Out Of Short-Term ASM Framework: Yaarii Digital Integrated Services, Equitas Small Finance Bank, Bajaj Hindusthan Sugar, Welspun Enterprises, Astra Microwave Products, Jindal Poly Films
- Godrej Industries: Promoter Arel Enterprise LLP bought 7.71 lakh shares between March 9-10.
- Nilkamal: Promoters Manish Parekh And Nayan Parekh bought 3,088 shares between March 12-15.
- Aarti Industries: Promoter Bhavesh Mehta sold 17,000 shares between March 12-15.
- Action Construction Equipment: Promoter Mona Agarwal sold 35 lakh shares on March 12.
As reported on March 16.
Money Market Update
- The rupee ended at 72.55 against the U.S. Dollar on Tuesday as compared to Monday's close of 72.47.
- Nifty March futures ended at 14,794; discount of 116 points
- Nifty March futures shed 5.9% and 8,841 shares in Open Interest
- Nifty Bank March futures ended at 34,930; premium of 126 points
- Nifty Bank March futures added 7.7% and 4,127 shares in Open Interest
- Nifty Put-Call Ratio at 1.31
- Stocks In F&O Ban: BHEL, Sun TV