All You Need To Know Going Into Trade On March 18
Most Asian equities rose on Thursday with the U.S. Federal Reserve projecting near-zero interest rates through 2023.
Benchmark indices rose in Japan and South Korea while markets in Australia fluctuated. Overnight, the Dow Jones Industrial Average closed at an all-time high while the S&P 500's gains were led by sectors like consumer discretionary and industrials.
Treasury yields eased while the U.S. Dollar held losses as compared to most of its peers.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 1.1% to 14,934, 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 are trading with gains of 120 points. The index rose 0.6% on Wednesday.
- "The strong bulk of the committee is not showing a rate increase during this forecast period," Fed Chair Jerome Powell said at his post-policy conference. He also said that the time to talk about reducing the central bank's asset purchases was 'not yet.'
- “The Fed was optimistic on the economic outlook and dovish on policy - risky asset nirvana,” said Subadra Rajappa, head of U.S. rates strategy at Societe Generale.
- The Bank of England will announce its policy decision later today and is likely to leave monetary policy unchanged.
- Yields on the 10-year treasuries stood at 1.63%.
- West Texas Intermediate crude fell 0.3% to $64.43 per barrel as the International Energy Agency said that global supplies are plentiful.
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Stocks To Watch
- Punjab National Bank: Has incorporated a new credit cards subsidiary called PNB Cards & Services Ltd. The subsidiary will provide non-financial support services for PNB's credit card business. PNB Cards & Services to be set up with an authorised capital of Rs 25 crore and paid up capital of Rs 15 crore.
- HFCL: Has bagged an order worth Rs 221.16 crore from Uttar Pradesh Metro Rail Corporation, for design, manufacture, supply, installation, testing and commissioning of telecommunication systems for Kanpur Metro (Corridor-I and Corridor-II) and Agra Metro (Corridor-I) Projects. The projects are expected to be completed by 2023.
- TVS Motor Company: Board to meet on March 24 to consider and declare second interim dividend, if any for FY21. The record date for the same will be April 2.
- Somany Ceramics: Board has declared an interim dividend of Rs 2.40 per equity share of Rs 2 each for FY21. The record date for the same is March 25. The board has also approved expansion of the production line of double fast firing to produce large format wall tile, at the Kassar Plant. This expansion will cost the company Rs 45 crore. Further the board will make investment in the share capital of Somany Piastrelle, a wholly-owned subsidiary of the company, to grant inter-corporate loan to SPPL, in one or more tranches with a maximum cap of Rs 90 crore. The proposed investment is towards setting up a greenfield project of 3.48 million sqm per annum of Glazed Vitrified Tiles at Dhanot, Gujarat by Somany Piastrelle.
- BHEL: Has emerged as the lowest bidder for projects worth Rs 10,800 crore for supply of equipment for 6x700 megawatt nuclear power projects of Nuclear Power Corporation of India.
- Satin Creditcare: Promoters have reduced their pledged shares to 3.09% from 8.9% in July 2020. The promoters hold 2.75 crore shares of the company of which, 8.5 lakh remain pledged.
- IRCTC: 136 contracts, taken over from the railways as per the Catering Policy of 2017 and five long term contracts, that were kept in abeyance, have been terminated. This is in regards to the Madras High Court order to terminate all existing contracts of mobile catering. These contracts were for the regular trains, which are not in operation as on date. There has been no major impact of these terminations and the impact, if any, will be reassessed on resumption of regular train services.
Motilal Oswal On SBI Cards
- Upgrade to buy from neutral
- Price target of Rs 1,200
- Lower penetration augurs well for long-term structural story
- Business growth recovering well and return ratios are robust
- Growth momentum to accelerate; offers a unique play on rising retail mix
- Strong core profitability to absorb credit costs
- Upgrade to buy post recent correction
Emkay On Telecom Subscriber Data
- For the second straight month, Bharti Airtel's VLR subscriber data exceeded its total additions
- Sustained momentum to improve both revenue mix and ARPU for Airtel even without a tariff hike
- Jio losing 3.4 million VLR subscribers a negative surprise but wired broadband sees healthy traction
- Consistency in Vodafone Idea's subscriber addition is to be seen as the January numbers were aided by one circle
Emkay On Oil & Gas
- India's oil demand is back to normal with sales of petrol and diesel by PSUs rose by 5.3% and 7.4% year-on-year in the first fortnight of March
- Sales growth in the second half of March 2021 will be much higher due to the base effect of the nationwide lockdown last year
- Estimate demand for Indian Oil products to decline 10% in FY21, though FY22 can see higher growth due to elections
- Indian Oil loses market share in the last one year while BPCL and HPCL see gains
- BPCL maintains lead in retail outlet petrol throughput
- Retain buy rating on OMCs
Pledge Share Details
- Kalpataru Power Transmission: Promoter KC Holdings revoked pledge of 17.01 lakh shares on March 15.
- Emami: Promoter Sneha Enclave revoked pledge of 1.82 lakh shares on March 12.
- Delta Corp: Promoter Aarti Pandit Family revoked pledge of 13.50 lakh shares on March 16.
- Satin Creditcare Network: Promoter Trishashna Holding & Investments revoked pledge of 5.48 lakh shares on March 15.
As reported on March 17.
- Hinduja Global Solutions: Aasia Management and Consultancy bought 10.40 lakh shares (4.98%) at Rs 1,210 per share. Aasia Exports sold 10.40 lakh shares (4.98%) at Rs 1,210 per share.
- SBI Cards and Payment Services: CA Rover Holdings sold 4 crore shares (4.25%) at Rs 985.98 per share.
- Bliss GVS Pharma: LTS Investment Fund sold 5.70 lakh shares (0.55%) at Rs 94.56 per share. Saisons Technocom sold 6.56 lakh shares (0.64%) at Rs 93.8 per share.
Who's Meeting Whom
- CEAT: To meet Axis Securities on March 18.
- HPL Electric & Power: To meet Ace LansDowne on March 18.
- KEC International: To meet BofA Securities India on March 18, Prabhudas Lilladher on March 19, Centrum Broking on March 22 and Motilal Oswal Financial Services on March 25.
- Price Band Revised From 20% To 10%: Emami Paper Mills
- Ex-Date Interim Dividend: IIFL Securities, Engineers India, RITES, ICICI Lombard General Insurance Company, Bharat Dynamics, REC
- Record Date Interim Dividend: Kirloskar Oil Engines
- Ex-Date Stock Split: Dixon Technologies (India)
- Record Date Stock Split: Wardwizard Innovations & Mobility
- Ex-Date Bonus Issue: Infibeam Avenues, Astral Poly Technik
- Ex-Date EGM: Techindia Nirman
- Move Into ASM Framework: Elgi Equipments, IFGL Refractories, Prism Johnson
- Move Into Short-Term ASM Framework: Bliss GVS Pharma, Ashiana Housing, Rajratan Global Wire, Intellect Design Arena
- Deepak Fertilisers & Petrochemicals Corporation: Promoter Robust Marketing Services bought 25,000 shares on March 12.
- Westlife Development: Promoter Horizon Impex sold 97,190 shares on March 16.
- Prakash Industries: Promoter Ved Agarwal bought 40,000 shares between March 15-16.
- Rico Auto Industries: Promoter Arun Kapur bought 3,250 shares on March 15.
- Aarti Industries: Promoters Bhavesh Mehta and Jaya Gogri sold 20,000 shares on March 16.
- JSW Energy: Promoter Seema Jajodia sold 51,882 shares on March 12.
- Vardhman Special Steels: Promoter Sachit Jain bought 2.20 lakh shares on March 16.
- HealthCare Global Enterprises: Promoter BS Ajaikumar bought 12,695 shares between March 15-16.
- Godrej Agrovet: Promoter Godrej Industries bought 30,550 shares on March 12.
- HG Infra Engineering: Promoters bought 58,750 shares between March 12-15.
As reported on March 17.
Money Market Update
- The rupee ended at 72.54 against the U.S. Dollar on Wednesday as compared to Tuesday's close of 72.55.
- Nifty March futures ended at 14,756; premium of 35 points
- Nifty March futures shed 6.9% and 9,632 shares in Open Interest
- Nifty Bank March futures ended at 34,245; premium of 16 points
- Nifty Bank March futures shed 2.8% and 1,593 shares in Open Interest
- Nifty Put-Call Ratio at 1.22
- Out of F&O Ban: BHEL
- Stocks In F&O Ban: Sun TV