All You Need To Know Going Into Trade On March 2

Equities began Monday reversing early declines in wild trading amid signs of support from central banks following the recent rout in global stocks. Losses in sovereign bond yields eased.

Japanese stocks reversed losses after the Bank of Japan moved to take efforts to try and stabilize markets. Chinese shares saw the bulk of gains and futures on the S&P 500 futures climbed. The Federal Reserve on Friday said that it’s open to easing policy.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1 percent to 11,275 as of 8:12 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.

Here’s a quick look at all that could influence equities today.

• The spread of the coronavirus rattled global financial markets, sending U.S. stocks to their worst week since the financial crisis more than a decade ago.
• European stocks are nearing a correction and Thursday’s slew of negative company news is partly to blame as investors fret over the impact on businesses of the coronavirus.
• Expectations the OPEC+ alliance will deepen output cuts put a floor under last week’s 16 percent plunge in oil prices, with futures in New York rallying even as the coronavirus continued to spread rapidly.
• Federal Reserve Chairman Jerome Powell said the coronavirus “poses evolving risks” to the U.S. economy and signalled the central bank is prepared to cut interest rates if necessary to sustain the country’s longest-ever expansion.

Get your daily fix of global markets here.

DataWatch

• Markit India manufacturing PMI data for February to be released
• RBI to hold third long-term repo auction

Indian ADRs

Stocks To Watch

• Bharti Airtel on Saturday said that it has made an additional payment of Rs 8,004 crore towards adjusted gross revenue dues to the Department of Telecom, according to a PTI report. The payment of Rs 8,004 crore is in addition to Rs 10,000 crore the company paid on Feb. 17, 2020 in compliance with the Supreme Court judgment, it said in a regulatory filing. The company said it calculated the liabilities on a self-assessment basis till Dec. 31, 2019 and the payment includes interest up to Feb. 29, 2020, the report added.
• Dr. Reddy’s Laboratories said that the U.S. Food and Drug Administrator Investigator has revised Form 483 with just one observation, in place of two observations intimated earlier for the Formulations Manufacturing Plant - 3 at Bachupally, Hyderabad.
• Adani Gas said that Total Holdings SA has acquired 41.1 crore shares in the company representing 37.4 percent stake. The sellers included SV Adani Family Trust, Afro Asia Trade Investments, Worldwide Emerging Market Holding, Universal Trade and Investment and Adani Tradeline.
• NTPC said that 800 MW Unit 1 of Darlipalli Super Thermal Power Station Stage-I is declared open for commercial operation. The commercial capacity of NTPC and NTPC group will become 49,695 MW and 58,156 MW respectively.
• JPSL said that BlackRock’s stake in the company fell to 3.29 percent from 3.38 percent after the fund disposed 8.7 lakh shares on Feb. 27.
• Affle India acquired mobile advertising technology company Mediasmart and Calle García de Paredes for a cash consideration of €5.12 million.
• Coal India: February production up 14.2 percent (YoY) to 66.26 million tonnes. February sales up 6.8 percent (YoY) to 54.97 million tonnes.
• MOIL: Prices of various types of Manganese ores reduced by 5-10 percent.

February Auto Sales (YoY)

Maruti Suzuki

• Total sales down 1.1 percent to 1,47,110 units (Estimate: 1,46,045 units)
• Total domestic vehicle sales down 3.6 percent to 1.36,849 units.
• Exports up 7 percent to 10,261 units.

M&M Auto

• Total sales down 42 percent to 32,476 units (estimate: 47,050 units).
• Total domestic sales down 42 percent to 30,637 units.
• Exports down 40 percent to 1,839 units.

Tata Motors

• Total sales down 32 percent to 40,634 units (Estimate: 44,772 units)
• Total domestic sales down 34 percent to 38,002 units.
• Total commercial vehicle sales down 33 percent to 28,086 units.
• Total passenger vehicle sales down 31 to 12,430 units.

Eicher Motors-VECV

• Total sales down 29 percent to 4,586 units.

Catch all the live auto sales updates here.

Brokerage Radar

IIFL on Vedanta

• Maintained ‘Buy’ with a price target at Rs 177
• Focus on operations; high dividends to sustain
• Focus on ramp up of zinc/oil business
• Improving visibility of turnaround at aluminum operations
• High dividends to sustain, to service parent entity debt
• Downgrade FY20-22 EBITDA by 20-22 percent to factor in lower commodity prices

HSBC on Kajaria ceramics

• Maintained ‘Buy’ with a price target at Rs 640.
• Lower crude prices to lower input costs which would offset pricing pressures.
• Organized tile players to benefit from Coronavirus impact but limited benefit for Kajaria.

Goldman Sachs On Crompton Greaves Consumer

• Maintained ‘Buy’; raised price target to 320 from 300.
• Steady and structured growth to continue.
• Management philosophy of focusing on products where it can be a market leader.

JPMorgan on BEL

• Upgraded to ‘Overweight’; maintain price target at Rs 97.
• Phase of earnings decline is behind us.
• Earnings miss already priced in.
• Defense a defensive play against Coronavirus.
• Divestment overhang behind us.

Bulk Deals

• Anup Engineering: Washington University sold 69,722 shares at Rs 522.24 each.

ACG Networks

• Citoc ventures bought 2,65,000 shares at Rs 422 each.
• Silverleaf Oak Advisors sold 265000 shares at Rs 422 each.
  

United Spirits

• Relay BV bought 50,75,000 shares at Rs 693.25 each.
• Recovery Officer sold 50,75,000 shares at Rs 693.25 each.

Repco Home Finance

• Fidelity bought 5,37,177 shares at Rs 284.46 each.
• Birla MF sold 515687 shares at Rs 284.5 each.

Shriram Trans Fin

• Integrated Core Strategies bought 26,10,875 shares at Rs 1,198.63 each.
• Blackrock Advisors sold 29,14,638 shares at Rs 1,195.76 each.

Who’s Meeting Whom

• Eicher Motors to hold conference call with Ward Ferry Management on March 2
• Cipla to attend Goldman Sachs India Pharma and Healthcare tour on March 2

IPO

SBI Cards and Payments Services

• Issue Date: March 2-5
• Price Band: Rs 750-755
• Issue Size: Rs 10,276- 10,341 crore
• Fresh Issue: 0.66 crore shares for Rs 500 crore
• Offer for Sale: 13 crore shares for Rs 9,850 crore
• Post Issue Market Cap: Rs 70,425- 70,891 crore

F&O Cues

Index Futures

• Nifty March futures closed at 11,149.1, discount of 52.5 points versus 4 points.
• Nifty March futures OI up 6 percent, adds 8.3 lakh shares in OI.
• Nifty Bank March futures closed at 29,053.9, discount of 93.2 points versus premium of 68.7 points.
• Nifty Bank March futures OI up 26 percent, adds 2.6 lakh shares in OI.

Options

• Nifty PCR at 1.10 versus 1.37 (across all series)

Nifty Weekly Expiry: March 5

• Max OI on call side at 12,000 (20.2 lakh shares)
• Max OI on put side at 11,000 (14 lakh shares)
• OI addition seen in 11,500C (+17 lakh shares), 11,400C (+11.2 lakh shares)
• OI shedding seen at 11500P (-5.2 lakh shares), 11,600P (-4.2 lakh shares)

Nifty Monthly Expiry: March 26

• Max OI on call side at 12,000 (22.8 lakh shares)
• Max OI on put side at 11,800 (22.3 lakh shares)