All You Need To Know Going Into Trade On March 2
Asian markets extended the rally in global equities as investors shrugged off concerns about the impact of higher bond yields.
Benchmark indices in Japan and Australia saw modest gains while those in South Korea outperformed on resuming post a holiday.
Treasury yields were little changed, the U.S. Dollar was steady while oil prices fell ahead of the key OPEC meeting later this week.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.65% to 14,888 as of 7:15 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 little changed this morning. The index rose 2% on Monday. The S&P 500 saw its biggest single-day jump in nearly nine months.
- Traders are looking forward to statements from Federal Reserve officials later this week about the recent tumult in the bond markets.
- “There’s nothing wrong with longer term interest rates where they are; financial conditions broadly are still fairly easy,” said Julia Coronado, founder of MacroPolicy Perspectives LLC. “Given the stabilization we’ve seen since Thursday, the Fed can breathe a sigh of relief.”
- Bitcoin gained 8% on Monday after CitiGroup in a note said that the token may play a bigger role in the global financial system. CitiGroup said that Bitcoin may become the currency of choice for international trade in the years ahead.
- Yield on the 10-year treasuries stood at 1.42%.
- West Texas Intermediate crude fell 1% to $60 per barrel.
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Stocks To Watch
- BPCL: To sell its 61.65% stake in Numaligarh Refinery to a consortium of Oil India and Engineers India and to the Government of Assam for Rs 9,875.96 crore. Further if the government fails to acquire stake then the entire stake will be sold to the consortium. The sale is expected to be completed within a month from obtaining all requisite approvals.
- Hero MotoCorp: Overall sales in February up 4% month-on-month to 5,05,467 units. Exports rose 16% month-on-month as well as on a year-on-year basis to 21,034 units. The company is optimistic of demand for two-wheelers strengthening further owing to the economic recovery and vaccination drive gathering pace.
- Eicher Motors: Overall sales in February up 0.6% month-on-month to 69,659 units Vs 68,887 units. Exports rose 1.1% month-on-month to 4,545 units Vs 4,515 units.
- Aditya Birla Fashion and Retail: In an analyst call, the company highlighted that Peter England Red plans to build a Rs 900 crore business spread across 1,000 stores over next three years. Allen Solly Prime plans to open 500 stores in three years. The management said that it is on course to increase share of private labels from 61% in FY20 to 75% in FY25. The company plans to add 250 stores in the next three years across 100 new towns. E-commerce channel scaled up 3x during FY21 and is likely to to contribute 8-10% of sales by FY25.
- UPL: The company has announced a long-term strategic collaboration with FMC Corporation. The agreement will provide UPL access in key markets prior to patent expiration and to commercialise Rynaxypyr active, FMC's leading insecticide. As per the agreement, UPL will toll manufacture and supply Rynaxypyr to FMC in India, and FMC will supply the active ingredient to UPL depending on the market scenario. The deal adds a key portfolio of products to UPL's business and supports FMC in maximising the penetration of this important active ingredient.
- Central Depository Services (India): National Stock Exchange of India, The Multi Commodity Exchange of India, India INX International Exchange, National Securities Depository Limited and Central Depository Services (India) Limited have signed a Memorandum of Understanding for setting up Market Infrastructure Institutions comprising of International Bullion Exchange, Clearing Corporation and Depository at Gujarat International Finance Tec-City Trade (GIFT) City.
- IRCTC: The Madras High Court has directed the company to terminate all existing contracts of mobile catering involving scope of work of providing cooked food to passengers prepared from base kitchens as per the existing terms and conditions. Such contracts were currently kept in abeyance.
- NMDC: Production in February up 19.13% year-on-year to 3.86 MT. Sales up 11.68% year-on-year to 3.25 MT.
- Power Grid Corporation Of India: The Board of Directors have approved the payment of interim dividend of Rs 4 per equity share of Rs 10 each for the Financial Year 2020-21. The Interim Dividend will be paid to the members on March 30, 2021.
- Petronet LNG: The company has incorporated a wholly-owned subsidiary, Petronet Energy Limited, for undertaking GUCD operations, LNG Bunkering and other allied services. The authorised share capital of the Petronet Energy is Rs 500 crore divided into 50 crore equity shares of Rs 10 each.
- PVR: Opens three new screens in Kanpur. The company now operates 838 screens at 176 properties in 71 cities.
- Quess Corp: Has announced the separation of its Chairman and MD roles. Suraj Moraje, currently Group CEO and Executive Director, will be elevated to Group CEO and Managing Director from April 1. Ajit Isaac, currently Executive Chairman and MD, will continue in the role of Executive Chairman. The company has also appointed N Ravi Vishwanath as CFO effective April 1. Subramanian Ramakrishnan, the current CFO, will step down on March 31.
- Sutlej Textiles & Industries: The company has commenced commercial production of Greenfield Green Fibre Project to manufacture Polyester Staple Fibre by recycling pet bottles. The project set up at Baddi in Himachal Pradesh has a capacity to manufacture 120 MT per day of Raw White, Black and Dope Dyed Recycled Polyester Staple Fibre.
- Texmaco Rail: Issues equity shares worth Rs 115 crore on a preferential basis to the company's promoters.
- VST Tillers Tractors: Tractor sales declined 10.10% year-on-year to 507 units. Power Tillers' sales up 58.63% year-on-year to 2,159 units.
- Wipro: The company has appointed Philippe Dintrans as Senior Vice President and Head, Domain & Consulting, of Wipro’s iDEAS business.
CLSA On BPCL
- Maintains outperform rating
- Price target of Rs 450
- Numaligarh Refinery stake sale 16% less than value assigned
- Some clarity on CGD assets of BPCL may remain
- Final decision on the use of sale proceeds will be made by the government of India
- Excitement in the stock may remain as completion of privatisation process draws closer
Motilal Oswal On SBI Cards & Payment Services
- Initiate coverage with neutral rating
- Price target of Rs 1,200
- Strengthened position as the second largest card player in the country
- Remains well placed to capitalise on growth opportunities in a highly underpenetrated market
- Asset quality is likely to remain under pressure with a higher proportion of the book under restructuring.
- Estimate loan book / earnings CAGR of 27%/47% over FY21-23E
- Margins are likely to remain broadly stable whily credit costs may moderate gradually
- Expect RoA/RoE of 6.6%/28.4% in FY23
Antique Stock Broking On Aditya Birla Fashion & Retail
- Maintains buy rating
- Price target of Rs 220
- Enthused by detailing of the company's retailing strategy
- Will remain watchful of the execution in Pantaloons and other busineses
- Remain confident on execution of lifestyle brands
- Success in execution will be key rerating catalyst
- In the near-term, deleveraging and cash generation will be key triggers
Pledge Share Details
- JSW Energy: Promoter Siddeshwari Tradex created a pledge of 96.25 lakh shares on February 24.
- Adani Ports & SEZ: Promoters Gautam Adani and Rajesh Adani revoked pledge of 35 lakh shares on February 26.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 42.67 lakh shares on February 26.
- Jindal Steel & Power: Promoters Siddeshwari Tradex and OPJ Trading created a pledge of 58 lakh shares between February 23-24.
- Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 1.20 lakh shares on February 26.
- Asian Paints: Promoter Hiren Gandhi created a pledge of 1.10 lakh shares on February 23.
As Reported On March 1.
- Nath Bio-Genes (India): Monarch Infra Ventures bought 1 lakh shares (0.53%) at Rs 277.6 per share.
- Himadri Speciality Chemical: Plutus Wealth Management LLP sold 40 lakh shares at Rs 47.23 per share. BC India Investments sold 50 lakh shares (1.19%) at Rs 51.75 per share.
Who’s Meeting Whom
- Voltas: To meet DAM Capital on February 3.
- Firstsource Solutions: To meet Steinberg on March 2, White Oak on March 3 and Kotak MF on March 5.
- Sudarshan Chemical Industries: To meet HDFC Mutual Fund on March 2.
- Syngene International: To meet Genesis Investment Management on March 2 and Somerset Capital Management on March 4.
- Torrent Power: To meet BOB Capital Markets on March 3.
- Tata Chemicals: To meet Blackrock HK on March 3.
- Price Band Revised From 20% To 10%: Greaves Cotton, Linde India, MMTC, National Fertilizers, Rashtriya Chemicals and Fertilizers
- Ex-Date Interim Dividend: Butterfly Gandhimathi Appliances
- Ex-Date Bonus Issue: Quint Digital Media
- Move Into ASM Framework: Somany Ceramics
- Move Into Short-term ASM Framework: Reliance Power, Greaves Cotton, Aditya Birla Capital, Eveready Industries India, Manali Petrochemical, Sundaram Finance, Greenply Industries
- Move Out Of Short-term ASM Framework: Repco Home Finance
- Godrej Agrovet: Promoter Godrej Industries bought 15,250 shares on February 24.
- Aditya Birla Capital: Promoter IGH Holdings bought 34.15 lakh shares between February 23-24.
- Jindal Steel & Power: Promoter Sarika Jhunjhnuwala sold 20,000 shares on February 22.
- Olectra Greentech: Promoter LP Sashikumar sold 25,000 shares on February 24
- Deepak Fertilisers & Petrochemicals Corporation: Promoter Robust Marketing Services bought 35,000 on February 25.
- Aarti Industries: Jaya Gogri sold 5,000 shares on February 26.
As Reported On March 1.
Money Market Update
- The currency ended at 73.55 against the U.S. Dollar as compared to Friday's close of 73.47.
- Nifty March futures ended at 14,819; premium of 58 points.
- Nifty March futures shed 9.8% and 14,173 shares in Open Interest.
- Nifty Bank March futures ended at 35,370; premium of 74 points.
- Nifty Bank March futures add 0.4% and 266 shares in Open Interest.
- Nifty Put-Call Ratio at 1.71
- No stocks in F&O ban