All You Need To Know Going Into Trade On March 25
Stocks in Asia tracked heavy losses in U.S. equities as bond yields continued to march lower amid concerns that momentum is slowing in the global economy.
The risk-off tone that built on Friday extended into Asia early Monday, as indexes of shares in South Korea, Japan and Australian fell more than 1 percent. Australia’s 10-year bond yield hit an all-time low after the yield on Germany’s 10-year bonds tumbled below zero.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.5 percent to 11,408 as of 7:15 a.m.
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Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. equities ended the week lower and Treasuries rose amid more signals that global growth is slowing.
- The yield on 10-year Treasuries sank 10 basis points to 2.44 percent, the lowest in more than 14 months.
- Japan’s Topix index declined 2.3 percent.
- South Korea’s Kospi index dropped 1.4 percent.
- Australia’s S&P/ASX 200 Index fell 1.1 percent.
- The S&P 500 Index decreased 1.9 percent Friday. Futures slipped 0.2 percent.
- Brent crude traded 0.67 percent at $66.58 per barrel.
- West Texas Intermediate crude slipped 0.6 percent to $58.71 a barrel.
- Gold slid 0.2 percent to $1,311.30 an ounce.
London Metal Exchange
- Aluminium snapped its two-day blip and ended 0.18 percent lower.
- Nickel traded a little changed.
- Lead declined for the second-straight session, ending 0.44 percent lower.
- Tin ended 0.23 percent higher.
- Copper fell for the third day in a row and ended 1.70 percent lower.
- Zinc ended 0.71 percent lower.
Key Events To Watch This Week
- Apple Inc. unveils new products including video and magazine subscriptions on Monday.
- U.K. Parliament to vote Tuesday on Prime Minister Theresa May’s deal to leave the European Union, which lost by wide margins on Jan. 15 and March 12.
- China’s Boao Forum for Asia holds its annual conference this week. A top Chinese government leader will deliver a keynote speech, and officials including Central Bank Governor Yi Gang and Finance Minister Liu Kun are scheduled to speak.
- Fed Governor Randal Quarles will speak Friday to the Shadow Open Market Committee on “Strategic Approaches to the Fed’s Balance Sheet and Communications.”
Stocks To Watch
- Max India named Analjit Singh as Chairman.
- State Bank of India’s board approved extension validity period for raising equity capital of up to Rs 20,000 crore to March 31, 2020. Besides, the lender raised Rs 1,251.3 crore via bond issuances.
- Tata Motors: JLR won Evoque copy case in Chinese Courts. The decision said Evoque’s has five features copied directly in ‘Landwind X7’ built by Jiangling Motor Corp, which had led to widespread consumer confusion, according JLR’s statement. The Chinese Court has ruled that sales, manufacturing and marketing of Landwind model must cease an JLR to be paid compensation. (Bloomberg News)
- Dr. Reddy’s Laboratories’ Hyderabad Unit receives no observation under form 483 by the U.S. FDA. The inspection was completed on March 21.
- Infosys to invest $10 million in venture capital investment entity House Fund II, targeting startups from University of California, Berkley.
- Greenlam Industries’ board approved increasing manufacturing capacity to additional 1.6 million laminate sheets per annum, for an investment of Rs 25 crore. Existing Capacity stands at 14.02 million sheet and the proposed addition of capacity will be completed in period of nine months.
- Ramco Cements increased its stake in IT Services arm to 94.12 percent via rights issue for Rs 4.5 crore.
- Amber Enterprises signs definitive agreement to acquire 80 percent stake in Sidwal Refrigeration Industries. The target company is engaged in the business of manufacturing and sale of heating, ventilation, air conditioning and refrigeration equipments for railway coaches, metro coaches, buses, telecom, commercial refrigeration and related components.
- Eid Parry’s board approved investment of Rs 70 crore in wholly owned arm Parry Sugars Refinery.
- Tata Coffee named Chacko Purackal Thomas as MD and CEO with effect from April for a period of three years.
- TTK Prestige to consider issuing bonus share on March 29.
- Tata Steel BSL allots redeemable preference shares worth Rs 6700 crores to Tata Steel.
- International Paper said that the maintenance at Rajahmundry plant from March 25, 2019 to March 30, 2019 would lead to estimated loss of production of around 500 tonnes per day.
- Tata Motors to increase prices of its passenger vehicles from April 2019 by upto Rs 25000. The hike in prices is due to rising input costs and external economic conditions.
Pledged Share Details
- CG Power and Industrial Solutions promoter Avantha Holdings invoked pledge of 6.76 crore shares on March 20.
- GATI promoter group Mahendra Kumar Agarwal and Sons HUF created pledge of 1.2 lakh shares on March 19.
- Bajaj Consumer promoter Bajaj Resources created pledge of 3.08 lakh shares on March 19.
Who’s Meeting Whom
- Mahindra & Mahindra to meet Blackrock on March 25.
- Shriram City Union Finance to meet OHM Group on March 26.
- Ramco Cements to meet Aditya Birla Sunlife MF and SBI Life Insurance on March 26.
- Hiedelberg Cement to meet Ashmore Investment Advisors on March 29.
- Tata Motors to meet Carnegie, Birla MF and other investors from March 25-29.
- Info Edge promoter group Endeavour Holding Trust sold 1lakh shares from March 19-20.
- MRF Promoters acquired 918 shares on March 20.
- Nava Bharat Ventures promoter group AN Investments acquired 25,000 shares on March 20.
- Allsec Technologies to move into short term ASM Framework.
- Allsec Technologies, Arvind Fashions price band revised to 10 percent.
- Reliance Communications price band revised to 5 percent.
Money Market Update
The Indian rupee strengthened for the sixth straight week against the U.S. dollar. The home currency ended at 68.99 against the greenback on Friday.
- Nifty March futures closed trading at 11472, premium of 18 points
- Max open interest for March 28 series at 11,600 Call (open interest at 38.6 lakh shares).
- Max open interest for March 28 series at 11,000 Put (open interest at 38.2 lakh shares).
Stocks In F&O Ban
- In Ban: Adani Enterprises, Adani Power, IDBI, Jet Airways, PNB, Rel Power
- New in Ban: PNB
Active Stock Futures
Credit Suisse On InterGlobe Aviation:
- Upgrade to ‘Outperform’ from ‘Neutral’, price target hiked to Rs 1,650 from Rs 1,075.
- Space opens up for strong capacity addition, taking away yield risk.
- Non-metro routes have responded well to capacity addition.
- Jet Airway's restructuring plan has not progressed as operations slide.
Morgan Stanley On HDFC Life:
- Maintain Equal Weight, price target lowered to Rs 380 from Rs 425.
- Lower target price mainly driven by lower VNB estimates.
- Slower than expected growth in savings premiums in recent months.
- HDFC Life remains a superior insurance franchise, in our view for long term.