All You Need To Know Going Into Trade On March 25
Most Asian equities have edged higher this morning despite a subdued session overnight on Wall Street.
Benchmark indices in Japan and Australia trade with gains while South Korean shares drop amid reports that North Korea fired two ballistic missiles.
Oil prices continue to remain volatile as efforts to continue to dislodge a ship that has blocked the Suez Canal.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.4% to 14,600, as of 7:25 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 60 points higher. The index ended flat on Wednesday.
- “The reflation trade will have further legs to run,” Lale Akoner, BNY Mellon Investment Management senior market strategist, said on Bloomberg TV. “We do see higher inflationary pressures building, higher interest rates and softer dollar to continue.”
- Chinese stocks will be in focus as the government has proposed a joint venture with local technology giants that would oversee the lucrative data they collect from hundreds of millions of consumers, according to people familiar with the matter.
- Yield on the 10-year treasuries stood at 1.62%.
- West Texas Intermediate crude fell 1% to $60.65 per barrel after a 6% jump overnight.
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Stocks To Watch
- Jubilant Foodworks: Has entered into an exclusive Master Franchise and Development Agreement with PLK APAC Pte., a subsidiary of Restaurant Brands International Inc., to operate and sub-license Popeyes Restaurants in India, Bangladesh, Nepal and Bhutan. Popeyes has over 3,400 restaurants across 25 countries and Jubilant's management expects it to be a key growth driver going ahead.
- Voltas: Has executed the Business Transfer Agreement with its wholly-owned subsidiary, Universal MEP Projects & Engineering Services for transfer of its domestic projects business. The transaction is expected to be completed by end of September 2021.
- Bharti Airtel: NCLT has sanctioned the composite scheme of arrangement between the company, Bharti Airtel Services Ltd., Hughes Communications India Pvt. Ltd. and HCIL Comtel Pvt. Ltd. and their respective shareholders and creditors.
- Tata Steel: Board has approved the conversion of 7.02 crore partly paid-up equity shares of face value Rs 10 each into fully paid-up equity shares of face value Rs 10 each, against which the first and final call money of Rs 461 per share has been received.
- Rail Vikas Nigam: Government to exercise the greenshoe option to the extent of 1.10 crore equity shares (representing 0.53% of the total issued and paid-up equity share capital of the company) in addition to the base offer size of 20.85 crore shares. The OFS opens for retail investors opens today.
- Oil India: Has announced that Mozambique Rovuma Offshore Area-l Project has satisfied all the conditions precedent for the first debt drawdown of the project financing. The first drawdown from project financing is expected in April 2021. Area-l project is Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 13.12 million tons per annum.
- Minda Industries: Board of Tokai Rika Minda India, a joint venture company of UNO Minda Group and Tokai Rika Japan, has allotted 4.28 crore equity shares of Rs 10 each at par on Right Issue basis to the company. Subsequently, Minda Industries stake in TRMN has increased from 12.86% to 30%.
- Wabco (India): Promoter ZF International U.K. to sell 17.17 lakh equity shares of face value of Rs 5 each, representing 9.05% of total the equity share capital, through an Offer for Sale. The promoter will also have a greenshoe option to sell an additional 17.17 lakh equity shares or 9.05% of total the equity. The floor price of Rs 5,450 per share is at a discount of 10.67% to Wednesday's closing price. The OFS opens for non-Retail Investors today and for retail investors tomorrow.
- Bank of India: To issue Basel-III Compliant Additional Tier I Bonds worth Rs 250 crore (base issue size) with a greenshoe option worth Rs 500 crore on March 26.
- Pokarna: Pokarna Engineered Stone, a wholly-owned subsidiary of the company, has started commercial production at its Unit 2 (quartz surface manufacturing facility) located in Telangana, from March 24.
- TVS Motor Company: Board has declared a second interim dividend for FY21 of Rs 1.40 per share. The record date for the same is April 2.
- Kirloskar Ferrous Industries: The company has entered into a Mining Lease Deed with the Government of Karnataka to conduct mining operations for a period of 50 years at Bharath Mines & Minerals. The operations at the mine commenced on March 24.
- NLC India: Issued and allotted 10,000 Commercial Papers of face value of Rs 5 lakh each aggregating to Rs 500 crore on March 24.
Also read: Barbeque Nation IPO: All You Need To Know
Motilal Oswal On Divi's Laboratories
- Maintains buy rating
- Price target of Rs 4,530
- Enhancing product offerings in the generic API space
- Well placed to capitalise on the carotenoid opportunity
- Encouraged by promising demand prospects and multiple growth levers
- Expect 27% sales CAGR over FY20-23 driven by enhanced product offerings and increased utilisation
- Better operating leverage to drive 38% earnings CAGR over FY20-23E
Emkay On Jubilant Foodworks
- Maintains buy rating
- Price target of Rs 2,750
- Popeyes can substantially increase the addressable market size for Jubilant
- Popeyes offers Jubilant a new growth driver with a relatively young brand
- Will need to invest strongly to establish the brand and scale up the franchise in India
- Recent aggression with the launch of new formats, brands offers better growth outlook over the medium-term
- Expansion is likely to be aggressive and may drive some upsides to the revenue forecasts
Antique Stock Broking On V-Mart Retail
- Upgrade to buy from hold
- Price target raised to Rs 3,180 from Rs 2,331
- Channel checks suggest that footfalls in March nearly at 90% of pre-Covid levels
- Any resurfacing of covid cases can pose a near-term challenge
- Company may resort to 5-8% price hikes to offset inflation in cotton and yarn prices
- Remains a structural penetration story with a strong balance sheet
- Raise Ebitda estimates for FY22E and FY23E by 3% and 4% respectively
Pledge Share Details
- Ajanta Pharma: Promoter Aayush Agrawal created a pledge of 6.70 lakh shares on March 22.
- JSW Steel: Promoter Siddeshwari Tradex revoked pledge of 6 lakh shares on March 22.
- JSW Holdings: Promoter Siddeshwari Tradex created a pledge of 20,000 shares on March 22.
- Mangalore Chemicals & Fertilizers: Promoter Zuari Agro Chemicals created a pledge of 97.50 lakh shares between March 19-22.
As reported on March 24.
- Infibeam Avenues: L7 Hitech sold 99.62 lakh shares (1.50%) at Rs 47.25 per share.
- Karda Constructions: Lotus Global Investments bought 3.25 lakh shares (0.53%) at Rs 115 per share.
- Nava Bharat Ventures: The company bought 14.19 lakh shares (0.81%) at Rs 69.99 per share.
- Zensar Technologies: The Vanguard Group bought 17.77 lakh shares (0.79%) at Rs 292 per share. Amansa Holdings sold 16.78 lakh shares (0.74%) at Rs 292 per share.
Who's Meeting Whom
- Mahindra Lifespace Developers: To meet UBS Securities India on March 26.
- United Spirits: To meet Edelweiss Securities and SBI Life on March 25.
- Ex-Date EGM: Ravindra Energy
- Ex-Date Interim Dividend: BPCL, The United Nilgiri Tea Estates Company, Housing & Urban Development Corporation
- Record Date Interim Dividend: Somany Ceramics, Gothi Plascon (India)
- Move Into Short-Term ASM Framework: Dolat Investments, Adani Power, Kirloskar Brothers
- Move Out Of Short-Term ASM Framework: Sundaram Finance, Greenply Industries
- Alembic Pharmaceuticals: Promoters Uday Education Society and Bhailal Amin General Hospital sold 4.84 lakh shares on March 23. Promoter Alembic bought 2.84 lakh shares on March 23.
- Godfrey Phillips India: Promoter KK Modi Investment And Financial Services bought 2,841 shares on March 24.
- Godrej Industries: Promoter Arel Enterprise bought 81,361 shares between March 18-19.
- Godrej Agrovet: Promoter Godrej Industries bought 57,400 shares between March 18-19.
- HG Infra Engineering: Promoter Harendra Singh Family Trust bought 19,912 shares on March 19.
- NRB Bearings: Promoters Harshbeena Zaveri And Aziz Zaveri bought 5,210 shares on March 23.
- Nirlon: Promoter Shital Trading & Interiors sold 10,000 shares on March 23.
- Pidilite Industries: Promoter Anuja Shah sold 50,000 shares between March 22-23.
- Vardhman Textiles: Promoter Devakar Investment And Trading Company bought 13,519 shares between March 22-24.
- Vardhman Special Steels: Promoter Sachit Jain bought 2,000 shares between March 23-24.
As reported on March 25.
Money Market Update
- The rupee ended at 72.56 against the U.S. Dollar on Wednesday as compared to Tuesday's close of 72.42.
- Nifty March futures ended at 14,568; premium of 19 points
- Nifty March futures shed 22.4% and 17,369 shares in Open Interest
- Nifty Bank March futures ended at 33,407; premium of 114 points
- Nifty Bank March futures shed 29.5% and 13,624 shares in Open Interest
- Nifty Put-Call Ratio at 0.74
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