All You Need To Know Going Into Trade On March 26
Asian equities opened higher on the final trading day of the week, tracking gains among their peers on Wall Street.
Benchmark indices in Japan traded with gains as did the other indices in the region. The treasury yields rose after another lacklustre auction of the seven-year note. Oil prices trade higher while the U.S. Dollar is set for its best week in three.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.7% to 14,529, 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 trade little changed. The index rose 0.6% on Thursday.
- Banking stocks in the U.S. extended gains in after-hours trading as the Federal Reserve said that firms that clear stress tests can raise dividends after June 30.
- Recovery in the U.S. appears to be on track with a bigger-than-forecast drop in weekly jobless claims.
- “The markets are stuck in a lull where they are still taking some direction from the move in interest rates,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “At this point we’re trying to get some more news globally that will be the next catalyst.”
- Yield on the 10-year treasuries stood at 1.62%.
- West Texas Intermediate crude rose 1.1% to $59.19 per barrel.
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Stocks To Watch
- Power Grid Corporation Of India: Jaypee Powergrid has now become a subsidiary of the company. Further it has acquired Bikaner-II Bhiwadi Transco, the project SPV to establish Transmission System Strengthening Scheme for evacuation of power from solar energy zones in Rajasthan, for Rs 20.50 crore.
- Engineers India and Oil India: The two companies have entered into Share Purchase Agreement for acquisition of Numaligarh Refinery Ltd.’s equity shares from BPCL. Engineers India will acquire 3.21 crore shares of NRL for Rs 699 crore and Oil India will acquire total 39.84 crore shares of NRL for Rs 8,675 crore. The proposed share transfer and associated closing actions under the Share Purchase Agreement are expected to be completed within two business days of the execution of the SPA.
- Pharma Stocks: Cadila Healthcare, Lupin, Torrent Pharma and a wholly-owned Indian subsidiary of Sun Pharmaceuticals to subscribe to a partnership interest in ABCD Technologies LLP (to be renamed as Indo Health Services LLP). The acquisition will cost Rs 40 crore each to all the companies. The initiative has been undertaken with an objective to facilitate, enable and promote efficiency and Good Distribution Practices, including digitizing healthcare infrastructure in India, in support of the National Digital Health Mission.
- Punjab & Sind Bank: Has declared the NPA account of IL&FS as fraud and reported it to the RBI. The account has outstanding dues of Rs 399.31 crore. The bank has also allotted 335.1 crore shares to the Government of India on a preferential basis. The shares have been allotted at an issue price of Rs 16.41 per share, aggregating to Rs 5,500 crore. With this, the government's holding in the bank has increased to 97.07% from 83.06%.
- HG Infra Engineering: Has been declared as L-1 bidder by National Highways Authority of India for development of six Lane Aluru-Jakkuva section of NH-130-CD Road in Andhra Pradesh on Hybrid Annuity Mode. The company's bid project cost is Rs 1,060.1 crore.
- Compucom Software: Has won a tender from RISL worth approximately Rs 66.99 crore and received a Letter of Acceptance for supply and installation of computer systems, interactive panel, printer, UPS and networking and electrification etc. in 525 government schools with an on-site comprehensive warranty of five years.
- Hathway Cable & Datacom: Promoters Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings to sell up to 33.79 crore equity shares, representing 19.09% of the total equity share capital, through an Offer for Sale. The floor price of Rs 25.25 per equity share is at a discount of 11.71% to Thursday's closing price. The OFS opens for non-retail investors today and for retail investors on March 30. Promoters held 94% stake in the company as per the latest shareholding pattern.
- Den Networks: Promoters Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings to sell up to 5.54 crore equity shares, representing 11.63% of the total equity share capital, through an Offer for Sale. The floor price of Rs 48.50 per equity share is at a discount of 11.49% to Thursday's closing price. The OFS opens for non-retail investors today and for retail investors on March 30. Promoters held 86.5% stake in the company as per the latest shareholding pattern.
- Manappuram Finance: Board to consider and approve issuances of debt securities in April, 2021 to raise funds.
- Mahindra Lifespaces: Has announced the addition of a new residential project in Kalyan. The company has entered into an agreement for sale with the land owners for acquisition of land parcel admeasuring 10.3 acres. The project will offer approximately 7 lakh sq. ft. of carpet area and is expected to be launched in FY22.
- Edelweiss Financial Services: Board has declared an interim dividend of Rs 0.90 per share for FY21. The record date for the same is April 8.
- SBI Life Insurance: Board has declared interim dividend of Rs 2.5 per share for FY21. The record date for the same is April 6.
- Heranba Industries: Aditya Birla Finance has released the charge over the company's Sarigam property and revoked the lien on Units of Scheme of Aditya Birla Sun Life Mutual Fund.
- Adani Enterprises: Has incorporated a wholly-owned subsidiary, Kutch Copper, for Rs 1 lakh.
- Somany Home Innovation: Board has approved the execution of the share subscription and shareholders agreement with Atlantic Societe Francaise De Development Thermique and Hintastica, a wholly-owned subsidiary of the company. The company will infuse Rs 7.6 crore by subscribing to 25,300 equity shares and Groupe Atlantic will infuse Rs 68.26 crore by subscribing to 2.25 lakh equity shares of Hintastica. Post the aforesaid investments HPL will become a 50:50 joint venture between the company and Groupe Atlantic.
- WABCO India: Promoter ZF International U.K. to exercise the oversubscription option to the extent of 6.86 lakh equity shares (representing 3.62% of the total equity share capital) in addition to the base offer size of 17.17 lakh share. The Offer for Sale for retail investors opens today.
- Sterlite Technologies: Board has approved the allotment of 2,900 secured NCDs of face value of Rs 10 lakh each, aggregating to Rs 290 crore. The coupon rate has been fixed at 8.25% per annum for a tenure of 10 years.
- Varroc Engineering: Has approved closure of QIP on March 25 and allocation of 1.79 crore equity shares at an issue price of Rs 389 per equity share. The issue price is at a premium of 5.70% to Thursday closing price.
Pledge Share Details
- Ashok Leyland: Promoter Hinduja Automotive created a pledge of 10.11 crore shares on March 19.
- Adani Enterprises: Promoters Adani Tradeline LLP, Gautam Adani and Rajesh Adani revoked pledge of 30.50 lakh shares between March 22-24.
- Adani Ports & SEZ: Promoters Adani Tradeline LLP, Gautam Adani and Rajesh Adani revoked pledge of 25.38 lakh shares between March 22-24.
- Adani Transmission: Promoter Group Gautam Adani and Rajesh Adani revoked pledge of 38.60 lakh shares between March 22-24.
- Jindal Steel & Power: Promoter Siddeshwari Tradex revoked pledge of 7 lakh shares on March 22.
- Kalpataru Power Transmission: Promoter Kalpataru Constructions revoked pledge of 11.14 lakh shares between March 23-24.
As reported on March 25.
- Craftsman Automation: Integrated Core Strategies Asia Pte sold 3.09 lakh shares at Rs 1,428.35 per share.
- Cyient: Amansa Holdings sold 6.56 lakh shares (0.60%) at Rs 654 per share.
- Infibeam Avenues: L7 Hitech sold 69.99 lakh shares (1.05%) at Rs 46.09 per share.
- Laxmi Organic Industries: Goldman Sachs India bought 16.75 lakh shares at Rs 155.71 per share. Plutus Wealth Management LLP bought 15 lakh shares at Rs 155.5 per share.
- Indiabulls Housing Finance: Integrated Core Strategies Asia Pte sold 23.74 lakh shares (0.51%) at Rs 197.13 per share.
Who’s Meeting Whom
- Tata Steel: To meet IIFL Securities on March 26 and Centrum Broking on March 31.
- Indian Energy Exchange: To meet Marshall Wace on March 26.
- Ex-Date Rights Issue: India Grid Trust
- Ex-Date Demerger: GFL
- Ex-Date AGM: Varun Beverages
- Record Date Interim Dividend: The United Nilgiri Tea Estates Company, Housing & Urban Development Corporation
- Move Into Short Term ASM Framework: GFL, ICRA
- Move Out Of Short Term ASM Framework: Bliss GVS Pharma, Ashiana Housing
- Move Into ASM Framework: Cosmo Films
- Godrej Agrovet: Promoter Godrej Industries bought 18,146 shares on March 22.
- Karda Constructions: Promoter Prem Karda sold 3 lakh shares on March 24.
- Olectra Greentech: Promoter Trinity Infraventures sold 88,223 shares between March 19-22.
- Aarti Industries: Promoters Monisha Bhatia, Nehal Garewal and Dilip Dedhia sold 38,500 shares between March 23-24.
As reported on March 25.
Money Market Update
- The rupee ended at 72.62 against the U.S. Dollar on Thursday as compared to Wednesday's close of 72.56.
- Nifty April Futures ended at 14,447; premium of 123 points
- Nifty April Futures added 26.5% and 25,000 shares in Open Interest
- Nifty Bank April Futures ended at 33,275; premium of 269 points
- Nifty Bank April Futures added 16.7% and 12,202 shares in Open Interest
- Nifty Put-Call Ratio at 1.55
- No stocks in F&O ban