All You Need To Know Going Into Trade On March 3

Japanese stocks surrendered gains and U.S. futures came off their highs Tuesday after a wave of initial enthusiasm about central banks kicking into gear to protect the global economy from the hit of the coronavirus.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in rose 0.15 percent to 11,139.50 as of 8:15 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.

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

• U.S. stocks surged the most in fourteen months as investors gained confidence that stewards of the world’s largest economies would act in concert to offset any impact from the spreading coronavirus.
• Tech shares led the rebound after seven straight days of declines for the benchmark index, with monetary policy makers from Japan to England joining the Federal Reserve in promising to take action to support their economies if needed.
• Oil advanced the most in five months amid expectations central banks will move to prop up financial markets and OPEC will curb supplies in response to the virus-driven demand shock.

Get your daily fix of global markets here.

Indian ADRs

Stocks To Watch

• Hero MotoCorp: February sales fell 19 percent on a yearly basis to 498,242 units. Motorcycles sales fell 14 percent to 479,310 units. Scooter sales declined 68 percent to 18,392 units.
• Infosys has paid compounding fees of Rs 6 lakh for certain alleged offences that pertain to matters relating to the severance agreement executed with a former Chief Financial Officer in October 2015. The company had sought compounding of these offences from Ministry of Corporate Affairs on Nov. 8.
• Torrent Power: Maharashtra State Electricity Distribution Company has handed over Shil, Mumbra and Kalwa divisions and its operations to the company. On Jan. 3, the company had won distribution franchisee for distribution of electricity in the afore-mentioned areas.
• Parag Milk Foods clarified that promoters have pledged 1.87 crore shares with Kotak Mahindra Investments as on date. The promoters have repaid Rs 31 crore out of the original loan amount taken from Kotak Mahindra Investments and the outstanding loan stands at Rs 33 crore only as of March. The company said in a media statement that they would pay the entire outstanding amount of Rs 33 crore within 90 days and release the entire share pledge from Kotak Mahindra Investments.
• Newgen Software Technologies secured a patent for a system and method for automatic quality assessment of digital documents. The patent is valid until March 2030.
• Mahindra Lifespace Developers: The Ministry of Commerce and Industry has granted approval to the company’s arm MWCDL for partial de-notification of 55.90 hectares in the non-processing area. This land is a part of approximately 89 hectares which was leased earlier to another subsidiary of the company for undertaking residential developments in the part of the non-processing area.
• Ingersoll Rand said that it has completed the merger of its industrial segment business with Gardner Denver Holdings on Feb. 29.
• Cox & Kings: The resolution professional of the company moved the National Company Law Tribunal seeking a stay or status quo to prevent the sale of the insolvent tour operator’s U.K. assets by two of its subsidiaries. The counsel for the resolution professional said the two subsidiaries— Prometheon Enterprises Ltd. and Meininger Hotels—were facing judicial proceedings in the U.K. And he cited difficulty in ascertaining if the proceeds of the sale will come to Cox & Kings.
• Kohinoor Foods: Consortium lenders Oriental Bank of Commerce and IDBI Bank have served notice under the SARFAESI Act.
• Tilak Nagar Industries defaulted in payment of term loan worth Rs 15 crore, which was due on Jan. 31. Total financial indebtedness from banks and financial institutions stands at Rs 560.7 crore.
• DB Realty defaulted in payment of inter-corporate deposit worth Rs 85.05 crore, which was due on Feb. 1. Total financial indebtedness from banks and financial institutions stands at Rs 645.7 crore.
• Reliance Capital defaulted on term loan on January 31, 2020 due to HDFC and Axis Bank. Delay in debt servicing is due to the prohibition on the company to selloff its assets.

Brokerage Radar

HSBC on Ujjivan

• Maintained ‘Hold’; cut price target to Rs 350 from Rs 352.
• Focus stays on emerging as a mass market bank.
• AUM growth has recovered, along with diversifying mix.
• Liabilities improving and stable asset quality.
• Retail deposits now 43 percent of deposits versus 36 percent during last year.
• Promoter dilution is key overhang.

Citi on Voltas

• Maintained ‘Buy’ with a price target at Rs 794.
• Hotter than usual summer bodes well for the AC demand.
• Large manufacturers have taken a 3-5 percent price hike.
• Component prices have increased on lower production in China, higher shipment cost.

HSBC on Marico

• Upgraded to ‘Buy’; cut price target to Rs 370 from Rs 400.
• Marico has corrected 25 percent from the peak.
• The sharp correction seems to be overdone.
• The decline was due to the muted operating results during the past two quarters.
• Risk reward now looks favourable.
• Volume recovery to drive re-rating.
• Cut estimates post Q3 results.

Jefferies on Gas stocks

• Indraprastha Gas: Maintained ‘Hold’ with a price target at Rs 470.
• Mahanagar Gas: Maintained ‘Buy’ with a price target at Rs 1,410.
• Gujarat Gas: Maintained ‘Buy’ with a price target at Rs 360.
• Run a reverse Discounted Cash Flow on gas stocks
• 8.5 percent longer-term volume growth is priced in for IGL
• Volume growth for IGL could sustain at 10 percent over the next two years
• Market appears to price in ~ 3.2 percent long term volume growth for MGL and ~ 8.3 percent for Gujarat Gas
• Valuations of peers look more appealing.

Bulk Deals

• Indiabulls Housing Finance: KB Horizon Access India Fund sold 38.13 lakh shares (0.9 percent) at Rs 301.33 each

Trading Tweaks

• Tejas Networks, Future Consumer, Fairchem Speciality, Hinduja Global Solutions, Shilpa Medicare to move into short term ASM Framework.
• Sadbhav Infrastructure Project, Mayur Uniquoters, AksharChem India, Den Networks, Hathway Cable & Datacom to move out of short term ASM Framework.
• GTN Textiles to move into ASM Framework.
• Himachal Futuristic Communications, Future Supply Chain Solutions, Emami, JSW Energy, HFCL to move into surveillance measure in respect of companies with high promoter pledge.
• Sequent Scientific, Mastek, Sadbhav Infrastructure Project to move out of surveillance measure in respect of companies with high promoter pledge.
• General Insurance Corporation of India's price band revised to 10 percent.
• IOL Chemicals & Pharmaceuticals, MSTC, Vikas EcoTech price band revised to 5 percent.

Who’s Meeting Whom

• Bharat Forge to meet Manulife Asset Management, Quantum MF, SBI MF from March 3-9
• Mahindra Lifespace Developers to meet Altavista Capital Advisory Services on March 3
• Eicher Motors to meet Kotak Securities on March 4
• Symphony to meet Wealth Managers India on March 6
• Lemon Tree Hotels to meet UBS Securities, Morgan Stanley, and Antique Stock Broking on March 3
• Mahindra & Mahindra to meet Nissay Asset Management, Quantum Asset Management on March 3
• Mahindra Logistics to meet Multi-Act PMS on March 9

Insider Trading

• Filatex India promoter Anu Bhageria acquired 1lakh shares on Feb. 27
• LT Foods promoter Raghuvesh Holdings acquired 98,000 shares on Feb. 28

(As Reported On March 2)

Money Market Update

• The rupee closed at Rs 72.74 against the dollar on Monday versus Rs 72.18 against the dollar on Friday. This is the lowest since November 2018.

F&O Cues

Index Futures

• Nifty March futures closed at 11,123.7, a discount of 9 points versus 52.5 points.
• Nifty March futures open interest fell 10 percent, shed 15.7 lakh shares in open interest
• Nifty Bank March futures closed at 28.885, a premium of 16.7 points versus a discount of 93.2 points.
• Nifty Bank March futures open interest fell 7 percent, sheds 93,000 shares in open interest.

Options

Nifty PCR at 1.13 versus 1.10 (across all series)

Nifty weekly Expiry: March 5

• Max open interest on call side at 11,500 (18 lakh shares)
• Max open interest on put side at 11,000 (14.8 lakh shares)
• Open interest addition seen in 11,400C (+5 lakh shares), 11,300C (+4.7 lakh shares)

Nifty Monthly Expiry: March 26

• Max open interest on call side at 12,000 (24.8 lakh shares)
• Max open interest on put side at 11,000 (21.7 lakh shares)