All You Need To Know Going Into Trade On March 30
Asian equities are fluctuating this morning as investors assess the rise in global coronavirus cases against the pace of vaccine rollout.
Benchmark indices in Japan fell while those in Japan and South Korea edged higher. U.S. President Joe Biden's announcement that 90% adults will be eligible for the Covid-19 vaccine next month helped the Dow Jones close at an all-time high overnight.
The U.S. Dollar held gains while the yen was at its weakest in a year.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,755, as of 7:00 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 30 points lower. The index rose 0.3% on Monday.
- A real-world study from Pfizer Inc. and Moderna Inc. showed that their doses effectively prevented Coronavirus infections, according to U.S. government researchers.
- Bloomberg reported that the Securities and Exchange Commission summoned banks for hasty meetings on what triggered the forced sale of over $20 billion worth stocks linked to Bill Hwang's Archegos Capital Management.
- Yields on the 10-year treasuries stood at 1.71%.
- West Texas Intermediate crude rose 0.5% to $61.84 per barrel with traders awaiting the OPEC+ meeting this week.
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Stocks To Watch
- JSW Steel: Implements resolution plan for Bhushan Power & Steel. A sum of Rs 8,614 crore was arranged in a wholly-owned subsidiary through a mix of equity, optionally convertible instruments to JSW Steel and JSW Shiping & Logistics Pvt. Ltd. and the debt availed by PSL funds.
- Adani Transmission: Signs definitive agreement with Essel Infraprojects for acquisition of Warara-Kurnool Transmission Ltd. The acquisition will be done for a cash consideration of Rs 3,370 crore. The asset will take the company closer to its target of setting up 20,000 circuit kilometers of transmission lines by 2022.
- JSW Energy: Board has approved a proposal for issuance of green bonds by JSW Hydro Energy, the company's material subsidiary, for raising $750 million from international markets. The funds will be raised through issuance of non-convertible, senior, secured, fixed rate green bonds in the international markets, subject to market conditions and receipt of necessary approvals by JSWHEL.
- Biocon: Partners with Libbs Farmaceutica to launch generic formulations in Brazil. As part of the out-licensing deal, Biocon will be responsible for drug development and manufacturing while Libbs will leverage its deep expertise and reach in Brazil to import, distribute and market, subject to approval from the country's regulatory agency.
- HPCL: Entered into a Share Purchase Agreement for acquisition of shares of HPCL Shapoorji Energy Pvt. Ltd., an associate unlisted company of HPCL from SP Ports Pvt. Ltd., a JV partner. The consideration for the transaction will be paid in cash and is expected to be completed by March 31, 2021. HPCL Shapoorji Energy is in the process of setting and development of 5 MMTPA LNG storage and regasification terminal at Chhara in Gujarat.
- Minda Industries: Approves expansion of Balwal Plant capacity to 1.8 lakh wheels per month from 1.2 lakh wheels per month. The fresh investment approved for the same is Rs 167 crore and the expanded production is likely to commence from January 1, 2022. The board has also approved investment to set up a new project for four-wheel lighting in Gujarat for Rs 89.69 crore. The project is expected to be commissioned in January 2022.
- India Grid Trust: Has completed acquisition of 49% paid-up capital and management control of the NER II Transmission from Sterlite Grid 4 at the cost of Rs 4,625 crore. The remaining stake will be acquired in one or more tranches. The acquisition has increased IndiGrid's AUM by ~34% to Rs 20,000 crore. The acquisition has also added Rs 40-45 crore per annum to the net distributable cash flow.
- Mazagon Dock: The company’s order book stood at Rs 50,705 crore as of January 31, 2021. Further the company has won order for repair of two Indian Coast Guard Fast Patrol vessels namely ICGS Achook and ICGS SB Phule. The repair order is worth around Rs 7 crore.
- Lumax Industries: Board has approved Capital Expenditure of Rs 80 crore for setting up new manufacturing unit in Sanand, Gujarat to cater to the orders received from MG Motors and other customers. Further, the company will set up an office in Czech Republic to strengthen its technological capabilities.
- Bliss GVS Pharma: High Court of Justice, Ghana has granted ex-parte interim relief to the company in a commercial suit for infringement of intellectual property rights and the Registrar has been ordered to seize the infringing products.
- Shriram City Union Finance: Board has declared second interim dividend of Rs 10 for FY21. The record date for the same is April 7.
- Adani Enterprise: A wholly-owned subsidiary of the company, Adani Road Transport, has incorporated a wholly owned subsidiary called PRS Tolls. The company will act as a Special Purpose Vehicle for implementation of the road project to be awarded by NHAI.
- PNC Infratech: Has approved divestment of its entire stake of 35% in Ghaziabad Aligarh Expressway, an associate of the company to Cube Highways and Infrastructure PTE.
- South Indian Bank: The RBI has given final approval for setting up of Wholly-Owned Non-Financial Subsidiary for undertaking activities permitted by the central bank.
- NBCC: Has awarded the work for redevelopment of Netaji Nagar in New Delhi on an EPC basis including operation and maintenance to NKG Infra for at Rs 1,356 crore.
CLSA On Indian Steel Stocks
- See further upside despite significant outperformance as risk-reward remains favourable
- Expect upward revisions in consensus as current estimates imply a correction of Rs 10,000-Rs12,000 per tonne in prices Vs spot
- With domestic prices trading at 10% discount to import parity, believe such a sharp correction is unlikely
- China's focus on lowering emissions and uncertain demand outlook along with supply cuts should support prices
- Raise FY21-23 Ebitda estimates by 3-14%
- Maintains buy rating on Tata Steel; price target raised to Rs 950 from Rs 860
- Upgrade JSW Steel to Outperform from Sell; price target raised to Rs 490 from Rs 340
Morgan Stanley On SBI Cards & Payment Services
- Maintains overweight rating
- Price target of Rs 1,300
- Market share in aggregate spending moderated after significant gains earlier
- Continues to gain market share in cards in force and transaction volumes
- Faster-than-expected increase in credit card penetration, increase in consumer confidence are key risks to upside
- Weaker-than-expected economic recovery, weaker-than-expected asset quality are key downside risks
Investec On JSW Steel
- Upgrade to buy from hold
- Price target raised to Rs 555 from Rs 442
- Bhushan Power acquisition is an attractive proposition
- Economic value generated from BPSL at a higher economic interest would outweigh scope of dilution related risks
- BPSL's capacity of over 3 MT and 560 MW should yield conservative Ebitda of Rs 3,000 crore
- Price target does not reflect potential tax synergy gains, incremental cash flow generation and growth optionality
Pledge Share Details
- Adani Ports & SEZ: Promoter Group revoked pledge of 9.80 lakh shares on March 25.
- Apollo Tyres: Promoters Apollo Finance and Sunrays Properties and Investments Company revoked pledge of 98.83 lakh shares between March 22-25.
- Aurobindo Pharma: Promoters created a pledge of 23.80 lakh shares between March 23-25.
- Chambal Fertilisers & Chemicals: Promoter Zuari Global created a pledge of 60 lakh shares on March 24.
- Emami: Promoter Sneha Gardens revoked pledge of 5 lakh shares on March 23. Promoter Sneha Enclave created a pledge of 7.90 lakh shares on March 24.
- Gayatri Projects: Promoter T Reddy invoked pledge of 5 lakh shares on March 23.
- Jindal Steel & Power: Promoter Siddeshwari Tradex revoked pledge of 15.50 lakh shares on March 24.
- Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 19.70 lakh shares on March 24.
- Wockhardt: Promoter Themisto Trustee Company created a pledge of 10.50 lakh shares between March 23-26.
As reported on March 26.
- HealthCare Global Enterprises: Aceso Company PTE bought 46.83 lakh shares (3.74%) at Rs 184.99 per share. Sundaram BNP Paribas Small Cap Fund sold 9.26 lakh shares (0.74%) at Rs 185 per share. Sundaram BNP Paribas Mutual Fund sold 30.10 lakh shares (2.40%) at Rs 185 per share.
Who's Meeting Whom
- JSW Steel: To meet Systematix Group on March 30.
- Mahindra & Mahindra: To meet Premji Invest on March 30.
- Crompton Greaves Consumer Electricals: To meet Quantum Advisors and Avendus Capital on March 30 and Invesco Funds on March 31.
- Ex-Date AGM: CRISIL, ACC
- Ex-Date Buyback: Aarti Drugs
- Ex-Date Rights Issue: KDDL
- Ex-Date Final Dividend: CRISIL, ACC
- Ex-Date Interim Dividend: Sundaram Clayton, Colgate Palmolive (India), TVS Motor Company
- Ex-Date Bonus Issue: East West Holdings
- Ex-Date Stock Split: East West Holdings
- Record Date Demerger: GFL
- Record Date Rights Issue: India Grid Trust
- Move Into ASM Framework: Repco Home Finance, 3i Infotech, Olectra Greentech
- Move Out Of ASM Framework: Religare Enterprises
- Move Into Short-Term ASM Framework: Privi Speciality Chemicals
- Move Out Of Short-Term ASM Framework: GFL,
- Price Band Revised From 10% To 5%: Future Lifestyle Fashions, Future Retail
- Aarti Industries: Promoter Monisha Bhatia sold 10,000 shares on March 24.
- Alembic Pharmaceuticals: Promoter Uday Education Society sold 2 lakh shares on March 24.
- Dhani Services: Promoter Orthia Properties bought 8 lakh shares on March 26.
- Godrej Industries: Promoter Arel Enterprise LLP bought 1.39 lakh shares between March 22-23.
- J Kumar Infraprojects: Promoters Kusum Gupta, Shalini Gupta, Nalin Gupta, Kamal Gupta and Jagdishkumar Gupta bought 3.26 lakh shares between March 24-26.
- Mastek: Promoter Ashank Desai bought 15,000 shares on March 25.
- Raymond: Promoter JK Investors (Bombay) bought 2.20 lakh shares on March 25.
- VIP Industries: Promoter DGP Securities sold 51,000 shares on March 24. Promoters Alcon Finance & Investments and Kemp And Company bought 51,000 shares on March 24.
As reported on March 26.
Money Market Update
- The rupee ended at 72.51 against the U.S. Dollar on Friday as compared to Thursday's close of 72.62.
- Nifty April futures ended at 14,622; premium of 115 points
- Nifty April futures added 2.1% and 2,541 shares in Open Interest
- Nifty Bank April futures ended at 33,719; premium of 401 points
- Nifty Bank April futures add 1% and 800 shares in Open Interest
- Nifty Put-Call Ratio at 1.55
- No Stocks In F&O Ban