All You Need To Know Going Into Trade On March 4
Asian equities have opened lower after an overnight surge in bond yields again dragged shares on Wall Street.
Benchmark indices in Japan, South Korea and Australia fell while the Nasdaq declined to a two-month low overnight.
The U.S. Dollar strengthened while oil prices fell ahead of the crucial OPEC meeting later today.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 1.5% to 15,074 as of 7:05 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 lower by 50 points. The index fell 0.4% on Wednesday.
- A sell-off in technology stocks like Apple and Amazon offset the gains made by banking and energy producers on Wall Street.
- Chicago Fed President Charles Evans said on Wednesday that the recent rise in yields was 'healthy.'
- Data on Wednesday showed that growth at U.S. service providers slowed to a nine-month low while the number of employees at U.S. businesses rose less than expected.
- “Inflation is a concern; there is a lot of money sloshing around the system and it makes sense to have some sort of a correction right now,” said Shana Sissel, Spotlight Asset Group chief investment officer. “And bond yields going up is the market’s implicit way of tightening since the Fed has made it clear they don’t have the intention of doing so.”
- Yield on the 10-year treasuries stood at 1.49%.
- West Texas Intermediate crude fell 0.8% to $60.79 per barrel.
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Stocks To Watch
- Adani Ports and Special Economic Zone: To acquire the 31.5% stake held by Windy Lakeside Investment Limited (an affiliate of Warburg Pincus) in Gangavaram Port Ltd. for around Rs 1,954 crore. The company said the acquisition will expand its market share to 30% across 12 locations in India. The deal is expected to be completed in 45 days. Adani Ports is also in discussions with DVS Raju and Family for their 58.1% stake in GPL. The acquisition is subject to regulatory approvals. Gangavaram Port, located in the northern part of Andhra Pradesh next to Vizag Port, has a 64MT capacity. Adani Ports has also initiated consolidation of its rail track assets under one platform.
- Canara Bank: The Indian Banks' Association has informed the bank that the United Forum of Bank Unions has given a call for strike in the banking industry on March 15, 2021 and March 16, 2021 for the issues relating to industry level and not for any bank level issues.
- DLF: Has decided not to proceed with the proposed issuance of listed secured NCDs aggregating up to Rs 395 crore.
- HDFC: Has reduced its Retail Prime Lending Rate on Housing loans, on which its Adjustable Rate Home Loans are benchmarked, by 5 basis points, with effect from March 4, 2021.
- IRCON International: The government will exercise the greenshoe option to the extent of 2.82 crore shares or 6% of the total equity in addition to selling 4.7 crore shares through an offer for sale. Accordingly, the total offer size will be up to 7.52 crore shares or 16% of the total equity of which up to 2.25 crore shares will be available as part of the offer share for retail investors on March 4. The issue was subscribed 3.3 times by non-retail investors on March 3. The company has been awarded the work for replacement of mechanical signaling at various locations at Moradabad at the expected completion cost of Rs 187.80 crore. The tenure for execution of the works is 24 months.
- IRCTC: To operate trips through Golden Chariot from March 14, 2021 onwards.
- Mazagon Dock Shipbuilders: To commission third Scorpene Submarine Karanj on March 10 and has commenced the sea trials of first ship Visakhapatnam of Project P-15B, which is due for delivery later this year.
- Mahindra Logistics: The company with Bajaj Electricals has announced project ‘Samriddhi’ for integrated logistics services. The two companies have signed an agreement for innovative logistics optimisation and outsourcing arrangement. The deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics by Mahindra Logistics, with the objectives of achieving enhanced and industry-best service levels, coupled with a logistics cost saving of more than 25%. The total contract value of this deal will be more than Rs 1,000 crore over the next 5 years.
- PNB Housing Finance: India Ratings and Research has revised the outlook on the company’s NCDs to Negative from Stable, while affirming the rating as AA. The outlook revision reflects an added uncertainty around the timing and quantum of the company’s capital raising, which the agency believes could be critical in view of the stress in the loan portfolio, especially on the wholesale lending.
Pledge Share Details
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 3.54 crore shares on March 1.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 9 lakh shares on March 2.
- Atul: Promoter Samvegbhai Lalbhai revoked pledge of 50,000 shares on March 1.
- Chambal Fertilisers & Chemicals: Promoter Zuari Global created a pledge of 8.70 lakh shares on March 1.
- Ruchi Soya Industries: Promoter Patanjali Ayurved created a pledge of 14.25 crore shares on March 1.
- Steel Strips Wheels: Promoter SAB Industries revoked pledge of 2 lakh shares on March 2.
As reported on March 3.
- Nava Bharat Ventures: The company bought 15.46 lakh shares (0.88%) at Rs 71.96 per share.
- Bombay Burmah Trading Corp: Promoter Nowrosjee Wadia And Sons sold 3.61 lakh shares (0.52%) at Rs 1,186.30 per share.
- Indiabulls Housing Finance: Kotak Securities bought 23.44 lakh shares (0.51%) at Rs 244.14 per share and sold 3.72 lakh shares at Rs 240.42 per share.
Who’s Meeting Whom
- UltraTech Cement: To meet BNP Paribas Asset Management on March 4.
- Eicher Motors: To meet Ashmore Investment Management on March 4.
- Infibeam Avenues: To meet Zaaba Capital on March 4.
- Paisalo Digital: To meet Tata Mutual Fund and Elara Capital on March 5.
- Price Band Revised From 10% to 5%: Satin Creditcare Network
- Price Band Revised From 20% to 10%: IFCI
- Ex-Date Buyback: Bharat Rasayan, Savita Oil Technologies
- Ex-Date Right Issue: Rajapalayam Mills
- Move Into ASM Framework: Dewan Housing Finance Corporation
- Move Into Short-term ASM Framework: Vardhman Holdings, Symphony, Bodal Chemicals
- Move Out Of Short-term ASM Framework: Everest Kanto Cylinder, Minda Industries
- Godrej Industries: Promoter Arel Enterprise LLP acquired 1.38 lakh shares between February 25-26.
- Deepak Fertilisers & Petrochemicals Corporation: Promoter Robust Marketing Services acquired 8,000 shares on March 1.
- Prakash Industries: Promoter Ved Agarwal acquired 40,000 shares between March 1-2.
- Rico Auto Industries: Promoters Arvind Kapur and Nyla Kapur acquired 33,000 shares between March 2-3.
- GMR Infrastructure: Promoter GMR Enterprises sold 4.41 crore shares between February 26 and March 2.
- Aditya Birla Capital: Promoter IGH Holdings acquired 28.15 lakh shares between February 25 and March 1
- Meghmani Organics: Promoter Ankit Patel acquired 1.14 lakh shares between March 1-2.
- Godrej Agrovet: Promoter Godrej Industries acquired 10,250 shares on February 26.
- HG Infra Engineering: Promoter Harendra Singh Family Trust acquired 8,700 shares on March 2.
As reported on March 3.
Money Market Update
- The currency ended at 72.71 against the U.S. Dollar as compared to Tuesday's close of 73.37.
- Nifty March futures ended at 15,300; premium of 55 points
- Nifty March futures added 1% and 1,302 shares in Open Interest.
- Nifty Bank March futures ended at 36,485; premium of 117 points
- Nifty Bank March futures shed 5.6% and 3,589 shares in Open Interest.
- Nifty Put-Call Ratio at 1.86
- Enters F&O Ban: Indiabulls Housing Finance
- Stocks In F&O Ban: Indiabulls Housing Finance, SAIL