All You Need To Know Going Into Trade On March 5
Asian equities followed their peers on Wall Street lower on the final trading day of the week. Stocks declined after Federal Reserve Chairman Jerome Powell refrained from pushing back against the recent surge in bond yields.
Benchmark indices in Japan, South Korea and Australia declined. The U.S. Dollar too has strengthened, pushing the yen to an eight-month low.
Oil prices continued to rise after the OPEC+ surprised traders with their decision to keep output unchanged. Saudi Oil Minister Prince Abdulaziz bin Salman told reporters that he does not believe that the actions of the group will 'overheat' the oil market.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 1.5% to 14,847 as of 7:15 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.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are trading 200 points lower. The index fell 1.1% overnight. The S&P 500 has nearly erased all of its 2021-gains while the Nasdaq extended losses to nearly 10% from last month's high.
- Fed Chair Jerome Powell noted the recent surge in yields without hinting at an intervention, saying that he will be concerned by disorderly conditions.
- “It makes logical and intuitive sense that Treasury yields should move back up to 1.50% or 2%, but we are concerned with the rest of the market about the speed at which it’s getting there,” said Mona Mahajan, investment strategist at Allianz Global Investors LLC.
- Yields on the 10-year treasuries rose to 1.57%.
- West Texas Intermediate crude rose 0.4% to $64.07 per barrel.
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Stocks To Watch
- Wipro: The company has signed an agreement to acquire Capco, a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific. This acquisition will make Wipro one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry. Capco has an experienced executive team and over 5,000 business and technology consultants based across more than 30 global locations. The cost of acquisition is $1.45 billion subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 30, 2021.
- Max Healthcare Institute: The Board of Directors approved the opening of QIP of equity shares of face value of Rs 10 on March 4. The floor price of Rs 190.40 per equity share is a discount of 2.54% to Thursday closing price. Also, the company may at its absolute discretion offer a discount of not more than 5% of the floor price. Further, the QIP Issue Committee of the Board of Directors at a meeting on March 9, 2021 will consider and approve the issue price of the equity shares to be issued to qualified institutional buyers, pursuant to the issue.
- Indiabulls Housing Finance: The securities issuance committee has approved the allotment of $150 million of 4.5% secured Foreign Currency Convertible Bonds due 2026 convertible into equity shares of Rs 2 each, subject to receipt of funds, satisfaction of other conditions and procedures and relevant agreements. The bonds are proposed to be listed on Singapore Exchange Securities Trading. Further, the company said as many as 4.49 crore equity shares of the company would be in the trade-off with the FCCBs.
- Isgec Heavy Engineering: The company has received an order for Waste Heat Recovery Boilers from Shree Cement. These Boilers are to be set up at their Raipur unit and will be of two types, a PH Boiler to be installed at the pre-heater exhaust, and an AQC Boiler to be installed at the cooler exhaust from the 10,500 TPD kiln.
- Honeywell Automation India: The company has appointed Ganesh Natarajan as Independent Director (Non-Executive) and Chairman of its Board of Directors, effective March 8, 2021. The current Independent Director and Chairman, Suresh Senapaty, will complete his tenure on March 7, 2021 and has conveyed his desire not to seek reappointment.
- Indian Bank: A meeting of Committee of Directors is scheduled on March 9, 2021 to consider the modes of raising the equity capital of the bank within the overall limit of Rs 4,000 crore (including premium). Further the bank has declared the Non Performing Accounts of S Kumars Nationwide, Priya and Yuvaraj Power Projects as fraud and reported them to the RBI for diversion of funds.
- INOX Leisure: The company has re-opened the multiplex unit located in Jharkhand pursuant to the notification issued by the state government.
- Mindspace REIT: A meeting of Executive Committee of the Manager to be held on March 9, 2021 to consider and approve raising of funds through issue of debt securities aggregating upto Rs 450 crore by way of private placement, in one or more tranches.
- Quick Heal Technologies: A board meeting is scheduled on March 10, 2021 to consider and approve the proposal for buyback of the fully paid up equity shares of the company.
- Unichem Laboratories: The company has received ANDA approval for its Guanfacine Tablets, USP 1 mg and 2 mg from the United States Food and Drug Administration to market a generic version of TENEX® (Guanfacine) Tablets 1 mg and 2 mg of Promius Pharma LLC. Guanfacine Tablets are indicated in the management of hypertension. The product will be commercialised from Unichem’s Ghaziabad Plant.
CLSA On India Oil & Gas
- First signs of reversal in domestic gas production after years of decline
- Recent auctions by RIL-BP should reinforce belief in meeting output targets
- Eastern offshore fields should drive a 35% rise in domestic gas production
- More positive on gas consumption plays than Petronet LNG
- Weak LNG demand and rising competition in the re-gas industry will make the macros adverse for LNG re-gasifiers like Petronet
- Prefer gas consumption plays like GSPL and city gas players like IGL, MGL & Gujarat Gas
Emkay On Wipro
- Maintains hold rating
- Price target raised to Rs 450 from Rs 420
- Capco acquisition to bolster BFSI capabilities
- Acquisition to create significant cross-selling opportunities and aid wallet share expansion across existing clients
- Integration of a low-margin business and higher non-cash charges are likely to impact Ebit margins by ~200 basis points in the first year
- Margins will improve on revenue and cost synergies from the second year
- Acquisition expected to be EPS accretive in the third year
Prabhudas Lilladher On IRCTC
- Maintains buy rating
- Price target raised to Rs 2,179 from Rs 1,639
- Volume delta in ticketing due to conversion of unreserved coaches to reserved category is likely to be in the range of 35%
- Increase e-ticketing volume estimates by ~13% for FY22E/FY23E
- Even with complete migration towards ready-to-eat (RTE) meals post-Covid, there may not be a substantial business loss as RTE menu has already been expanded.
- Raise EPS estimates by 5.9%/5.7% for FY22E/FY23E
Pledge Share Details
- Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 15 lakh shares on March 2.
- JSW Steel: Promoter JSW Techno Projects Management created a pledge of 3 lakh shares on March 1.
- The Ramco Cements: Promoter PR Venketrama Raja revoked pledge of 2 lakh shares on March 2.
- Ramco Industries: Promoter PR Venketrama Raja revoked pledge of 10 lakh shares on March 2.
- JSW Holdings: Promoter Siddeshwari Tradex created a pledge of 21,000 shares on March 1.
- Adani Ports And Special Economic Zone: Promoters Gautam Adani and Rajesh Adani revoked pledge of 21 lakh shares on March 3.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 6.11 lakh shares on March 3.
As reported on March 4.
- Asian Granito India: Donroy Ceramics LLP sold 2.17 lakh shares (0.70%) at Rs 182.18 per share.
- Igarashi Motors India: Equirus Wealth bought 1.66 lakh shares (0.53%) at Rs 328.87 per share.
- Balrampur Chini Mills: Indiafirst Life Insurance Company bought 11.36 lakh shares (0.54%) at Rs 202.55 per share.
Who’s Meeting Whom
- Paisalo Digital: To meet BNP Paribas Securities India on March 5.
- Hindustan Aeronautics: To meet CLSA on March 5.
- Tata Power Company: To meet Bajaj Allianz on March 5.
- Crompton Greaves Consumer Electricals: To meet Aberdeen Standard Life Asset Management on March 9.
- Escorts: To meet ENAM Asset Management and Invesco on March 16.
- Mahindra Lifespace Developers: To Wellington Management Singapore on March 8.
- Price Band Revised From 10% To 5%: Adani Power
- Ex-Date Interim Dividend: Hindustan Aeronautics
- Record Date Buyback: Bharat Rasayan, Savita Oil Technologies
- Record Date Right Issue: Rajapalayam Mills
- Move Into ASM Framework: Sree Rayalaseema Hi-Strength Hypo, HFCL, HLE Glascoat
- Move Out Of ASM Framework: Dewan Housing Finance Corporation
- Move Into Short-term ASM Framework: PTC India Financial Services, Prime Focus, Kuantum Papers, Dewan Housing Finance Corporation
- Move Out Of Short-term ASM Framework: DCW, HLE Glascoat
- JSW Steel: Promoter Sarika Jhunjhunwala sold 5,000 shares on March 3.
- Nirlon: Promoter Shital Trading & Interiors sold 8,000 shares on March 2.
- Deepak Fertilisers: Promoter Robust Marketing Services acquired 15,000 shares on March 2.
- Vardhman Textiles: Promoter Devakar Investment And Trading Company acquired 21,000 shares between March 1-3.
- Vardhman Special Steels: Promoter Sachit Jain acquired 15,000 shares between March 1-3.
- Inox Wind: Promoter Inox Wind Energy sold 5 lakh shares on March 3.
- Laurus Labs: Promoters Satyanarayana Chava and Nagarani Chava sold 70 lakh shares between March 3-4.
- Godrej Agrovet: Promoter Godrej Industries acquired 17,400 shares on March 1.
As reported on March 4.
Money Market Update
- The currency ended at 72.83 against the U.S. Dollar as compared to Wednesday's close of 72.71.
- Nifty March futures ended at 15,108; premium of 28 points
- Nifty March futures add 20.1% and 27,644 shares in Open Interest
- Nifty Bank March futures ended at 35,885; premium of 83 points
- Nifty Bank March futures shed 10.5% and 6,340 shares in Open Interest
- Nifty Put-Call Ratio at 1.74
- Enters F&O Ban: Bank of Baroda, BHEL, Punjab National Bank
- Stocks In F&O Ban: Bank of Baroda, BHEL, Indiabulls Housing Finance, Punjab National Bank, SAIL