All You Need To Know Going Into Trade On March 7
Asian stocks were mixed Thursday as global growth concerns resurfaced and U.S. equities fell back.
Shares in Japan and South Korea dropped, while Australian equities eked out gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade a little changed at 11,096 as of 7:15 a.m.
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Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. equities fell to a three-week low on concern about the outlook for growth after fresh data pointed to a slowing economy before a key jobs report Friday.
- The yield on 10-year Treasuries fell one basis point to 2.69 percent.
- Japan’s Topix index lost 0.8 percent.
- Futures on the S&P 500 Index dipped 0.2 percent.
- Australia’s S&P/ASX 200 Index rose 0.2 percent.
- Hang Seng futures earlier slid 0.1 percent.
- Brent crude traded 0.11 percent lower at $65.92 per barrel.
- WTI crude fell 0.2 percent to $56.12 a barrel.
- Gold rose 0.1 percent to $1,287.78 an ounce.
London Metal Exchange
- Nickel ended 0.48 percent lower after rallying for three consecutive trading sessions.
- Aluminium ended lower for the third day, down 0.43 percent.
- Tin ended 0.77 percent lower.
- Zinc ended higher for the second day, down 0.29 percent.
- Copper ended 0.15 percent lower.
- Lead ended lower for the fourth day, down 0.1 percent.
Key Events To Watch This Week
- ECB policy makers are expected to leave rates unchanged amid a deteriorating outlook. President Mario Draghi will hold a news conference on Thursday after the decision.
- The U.S. jobs report Friday may show hiring moderated in February. Nonfarm payrolls may have increased by 185,000 while the jobless rate fell to 3.9 percent, according to estimates.
Stocks To Watch
- Apollo Tricoat Tubes started production at Karnataka manufacturing facility having installed capacity of 75,000 MTPA.
- Tata Motors signed an accord with Wise travels to supply Tigor EVs (Source: Bloomberg News)
- HDFC said it will pay Rs 3.5 per share as interim dividend and has set March 18 as record date.
- HUDCO said it will set up MTN program to raise foreign currency loan.
- Endurance Technologies OFS: Non-retail quota subscribed 4.61 times
- NELCO secured in-flight and maritime connectivity licence from Department of Telecommunications.
- Salora International Board said it will consider de-listing shares from the NSE on March 9.
- NCLT approved scheme of amalgamation of Shriram Automotive Products Ltd with Shriram Pistons and Rings Ltd.
- LT Foods to invest Rs 20 crore via preference shares in subsidiary Daawat Food Ltd to strengthen the balance sheet of DFL and improve its current ratio. Daawat Foods Limited serves as manufacturing arm of LT Foods Limited.
- Asahi Songwon Colors resumed operation at CPC Crude Blue Pant after planned shutdown for maintenance.
- Raymond Ltd. terminated development management agreement with subsidiary Colorplus Realty Ltd.
- Cyient selected by U.K. Power Networks to develop an outage planning portal. (Press release does not disclose order size or details)
- Oriental Bank Of Commerce said that the Reserve Bank of India levied a penalty of Rs 2 crore delayed implementation of SWIFT related operational controls.
- HFCL bagged orders of Rs 117 crore for supply of optical fibre cables from Tata Project Ltd. under Bharat Net Phase-II project in the state of Chhattisgarh. The order will be executed over a period of 24 months.
- Biocon received six observations under form 483 for its Bengaluru facility.
- Varroc Lighting Systems opened a new research and development centre In Poland.
- Asian Granito raised Rs 90 crore by way of issue of convertible warrants to promoter and non-promoter group entities.
- Vedanta declared second interim dividend of Rs 1.85 per share. The record date for the purpose of payment of dividend is March 14. The total payout is Rs 685 crore.
Tata Power crossed the seven-lakh consumer base milestone in Mumbai. The company said it is expanding into new business to meet the changing needs of customers such as:
- Residential solar rooftop services: It has launched the services in Mumbai and many other key cities such as Delhi, Bangalore, Cochin, Ajmer, Bhubaneshwar, Hyderabad and Ahmedabad.
- EV infrastructure: The Company has made Mumbai EV ready by setting up 15 charging stations and also set up charging stations in Delhi & Hyderabad.
- Solar micro grids and home automation.
- Sunteck Realty Limited: BNP Paribas Arbitrage bought 41.26 lakh shares or 2.8 percent equity at Rs 370 each.
- Relaxo Footwears: AFIS a/c American funds insurance series growth income fund bought 8.67 lakh shares or 0.7 percent equity at Rs 715 each.
- Dewan Housing Fin Corp: India Infoline Investment Services Pvt Ltd sold 35.76 lakh shares or 1.1 percent equity at Rs 150.44 each.
Eveready Industries India
- India Opportunities Growth Fund Ltd-Pinewood Strategy bought 7 lakh shares or 1 percent equity at Rs 200 each.
- OHM Enterprises bought 6 lakh shares or 0.8 percent equity at Rs 200 each.
- OHM Juniper Longterm Fund Ltd bought 5 lakh shares or 0.7 percent equity at Rs 200 each.
- DSP Mutual Fund A/C DSP Small Cap Fund sold 21.7 lakh shares or 3 percent equity at Rs 200 each.
Lux Industries Limited
- Abakkus Growth Fund – 1 bought 3 lakh shares or 1.2 percent equity at Rs 1,228.04 each.
- Monet Securities Private Ltd sold 2.46 lakh shares or 1 percent equity at Rs 1,230.08 each.
Who’s Meeting Whom
- Balaji Telefilms to meet Tata MF on March 7 and JHP Securities on March 11.
- BSE Ltd to meet ASK Investment Managers on March 7.
- South Indian Bank to meet Prabhudas Liladhar on March 8.
- Sheela Foam to meet various investors in Singapore and Hongkong on March 7 and 8.
- Asian Paints to several fund houses from March 8 – 15.
- eClerx Services to meet Franklin Templeton Investments on March 7.
- Deepak Nitrite promoters acquired 55,000 shares on March 1.
- JBF industries ltd promoter Chinar Arya Mittal acquired 2.86 lakh shares from Feb. 22 – March 5.
- Astra microwave products ltd promoter P.A Chitrakar acquired 26,200 shares on March 5.
- Siti Networks Ltd promoter Arrow Media & Broadband Private Limited sold 1.79 crore shares from Feb. 27-28.
- Eros International Media Ltd promoter Eros Worldwide FZ LLC acquired 1 lakh shares on March 6.
(As reported on March 6)
Money Market Update
- The rupee on Wednesday closed at 70.28/$ versus Tuesday’s 70.49/$.
- Nifty March Futures closed trading at 11087, premium of 34 points.
- Max open interest for March 28 series at 11,500 call. (open interest at 20.8 lakh shares.)
- Max open interest for March 28 series at 11,000 put. (open interest at 29.2 lakh shares)
Stocks In F&O Ban
- Reliance Power
- IDBI Bank (new)
- Nifty PCR at 1.8 versus 1.76.
- Bank Nifty PCR at 1.53 versus 1.87 .
JPMorgan on Crompton Consumer
- Maintained ‘Neutral’ with a price target of Rs 240.
- Lighting segment: moderation in price erosion to aid value growth.
- Fans segment: premiumisation and market share gain led growth strategy in place.
- Pumps segment: economy and agri foray gaining traction.
CLSA on Zee Entertainment
- Maintained ‘Buy’ with a price target of Rs 670.
- Management change unlikely post stake sale.
- Strategic stake sale poses limited risks.
- Stake sale to allay risk of promoter pledges.
UBS on Oil Marketing Companies
- IOCL: Maintained ‘Buy’; hiked price target to Rs 185 from Rs 170.
- BPCL: Maintained ‘Buy’; hiked price target to Rs 415 from Rs 380.
- HPCL: Maintained ‘Buy’; hiked price target to Rs 315 from Rs 290.
- Near all-time high marketing margin should lead to re-rating.
- Higher marketing margins to help offset lower refining margins.
Morgan Stanley on IDFC First Bank
- Maintained ‘Underweight’; cut price target to Rs 30 from Rs 35.
- Mgmt. guided RoE of 13-15 percent is 5-6 years away.
- Valuation is expensive and leaves no margin for error; risk reward is poor.
- Cut price target owing large dilution due to merger.
Antique on NBFCs
- CanFin Homes: Initiated ‘Buy’ with a price target of Rs 373.
- LIC Housing: Downgraded to ‘Sell’ from ‘Hold’; maintained price target at Rs 440.
- PNB Housing: Maintained ‘Hold’; cut price target to Rs 966 from Rs 1,340
- Repco Home: Maintained ‘Hold’; cut price target to Rs 487 from Rs 375
- HDFC: Maintained ‘Hold’ with price target of Rs 2,159.
- LIC and PNB: Believe that it may have to either raise capital in 2019 or slowdown its growth rate.
- CanFin Homes: One of the few HFCs which will be able to deliver RoEs in excess of 18 percent.