All You Need To Know Going Into Trade On March 8
Asian equities are rising at the start of a new week as U.S. President Joe Biden's $1.9 trillion covid relief package received senate approval.
Benchmark indices rallied in Japan, Australia and South Korea. Treasury yields climbed back towards the 1.6% mark as U.S. jobs data beat estimates on Friday.
Oil prices rose to their highest since May 2019 after Saudi Arabia said that one of the world's most protected oil facilities came under attack.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 1% to 15,106 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 are trading 170 points higher. The index rose 1.8% on Friday.
- Saudi Arabia said that the Ras Tanura oil terminal - the largest in the world was attacked by a drone from the sea. The terminal is capable of exporting roughly 6.5 million barrels per day or nearly 7% of the total oil demand. A person familiar with the matter told Bloomberg that oil output was unaffected.
- “Clearly with the stimulus measures in place, there is some concern for inflation, but nothing to derail the relatively positive outlook for equities at this point,” Rachel Farrell, chief executive officer of JPMorgan Asset Management in Australia, said on Bloomberg TV.
- Yield on the 10-year treasuries stood at 1.6%.
- West Texas Intermediate crude rose 2% to $67.43 per barrel while Brent crude also climbed 2% to $70.76 per barrel.
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Stocks To Watch
- Adani Ports: To issue up to 1 crore equity shares of face value of Rs 2 each to Windy Lakeside Investments on a preferential basis. The allottment will be done at a price of Rs 800 per share, which is a 6.7% premium to Friday's closing price.
- NMDC: Further the Prices of Lump Ore and Fines have been left unchanged at Rs 5,100 per tonne and Rs 4,210 per tonne respectively as compared to February. A meeting of the Board of Directors is scheduled on March 11 to consider the proposal for declaration of interim dividend, if any, for the financial year 2020-21.
- Aarti Drugs: Aarti Specialty Chemicals (ASCL), a wholly-owned subsidiary of the company gets an approval accorded under the Production Linked Incentive Scheme for the Pharma sector. The company received an approval for 2-Methyl-5Nitro-Imidazole with a committed production capacity of 4,000 MTPA under target segment III. The rate incentive will be 10% of sales value per annum until FY28.
- Just Dial: Has signed an advertising agreement with Star India for advertising as Co-presenting Sponsor for the Indian Premier League.
- India Grid Trust: The company has signed a share purchase agreement to acquire NER-II Transmission Ltd., from Sterlite Power as part of the Framework Agreement. The indicative value of the acquisition is Rs 4,625 crore (subject to closing adjustments) and would boost IndiGrid’s AUM by 34% to over Rs 20,000 crore ($2.8 billion). Post completion, the platform's asset portfolio would consist of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit kilometers & 13,350 MVA in 17 Indian states and 1 Union Territory. This transaction is expected to be consummated during Q4FY21, subject to unitholders’ approval, regulatory approvals, and other customary closing adjustments.
- Radico Khaitan: A sudden fire was noticed in two of the alcohol storage tanks at its Rampur Plant in Uttar Pradesh. The tanks had a combined capacit of extra neutral alcohol of 3.5 lakh bulk litres. There was no loss of life reported. No material impact on revenue or production due to the fire. Production was stopped only for a few hours as a precautionary measure. All alcohol production and bottling operations have now resumed.
- DHFL: The administrator of the company has filed two additional affidavits in NCLT Mumbai in connection with the disbursements made to certain entities as inter corporate deposits, against Kapil Wadhawan, Dheeraj Wadhawan, Township Developers India and entities to whom ICDs were given. The monetary impact of the transactions covered under the affidavits is Rs 1,264.29 crore towards outstanding principal, Rs 130.09 crore towards accrued interest and Rs 29.94 crore towards notional loss of interest on account of charging lower rate of interest. According to the transaction auditor Grant Thornton, these transactions occurred during FY 2017-18 and 2018-19.
- Embassy Office Parks REIT: The company has received approval from the NCLT in relation to its composite scheme of arrangement among its entities that restructures and simplifies the ownership of key portfolio assets, including Embassy Manyata and Embassy TechZone. Embassy REIT had initiated the scheme to simplify its holding structure by reducing the shareholding tiers and to create value for its unitholders. Under the scheme, the Embassy TechZone asset in Pune will be demerged from Embassy Office Parks into Embassy Pune TechZone, which will be 100% held by Embassy REIT. EOPPL will be merged into Manyata Promoters and consequently MPPL will be 100% held directly by Embassy REIT, thus collapsing the two-tier shareholding structure for MPPL. The scheme of arrangement will become effective upon completion of requisite filings and approvals with the Registrar of Companies and Board of Approval for Special Economic Zones.
- Indian Bank: As part of monetisation of bank's non-core assets, the Board of Directors have accorded in-principal approval for partial/full disinvestment of bank's stake in joint venture ASREC (India). The bank holds 38.26% stake in ASREC (India).
- Aegis Logistics: Itochu Petroleum acquired an additional 5.3% stake in Hindustan Aegis LPG from Aegis Gas for Rs 69.3 crore. Itochu earlier held 19.7% stake in Hindustan Aegis LPG. HALPG is a subsidiary of Aegis Gas which is a wholly-owned subsidiary of Aegis Logistics.
- Cipla: Wholly-owned, step-down subsidiary of the company Cipla (UK) Ltd. has been voluntarily liquidated from March 5, 2021. The liquidation was part of the company's internal reorganisation and will not affect performance or revenue.
- Force Motors: The company’s total production in February stood at 1,829 units. Further the company reported the domestic sales of 1,182 units and exports of 452 units in February.
- Jubilant Pharmova: The wholly-owned subsidiary of the company, Jubilant Pharma Ltd., on March 5, 2021 redeemed the principal amount of US$100,000,000 out of US$300,000,000 Notes at a redemption price of 101.21875% together with the accrued interest till date. JPL had made the first early redemption of US$100,000,000 in November 2019 and the second early redemption of US$100,000,000 on January 29, 2021. After the redemption of US$100,000,000 on March 5, 2021, the Notes have been paid in full and no amount remains outstanding under the Notes.
- Mishra Dhatu Nigam: The company has allotted 1,000 commercial papers of face value of Rs 5 lakh each aggregating to Rs 50 crore for a tenure of 90 days.
- Maruti Suzuki India: The company’s passenger vehicles production rose 18.1% to 1.65 lakh units Vs 1.40 lakh units in February 2020.
- Polycab: Polycab Wires Italy, SRL, a wholly-owned subsidiary incorporated under the Italian Civil Code, has been dissolved on March 5, 2021. The company was not a material subsidiary and will not have any significant impact on the accounts.
- Rushil Decor: Has commenced regular commercial production of Thin & Thick Medium Density Fiber Board (MDF Board) at its new manufacturing unit at Vishakhapatnam, Andhra Pradesh.
- Spandana Sphoorty Financial: The Board of Directors has approved the issuance of Non-convertible Debentures of upto Rs 110 crore.
Pledge Share Details
- Adani Ports & SEZ: Promoter Adani Tradeline LLP revoked pledge of 11.20 lakh shares on March 4.
- Adani Transmission: Promoters Gautam Adani, Rajesh Adani and Adani Tradeline LLP revoked pledge of 1.52 crore shares on March 4.
- JSW Steel: Promoters JSW Holdings, Sahyog Holdings and Vividh Finvest revoked pledge of 1.21 crore shares on March 3.
- JSW Holdings: Promoter Siddeshwari Tradex created a pledge of 2.41 lakh shares between March 3-4.
- Asian Paints: Promoter Sudhanva Investments And Trading Company created a pledge of 50,000 shares on March 3.
- Asahi India Glass: Promoter Brij Mohan Labroo revoked pledge of 10 lakh shares on March 1.
As reported on March 5.
- PG Electroplast: LTS Investment Fund bought 1 lakh shares (0.51%) at Rs 350.16 per share.
- DCB Bank: Apax Global Alpha sold 37.73 lakh shares (1.22%) at Rs 110.19 per share.
Who’s Meeting Whom
- Wipro: To meet Citi Global I.T. Services on March 8.
- Mahindra & Mahindra: To meet RBC Global Asset Management on March 8 and Avendus Capital and Limiar Capital on March 9.
- ICRA: To meet Columbia Heights Partners, LP on March 8.
- lndoStar Capital Finance: To meet Sundaram Asset Management Company on March 8 and Dalal & Broacha on March 9.
- United Spirits: To meet Credit Suisse on March 8 and Segantii Capital Management on March 9.
- Cummins India: To meet Invesco Advisors NY on March 10.
- Rallis India: To meet Mirae Asset Global Investments (India) on March 11.
- KEI Industries: To meet Equirus Securities on March 10 and Jefferies India on March 16.
- EIH: To meet SKP Institutional Equities on March 16.
- Blue Star: To meet Ambit Capital on March 15, Dolat Capital Market on March 18, and Cooper Investors Pty, DSP Mutual Fund and Enam Asset Management Company on March 19.
- Price Band Revised From 10% To 5%: Brightcom Group
- Ex-Date Bonus issue: Sacheta Metals
- Ex-Date Interim Dividend: Power Grid Corporation of India, Steel City Securities
- Record Date Interim Dividend: Hindustan Aeronautics
- Move Into ASM Framework: Optiemus Infracom, Action Construction Equipment, JBM Auto, Punjab Chemicals & Crop Protection, Vertoz Advertising, Karda Constructions
- Move Into Short-term ASM Framework: Bajaj Hindusthan Sugar, Equitas Small Finance Bank, Welspun Enterprises, Astra Microwave Products, Jindal Poly Films, Yaarii Digital Integrated Services
- Move Out Of Short-term ASM Framework: Optiemus Infracom
- Godrej Industries: Promoter Arel Enterprise LLP bought 2.33 lakh shares between March 1-2.
- Deepak Fertilisers: Promoter Robust Marketing Services bought 40,000 shares on March 3.
- Vardhman Textiles: Promoter Devakar Investment And Trading Company bought 6,000 shares on March 4.
- Prakash Industries: Promoter Ved Agarwal bought 40,000 shares between March 3-4.
- Aarti Industries: Promoters Jaya Gogri, Bhavesh Mehta and Dilip Dedhia sold 30,900 shares on March 4.
- Motilal Oswal Financial Services: Promoter Vaibhav Agrawal bought 1.04 lakh shares between February 24-26.
- Astra Microwave Products: Promoter C Prameelamma sold 1.79 lakh shares between March 3-4.
- Vardhman Special Steels: Promoter Sachit Jain bought 5,000 shares on March 4.
- Inox Wind: Promoter Inox Wind Energy sold 4 lakh shares on March 4.
- Godrej Agrovet: Promoter Godrej Industries bought 8,371 shares on March 2.
- HG Infra Engineering: Promoters (Girishpal Singh Family Trust and Vijendra Singh Family Trust) bought 34,100 shares between March 2-3.
As reported on March 5.
Money Market Update
- The rupee ended at 73.02 against the U.S. Dollar as compared to Thursday's close of 72.83.
- Nifty March futures ended at 14,983; premium of 45 points
- Nifty March futures add 3.9% and 6,419 shares in Open Interest
- Nifty Bank March futures ended at 35,380; premium of 152 points
- Nifty Bank March futures add 10.9% and 5,860 shares in Open Interest
- Nifty Put-Call Ratio: 1.69
- Stocks In F&O Ban: Bank of Baroda, BHEL, Indiabulls Housing Finance, Punjab National Bank, SAIL