All You Need To Know Going Into Trade On March 9
Asian equities have opened little changed this morning after a mixed session overnight on Wall Street. The Dow Jones hit a record high while a rotation out of growth stocks sent the Nasdaq into a technical correction.
Benchmark indices in Japan and Australia saw modest gains while those in South Korea edged lower. The benchmark U.S. bond yield traded just below 1.6% while oil prices edged lower. Bitcoin was above $52,000.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.5% to 15,055 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 higher. The index ended 1% higher on Monday.
- The Nasdaq fell nearly 3% overnight to its lowest close since November. The index is now down 11% from a record high in February.
- “There’s definitely a lot of volatility in the market right now and many of the sectors that underperformed last year are rallying - this is part of a rotation,” said Valerie Grant, senior equities portfolio manager at AllianceBernstein.
- Yield on the 10-year treasuries stood at 1.59%.
- West Texas Intermediate crude fell 0.5% to $64.75 per barrel.
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Stocks To Watch
- BPCL: Sub-committee of the Board of Directors have approved the sale of shares of the company, which are held by the BPCL Trust for investment in shares through accelerated book built offering. The company will sell close to 15.9 crore shares through this deal. As per the term sheet accessed by Bloomberg News, the floor price of Rs 435 per share is a 6.9% discount to Monday's closing price.
- Coal India: Has approved an investment of about Rs 47,300 crore on mining projects according to an emailed statement to Bloomberg. The approvals include eight new projects as well as expansion plans for 24 existing mines. The 32 sites will have a combined peak output of 193 million tonnes per year, the highest ever approved during a fiscal year. The company is also investing in railway tracks and other coal transport infrastructure along the mines to ensure smoother shipments, as per the statement.
- Mphasis: Bloomberg reports that Blackstone group has shelved plans to sell its Majority stake in the company. A person familiar with the matter told Bloomberg that the PE firm rejected two bidders in the final round as their offers did not meet the firm's expectations. Blackstone had purchased a 60.5% stake in Mphasis from HP in the year 2016 at Rs 430 per share.
- Biocon: Biocon Biologics received subscription amount of Rs 555 crore from the wholly-owned subsidiary of ADQ. The board of Biocon Biologics has approved the allotment of 1.97 crore shares at an issue price of Rs 280.3 per share.
- Dixon Technologies: The record date for the 1:5 stock split has been set as March 19, 2021.
- Godrej Properties: The company has approved raising of funds in one or more tranches, by issuance of securities for an amount not exceeding Rs 3,750 crore. Further the company has approved enhancement of investment limit up to Rs 7,500 crore.
- Mahindra Holidays: In view of the rising covid-19 cases and in compliance with the orders issued by the Finnish government, the company's material unlisted subsidiary Holiday Club Resorts, has suspended operations at 4 SPA hotels in Finland for a period of three weeks starting March 8, 2021.
- Kotak Mahindra Bank: A meeting of the Board of Directors is scheduled on March 12, 2021 to consider and approve the declaration and payment of dividend on 100 crore 8.10% Non-Convertible Perpetual Non-Cumulative Preference Shares of face value of Rs 5 each. The record date fixed for the purpose of payment of dividend is Friday, March 19, 2021.
- JSW Energy: Signs business transfer agreement for the sale of 18 MW thermal power plant at Salboni to JSW Cement on a going concern and slump sale basis for a sum of Rs 95.67 crore.
- Kesoram Industries: Has allotted 2.22 crore fully-paid up equity shares at a conversion price of Rs 65 per share, aggregating to Rs 144.3 crore to a consortium of 10 lenders led by Axis Bank. Similarly, it has also issued 4.48 crore fully paid-up zero coupon Optionally Convertible Redeemable Preference Shares (OCRPS) to the same consortium of lenders worth Rs 448.9 crore. The equity shares and OCRPS, allotted on a preferential basis and on a private placement basis will be subject to a lock-in period of one year from the date of trading approval.
- Lemon Tree Hotels: The company has signed a License Agreement for an 80 room upcoming hotel at Biratnagar in Nepal under the brand ‘Lemon Tree Premier’. The hotel is expected to be operational by January 2023, and this will be the third hotel of the company in Nepal, including Kathmandu and Nagarkot. Carnation Hotels, a subsidiary and the hotel management arm of the company will be operating and marketing this hotel.
- Mishra Dhatu Nigam: A meeting of the Board of Directors is scheduled on March 15 to consider a proposal relating to declaration of interim dividend for the financial year 2020-21. The record date for interim dividend, if declared by the company, will be March 23, 2021.
- Mindspace Business Parks REIT: Gigaplex Estate, one of the special purpose vehicles of the company, has entered into an agreement to sub-lease with a leading data center operator to sub-lease approximately 0.63 million sq. ft. at Mindspace, Airoli, Mumbai.
- PSP Projects: Received Letter of Acceptances for work orders worth Rs 1,491.3 crore for construction of medical colleges and hospitals at multiple locations in Uttar Pradesh. The company has also secured new work orders worth Rs 25.58 crore for residential and institutional projects from various clients in Gujarat. Outstanding order book now at Rs 4,736.88 crore.
- RPSG Ventures: The company has executed a Share Purchase Agreement with Biren Natwarlal Vaidya, Arjun Vaidya, Sheetal Vaidya, Karan Vaidya and Herbolab India and has acquired 35.37% shareholding in Herbolab India, a subsidiary of the company. After acquisition of the said shareholding, Herbolab will become a wholly owned subsidiary of the company. The cost of the acquisition is Rs 50.80 crore.
Pledge Share Details
- Chambal Fertilisers & Chemicals: Promoter Zuari Global created a pledge of 28.72 lakh shares on March 5.
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 9.53 lakh shares on March 5.
- Adani Ports And Special Economic Zone: Promoter Adani Tradeline LLP revoked pledge of 13.61 lakh shares on March 5.
- Adani Power: Promoter Adani Tradeline LLP revoked pledge of 31.10 lakh shares March 5.
- Adani Transmission: Promoter Adani Tradeline LLP created a pledge of 28.10 lakh shares on March 5.
- Asahi India Glass: Promoter Sanjay Labroo revoked pledge of 4.09 lakh shares on March 3.
- HealthCare Global Enterprises: Promoter BS Ajaikumar created a pledge of 29.77 lakh shares on March 5.
As reported on March 8.
- Gabriel India: KYB Corporation sold 8.99 lakh shares (0.63%) at Rs 120.64 per share.
- Greenpanel Industries: Jwalamukhi Investment Holdings sold 25.21 lakh shares (2.06%) at Rs 167.67 per share and sold 13.29 lakh shares (1.08%) at Rs 167.03 per share.
Who’s Meeting Whom
- Bajaj Consumer Care: To meet Motilal Oswal Asset Management Company and Morgan Stanley on March 9 and ICICI Prudential Asset Management Company on March 10.
- UltraTech Cement: To meet Fidelity International on March 9.
- eClerx Services: To meet Edelweiss Broking on March 9.
- Crisil: To meet Nippon Mutual Fund and Enam Asset Management on March 10.
- Move Into ASM Framework: Amber Enterprises India, Brightcom Group, Adani Total Gas
- Move Out Of Short-term ASM Framework: Asian Granito India, Dynemic Products
- Price Band Revised From 10% to 5%: Jain Irrigation Systems, Thomas Cook (India)
- Price Band Revised From 20% to 10%: Adani Total Gas, Jindal Poly Films, Subex, Welspun Enterprises
- Ex-Date Interim Dividend: Thangamayil Jewellery, KEI Industries
- Record Date Interim Dividend: Power Grid Corporation of India, Steel City Securities
- Ex-Date Bonus Issue: Trio Mercantile & Trading
- Ex-Date Stock Split: Trio Mercantile & Trading
- Ex-Date AGM: Technofab Engineering
- Aditya Birla Fashion and Retail: Promoter IGH Holdings bought 8.31 lakh shares between March 2-3.
- Pidilite Industries: Promoter Anuja Shah sold 20,000 shares between March 4-5.
- Aarti Industries: Promoter Bhavesh Mehta sold 3,250 shares on March 5.
- Axis Bank: Promoter Life Insurance Corporation of India sold 4.33 lakh shares on March 4.
- HG Infra Engineering: Promoter Girishpal Singh Family Trust bought 10,200 shares on March 4.
As reported on March 8.
Money Market Update
- The currency ended at 73.25 against the U.S. Dollar as compared to Friday's close of 73.02.
- Nifty March futures ended at 14,977; premium of 21 points
- Nifty March futures Open Interest unchanged
- Nifty Bank March futures end at 35,367; premium of 92 points
- Nifty Bank March futures add 1.3% and 756 shares in Open Interest
- Nifty Put-Call Ratio at 1.64
- Stocks In F&O Ban: Bank of Baroda, BHEL, PNB, SAIL, Sun TV