Sensex, Nifty End Lower On F&O Expiry Day

Indian equity benchmarks ended lower for the third consecutive trading session.

The S&P BSE Sensex ended 0.11 percent lower at 35,867.44 and the NSE Nifty 50 ended at 10,792.50, down 0.13 percent. In the February series, the 50-share gauge ended 0.36 percent lower.

The market breadth, however, was tilted in favour of sellers. About 1,074 stocks advanced and 639 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 0.99 percent gains. On the flipsie, the NSE Nifty IT Index was the top sectoral losers, down 1.1 percent.

Sadbhav Engineering

• Stock rose as much as 9.4 percent to Rs 192.
• Trading volume was almost triple its 20-day average.

Minda Corp

• Stock rose as much as 8.9 percent to Rs 150.
• Trading volume was more than quadruple its 20-day average.

Odisha Cement

• Stock fell as much as 10.4 percent to Rs 1,088.
• Trading volume was more than 19 times its 20-day average.

Rain Industries

• Stock fell as much as 8 percent to Rs 90.
• Trading volume was more than triple its 20-day average.

Shares of Swan Energy extended decline for the second consecutive trading session and fell as much as 6.8 percent to Rs 117.05.

The stock declined 37 percent in the past 12 months compared to a 5.4 percent gain in the Sensex.

European shares traded lower following Asian markets after the summit between U.S. President Donald Trump and his North Korean counterpart ended without a deal.

7-Eleven Inc., the world’s largest convenience store chain, entered India in partnership with Kishore Biyani’s Future Group as it looks to tap shoppers in the fastest-growing major economy.

Read the full story here.

The NSE Nifty Media Index rallied over 12 percent so far this month and is set for its best monthly rally since September 2012.

Indian equity benchmarks traded off day’s high.

Shares of the marine shipping port operator halted a three-day decline and rose as much as 9.4 percent to Rs 83.70.

Trading volume was more than nine times its 20-day average, Bloomberg data showed. The stock declined 43 percent in the past 12 months compared to an 5.3 percent advance in the Sensex.

Nifty’s 10,800 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 68.89 percent to Rs 15.40. Over 25 lakh shares were added to the open interest which stood at over 46 lakh shares.

• Bandhan Bank: About 40 lakh shares changed hands in two block deals.
• BHEL: About 27.8 lakh shares changed hands in a single block.

Buyers and sellers were not known immediately.

Source: Bloomberg

Shares of Linde India extended gains for the second consecutive trading session and rose as much as 8 percent to Rs 503.70.

Trading volume was almost 17 times its 20-day average, Bloomberg data showed. The stock traded at 58 times its estimated earnings per share for the coming year.

Shares of Bharat Dynamics extended gains for the second day and rose as much as 8.9 percent to Rs 316.70. The stock closed over 15 percent higher in yesterday’s trade.

Trading volume was 105.4 times its 30-day average, Bloomberg data showed. The relative strength Index was at 74, indicating that the stock may be overbought.

Shares of the state-run lender rose as much as 0.7 percent to Rs 72.

The bank reduced its MCLR by ten basis points across various tenors with effect from March 1. The one month MCLR stands at 8.1 percent and one year MCLR at 8.45 percent. The lender stated that base rate at 9.25 percent remains unchanged.

The stock had declined 1.8 percent in the past five days and fell 7.3 percent in the past 30 days.

Shares of the Naresh Goyal-led carrier resumed declines after a one-day rally. The stock fell as much as 6.3 percent to Rs 210.15.

The company said that seven more aircraft had been grounded due to non-payment to lessors, adding that it was making all efforts to minimise disruption to its network.

Trading volume was more than double its 20-day average, according to Bloomberg data. The stock had declined 70 percent in the past 12 months compared to a 4.5 percent gain in the Sensex.

Shares of Tata Metaliks rose as much as 3.8 percent to Rs 614.

The company to increase DI pipe capacity by 2 LTPA (lakh tonne per annum) and hot metal capacity by 0.7 LTPA, according to its statement on the exchanges. The capacity will be expanded by March 2022 with an investment of Rs 555 crore.

Besides, the board also approved issuance of 29 lakh equity shares and 36 lakh convertible warrants to promoter – Tata Steel – on preferential basis.

If shares and warrants issued at yesterday’s closing price, then company would raise close to Rs 380 crore, according to BloombergQuint calculation. Upon conversion of warrants, promoter holding in the company would increase to 60.3 percent from current 50.1 percent.

Shares of Wipro fell for the second consecutive trading session and declined as much as 1.3 percent to Rs 369.55.

The Bengaluru-based software developer plans to sell Workday and Cornerstone to Alight for up to $110 million, according to its stock exchange filing.

Trading volume was quadruple its 20-day average, Bloomberg data showed. The stock traded at 19 times its estimated earnings per share for the coming year.

Indian equity benchmarks opened higher in today’s trade after falling for two consecutive trading sessions.

The S&P BSE Sensex rose as much as 0.49 percent to 36,082.80 and the NSE Nifty 50 rose as much as 0.55 percent to 10,865.70.

The market breadth was tilted in favour of buyers. About 890 stocks advanced and 435 shares declined on National Stock Exchange.

All the sectoral gauges compiled by NSE advanced, led by the NSE Nifty PSU Bank Index’s 0.54 percent gain.

The Indian rupee opened a little changed at 71.26 against the U.S. dollar.

The local legal tender ended weaker at 71.2475 on Wednesday. A prolonged war like scenario could increase the premium on rupee assets, traders said.

Traders in both markets will continue to monitor geopolitical developments after this week’s escalation of tensions between India and Pakistan. They also await the release of quarterly GDP data, which may indicate that growth slowed further and which is likely to open the door for further cuts in interest rates.

According to a Bloomberg survey, India is forecast to grow at 6.8 percent in the third quarter, compared with 7.1 percent in the previous quarter. The yield on the most-traded debt due on January 2028 climbed nine basis points on Wednesday to end at 7.67 percent.

F&O Cues

• Nifty February futures closed trading at 10809, premium of three points.
• Max OI for February series at 11,000 Call, OI at 49. 1 lakh shares.
• Max OI for February series at 10,400 Put, OI at 30.3 lakh shares.

Stocks In F&O Ban

In Ban

• Adani Enterprises
• Adani Power
• Reliance Power

Out of Ban

• IDBI
• Jet Airways

Put-Call Ratio

• Nifty PCR at 1.37 versus 1.4.
• Bank Nifty PCR at 1.08 versus 1.18.

Credit Suisse on NBFCs

• Real estate sector NPAs are likely to rise in March quarter due to lack of funding from NBFCs.
• Developers are saddled with inventory of more than 40 months of sales in most markets.
• Cash flow constraints, incremental credit from NBFCs have started pushing up NPA levels.
• Remain cautious on Indiabulls Housing, Edelweiss, L&T Finance and Yes Bank.

CLSA on Vodafone Idea

• Maintained ‘Sell’ with a price target of Rs 27.
• Rights issue will fund for two years; Leverage will still be out of control.
• Strategic shift from pan-India operator to being regional and focused operator to aid.
• Going regional can cut debt by 25 percent, boost Ebitda by 20 percent in the next financial year.

Nomura on Infosys

• Maintained ‘Neutral’ with a price target of Rs 680.
• Seen material margin declines; outlook remains weak.
• Reasons:- investments in sales and digital, localisation and one-off wage reset to counter high attrition.
• Believe supply side issues are not restricted to Infosys but a sector-wide issue.

HSBC on Oil and Gas

• City gas licensing now complete; IOC, BPCL, GAIL and HPCL key winners.
• Regulatory focus shifts to streamlining pipeline tariffs.
• GAIL is key winner of increasing share of gas in energy mix.

Suprajit Engineering

• First State Asia Pacific Fund acquired 23.25 lakh shares or 1.66 percent equity at Rs 190 each.
• Smallcap World Fund sold 26.5 lakh shares or 1.89 percent equity at Rs 190 each.

Vishal Fabrics

• Polus Global Fund sold 2.33 lakh shares or 0.53 percent equity at Rs 299 each.
• Veena Investments acquired 2.33 lakh shares or 0.53 percent equity at Rs 299 each.

• Tata Metaliks to increase DI pipe capacity by 2 LTPA (lakh tonne per annum) and hot metal capacity by 0.7 LTPA. The capacity will be expanded by March 2022 with an investment of Rs 555 crore. Besides, the board also approved issuance of 29 lakh equity shares and 36 lakh convertible warrants to promoter – Tata Steel – on preferential basis. If shares and warrants issued at yesterday’s closing price, then company would raise close to Rs 380 crore, according to BloombergQuint calculation. Upon conversion of warrants, promoter holding in the company would increase to 60.3 percent from current 50.1 percent.
• Wipro signed an agreement to sell its ‘Workday and Cornerstone On Demand Business’ to alight for $110 million.
• Varroc Engineering’s Moroccan arm commenced commercial operations from Feb. 26. The plant has been set up to manufacture and supply automotive lighting parts
• Odisha Cement Ltd., soon to be renamed Dalmia Bharat Ltd.,said it has filed a complaint with regulators and the police after a depository participant transferred mutual fund units of the group’s arms.
• Lupin clarified on news of government’s ban on company’s anti-diabetic drug ‘Gluconorm’ stating that the litigation was a non-material one and the Delhi High Court has set aside the order and remanded the said order to Drugs Technical Advisory Board to examine the issue as per Supreme Court’s direction.
• Jet Airways said seven more aircraft had been grounded due to non-payment to lessors. The company said it was making all efforts to minimize disruption to its network.
• Punjab National Bank reduced its MCLR by ten basis points across various tenors with effect from March 1. One month MCLR at 8.1 percent and one year MCLR at 8.45 percent. The bank stated that base rate at 9.25 percent remains unchanged.

• Feb. 28: India eight infrastructure industries data for January.
• Feb. 28: India Q4 GDP data. (Bloomberg estimates at 6.7 percent; prior 7.1 percent)
• Feb. 28: India Q4 GVA data. (Bloomberg estimates at 6.5 percent; prior 6.9 percent)
• Feb. 28: India fiscal deficit data for January.
• March 1: Nikkei India Manufacturing PMI for January. (Prior 53.9)
• March 1: Automakers to announce monthly sales data for January.
• China’s factory PMI may have held at 49.5 in February, its third month of contraction, as external demand weakened. Bloomberg Economics expects this to be the nadir, as business expectations stabilize and equity markets rebound.
• Thursday brings fourth-quarter U.S. GDP.
• U.S. personal income and sending data is released Friday.

• Brent crude ended 1.8 percent higher at $66.39 per barrel.
• West Texas Intermediate crude was at $56.97 a barrel after jumping 2.6 percent.
• Gold was little changed at $1,320.72 an ounce.

London Metal Exchange

• Nickel halted a two-day decline, ended 0.73 percent.
• Copper rallied for the fourth consecutive session, ended 0.2 percent higher.
• Aluminium ended higher for the second day, up 0.58 percent.
• Lead ended higher for the sixth day, up 2.1 percent.
• Tin ended lower for the second day, down 0.37 percent.
• Copper ended lower for the second day, up 0.18 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, pared losses and rose 0.29 percent to 10,834.50 as of 8:12 a.m.

Stocks in Asia slipped Thursday after a topsy-turvy U.S. session that saw shares finish flat and amid disappointing economic data from China.

Equities posted modest losses in Japan, Australia and Korea and fluctuated in Hong Kong and China.

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