All You Need To Know Going Into Trade On Feb. 26
U.S. equity futures rose and Treasuries steadied after a surge that took yields to record lows, while Asian shares opened lower after another rout on Wall Street.
Futures on the S&P 500 Index edged up. In Asia, the origin for the disease, stock benchmarks saw lesser declines early Wednesday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.02 percent to 11,697 as of 7:04 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.
Here’s a quick look at all that could influence equities today
- U.S. stocks tumbled to an almost 12-week low and bond yields plunged to records on rising concern the coronavirus will upend global supply chains critical to economic growth.
- Oil deepened a three-day rout as panic over a coronavirus outbreak in the U.S. gripped investors and sent shockwaves through commodity, equity and debt markets.
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Earnings Reaction To Watch
Sanofi India (Q4CY, 2019)
- Revenue rose 14 percent to Rs 826 crore
- Net profit rose 23 percent to Rs 97 crore
- Ebitda rose 30 percent to Rs 177.5 crore
- Margin stood at 21.5 percent versus 18.9 percent
Stocks To Watch
- Sanofi to pay a final dividend of Rs 106 per share and a special dividend of Rs 243 per share.
- IRB Infra receives Letter of Acceptance from MSRDC for Mumbai-Pune Expressway and Old Mumbai Pune Highway Projects.
- Bandhan Bank says RBI lifted the restriction on branch opening.
- Wockhardt: India Ratings has placed Wockhardt’s rating on Rating Watch Evolving, indicating that the may be affirmed, downgraded or upgraded. The RWE follows Wockhardt's divestment of a portion of its domestic branded business to Dr. Reddy's Laboratories Ltd. for Rs 1,850 crore, said the credit rating agency. Also, CARE ratings has placed the company’s rating Under credit watch with positive implications.
- Godawari Power & Ispat starts Rolling Mill and Iron Ore Beneficiation Plant. The Rolling Mill has a capacity of 4,00,000 tonnes per annum and Iron Ore Beneficiation Plant has 10,00,000 tons per annum. It has already received the Chhattisgarh Environment Conservation Board’s approval on Jan 18.
- ICRA assigns “Stable” Outlook to ITD Cementation’s credit rating. It was previously placed under “rating watch with developing implications.”
- ICICI Prudential Life Insurance sold 8.33 lakh shares of NRB Industrial Bearings on Feb 24. Total holding in the company shrinks from 5.59 percent to 2.15 percent.
- Vodafone Idea lost 36,44,453 users in December
- Bharti Airtel lost 11,050 users in December
- Reliance Jio added 82,308 users in December
Morgan Stanley on SBI
- Maintained ‘Equal-Weight’; raised price target to Rs 375 from Rs 330.
- FY20 EPS estimate raised by 18 percent on likely capital gains from SBI Cards.
- Subsidiaries continue to do very well.
- Asset quality outlook however remains uncertain.
- At 0.7x FY21 core book, stock is inexpensive, but re- rating amid uncertain macro will be difficult.
Goldman Sachs on Consumer Staples
- Page Industries: Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 18,370 from Rs 20,492
- Marico: Updated to ‘Neutral’ from ‘Sell’; raised price target to Rs 303 from Rs 286.
- ITC: Maintained ‘Buy’; cut price target to Rs 252 from Rs 312.
- Fourth quarter will likely be soft, recovery will likely be gradual in the next fiscal.
- See improvement in rural demand.
- See better liquidity for urban wholesale.
- Expect market share shift towards organized retail to continue.
Macquarie on Zee Entertainment
- Maintained ‘Outperform’ with a price target at Rs 425.
- Hosted Zee management for an investor interaction.
- New board appointments should be finalized shortly.
- From 2020-21, Zee expects more than 50 percent conversion of PAT to cash from less than 20 percent in 2018-19
- Ad environment remains bleak, Zee sees revival in 2020-21
- Management hoping to improve market share in key genres.
- Zee sees low double digit growth in domestic subscription in 2020-21, if NTO 2.0 is delayed/not implemented.
- Eyeing short format digital content space.
Motilal Oswal on Gujarat Gas
- Maintained ‘Buy’ with a price target at Rs 340
- Lower LNG prices to bode well for the company
- Volumes under contract from Shell to reduce from 2.2 to 2 mmscmd from 2020.
- Co ramping up capacity at Morbi to enable it to handle 8 mmscmd.
- NGT order may provide further volumes boost.
- Co expected to come up with 100 CNG stations in three years.
- India Cements: Gopikishan Damani bought 85.22 lakh shares (2.8 percent) at Rs 82.7 each.
- Tata Chemicals: Tata Sons bought 16.21 lakh shares (0.6 percent) at Rs 749.62 each.
Who’s Meeting Whom
- Manappuram Finance to meet DSP and ASK Investment Managers on Feb. 26.
- Century Textiles to meet several investors and funds like Amansa Capital, Fidelity, HDFC MF among other on Feb. 26.
- Mahindra Lifespace developers to meet Kotak MF and First State Investments on Feb. 26.
- Tata Steel to meet several funds & broking houses including Credit Suisse, Nippon MF, ICICI Prudential Life Insurance among others between Feb. 27 to March 5.
- Allcargo Logistics to meet Ashmore Investment Management India and Locus Global on Feb. 26.
- Ultramarine & Pigments promoter Sridhar Sundarrajan sold 4,491 shares on Feb. 24
- Som Distilleries & Breweries promoter Som Distilleries Private Limited acquired 2,000 shares on Feb. 24
- ADF Foods promoters acquired 600 shares on Feb. 24
- Ultratech Cement promoter Pilani Investment and Industries Corporation Limited sold 2.06 lakh shares on Feb. 20
- Galaxy Surfactants promoter Sridhar Unnathan sold 360 shares on Feb. 20
(As Reported on Feb. 25)
- Nifty February futures closed at 11,816.5, premium of 18.6 points
- Nifty futures open interest across series down 2 percent, sheds 3.8 lakh shares in open interest
- Nifty Bank February futures closed at 30,467.9, premium of 35 points versus discount of 32 points
- Nifty Bank futures open interest across series down 5 percent, sheds 65,000 shares in open interest
- Rollover: Nifty at 48 percent, Nifty Bank 35 percent
- Nifty PCR at 1.05 versus 1.10 (across all series)
Nifty Monthly Expiry: Feb 27
- Max open interest on call side at 12,000 (52.7 lakh shares)
- Max open interest on put side at 11,800 (32.7 lakh shares)
- Open interest addition seen in 11,900C (+10.3 lakh shares), 11,800C (+8.4 lakh shares)
- Open interest shedding was seen in 11,900P (-5.8 lakh shares)
Stocks In F&O Ban
- Yes Bank