Morning Views:
US Markets
Big Tech gave major US stock indexes a boost on Tuesday and European shares ended largely unchanged as a sharp fall in oil prices took the shine off bumper profits from oil company BP.
The Dow Jones Industrial Average rose 1.06 percent to end at 35,462.78 points. The S&P 500 gained 0.84 percent to 4,521.52. The Nasdaq Composite climbed 1.28 percent to 14,194.46.
Asian Markets
Shares in Asia-Pacific rose in the Wednesday morning trade, with stocks in Hong Kong leading gains regionally. In Japan, the Nikkei 225 gained 0.83 percent, while the Topix index climbed 0.8 percent. Shares of SoftBank Group surged 5.34 percent after the Japanese conglomerate on Tuesday announced plans to take Arm public following the collapse of a planned sale of the unit to Nvidia.
SGX Nifty
Trends on the SGX Nifty indicate a positive opening for the broader index in India with a gain of 59 points. The Nifty futures were trading around 17,319 levels on the Singaporean exchange.
The Reserve Bank of India (RBI) may hold its repo rate steady but economists expect an increase in the reverse repo rate as part of a process to reduce the surplus liquidity poured into the markets earlier during the pandemic.
Results today
Power Grid Corporation of India, Tata Power, ACC, Bosch, FSN E-Commerce Ventures (Nykaa), Aurobindo Pharma, Berger Paints, 3i Infotech, Abbott India, Aries Agro, BASF India, Bharat Bijlee, DCB Bank, Engineers India, Entertainment Network (India), Finolex Cables, GMR Infrastructure, HEG, Indiabulls Housing Finance
US Markets
Big Tech gave major US stock indexes a boost on Tuesday and European shares ended largely unchanged as a sharp fall in oil prices took the shine off bumper profits from oil company BP.
The Dow Jones Industrial Average rose 1.06 percent to end at 35,462.78 points. The S&P 500 gained 0.84 percent to 4,521.52. The Nasdaq Composite climbed 1.28 percent to 14,194.46.
Asian Markets
Shares in Asia-Pacific rose in the Wednesday morning trade, with stocks in Hong Kong leading gains regionally. In Japan, the Nikkei 225 gained 0.83 percent, while the Topix index climbed 0.8 percent. Shares of SoftBank Group surged 5.34 percent after the Japanese conglomerate on Tuesday announced plans to take Arm public following the collapse of a planned sale of the unit to Nvidia.
SGX Nifty
Trends on the SGX Nifty indicate a positive opening for the broader index in India with a gain of 59 points. The Nifty futures were trading around 17,319 levels on the Singaporean exchange.
The Reserve Bank of India (RBI) may hold its repo rate steady but economists expect an increase in the reverse repo rate as part of a process to reduce the surplus liquidity poured into the markets earlier during the pandemic.
Results today
Power Grid Corporation of India, Tata Power, ACC, Bosch, FSN E-Commerce Ventures (Nykaa), Aurobindo Pharma, Berger Paints, 3i Infotech, Abbott India, Aries Agro, BASF India, Bharat Bijlee, DCB Bank, Engineers India, Entertainment Network (India), Finolex Cables, GMR Infrastructure, HEG, Indiabulls Housing Finance
Morning View :
US Markets
Wall Street jumped on Wednesday, closing sharply higher as megacap growth stocks powered up thanks to a pause in rising interest rates, and upbeat earnings reports also encouraged investors to buy.
The Dow Jones Industrial Average rose 0.86 percent to end at 35,768.06 points, while the S&P 500 gained 1.45 percent to 4,587.18. The Nasdaq Composite climbed 2.08 percent to 14,490.37.
Asian Markets
Shares in Asia-Pacific were mixed in Thursday morning trade as investors await the release of US consumer inflation data. Mainland Chinese stocks were lower in morning trade, with the Shanghai composite down 0.19 percent while the Shenzhen component dipped 0.137
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 31 points. The Nifty futures were trading around 17,515 levels on the Singaporean exchange.
RBI interest rate decision today
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will announce its verdict after a three-day meet on February 10. The rate setting panel is widely expected to increase the reverse repo rate or the rate at which the central bank borrows short-term deposits from banks by at least 25 basis points. One bps is one hundredth of a percentage point.
Results today
Hero MotoCorp, Mahindra & Mahindra, Hindalco Industries, Zomato, ABB India, Aegis Logistics, Amara Raja Batteries, Alembic Pharmaceuticals, BEML, Bharat Forge, Computer Age Management Services, Cummins India, Gujarat Pipavav Port, Gujarat State Petronet, Hindustan Aeronautics, IRB Infrastructure Developers
US Markets
Wall Street jumped on Wednesday, closing sharply higher as megacap growth stocks powered up thanks to a pause in rising interest rates, and upbeat earnings reports also encouraged investors to buy.
The Dow Jones Industrial Average rose 0.86 percent to end at 35,768.06 points, while the S&P 500 gained 1.45 percent to 4,587.18. The Nasdaq Composite climbed 2.08 percent to 14,490.37.
Asian Markets
Shares in Asia-Pacific were mixed in Thursday morning trade as investors await the release of US consumer inflation data. Mainland Chinese stocks were lower in morning trade, with the Shanghai composite down 0.19 percent while the Shenzhen component dipped 0.137
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 31 points. The Nifty futures were trading around 17,515 levels on the Singaporean exchange.
RBI interest rate decision today
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will announce its verdict after a three-day meet on February 10. The rate setting panel is widely expected to increase the reverse repo rate or the rate at which the central bank borrows short-term deposits from banks by at least 25 basis points. One bps is one hundredth of a percentage point.
Results today
Hero MotoCorp, Mahindra & Mahindra, Hindalco Industries, Zomato, ABB India, Aegis Logistics, Amara Raja Batteries, Alembic Pharmaceuticals, BEML, Bharat Forge, Computer Age Management Services, Cummins India, Gujarat Pipavav Port, Gujarat State Petronet, Hindustan Aeronautics, IRB Infrastructure Developers
Morning Alert..
LIC files draft papers with SEBI
The government offered to sell a 5% stake in LIC in the DRHP filled with the market regulator SEBI on Sunday. A senior official told the IPO size could be enhanced to 7.5% in the final offer document after gauging investor appetite. According to the DRHP, the government will offer to sell 316.25Mn shares of FV 10 out of its total holding of about 6.32Bn shares in the insurer.
5G spectrum auction expected in May: Rajaraman
The long awaited 5G spectrum auction is expected to be held in May this year if Trai submits by March its recommendations. Trai has indicated that they will send its recommendations by March. Thereafter, it will take us a month to make a decision around it, telecom secretary K Rajaraman said.
Rs 22,842Cr bank fraud: ABG Shipyards liquidation on as per NCLT process: SBI
On the alleged fraud of Rs 22,842Cr by ABG Shipyard Ltd, Indias largest state owned bank SBI said in a statement that the account is presently undergoing “liquidation under an NCLT driven process”. The CBI has booked ABG Shipyard Ltd and its Chairman and MD Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of banks led by SBI.
Commodity play
Gold – Rs 48786/10gm, Silver – Rs 62130/kg, Brcrude – Rs 6986/Barrel, Degumsyoil – Rs 1250/10kg, Copper – Rs 774/kg.
Corporate News
SBI – Bannk expects to recover Rs 8k Cr from written-off accounts in FY22
Coal India – Company`s total dividend payout this year likely to be higher than FY21.
Avanti Feeds – Q3 PAT 402Mn vs 750Mn (YoY), 241Mn (QoQ). Revenue 10.68Bn vs 9.15Bn (YoY).
Sector in focus – PSB, PSU, IT & Automobiles.
LIC files draft papers with SEBI
The government offered to sell a 5% stake in LIC in the DRHP filled with the market regulator SEBI on Sunday. A senior official told the IPO size could be enhanced to 7.5% in the final offer document after gauging investor appetite. According to the DRHP, the government will offer to sell 316.25Mn shares of FV 10 out of its total holding of about 6.32Bn shares in the insurer.
5G spectrum auction expected in May: Rajaraman
The long awaited 5G spectrum auction is expected to be held in May this year if Trai submits by March its recommendations. Trai has indicated that they will send its recommendations by March. Thereafter, it will take us a month to make a decision around it, telecom secretary K Rajaraman said.
Rs 22,842Cr bank fraud: ABG Shipyards liquidation on as per NCLT process: SBI
On the alleged fraud of Rs 22,842Cr by ABG Shipyard Ltd, Indias largest state owned bank SBI said in a statement that the account is presently undergoing “liquidation under an NCLT driven process”. The CBI has booked ABG Shipyard Ltd and its Chairman and MD Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of banks led by SBI.
Commodity play
Gold – Rs 48786/10gm, Silver – Rs 62130/kg, Brcrude – Rs 6986/Barrel, Degumsyoil – Rs 1250/10kg, Copper – Rs 774/kg.
Corporate News
SBI – Bannk expects to recover Rs 8k Cr from written-off accounts in FY22
Coal India – Company`s total dividend payout this year likely to be higher than FY21.
Avanti Feeds – Q3 PAT 402Mn vs 750Mn (YoY), 241Mn (QoQ). Revenue 10.68Bn vs 9.15Bn (YoY).
Sector in focus – PSB, PSU, IT & Automobiles.
INDIAN ECONOMY: Despite Rising Inflation, RBI Unlikely To Hike Rates Till August
Rbi May hike 50 basis points in 2nd half starting from August Policy says Ubs Securities
Rbi May hike 50 basis points in 2nd half starting from August Policy says Ubs Securities
Stocks in News
Vedant Fashions: The company will make its debut on the BSE and NSE, on February 16. The final issue price has been fixed at Rs 866 per share. It would be third listing in year 2022 after AGS Transact Technologies and Adani Wilmar.
Punjab & Sind Bank: NPA account, IL & FS Tamil Nadu Power Company with outstanding dues of Rs 148.86 crore has been declared as fraud. The bank reported this fraud to RBI and has already made provisions amounting to Rs 59.54 crore.
Wheels India: ICRA has downgraded its long term rating for bank lines to ‘A-‘, from ‘A' earlier while keeping outlook stable. The rating agency also downgraded its short term rating for bank lines to ‘A2+', from ‘A1' earlier.
Burger King India: The company closed its qualified institutional placement issue and finalised the issue price at Rs 129.25 per share, a discount of 5 percent to the floor price of Rs 136.05 per share.
Torrent Power: The company completed transaction of acquisition of 100 percent stake in special purpose vehicle Visual Percept Solar Projects. The acquisition was as per the Share Purchase Agreement between Torrent Power, and Blue Daimond Properties and Balrampur Chini Mills.
Redington India: Investor Marina IV (Singapore) Pte Ltd sold 2.14 percent equity stake in the company via open market transactions on February 11. As a result, its shareholding in the company dropped to 3.22 percent, from 5.36 percent earlier.
Vedant Fashions: The company will make its debut on the BSE and NSE, on February 16. The final issue price has been fixed at Rs 866 per share. It would be third listing in year 2022 after AGS Transact Technologies and Adani Wilmar.
Punjab & Sind Bank: NPA account, IL & FS Tamil Nadu Power Company with outstanding dues of Rs 148.86 crore has been declared as fraud. The bank reported this fraud to RBI and has already made provisions amounting to Rs 59.54 crore.
Wheels India: ICRA has downgraded its long term rating for bank lines to ‘A-‘, from ‘A' earlier while keeping outlook stable. The rating agency also downgraded its short term rating for bank lines to ‘A2+', from ‘A1' earlier.
Burger King India: The company closed its qualified institutional placement issue and finalised the issue price at Rs 129.25 per share, a discount of 5 percent to the floor price of Rs 136.05 per share.
Torrent Power: The company completed transaction of acquisition of 100 percent stake in special purpose vehicle Visual Percept Solar Projects. The acquisition was as per the Share Purchase Agreement between Torrent Power, and Blue Daimond Properties and Balrampur Chini Mills.
Redington India: Investor Marina IV (Singapore) Pte Ltd sold 2.14 percent equity stake in the company via open market transactions on February 11. As a result, its shareholding in the company dropped to 3.22 percent, from 5.36 percent earlier.
Stocks To Watch
InterGlobe Aviation: Promoter Rakesh Gangwal has resigned from the board of directors of the IndiGo airline operator with immediate effect. Gangwal in a letter to the board said he plans to slowly dilute his holding in the company over the next five years.
Future Retail: The company has paid $14 million as interest for the half year on 5.60% Senior Secured Notes (USD). The company had missed the payment which was due on Jan. 24.
Gulf Oil Lubricants: The company will buyback 14,16,667 shares, representing 2.8% of the total paid up capital at buyback price of Rs 600 per share.
HDFC: Srikanth Nadhamuni resigned from the board as non-executive non-independent director citing a potential future deal between HDFC Bank and an entity where he might be interested.
Kansai Nerolac Paints : The company appointed Anuj Jain as the Managing Director for a term of five years after retirement of Vice Chairman and Managing Director HM Bharuka.
Canara Bank: The bank has subscribed to 1,20,000 shares of Debt Resolution Company for 14.9% stake which will be reduced to 5% by March 31, 2022.
Union Bank: The bank has subscribed to 99,000 shares of Debt Resolution Company for 12.3% stake which will be reduced below 10% in due course. .
SBI: The bank has subscribed to 99,000 shares of Debt Resolution Company for 12.3% stake which will be reduced to 5% by March 31, 2022.
Bank of Baroda: The bank has subscribed to 99,000 shares of India Debt Resolution Company for a 12.3% stake which will be diluted to 9.9% by March 31, 2022.
Punjab National Bank: The bank has subscribed to 90,000 shares Debt Resolution Company for 11.8% stake which will be reduced to 5% in due course.
Bank of Maharashtra: The bank has subscribed to 50,000 shares of Debt Resolution Company for 6.21% stake which will be reduced to 4% by March 31, 2022.
Gujarat Mineral Development: The company has received an amendment to its environment clearance from the Ministry of Environment and Forest to mine up to a depth of 135 metres from its earlier approved depth of 94 metres at the Tadkeshwar Lignite Mines.
Hinduja Global: Wins $281 Million U.K. Test-and-Trace Contract.
JMC Projects: To merge with Kalpataru Power Transmission in an all-equity merger. Shareholders of JMC will be issued equity shares of Kalpataru in the ratio of 4:1. The merged entity will have a combined order book of Rs 37,000 crore.
TCS: Last date to buy stock to qualify for buyback record date of Feb 23. India's largest IT services firm has set a buyback price of Rs 4,500.
Godawari Power & Ispat: Gets into agreement to sell 50 MW (CGEL) solar thermal power plant for Rs 665 crore.
InterGlobe Aviation: Promoter Rakesh Gangwal has resigned from the board of directors of the IndiGo airline operator with immediate effect. Gangwal in a letter to the board said he plans to slowly dilute his holding in the company over the next five years.
Future Retail: The company has paid $14 million as interest for the half year on 5.60% Senior Secured Notes (USD). The company had missed the payment which was due on Jan. 24.
Gulf Oil Lubricants: The company will buyback 14,16,667 shares, representing 2.8% of the total paid up capital at buyback price of Rs 600 per share.
HDFC: Srikanth Nadhamuni resigned from the board as non-executive non-independent director citing a potential future deal between HDFC Bank and an entity where he might be interested.
Kansai Nerolac Paints : The company appointed Anuj Jain as the Managing Director for a term of five years after retirement of Vice Chairman and Managing Director HM Bharuka.
Canara Bank: The bank has subscribed to 1,20,000 shares of Debt Resolution Company for 14.9% stake which will be reduced to 5% by March 31, 2022.
Union Bank: The bank has subscribed to 99,000 shares of Debt Resolution Company for 12.3% stake which will be reduced below 10% in due course. .
SBI: The bank has subscribed to 99,000 shares of Debt Resolution Company for 12.3% stake which will be reduced to 5% by March 31, 2022.
Bank of Baroda: The bank has subscribed to 99,000 shares of India Debt Resolution Company for a 12.3% stake which will be diluted to 9.9% by March 31, 2022.
Punjab National Bank: The bank has subscribed to 90,000 shares Debt Resolution Company for 11.8% stake which will be reduced to 5% in due course.
Bank of Maharashtra: The bank has subscribed to 50,000 shares of Debt Resolution Company for 6.21% stake which will be reduced to 4% by March 31, 2022.
Gujarat Mineral Development: The company has received an amendment to its environment clearance from the Ministry of Environment and Forest to mine up to a depth of 135 metres from its earlier approved depth of 94 metres at the Tadkeshwar Lignite Mines.
Hinduja Global: Wins $281 Million U.K. Test-and-Trace Contract.
JMC Projects: To merge with Kalpataru Power Transmission in an all-equity merger. Shareholders of JMC will be issued equity shares of Kalpataru in the ratio of 4:1. The merged entity will have a combined order book of Rs 37,000 crore.
TCS: Last date to buy stock to qualify for buyback record date of Feb 23. India's largest IT services firm has set a buyback price of Rs 4,500.
Godawari Power & Ispat: Gets into agreement to sell 50 MW (CGEL) solar thermal power plant for Rs 665 crore.
Stocks To Watch
Adani Enterprises: The company signed a non-binding memorandum of understanding with Ballard Power Systems to evaluate a joint investment case for the commercialisation of hydrogen fuel cells in various mobility and industrial applications in India.
Tata Power: The company’s subsidiary Tata Power Renewable Energy has signed a memorandum of understanding with RWE Renewables GmbH to explore the potential for a joint development of offshore wind projects in India.
ICICI Bank: The company has entered into an agreement to acquire 9.49% stake in Verve Financial Services for Rs 19.99 crore.
Hero MotoCorp: The company has created a new position of chief growth officer, integrating marketing, sales and aftersales functions. Ranjivjit Singh, head of marketing, has been elevated to to this new role with immediate effect.
Hindalco: The company’s wholly owned subsidiary Novelis will invest approximately Rs 372.74 crore ($50 million) to build a recycling centre with annual casting capacity of 100 kilotonnes of low-carbon sheet ingot at its Ulsan Aluminium joint venture in South Korea. It expects the recycling centre to reduce the company’s carbon emissions by more than 420,000tonnes each year.
IDFC First Bank: Managing Director and CEO V. Vaidyanathan has gifted 900,000 equity shares to five persons including his trainer, househelp, driver and office support staff. Rukmani Social Welfare Trust has disposed 200,000 equity shares to support social activities.
IndiaMart InterMesh: The company entered into an agreement with Fleetx Technologies to acquire 16.35% stake for an aggregate amount of Rs 91.42 crore.
Affle India: The company’s subsidiary Affle International has acquired 28.33% stake in Appnext.
Krsnaa Diagnostic: The company has bagged a tender for providing diagnostic/laboratory services in healthcare institutions run by the Health and Family Welfare Department of Government of Himachal Pradesh.
ISGEC: The company has commissioned its largest Biomass Boilers for a Bio Ethanol project in Thailand for GKBI, a joint venture of PTT, Thailand Petroleum Company and KTIS, through an EPC company, Sbang, Thailand.
SIS: The company said that former promoters of the SLV, Vishal Swara and Ruchi Swara, have withheld the transfer of remaining 21,474 shares (8.59%) with a dishonest intention, in spite receiving full consideration for the shares. The companysaid it has thus completed and fulfilled its obligations of payments to purchase 100% of the shares of SLV.
CG Power: Mumbai High Court dismisses tax claim on CG Power.
L&T Finance: Citigroup sells 57.87 million shares of the company, while BNP Paribas buys 57.87 million shares at Rs 71.35/share.
Panacea Biotec: The pharma company has partnered the central government for Betacoronavirus vaccines.
Adani Enterprises: The company signed a non-binding memorandum of understanding with Ballard Power Systems to evaluate a joint investment case for the commercialisation of hydrogen fuel cells in various mobility and industrial applications in India.
Tata Power: The company’s subsidiary Tata Power Renewable Energy has signed a memorandum of understanding with RWE Renewables GmbH to explore the potential for a joint development of offshore wind projects in India.
ICICI Bank: The company has entered into an agreement to acquire 9.49% stake in Verve Financial Services for Rs 19.99 crore.
Hero MotoCorp: The company has created a new position of chief growth officer, integrating marketing, sales and aftersales functions. Ranjivjit Singh, head of marketing, has been elevated to to this new role with immediate effect.
Hindalco: The company’s wholly owned subsidiary Novelis will invest approximately Rs 372.74 crore ($50 million) to build a recycling centre with annual casting capacity of 100 kilotonnes of low-carbon sheet ingot at its Ulsan Aluminium joint venture in South Korea. It expects the recycling centre to reduce the company’s carbon emissions by more than 420,000tonnes each year.
IDFC First Bank: Managing Director and CEO V. Vaidyanathan has gifted 900,000 equity shares to five persons including his trainer, househelp, driver and office support staff. Rukmani Social Welfare Trust has disposed 200,000 equity shares to support social activities.
IndiaMart InterMesh: The company entered into an agreement with Fleetx Technologies to acquire 16.35% stake for an aggregate amount of Rs 91.42 crore.
Affle India: The company’s subsidiary Affle International has acquired 28.33% stake in Appnext.
Krsnaa Diagnostic: The company has bagged a tender for providing diagnostic/laboratory services in healthcare institutions run by the Health and Family Welfare Department of Government of Himachal Pradesh.
ISGEC: The company has commissioned its largest Biomass Boilers for a Bio Ethanol project in Thailand for GKBI, a joint venture of PTT, Thailand Petroleum Company and KTIS, through an EPC company, Sbang, Thailand.
SIS: The company said that former promoters of the SLV, Vishal Swara and Ruchi Swara, have withheld the transfer of remaining 21,474 shares (8.59%) with a dishonest intention, in spite receiving full consideration for the shares. The companysaid it has thus completed and fulfilled its obligations of payments to purchase 100% of the shares of SLV.
CG Power: Mumbai High Court dismisses tax claim on CG Power.
L&T Finance: Citigroup sells 57.87 million shares of the company, while BNP Paribas buys 57.87 million shares at Rs 71.35/share.
Panacea Biotec: The pharma company has partnered the central government for Betacoronavirus vaccines.