Expect market to open on soft note on account of global cues. US market declined over half percent yesterday (however, US market gained on Friday) on account of poor economy data. Asian markets open on a mixed bag. Hong Kong and China Index (Yesterday gained 2.5%) are flat to positive. Nikkei Index declined 0.4%.
There was major concern in the market that the US Government announced tax restructuring of India product (GSP) worth $66/bn. India-US trade concern may impact in the market. However, it is a small amount for US which import from India. India will get 60days time with US for new trade negotiation. – Traders wait on watch on Tech and Pharma stocks.
There was major concern in the market that the Geo-political tension between India and Pakistan. Moreover, higher oil price, Trade war news of US-India may negative impact in the market. Traders buy on dips in the market. Buy strong fundamental stocks like L&T, HDFC Bank, SBI, UltraTech, Maruti
Reduced trade war tension between US-China will be positive for the market. Media report that the U.S. and China are close to a trade deal that may end American tariffs – China has made it clear in a series of recent talks with the US that removing the tariffs on $200bn of Beijing goods from the day one was necessary to finalize any deal.
Reliance Industries’ arm to acquire logistic company Grab A Gurb – The company will acquire Grab A Gurb for a cash consideration not exceeding Rs106cr – Positive for Reliance.
Stock in focus – Metal stocks (reduced trade tension will be positive for metal) – JSW Steel, Jindal Steel, Cement stocks (UltraTech, ACC), Auto stocks (Maruti, TVS Motor).
Watch on Tech Mahindra – Share buy-back will be commence today at Rs950 a share
Quick Heal – Company’s board meeting will be held today on share buy-back
Watch on InfoEdge – It’s subsidiary arm Zomato stake sale – Online food ordering and restaurant discovery platform Zomato to sell stake to in UAE worth $200-250mn – Media report – Positive FOR Infoedge.
Brokers Radar – HSBC BUY SBI LIFE, TGT 770, BAJAJ AUTO – cut by CS from Rs2950 to Rs2700
Tata Is Said to Explore Options for Struggling Jaguar Land Rover – Tata Group, India’s biggest conglomerate, is exploring strategic options for its Jaguar Land Rover Automotive Plc unit including a potential stake sale in the struggling luxury carmaker, people familiar with the matter said. Tata is considering alternatives ranging from a minority stake sale to finding a venture partner that would jointly develop vehicles and lower costs. Positive for Tata Motors, partial stake sale may reduce debt.
RBI imposes penalty on IDBI Bank (Rs10mn), Dena Bank (Rs20mn), Union Bank 9Rs30mn), SBI (Rs10mn)- RBI has imposed a monetary penalty for contravention of its regulatory directions on time-bound implementation and strengthening of SWIFT-related operational controls.- It is a small amount, not any impact on the stock.
Indian Hume Pipe receives orders worth Rs1.87bn – Orders have been received from Vidarbha Irrigation Development Corporation, Nagpur – Positive
IGL gets approval to develop network in 3 areas – Positive for IGL
L&T Infotech and Baring Private Equity Asia are the leading bidders for a major stake in Mindtree as the Indian tech services and consulting firm’s largest shareholder seeks to sell his holding, according to people familiar with the matter. Larsen & Toubro and Baring are both offering Rs950 to 1,000 a share and a decision may come as soon as next week – Mindtree closed on Friday at Rs935 a share. It will be positive for L&T Infotech.
Tata Steel raises Rs43.15bn via allotment of debenture – Positive for Tata Steel
Rating agency affirms Bharti Airtel ‘BBB-‘ outlook negative – Company is coming out a right issue worth Rs250bn at Rs220 a share – We are positive on Bharti Airtel – BUY
Auto monthly sales volumes during the month of February were in mixed bag. Maruti (Reported 148582 unit, expectation 148750 unit) and Ashok Leyland (Reported 18245 unit, expectation 18450 unit) reported inline with expected Feb. monthly sales volumes. Bajaj Auto (Reported 393089 unit, expectation 408000 unit), Eicher Motor (Reported 62630 unit, expectation 73800 unit) and Tata Motor (Reported 57221unit, expectation 60500 unit) announced lower than expected monthly sales. Escorts(Reported 7240 unit, expectation 6950 unit) and TVS Motor (Reported 299353 unit, expectation 297600 unit) announced better than expected Feb sales volume
Wockhardt gets US FDA approval for prostate cancer drug – Positive for Wockhardt
Nikkei Feb Manufacturing PMI at 14-month high at 54.3 vs 53.9 previous month – Positive for the markets sentiment after 14-month of Manufacturing PMI, Expects industry growth on track.
ABB reported lower than expected Q4 results. Stock is rich valuation and we have a sell rating on the stock. Company reported Q4 net profit Rs1.98bn (up 17% YoY) – Expectation Rs2.29bn, Company reported EBITDA at 2.15bn (down 25.4% YoY) expectation Rs3.65bn, EBITDA margin 11% vs 8.5% (YoY) – expectation 11%
NCC received five new orders worth Rs40.88bn – Positive for NCC, Strong order book, reported good Q3 results
Shriram Transport Finance panel meet in March on fund raising – We are positive on Shriram Transport Finance – BUY
SBI Life block deal – BNP Paribars Cardif sells 8% stake in SBI Life and Carlyle group acquires 9% stake in SBI Life – SBI life gained 5% to close at Rs68 after touching a intra-day low of 516
Moody’s says India to grow 7.3% in 2019 and 2020 – Indian economy is expected to grow at 7.3 per cent in calendar year 2019 and 2020, and the government spending announced ahead of elections this year which will support near-term growth, Moody’s said on Friday – Positive for economy and expect to increase FIIs investment on account of highest growth among the emerging countries.
Yes Bank says Ravneet Gill joined as MD and CEO today – Positive for Yes Bank after joined a new MD and CEO, Stock declined sharply from the high, reported good Q3 results – BUY
L&T Finance sells Rs2.75bn May 2020 bonds at interest rate of 8.75% – Positive for L&T Finance as Bond Interest 8.75%
National Aluminum approved dividend at Rs4.5 a share – Dividend yield over 8%, current valuation is attractive – BUY
Government approves a Rs100b program to encourage faster adoption of electric and hybrid vehicles – Positive for M&M
SML Izuzu Feb sales at 1282, up 33% YoY – Reported good monthly sales volumes
IOC to Get LNG From U.S. Cameron Plant From July-Aug.: Indian Oil Corp. expects two LNG cargoes from Cameron project in 2019. IOC to get contracted 0.7 million tons/year Cameron LNG from 2020, official says – Positive for IOC, IOC will import from US as lower cost.