20/05/2021
[08:47, 20/05/2021] Ramesh Singh Shekhawat: Potential additions to F & O Stock list:
Avenue Supermarts, SBI Card, IDFC, Tata Motors DVR, CDSL and Affle India , Adani Green, Adani Transmission, Dixon Technologies, Astral PolyTechnik, Ipca Laboratories, Tata Communications, IndiaMART Inter-MESH, IEX, Emami, Coromandel International, Tata Elxsi, Aditya Birla Fashion and Retail, Indian Hotels, MCX, Sanofi, Polycab, Syngene, and Cyient
[08:47, 20/05/2021] Ramesh Singh Shekhawat: News and Impact
Expects market to open on flat note on account of global cues. US closed lower in the three trading sessions on a highly volatile trade. Outcome of FOMC Minutes Meeting, the Federal Reserve officials were cautiously optimistic about the U.S. recovery at their April meeting, with some signaling they’d be open “at some point” to discussing scaling back the central bank’s massive bond purchases. Dow Jones slipped half percent but recovered over 300 points (1%) from the intra-day low. Nasdaq Composite ended flat (recovers nearly 1% from intra-day low), boosted by late-day gains in tech stocks including Facebook Inc. and Alphabet Inc. Strong inflation readings and signs of a worker shortage in recent weeks have fueled fears and roiled stock markets despite reassurances from Fed officials that the rise in prices would be temporary. Dow Future declined 0.2% while SGX Nifty is up 0.1%.
Bitcoin update - At its worst moment, Bitcoin dropped about 30% to within a whisker of $30,000. Other cryptocurrencies held double-digit percentage losses, pressured in part by a Tuesday statement from the People’s Bank of China reiterating that digital tokens can’t be used as a form of payment.
Asian market open on a soft note as investors weighed Federal Reserve minutes that flagged the possibility of a debate on scaling back asset purchases. Japan, Australia and South Korea Index declined half to one percent.
European stocks ended lower on Wednesday, amid renewed fears over inflationary pressure following UK and eurozone consumer prices readings, as the market awaits the minutes of the US Federal Reserve's latest monetary policy meeting. The French CAC ended down 1.4%. Meanwhile, the German DAX 30 ended down 1.8% and the FTSE 100 closed down 1.2%.
Brent Crude fell 3% to $67/bbl amid a spate of weakness in wider markets and as traders tracked talks between world powers on a revival of the Iran nuclear deal. As demand creeps up, Europe’s refiners get hope of recovery; Iran said it will soon export oil from a new port.
Gold parted gains after the Federal Reserve minutes showed some officials signaled they’d be open to discussing scaling back the central bank’s massive bond purchases “at some point.” Gold ended flat at $1867/ounce, after rising as much as 1.1% earlier.
Positive sentiment in the market on account of decline in COVID-19 daily caseload, strong quarterly results and improving prospects of faster economic recovery emboldened investors. Pandamic cases fell to 2.7lakh in the last four dasy . Both FIIs and DIIs were net sellers Rs698cr and 853cr respectively
Actionable - Balrampur Chini, Federal Bank, Infosys, HCL Tech, TCS, Tech Mahindra, Deepak Fertilizer
Brokers Radar – IOC TGT by Goldman Sachs TGT at 135, Morgan Stanley TGT on IOC at 139, JP Morgan TGT on IOC at 147. India Bull Housing TGT by Morgan Stanley at 135
Events - Nifty and Bank weekly F&O expiry, Ircon International Bonus 1:1. Retail investors FPO on Axis Bank at Rs680 a share , Majesco Open offer Today, PM to meet with State minsters at 11am for covid crises
Results - Bosch, Emkay Global, Havell’s India, HPCL, Jk Lakshmi Cement, KNR Construction, Torrent Power, Relaxo Foot Wear and Zee Entertainment
Market summary - Axis Bank: OFS of SUUTI oversubscribed four times on Day 1, Relief for Indian IT sector as Biden administration removes H-1B visa curbs, Happiest partner with Coco-Cola Bottling company, Anupam Rasayan wins Rs540cr from two multinational companies, Adani Green to acquire SB Energy's India green portfolio for enterprise value of $3.5 billion.
Axis Bank - Offer for Sale of SUUTI shares in Axis Bank got good response on day one. Issue subscribed over 4 times of base size at a clearing price above the floor price by non-retail investors.- Positive
Biden administration removes H-1B visa curbs…. Positive for Indian IT - TCS, Infosys, HCL Tech, Tech Mahindra - The US Government has taken back a regulation proposed by former President Donald Trump's administration that sought to narrow the definition of "specialty occupation" under the H-1B visa regime
BEML rolls out mechanical minefield marking equipment for Indian Army. BEML is expected to receive the orders of more than 55 systems from MoD after the successful trial evaluation. – Positive
lndo Rama Synthetics (India): Approved capex plan up to Rs 600 crore in the company and its wholly-owned subsidiary at Butibori in Nagpur, manufacturing of specialty yarns and to install a 700 TPD PET Resin manufacturing facility. – Positive
Tata Steel: Fitch upgrades rating to BB with a stable outlook.
Shree Pushkar Chemicals: The company's plant situated at Ratnagiri in Maharashtra has been damaged due to Cyclone Tauktae – short term negative
Centrum electronics credit rating agency also assigns CARE BBB; Stable/CARE A3+ rating on the company’s Rs159cr long-term / short-term bank facilities.- Positive
PNC Infratech subsidiary receives appointed date for HAM project – Positive
NBCC bags order worth Rs597cr to develop infrastructural facilities for National Institute of Technology in Uttrakhand – Positive
Reliance Industries - Moody's completes periodic review of Reliance Industries ratings. Moody's summarized that the RIL's Baa2 rating reflects its large scale and dominant market position in India – Positive
Tata Motors expects a sequential improvement in overall performance in Q2FY22 – Positive
Aarti Industries approves issue bonus share in the ratio of 1:1 – Positive
Adani Green Energy announced that it will acquire SB Energy’s 5 GW India renewable power portfolio for a fully completed EV of $3.5 billion. – Positive
Anupam Rasayan has bagged orders worth Rs 540 crore from two multinational companies for supplying speciality chemicals. The tenure of the contract is for five years. – Positive
IndusInd Bank CEO Kathpalia plans to some share to exercise ESOP vesting – Any decline will be buying opportunity
Happiest Minds collaborates with Coca Cola United in their Robotic Automation journey. The partnership will help to streamline its order management with RPA in Microsoft Power Automate.- Positive
Kotak Special situation Fund acquires 74% in HKR Roadways, Kotak Fund helps Rs715cr one-time settlement with HKR Roadways – Positive for Kotak Bank
Compuage Infocom ties with Dahua Technology for distribution of additional product line of storage business. The company had joined hands with Dahua in July 2020 for distribution of Dahua’s entire distribution range of CCTV surveillance. – Positive
Aditya Birla Fashion receives board nod to appoint Arun Adhikari as Independent Director – Positive
GE T&D India resumes manufacturing operations in Tamil Nadu – Short Term negative
Indostar Capital Finance approves allotment of NCDs worth Rs45.90cr – Positive
LIC of India raises stake in Rajesh Exports from 7.05% to 9.07%
Yes Bank - CCI approves acquisition of Yes Bank-led subsidiaries by GPL Finance and Investments. The acquisition proposal includes GPL acquiring a 100% stake of YES AMC and YES Trustee.- Avoid
Prism Johnson Q4 Net profit Rs173.3cr vs 9.3cr, Ebitda margin 14.2% vs 10.4%, Ebitda Rs239cr (up 68% YoY) and Income Rs1689cr (up 23% YoY)
Indo Rama Synthetic announced strong Q4 results. Company reported Q4 Net profit 129cr vs loss Rs50cr, Ebitda Rs101cr (up 88% YoY) and Rs828cr (up 78% YoY)
Indiabulls Housing Finance Q4FY21 (QoQ) - NII down 4% at Rs 777.58 crore, Net profit down 16% at Rs 276.23 crore, GNPA at 2.66% Vs 2.44% NNPA at 1.59% Vs 1.46%, Declared an interim dividend of Rs 9 per share
IOC announced better than expected Q4 results. Company reported Q4 net profit Rs8781 vs loss Rs5190cr – expectation Rs4960cr, Ebitda Rs13501cr (up 40.3% YoY) – expectation Rs8380cr, GRM $12.5/BBL Ebitda Margin 10.9% vs 9% (QoQ) – expectation 6.1% and Income Rs1.24lakh cr (up 16.3% YoY)– expectation Rs1.37lakh cr
Buying opportunity on Trent, PVR, Delta, Titan, Inox Leisure, Mahindra Holidays, IndiGo, NBFC stocks …Hope of Re-opening lockdown - Expects positive for beaten down stocks on hope of unlock (re-opening lockdown) after daily Covid cases fell to nearly 1-month low at 2.8 lakh. Covid cases in Financial capital Mumbai remained under 1,000. Many stocks declined sharply during the lockdown period and can see positive momentum in case of lifting lockdown. Stocks which can react positively are - Titan, Jubliant Food Bata India, Delta, Trent, PVR, Inox Leisure, Mahindra Holidays, IndiGo, SpiceJet NBFC stocks (M&M Finance, Bajaj Finance, Au Small Finance) and Hotel stocks (Indian Hotel).
