All You Need To Know Going Into Trade On March 1

Asian stocks started March on a weak footing after U.S. shares tumbled in afternoon trading Wednesday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.8 percent to 10,437 as of 7:10 a.m.

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DayBreak

Here's a quick look at all that could influence equities on Thursday.

Global Cues

• U.S. stocks tumbled in afternoon trading, adding to the worst month for equities in two years.

#BQMarketsNow | U.S. stocks suffered worst month in 2 years. https://t.co/kgcbebx9r2 pic.twitter.com/m6nJm53f9Z

• The 10-year Treasury yield held just below 2.9 percent, roughly where it began a month that saw it fall as low as 2.70 and come within five basis points of 3 percent, a level it hasn't touched in four years.
• The dollar added to its monthly gain, strengthening versus major peers including the euro and pound.

U.S. fourth-quarter growth revised down to 2.5%.https://t.co/SqqvfpSXPY pic.twitter.com/Pk1MIolo7u

Europe Check

• European stocks fell, widening their monthly loss, as global markets continued to digest Federal Reserve Chairman Jerome Powell's comments about the strength of the U.S. economy.

Asian Cues

• Japan's Topix index fell 1.2 percent.
• South Korea's Kospi index dropped 1.2 percent and Australia's S&P/ASX 200 Index declined 0.7 percent.
• Futures contracts on the S&P 500 were up 0.2 percent.

Here are some key events scheduled for this week:

• Fed's Powell testifies before the Senate Banking Committee Thursday. Other Fed speakers this week are Bill Dudley.
• In the euro region, investors will be watching manufacturing and jobs numbers Thursday.
• U.K. Prime Minister Theresa May delivers a speech Friday on Britain's relationship with the European Union.
• Japan capital spending is out on Thursday.

NSE working with global exchanges, index providers for orderly transition.https://t.co/yFbQUTB54n pic.twitter.com/qDulszuClP

Commodity Cues

• West Texas Intermediate crude was at $61.59 a barrel after sliding 2.2 percent.
• Brent ended lower for second day at $64.7 per barrel; down 2.7 percent.
• Gold was steady at $1,317.60 an ounce.
• Sugar snaps three-day losing streak, ends higher at 13.4 cents per pound; up 4 percent.

Shanghai Exchange

• Steel trades higher for fifth day; up 1 percent.
• Aluminium trades higher for second day; up 0.4 percent.
• Zinc trades lower for second day; down 0.4 percent.
• Copper trades lower for fourth day; down 0.9 percent.
• Rubber trades higher for second day; up 0.5 percent.

Oil set for first monthly drop since August on U.S. stock fears.https://t.co/4bh32QkoCd pic.twitter.com/w51W2LhUum

Indian ADRs

Earnings Reactions To Watch

Jai Balaji Industries Q3 (YoY)

• Revenue up 56 percent at Rs 579 crore.
• Net loss of Rs 68 crore versus net loss of Rs 53 crore.
• Ebitda loss of Rs 37 crore from a loss of Rs 21 crore.
• Margin at -6.4 percent from -5.6 percent.

Fortis Healthcare Q2 (YoY)

• Net loss at Rs 45.7 crore versus net profit of Rs 31.4 crore.
• Revenue remained flat at Rs 1,197 crore.
• Ebitda up 7.6 percent to Rs 106.5 crore.
• Margin at 8.9 percent versus 8.3 percent.
• Exceptional loss of Rs 46 crore due to closure of hospital facility.

Fortis Healthcare Q3 (YoY)

• Net loss at Rs 36.8 crore versus net profit of Rs 442 crore.
• Revenue down 1 percent at Rs 1,120.7 crore.
• Ebitda down 54 percent at Rs 51.6 crore.
• Margin at 4.6 percent versus 10 percent.

Fortis Healthcare's auditor raises 3 red flags relating to - ongoing investigations, to loans given and recoverability of certain vendor advances.https://t.co/ILE3TmgUzB pic.twitter.com/pakWXQccNv

Stocks To Watch

• Auto companies will report February sales numbers.
• Fortis Healthcare : Auditor raises three red flags. Lenders invoked more shares; founders' stake reduced to 0.7 percent from 3 percent.
• Reliance Power approved raising of up to Rs 2,000 crore via QIP to cut debt.
• HCL Infosystems arm to sell HCL MEA FZE share to Axis Investment for 4.12 million UAE dirhams.
• SH Kelkar says fragrance industry will pass on the increased impact of volatile raw material prices to customers.
• Idea Cellular will launch VoLTE services in select markets starting March 1.
• NR Agarwal Industries mulls setting up a new 500 TD Kraft paper unit.
• MOIL increases prices of products from March 1.
• Dynamatic Technologies board approved plan for demerger of auto division.
• Xpro India to sell/transfer Pithampur unit to JKM Ventures for Rs 14 crore.

India's auto sales expected to grow on a yearly basis, but likely to moderate from January.https://t.co/6B22xsTOiw pic.twitter.com/zZ84G1pAjl

Bulk Deals

• Rama Steel Tubes: TCG Fund Fund sold 87,468 shares or 0.5 percent equity at Rs 195 each.
• Supreme Infra: Discord Exim Pvt. sold 2.81 lakh shares or 1.1 percent equity at Rs 63.3 each.
• Videocon Industries: IFCI sold 20.66 lakh shares or 0.7 percent equity at Rs 14.84 each.
• Punjab Alkalies & Chemicals: IDBI Bank sold 9.65 lakh shares or 3.6 percent equity at Rs 25.35 each.
• Sintercom India: KIFS Enterprises bought 1.52 lakh shares at Rs 72.16 shares.

SBI chief calls for industry-wide review of risk control measures. #PNBFraud https://t.co/q3dWrJZPSs pic.twitter.com/1FaBSNiLJ4

Corporate Action

• VKJ Infradevelopers circuit filter revised to 10 percent.
• 5Paisa Capital and TCI Developers shifted to T group.
• Pidilite Industries and Savita Oil Technologies buyback period from March 1-15.
• Vishnu Chemicals shifted from T to B group.

Who's Meeting Whom

• Deepak Fertilizers to meet Aequitas Investment Consultancy and SBI MF on March 1.
• BSE to meet several funds including Fidelity Institutional Asset Management, Jupiter Investment Management on March 1–2.
• IIFL to meet William Blair & Co and Manulife Asset Management on March 1.

Insider Trades

• UPL promoter Shilpa Sagar sold 93,000 shares from Feb. 26–27.
• Kitex Garments promoter Sabu Jacob acquired 1.21 lakh shares on Feb. 28.
• KCP Sugar & Industries promoters acquired 10,000 shares on Feb. 22.
• Digjam promoter iPro Capital sold 50,000 shares on Feb. 27.

Offerings

• HG Infra Engineering IPO subscribed 4.9 times on day 3.

HG Infra Engineering IPO subscribed 5 times on last day.https://t.co/s4uTZV3Yan pic.twitter.com/BW7XLxOh7W

Rupee

• Rupee closed at 65.18/$ on Wednesday from 64.89/$ on Tuesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty March futures closed at 10,519, premium of 26.6 points versus 10 points on Tuesday.
• All series: Nifty open interest up 1 percent, Bank Nifty OI up 1 percent
• India VIX ended at 13.8, down 0.8 percent
• Maximum open interest for March series at 10,700 call strike (OI at 36.8 lakh, up 13 percent)
• Maximum open interest for March series at 10,400 put (OI at 37.2 lakh, up 4 percent)

F&O Ban

• Fortis Healthcare
• JP Associates
• Oriental Bank

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.37 from 1.42
• Nifty Bank PCR at 0.90 from 1

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

JPMorgan on BPCL

• Maintained ‘Overweight' with price target of Rs 540.
• Bharat Oman Refinery stake sale would be sentiment positive.
• Could be a potential Rs 15 per share upside.
• Stake sale would partially monetise investments made by BPCL into BORL.
• Entry of new investor into BORL and price discovery would be positive for BPCL.

BoFAML on Steel

• Domestic steel price recovery has more legs.
• Expect one more price hike in March.
• Rising steel spreads to support further expansion in profitability in current quarter.
• Tata Steel and JSW Steel are preferred picks.
• SAIL should benefit as well, but concerned on high valuations.
• Margin expansion for Tata Steel to be higher on account of raw material integration.
• Rising utilization, demand uptick to support local spreads.
• Every 1 percent rise in steel prices, rise operating income and Tata Steel, JSW and SAIL by 2 percent, 3 percent and 8 percent respectively for the next fiscal. Raise net profit estimates 4 percent, 6 percent and 34 percent respectively.

Edelweiss on City Gas Distribution

• City gas distribution purview doubled; more geographical areas than ever.
• Long term positive: PNGRB quorum achieved, reforms to accelerate.
• Marketing exclusivity has been raised from five to eight years.
• Indraprastha Gas, Mahanagar Gas and Gujarat Gas will pursue high-potential areas.
• IGL, MGL and GGL better poised to leverage their expertise and strong balance sheets.
• Pecking Order: Gujarat Gas > Indraprastha Gas > Mahanagar Gas.

Neelkanth Mishra of Credit Suisse says stronger non-oil/gold import growth to drive sharp increase in trade deficits pic.twitter.com/cysWEckF3k

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