Consolidation or more fall?
Good Morning Everyone, The uncertainty in the market continues as the Russia-Ukraine issue still has not come to a conclusion. The Nifty will open flat to a small gap up today with news of the peace talks initiated with both the countries. SGX Nifty fell more than 300 points on open today, but then it had risen up by 400 points after the Indian market closed on Friday.
The Dow on Friday registered its biggest daily percentage gain since November 2020 with the market rebounding for a second day from the sharp selloff leading up to Russia's invasion of Ukraine. Oil prices fell below $100 a barrel, easing some concerns about higher energy costs, and all 11 of the major S&P 500 sectors ended up on the day. The S&P 500 and Nasdaq also posted gains for the week.
The Dow Jones Industrial Average rose 834.92 points, or 2.51%, to 34,058.75, the S&P 500 gained 95.95 points, or 2.24%, to 4,384.65 and the Nasdaq Composite added 221.04 points, or 1.64%, to 13,694.62.
Shares in Asia-Pacific were mixed on Monday as investors monitor the Russia-Ukraine crisis and related sanctions. Japan’s Nikkei 225 shed 0.28%, while the Topix was almost flat. In South Korea, the Kospi also erased losses to rise 0.14%, and the Kosdaq advanced 0.49%.
Crude oil jumped after Western nations imposed new sanctions on Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system.
The Union Cabinet has approved foreign direct investment under the automatic route in the Life Insurance Corporation of India (LIC), government sources told CNBC-TV18 on February 26. Up to 20 percent FDI will now be permitted under the automatic route in LIC and the existing FDI policy has also been “simplified and enhanced”, they added.
Notably, the FDI ceiling for public sector banks is 20 percent under the approval route, and a similar limit has been maintained for LIC. The choice of the automatic route however is expected to expedite the capital-raising process.
FII and DII data
The relentless selling by foreign institutional investors (FIIs) continued in Indian equities amid geopolitical tensions and global growth worries, as they have net sold Rs 4,470.70 crore worth of shares. However, domestic institutional investors (DIIs) have managed to compensate the FII outflow by buying shares worth Rs 4,318.24 crore on February 25
What the brokers say:
Jefferies on Bharti Airtel | The brokerage house said that the telco's decision to acquire a 4.7 percent stake in Indus Towers can be justified financially but it raises questions over its capital allocation. Jefferies has maintained its 'buy' rating on Bharti Airtel's stock.
Citi on Bharti Airtel | Attractive acquisition price offers potential for a meaningful return over the long-term, believes Citi. The brokerage house has maintained a 'buy' call on the stock.
CLSA on Bharti Airtel | Key driver for Bharti Airtel's stock remains its mobile business in India, according to CLSA. The brokerage house has a 'buy' recommendation on the stock.
Jefferies on GAIL | The brokerage house has upgraded its rating on GAIL shares to 'Buy' from 'Hold' and hiked the target price to Rs 170 from Rs 160. Jefferies has also raised FY23 EBITDA by 20 percent and said that the InvIT listing in FY23 is a trigger for re-rating of the stock.
Stock Specific News:
Hindalco Industries | The aluminum major has entered into an agreement with Brazilian firm Terrabel Empreedimentos to divest entire equity shareholding in the wholly-owned step-down subsidiary Hindalco Do Brazil Industria Comercia de Alumina LTDA.
Fortis Healthcare | Rating agency CRISIL has upgraded long-term rating to 'AA-, from 'A+' for the private hospitals' chain, and placed the rating on watch with developing implications. Further, the short-term rating has been upgraded to A1+, from 'A1' and placed the rating on watch with developing implications.
Hinduja Global Solutions | Subsidiary HGS International Mauritius has completed the acquisition of the Australian company Diversify. In January, its arm entered into a definitive agreement to acquire a 100 percent equity stake in Diversify Offshore Staffing Solutions Pty Ltd, Australia.
IndusInd Bank | Buyout group TPG has joined forces with Hinduja family-owned IndusInd Bank and a private promoter entity of the lender to form a consortium and make a firm bid for IDFC's mutual fund business, according to a report.
SJVN | The government has granted in-principle approval for the development of a 400MW solar park at Kinnaur, to SJVN. These projects will assist SJVN in achieving its ambitious shared vision of 5000 MW by 2023, 25000 MW by 2030 and 50000 MW by 2040.
IRCON International | The company has bagged an order for “Construction of Road from Paletwa (Myanmar) to Zorinpuri (Mizoram) under Kaladan Multi-Modal Transit Transport Project (KMMTTP)” in Myanmar, on EPC mode at a lump sum cost of Rs 1,780 crore by Ministry of External Affairs, Government of India.
Patel Engineering | Patel Engineering's wholly-owned subsidiary, Patel Energy Resources, has divested its entire stake in Nepal arm Naulo Nepal Hydroelectric for Rs 11.53 crore.
Mahindra Lifespace Developers | Kotak Mahindra Mutual Fund bought additional 2.19 lakh equity shares through open market transactions on February 23. With this, its shareholding in the company stands at 5.13 percent now, up from 4.98 percent earlier.
Rain Industries | The company posted a loss of Rs 72.3 crore for the quarter ended December 2021 against a profit of Rs 322 crore in the year-ago period. However, revenue grew 52 percent YoY to Rs 4,026 crore in Q4CY21.
DLF | CLSA has upgraded its rating on shares of DLF to ‘buy’ from ‘outperform’ but has slashed its target price on the stock to Rs 423 from Rs 470. With this, the stock ended 8.8 percent higher.
Indus Towers | Jefferies on Friday reiterated its 'buy' rating on Indus Towers and said that it finds the risk-reward in the stock attractive after a steep correction. Reacting to this, shares of Indus Towers closed 4.6 percent higher.
UPL | Shares of UPL closed 3.8 percent higher as the company announced that its Board of Directors would mull share buyback proposal.
Advanced Enzyme Technologies | Shares of the company settled 18.41 percent higher and were the best performers on Nifty500.