Good Morning Everyone, The geopolitical tensions between Russia and Ukraine have hit the entire world hard as the global stock markets are low. But as things are continuing without any decisive move, it is time the market factors the situation and starts going to a buying mode soon. So this will be the aptest time to keep adding good stocks in the market.
Yesterday, the Nifty continued to fall from the open itself, but then that last half n hour of buying brought it back to where it was.
On the daily chart, Nifty has formed an indecisive candle, which shows equal power in the bull and the bear.
US stock markets on Wednesday rebounded after days of fall as Federal Reserve Chair Jerome Powell said he supports a more modest rise in interest rates this month than some investors had been fearing. The S&P 500 rose 80.28 points, or 1.9 percent, to 4,386.54. The Dow Jones Industrial Average rose 596.40 points, or 1.8 percent, to 33,891.35. Nasdaq rose 219.56 points, or 1.6 percent, to 13,752.02 and the Russell 2000 index of smaller companies rose 50.37 points, or 2.5 percent, to 2,058.87.
A bounce back in US key indices supported the uptrend in Asian equities on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.5 percent higher. Japan's Nikkei 225 gained 0.9 percent to 26,617.51 and South Korea's Kospi was up over a percent at 2,732.66. Hong Kong's Hang Seng was up 0.3 percent at 22,415.66 and China's Shanghai Composite also gained 0.3 percent at 3,491.70.
Crude oil surged again on a wave of divestments from Russian oil assets by major companies and expectations that the market will remain short of supply for months to come. US crude rose another 36 cents to $110.96 a barrel, while Brent had yet to trade having surged 9 percent overnight to $114.54.
Russian troops are in the Ukrainian city of Kherson and forced their way into the council building, the mayor said after a day of conflicting claims over whether Moscow had make the first major gain of a city in its invasion that began eight days ago.
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 34 points.
Owing to strong global orders, India's merchandise exports rose by 22.36 percent in February this year as compared to February 2021. Impressively, exports also rose by more than 21.8 percent as compared to two years back or February 2020, just before the pandemic struck.
Data released by the Commerce and Industry Ministry on March 2 showed outbound trade rose to $33.8 billion in February, up from $27.63 billion in February 2020. However, export growth in the latest month came down from the 38.9 percent rise seen in December 2021, and 23.7 percent in January 2022.
Cumulatively, exports grew by 45.8 percent in the April-February period of FY22 (2021-22) as compared to the same period of 2020, to register total exports worth $374 billion. In 2019-20, only the last two months of which had an economic downturn owing to the COVID pandemic, the cumulative exports over the corresponding period was $256.5 billion, the ministry said.
The total number of air passengers in the world will reach the four-billion mark in 2024, exceeding the 2019 pre-Covid level by three percent, global airlines body IATA said on Wednesday. In 2021, overall traveller numbers were 47 percent of the pre-COVID level, the International Air Transport Association (IATA) mentioned.
"This is expected to improve to 83 percent in 2022, 94 percent in 2023, 103 percent in 2024 and 111 percent in 2025,” it added.
FII and DII data
The selling by foreign institutional investors (FIIs) seems unstoppable given the rising geopolitical tensions between Ukraine and Russia, as they have net sold shares worth Rs 4,338.94 crore. However, domestic institutional investors (DIIs) have tried to compensate the FII outflow by purchasing shares worth Rs 3,061.70 crore on March 2
What the Brokers say:
CLSA on automobile companies | Geopolitical tensions might also add to supply chain challenges in the short term, CLSA said. It pointed out that passenger vehicle sales are showing signs of recovery on improved demand and robust bookings.
CLSA on Biocon | The brokerage firm has reiterated its 'sell' call on Biocon shares as it sees execution challenges in biosimilars. Direct market presence is a positive but limited front-end experience appears to be a concern, CLSA said.
Jefferies on Biocon | The brokerage firm has upgraded its rating on shares of Biocon to 'buy' from 'hold' and raised its target price on the stock to Rs 413 from Rs 362.
Nomura on Dr Reddy's | The brokerage firm has maintained its 'buy' rating on the drug maker's stock. It is constructive on the stock as the current weakness presents an opportunity to accumulate Dr Reddy's shares, Nomura believes. The constructive view is driven by strength in other businesses, Nomura added.
Stock Specific News:
Vedanta | The mining giant will pay a third interim dividend of Rs 13 per share for 2021-22 (Apr-Mar) amounting to Rs 4,832 crore. The record date for the purpose of payment of the dividend is March 10.
Swan Energy | The firm said the board on March 5 will consider fundraising of up to Rs 2,000 crore.
Tantia Constructions | The company has bagged a Rs 42.2 crore contract from South Eastern Railway for the construction of a major bridge between Basta and Rupsa.
Hind Rectifiers | The electrical equipment manufacturer has received orders worth Rs 57.32 crore in February 2022.
Valiant Communications | Investor Duane Park acquired 1.21 percent equity shares in the company through open market transactions. With this, its shareholding in the company stands at 10.35 percent now, against 9.14 percent earlier.
ABB India | The company completed the sale of its turbocharger business to Turbocharging Industries and Services India, as a going concern, on a slump sale basis to its wholly-owned subsidiary for Rs 310 crore. In January this year, it had incorporated a wholly-owned subsidiary - Turbocharging Industries and Services India.
Mukand | The stainless steel company has sold its land in Thane for Rs 806.14 crore. It has executed an agreement for the sale of said land of 47 acres.
KPI Global Infrastructure | The company has commissioned a new capacity of 1.72 MW in its existing solar power plant at Village-Sudi & Tancha, Ta-Arnod, Bharuch.
Chalet Hotels | Apart from its current portfolio of seven owned and operational hotels in Mumbai, Hyderabad, Bengaluru, and Pune, the company has identified National Capital Region, Chennai, and Goa as markets for leisure hotels to build or acquire new properties. The strategic intent of the firm is to diversify across geographies, asset classes and hospitality segments, as per a report.
Automobile stocks | Ashok Leyland's total sales in February were up 7 percent YoY while Mahindra and Mahindra's total sales jumped 89 percent on year.
Mahindra Logistics | The company has entered into a pact for acquisition of up to 43,972 equity shares and for subscribing up to 63,200 Series A compulsorily convertible cumulative preference shares of ZipZap Logistics in tranches. The acquisition would result in the company holding, in aggregate, up to 60 percent of share capital of ZipZap Logistics, on a fully diluted basis.
Route Mobile | The company's subsidiary Routesms Solutions has successfully completed the acquisition of MR Messaging. With this, MR Messaging has become a wholly-owned subsidiary of Routesms Solutions and a stepdown subsidiary of Route Mobile.
Panacea Biotec | The company will sell the pharmaceutical formulations brands of its subsidiary to Mankind Pharma. The total value of the transaction is Rs 1,872 crore.
DB Realty | The Supreme Court has allowed the real estate company to develop land in Mumbai. The decision makes freehold 22,000 square meters in a commercial zone in Mumbai available to its subsidiary Esteem Properties for development. The company intends to develop the land into a 2 million square feet (leasable area) Grade A office space over the next three years.
Vedant Fashions | Ethnic wear brand Manyavar operator clocked 24 percent YoY growth in consolidated profit at Rs 127.8 crore while revenue grew 28 percent YoY to Rs 384.8 crore.
Huhtamaki India | The packaging solutions firm posted a loss of Rs 13.52 crore for the December 2021 quarter against a profit of Rs 5.08 crore in the corresponding period of the last fiscal. But the topline grew nearly 19 percent YoY to Rs 661.6 crore in Q4CY21.
Bharat Electronics | The company and the Ministry of Defence have signed a contract for the retro-modification of Commander Sight of Battle Tanks-T90 for the Indian Army. The total value of the contract is Rs 1,075 crore.
Vipul Organics | The specialty chemicals company has recommended bonus equity shares for its shareholders and employee stock options scheme for its employees in the 50th year of its operations. The company will issue one bonus share for every four shares held by shareholders and also issue 2 lakh options to eligible employees.
Lemon Tree Hotels | The company has signed a license agreement for 41 room hotel at Mukteshwar, Uttarakhand. The hotel is expected to be operational in July 2022. The hotel is owned by The Alpine Chalet Resort. Its subsidiary Carnation Hotels and the hotel management arm will be operating and marketing of this hotel.