Yet another gap-down opening! more fall incoming?
Good Morning Everyone, As discussed in our weekly meeting yesterday, being the last week of Feb 2022 and with the monthly expiry this Thursday, we expect the market to be slightly bearish with continued volatility.
However, with global tension between Russia and Ukraine still not clear, markets will react to the news with volatility.
As mentioned, 16800 will remain a mark which if breached on the lower side can bring markets down by a good margin.
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Global Markets:
US stocks fell and ended on a second consecutive week on account of geopolitical tension between the West and Russia as well as worries about the Federal Reserve’s next policy steps. The U.S. said Russia has massed as many as 190,000 personnel in and around Ukraine, calling it the most-significant military mobilization since World War II. Russia told the U.S. this week it has no plans to attack. Dow, S&P 500, and Nasdaq Composite slipped 1% each
European stocks ended in red amid rising tensions between the Ukraine and Russia and a further decline in European consumer confidence this month. Germany's DAX was down 1.5%. The FTSE 100 in the UK and France's CAC each dipped 0.3%.
Asian stock markets tumbled on Monday amid warnings that Russia was set to invade Ukraine. The US on Sunday warned that Russia may invade Ukraine anytime now. The geopolitical tension is also risking sanctions that could trigger a further rise in energy costs and stoke global inflation.
S&P 500 futures fell 0.6 percent and Nasdaq futures drifted 1.2 percent. US markets are on holiday on Monday but futures are still traded.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 percent, while Japan's Nikkei lost 1.9 percent. Oil prices surged nearly 2 percent in early action and Treasury futures firmed.
Russia upped the ante in the high-stakes diplomatic game by extending military drills in Belarus. Some satellite imagery from Maxar showed multiple new field deployments of armor and troops near the border with Ukraine, according to a Reuters report.
Ministers from Arab oil-producing countries on Sunday rejected calls to pump more and said OPEC+ - the alliance of OPEC countries and other suppliers including Russia - should stick to its current agreement to add 400,000 barrels of oil per day.
Brent rose $1.22 to $94.76 a barrel, while US crude surged $1.76 to $92.83.
Indian Market:
Trends on the SGX Nifty indicate a 100 point gap down opening to Nifty today.
Events:
US Market shut today, Ex-dividend – India Nippon Rs6.25, Coal India Rs5, SJVN Rs1.15, Hero Motocorp Rs60, JBM Auto stock split from Rs5 to Rs2, Sundaram Fasteners Rs6.45, ONGC Rs1.75. Cummins India Rs8, Cochin Shipyard Rs7, Metropolis Rs8 and MTAR Tech Rs3
Stock Specific News:
◆ Bullish setup in Coal India, Voltas, Berger Paint, HDFC, L&T, Bajaj Auto, Kotak Bank, SBIN, and HDFC Bank
◆ Bearish setup in Ambujacem, Mothersumi, PEL, Astral, Dixon, Naukri, Nam India, Lichsgfin, Apollotyre, Ramco Cement, Coforge, SRF, ACC, Ultracemco and CUB
Ashok Leyland plans to set up a new manufacturing facility in the country to roll out electric vehicles Company has also lined up a Rs 500 crore investment to develop powertrains based on alternative fuels like CNG, hydrogen, and electric for its commercial vehicles range.
Coal India will increase output from 2.3 million a day currently, the state-run miner says. It aims to scale up its supplies to the regulated power sector to 548 million tons in the current financial year to March, a 23% increase compared with 445 million last year.
SBI hikes rates on fixed deposits by 10-15 bps on tenors above 2 years to 10 years.
Tata Power - Ind Ra affirms Tata Power Company's long-term issuer rating at 'AA' with Stable outlook
Infosys | The company has joined Guidewire as consulting alliance member. The American insurtech company signed up the Indian IT major for its Guidewire PartnerConnect program at the select level for the Americas region. Members in Guidewire PartnerConnect Consulting offer consulting services that include business transformation and strategy, implementation, and associated solution and delivery services. The stock is under pressure in the last one month due to falling tech shares globally. It declined nearly 12 percent in the last month.
Federal Bank | Federal Bank’s subsidiary, Fedbank Financial Services, has filed preliminary papers with SEBI to raise funds through an IPO. The public issue consists of a fresh issue aggregating up to Rs 900 crore and an offer for sale of up to 45,714,286 equity shares by promoter and investor.
The Phoenix Mills | The Phoenix Mills will make Classic Mall Development Company its wholly-owned subsidiary after buying a 50 percent stake from Crest Ventures and Escort Developers for Rs 918 crore. Classic Mall Development Company owns Phoenix Marketcity Chennai with a chargeable area of approximately 1 million square feet in Velachery.
InterGlobe Aviation | Rakesh Gangwal, Non-Executive, Non-Independent Director has tendered his resignation from the Board of Directors of the company, with immediate effect, through a letter dated February 18, 2022. Gangwal will cut stake in the airline company over the next 5 years.
Crest Ventures | Crest Ventures and its wholly-owned subsidiary Escorts Developers will get Rs 918 crore by selling a 50 percent stake in Classic Mall Development Company, to Phoenix Mills. Crest Ventures held a 46.35 percent stake and its wholly-owned subsidiary Escorts Developers has 3.65 percent in Classic Mall Development Company.
Equitas Small Finance Bank | The bank will receive Rs 550 crore from qualified institutional investors as it has approved the allotment of 10.26 crore equity shares at an issue price of Rs 53.59 per share. The QIP issue was opened for bidding during February 14-18.
Gujarat Mineral Development Corporation | The Environment ministry has allowed GMDC to increase mining activity at lignite mines in Tadkeshwar, Surat. The country's largest lignite seller has received an amendment to its environment clearance from the Ministry of Environment and Forest to mining up to a depth of 135 meters, from 94 meters earlier at the lignite mines.
Escorts | The tractor maker will receive Rs 1,872.74 crore from Kubota Corporation as it approved preferential allotment of 93.63 lakh equity shares at Rs 2,000 per share. After the allotment, Kubota Corporation holds a 16.39 percent stake in Escorts.
Hazoor Multi Projects | The company has bagged orders worth Rs 6.54 crore from Varaha Infra. The work order is for completion of balance work of 'national highway No 548-A from section Waken Pali to 2 lanes with paved shoulder.
Power Finance Corporation | Life Insurance Corporation of India sold a 2.02 percent stake in the company through open market transactions. As a result, its shareholding in the company reduced to 5.06 percent, from 7.09 percent earlier.
Sintex Industries | Lenders of bankrupt Sintex Industries will decide next week on whether to restart the resolution process or to put to vote the four plans that they have received, according to a newspaper report.
Hatsun Agro Product | The company will buy a 26 percent stake in FP Cygnus and Huoban Energy. Along with this, the company posted a few other business updates.
InterGlobe Aviation | Rakesh Gangwal quits IndiGo board, to cut stake over 5 years. InterGlobe Aviation Ltd co-founder Rakesh Gangwal has resigned as non-executive, non-independent director of the company with immediate effect and will pare his stake in the company over five years, ceding control to co-promoter Rahul Bhatia after a truce. The stock is volatile for the last one month and gained just 2 percent in this period.