Reliance's proposed business reorganisation credit neutral: Fitch Ratings
Fitch Ratings sees the proposed reorganisation plan by India's Reliance Industries Ltd (RIL, BBB-/Stable) to transfer its refining, marketing and petrochemical (oil-to-chemicals) businesses to a wholly owned subsidiary, Reliance O2C Limited (O2C), as a step towards facilitating participation by strategic investors in its O2C businesses. We anticipate the reorganisation will have a neutral impact on RIL's credit metrics and rating.
Rohit Singre, Senior Technical Analyst at LKP Securities:
Index managed to hold above 14,700 zone and closed a day with small gains forming a Doji candle pattern on the daily chart after consecutive five bearish candle. The index has good support near 14,630 zone and immediate resistance is coming near 14,800 zone, so index may show some sort of consolidation in the same range and final direction will be clear once we see either side breakout from the mentioned range.
Rupee Close
Indian rupee ended with marginal gains at 72.46 per dollar, amid volatile trading saw in the domestic equity market.
It opened higher by 14 paise at 72.36 per dollar against previous close of 72.50 and traded in the range of 72.30-72.47.
Market Close:
Benchmark indices ended flat in the highly volatile session on February 23.
At close, the Sensex was up 7.09 points or 0.01% at 49,751.41, and the Nifty was up 32.10 points or 0.22% at 14,707.80. About 1657 shares have advanced, 1213 shares declined, and 158 shares are unchanged.
Tata Steel, Tata Motors, ONGC, Hindalco Industries and UPL were among major gainers, while losers were Kotak Mahindra Bank, Maruti Suzuki, Bajaj Auto, Adani Ports and Divis Labs.
Nifty Metal index rose nearly 4 percent, while energy and infra indices added 1-2 percent. However, some selling seen in the pharma and banking names. BSE Midcap and Smallcap indices rose 0.7-1 percent.
Gayatri Projects receives letter of award from NHAI:
Gayatri Projects has received Letter of Award (LOA) worth Rs 1323.52 crore from National Highways Authority of India, New Delhi for the development of six lane access controlled in Uttar Pradesh portion of Delhi Saharanpur Highway on EPC mode.
Gayatri Projects was quoting at Rs 42.55, up Rs 3.85, or 9.95 percent on the BSE. There were pending buy orders of 19,897 shares, with no sellers available.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research:
The market continued to witness a lack of momentum and stayed between 14,650 to 14,850 (Nifty 50 Index). As of now, the market's technical condition appears like a short-term correction is in the process. While it is subject to further price action evolution, it is prudent to wait for a decisive breakout above 14,850 before considering the short-term correction has over.
Once this level is met, the market is expected to gain momentum, leading to an upside projection till the 15,250 levels.
Rupee trades higher:
Indian rupee is trading higher at 72.37 per dollar, amid buying seen in the domestic equity market.It opened higher by 14 paise at 72.36 per dollar against previous close of 72.50.
IndiGo, Dubai Aerospace Enterprise sign long term lease agreements:
IndiGo and Dubai Aerospace Enterprise signed long term lease agreements for 7 Airbus A321neo aircraft. All 7 aircraft will be scheduled to be delivered in 2021, reported CNBC-TV18.
BSE Capital Goods Index rose 2 percent led by the Adani Green, Lakshmi Machine Works, Siemens
Prabhudas Lilladher on Reliance Industries:
Reliance Industries (RIL) has initiated process to carve out their Oil to Chemical (O2C) business into a subsidiary for attracting strategic partners and capital.
The move is in line with RIL strategy to create three business verticals-O2C, digital and retail- to drive growth.
The company remains very well placed to monetize its world class assets at right value with global majors. Our valuation of O2C business of USD 73.3bn, based on 8.5x EV/E FY23E, fully captures the near term growth opportunities.
Maintain earnings estimates and price target. Reiterate buy as RIL remains an enviable company with multiple world class assets.
Bitcoin battles for support at $50,000
Bitcoin dropped below $50,000 on Tuesday, as investors began to get a little nervous about the digital currency’s lofty valuation and some leveraged players took profit.
The cryptocurrency dropped more than 10%, its largest daily drop in a month, to hit $48,575. That extends a sharp withdrawal of more than 16% from a record high hit on Sunday, although bitcoin remains up around 75% for the year.
Oil prices jump more than $1:
Oil prices jumped by more than USD 1 on Tuesday, underpinned by optimism over COVID-19 vaccine rollouts and lower output as US supplies were slow to return after a deep freeze in Texas shut in crude production last week.
European markets are trading flat with FTSE trading marginally in the green
Sun Pharma to launch Epilepsy treatment drug Brivaracetam in India
Sun Pharmaceutical Industries announced that the company will introduce the complete range of Brivaracetam dosage forms at an affordable price for epilepsy treatment in India. Brivaracetam is approved by DCGI as an adjunctive therapy in treatment of partial-onset seizures in patients 16 years of age and older with epilepsy. The stock was trading at Rs 605.15, up Rs 9.40, or 1.58 percent. It has touched an intraday high of Rs 608.20 and an intraday low of Rs 590.
Tapan Patel- Senior Analyst (Commodities), HDFC Securities:
Gold prices traded steady with COMEX spot gold prices were trading near USD 1,808 per ounce on Tuesday. Gold April future contract at MCX were trading flat near Rs 46,836 per 10 grams by noon. We expect gold prices to trade sideways to up with COMEX spot gold support lies at USD 1,790 and resistance at USD 1,820. MCX Gold April support lies at Rs 46,500 and resistance lies at Rs 47,200.
Most active stocks on NSE in terms of volumes
Emkay Global Financial Services on Tata Motors:
We rate Tata Motors as a high-conviction buy with a target of Rs 355, based on an EV/EBITDA of 2x/11x on JLR/standalone estimates on FY23E and the value of investments at Rs 55 per share. We remain positive on expectations of sales cycle recovery in JLR/India divisions, strong profitability growth on better scale/cost savings and de-leveraging efforts through FCFs/divestments.
Oil Minister on rise in oil prices
: Petrol and diesel prices have risen due to increase in crude oil prices in international markets. Prices should soften gradually. Global supply was reduced due to COVID in turn affecting production as well. Have been requesting GST Council to include petroleum products under its purview.
Cochin Shipyard declared lowest bidder for construction of 6 missiles:
Cochin Shipyard was declared lowest bidder by the Indian Navy for construction of six missiles with the order valued at Rs 10,000 crore.
Dollar hits six-week low:
The dollar nursed losses near a six-week low on Tuesday and commodity-linked currencies loitered around multi-year highs, as investors’ focus shifted to how US Federal Reserve chief Jerome Powell might respond to resurgent inflation expectations.
Gaurav Garg, Head of Research at CapitalVia Global Research:
Indian equity benchmarks made an optimistic start on Tuesday with an opening at 14,782.25 reflecting gains in Asian peers. Soon, markets turned volatile and are trading flat with positive bias in early deals.
Buying in Realty, Oil & Gas, and Capital Goods stocks were supporting the movement in indices. Some optimism came in with the report that a day after surging past the 150,000-mark, India's count of active cases has dropped to 148,882.
Banking sector stocks were in focus as India Ratings revised its outlook on the overall banking sector from negative to stable for FY22. Going forward, global news flows and sector-specific developments will be key monitorable factors to impact investor sentiments.
Market Updates
Benchmark indices erased most of the intraday gains but still trading with marginal gains with Nifty above 14700.
At 12:48 IST, the Sensex was up 88.59 points or 0.18% at 49,832.91, and the Nifty was up 45.70 points or 0.31% at 14,721.40. About 1531 shares have advanced, 1057 shares declined, and 138 shares are unchanged.
Bharti Airtel & Qualcomm to collaborate for 5G in India:
Telecom major Bharti Airtel along with Qualcomm will collaborate for 5G in India to utilise Qualcomm’s 5G RAN platforms to roll-out virtualised and open RAN-based networks, as per the company release.
Bharti Airtel was trading at Rs 573.25, up Rs 2.55, or 0.45 percent. It has touched an intraday high of Rs 577 and an intraday low of Rs 567.80.
Heranba Industries IPO subscribed 24%:
The initial public offering of agrochemical manufacturer Heranba Industries has been subscribed 24 percent so far on February 23, the first day of bidding. The portion reserved for retail investors has been booked 50 percent.
The Rs 625-crore public issue has received bids for 17.29 lakh equity shares against offer size of 69.81 lakh shares, the subscription data available on the exchanges showed.
Bharat Forge bags order from Defence Ministry:
Bharat Forge has received an order worth Rs 177.95 crore from the Indian Ministry of Defence for the supply of Kalyani M4 vehicles.
Paramount Group and Bharat Forge announced cooperation to manufacture armoured vehicles in India. An agreement was signed by both companies during the International Defence Expo held in Abu Dhabi, the company said in an exchange filing.
Bharat Forge share price was quoting at Rs 609.85, up Rs 21.25, or 3.61 percent on the BSE.
Bitcoin falls as much as 6%:
Cryptocurrency bitcoin dropped as much as 6% in Asia trade on Tuesday and was trading around USD 52,000 as it pulls back from record highs following a long and sharp rally.
Bitcoin hit a low of USD 50,848 in the session following a wild ride on Monday where it traded in a USD 10,000 range. It’s up nearly 90% from the year’s low of USD 27,734, reported Reuters.
Nifty PSU Bank Index was up 1 percent supported by the Indian Bank, Maharashtra Bank, Canara Bank, PNB:
Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors:
Selling in dollar rupee continues as inflows dominate. RBI ensured that 72.30 is not breached but don't know how long. If flows continue then next support is 71.80 and after that 70.00.
With dollar bashing continuing despite a rise in US and India yields, we should continue with the strategy of selling the uptics on USD-INR and for importers to hold positions with a stop at 72.65.
Nifty Metal Index added 2 percent led by the Hindustan Copper, MOIL, Hindalco, NMDC:
Buzzing
Hindalco Industries share price added over 3 percent on February 23 after various brokerages raised target price of the stock. The company board approved amending the dividend distribution policy on February 22. Hindalco Industries was quoting at Rs 325.65, up Rs 9.55, or 3.02 percent on the BSE. Click to read more
Market Updates:
Benchmark indices has extended the gains and trading near the day's high level with Nifty above 14,800.
At 11:09 IST, the Sensex was up 500.54 points or 1.01% at 50,244.86, and the Nifty was up 152.10 points or 1.04% at 14,827.80. About 1591 shares have advanced, 863 shares declined, and 128 shares are unchanged.
Fitch Ratings assigns Bharti Airtel's proposed USD bonds at BBB-:
Fitch Ratings has assigned India-based Bharti Airtel Limited's proposed US dollar senior unsecured notes a 'BBB-' rating and Network i2i Limited's, a wholly owned subsidiary of company, proposed subordinated perpetual notes a 'BB' rating.
At 11:07 hrs Bharti Airtel was quoting at Rs 569.50, down Rs 0.80, or 0.14 percent on the BSE.
Buzzing Stock
Tata Motors share price jumped over 4 percent after CLSA has maintained its buy call on the stock and has raised the target to Rs 400 per share. It has also raised FY22-23 EPS estimates by 4 percent driven by higher volume and better margin for India business. The stock was trading at Rs 318.15, up Rs 14, or 4.60 percent. It has touched an intraday high of Rs 320.80 and an intraday low of Rs 308.
BSE Oil & Gas sector rose 2 percent led by the ONGC, BPCL, Gail, HPCL:
ICICI Direct:
The USDINR future continue to appreciate against the dollar and moved below our target levels of 72.50. We believe it should consolidate around these levels while upsides can be used as shorting opportunity once again.
The dollar-rupee February contract on the NSE was at Rs 72.46 in the last session. The open interest increased almost 5% in the February series.
Rupee Opens:
Indian rupee opened higher by 14 paise at 72.36 per dollar on Tuesday against previous close of 72.50, amid buying seen in the domestic equity market.
On February 22, the domestic unit ended higher by 15 paise at 72.50 per dollar versus Thursday's close of 72.65.
Adani Enterprises in JV with EdgeConneX:
Adani Enterprises and EdgeConneX announced the establishment of a 50:50 joint venture. The JV will develop and operate data centers throughout India, company said in the release.
Adani Enterprises share price was quoting at Rs 812.90, up Rs 7, or 0.87 percent on the BSE.
Nirali Shah, Head- Equity Research, Samco Securities:
Heranba Industries has a strong 19.5% market share in the pyrethroids market and caters to over 60 countries. As of FY20, 49% of its revenues came from the overseas markets which enabled Heranba to sail through the ups and downs locally. Covid-19 also had minimal impact on the company’s operations since all agrochemical companies were allowed to run at full capacities.
The company faces high risk due to shoot up in raw material prices which forms a whopping 70% of its expenses. Moreover, it faces high competition risk from peers such as Rallis India, Bharat Rasayan and Sumimoto Chemical. But despite these risks, Heranba continues to capture a dominant position with sound fundamentals and diversification capabilities. Therefore, we recommend investors to subscribe to this IPO for listing gains. However, investors should also be cautious about the prevailing market sentiment and their own liquidity before aggressively subscribing to all IPOs.
Gainers and Losers on the BSE Sensex:
Market Opens:
Indian indices opened higher on February 23 with Nifty above 14,700 amid mixed global cues.
At 09:16 IST, the Sensex was up 225.67 points or 0.45% at 49,969.99, and the Nifty was up 68.30 points or 0.47% at 14,744. About 1032 shares have advanced, 265 shares declined, and 53 shares are unchanged.
ICICI direct
Indian markets are likely to see a positive opening on the back of optimism over earnings and economic recovery despite weak global cues. However, global news flows and sector specific developments will be key monitorables. US markets ended mixed tracking losses in tech stocks and increase in treasury yields.
Market at pre-open:
Benchmark indices are trading firm in the pre-opening session with Nifty above 14,700.
At 09:02 hrs IST, the Sensex was up 100.69 points or 0.20% at 49,845.01, and the Nifty was up 45.50 points or 0.31% at 14,721.20.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services:
Going ahead the market may continue with its profit booking for some time till the concerns over rising bond yields and inflation recedes. Even spike in virus cases is worrying the market. Further Nifty valuations at ~21x FY22 EPS are not inexpensive anymore and demand consistent earnings delivery ahead. Rising bond yields may cap equity valuations as the RBI may have to do a balancing act to keep bond yields at lower levels while managing the government borrowing program. Thus the market would track rising inflation, increasing covid cases along with prospective US stimulus in the near term for further direction.
Further, investors will also keep an eye on Federal Reserve Chair Jerome Powell’s testimony to Congress this week, especially after the real rates on long bonds rose above zero for the first time since June.
