The benchmark Sensex and Nifty indices are likely to open flat on February 20 as trends in the GIFT Nifty indicate a muted start for the broader index with a loss of 9 points.
The market continued to rise on the fifth straight session on February 19 to close near the day's high with the Nifty hitting a fresh all-time intraday high of 22,186.65.
At close, the Sensex was up 281.52 points or 0.39 percent to 72,708.16, and the Nifty was up 81.60 points or 0.37 percent to 22,122.30.
The pivot point calculator indicates that the Nifty is likely to take immediate support at 22,047 followed by 22,008 and 21,944 levels, while on the higher side, it may see immediate resistance at 22,137 followed by 22,212 and 22,276 levels.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
Trends in the GIFT Nifty indicate a flat start for the broader index in India, with a loss of 9 points or 0.04 percent. The Nifty futures were trading around the 22,162.50 level.
Trade setup for today: Top 15 things to know before the opening bell
Asian Markets
Asian markets were trading mixed in the early trade on Tuesday with Nikkei up 0.5 percent, while Kospi down 0.6 percent.
Whirlpool promoter entity plans to sell up to 24% stake worth $451 million
Whirpool Mauritius Ltd, a promoter entity of Whirpool of India, plans to sell as much as 24 percent of the local unit through a block deal for $451 million, according to multiple industry executives familiar with the deal terms.
The promoter group currently owns 75 percent of the home appliance maker and had earlier indicated that it would reduce its stake in the company to reduce debt levels.
On November 30, 2023, Whirpool Corp said it would sell up to 24 percent of its ownership interest in Whirlpool of India Ltd to reduce debt levels.
"The base size of the deal is $282 million, which represents 15 percent of outstanding share capital and the upsize option of the deal is up to $169 million, which represents 9 percent of outstanding share capital," said one of the people cited above.
Coal India to bid for 3 mines in critical minerals auctions in February
State-run Coal India will bid for three blocks in critical minerals auctions conducted by the country’s mines ministry in February, Chairman and Managing Director P M Prasad told analysts in a post-earnings conference call on Monday.
India launched the first part of its critical minerals auction – expected to raise an estimated 450 billion rupees ($5.42 billion) overall – in November last year in a bid to drive its clean energy push, drawing interest from the likes of Ola Electric and Shree Cement.
Separately, a senior Coal India official confirmed that the company will be bidding for lithium and nickel mines in the auctions that will be held on Feb. 26.
Sugar production likely to be on a downslide in 2023-24: Industry
The overall sugar production in 2023-24 is expected to witness a downslide owing to lower rainfall, which has led to lesser sugarcane plantation this year, said the industry.
“The overall sugar production in this year is expected to be at a downslide than last year because of less rainfall which has led to lesser sugarcane plantations. However, the lower sugar production this year is not worrisome as the difference may not be huge as compared to last year, as the crushing season is ongoing and still not over,” All India Sugar Trade Association (AISTA) Chairman Praful Vithalani told Moneycontrol. AISTA estimates sugar production at 316 lakh tonnes this year as compared to 329 lakh tonnes in 2022-23.
Till February 15 in the current sugar season, the production has reached 223.68 lakh tons, against 229.37 lakh tons produced last year during the corresponding period, according to Indian Sugar Mills Association (ISMA).
According to ISMA, sugar production in Maharashtra, Karnataka, Gujarat, and Tamil Nadu remained lower till February 15 of the ongoing marketing year.
Confidence Petroleum, BW LPG JV to build Rs 650 crore LPG terminal at JNPT
Nagpur-based LPG major Confidence Petroleum India is planning to construct an onshore LPG (Liquefied Petroleum Gas) import terminal at the Jawaharlal Nehru Port Trust (JNPT) along with its Norway-based joint venture partner BW LPG. The companies are looking to spend Rs 650 crore on the project, which is expected to be operational by 2026.
The terminal will have a capacity of 62,000 metric tonnes, the companies said during a press conference on February 19. They also expect the infrastructure to enhance the storage capacity and distribution capabilities for LPG in India.
The companies announced their joint venture (JV) on February 19 and earmarked investments worth Rs 2,000 crore for upstream and downstream expansions, to be spent in the next three years. Confidence Petroleum plans to fund the capex through internal accruals, said Nithin Khara, Chairman of Confidence Group.
Khara flagged accruals worth Rs 250 crore from the current financial year and targets earnings before interest, taxes, depreciation (EBITDA) of Rs 400 crore next year. BW Energy, which holds about 8 percent stake in Confidence group, had earlier invested $30 million to support the infrastructure plans.
Gold Prices
Gold prices hit their highest in almost a week on Monday as the U.S. dollar retreated slightly and conflict in the Middle East buoyed bullion's safe-haven appeal.
Spot gold was up 0.2 percent at $2,016.45 an ounce at its highest since Feb. 13. US gold futures rose 0.2 percent to $2,028.20.
Crude
Brent crude oil prices settled slightly higher in an abbreviated session on Monday, as lingering supply concerns from tensions in the Middle East were offset by signs of weakening demand.
Oil markets' saw thinner volumes than usual due to the Presidents' Day holiday in the U.S., UBS analyst Giovanni Staunovo noted. Brent futures also settled earlier than usual because of the holiday.
Brent futures gained 9 cents to settle at $83.56 a barrel. U.S. West Texas Intermediate (WTI) crude for March delivery, which will not have a settlement today and expires on Tuesday, rose 30 cents to $79.49 a barrel.
The WTI contract for April delivery was down 11 cents to $78.35 a barrel.
Dollar
The yen was pinned near a three-month low against the dollar on Tuesday as sticky U.S. inflation bolstered the case for higher-for-longer interest rates, contrasting with a recession in Japan and market doubts about a near-term exit from its easy policy.
In Asia, China's loan prime rate (LPR) decision takes centre stage, where it is widely expected to trim its benchmark mortgage reference rate to shore up the country's faltering economic growth.
Ahead of the outcome, the offshore yuan edged marginally lower to 7.2143 per dollar.
The greenback last bought 150.25 yen, having already surpassed the psychological 150 per dollar level for six straight sessions and prompting warnings from Japanese officials in a bid to stabilise the currency.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 754.59 crore, while domestic institutional investors (DIIs) purchased Rs 452.70 crore worth of stocks on February 19, provisional data from the NSE showed.
Stocks under F&O ban on NSE
The NSE has added Biocon to the F&O ban list for February 20, while retaining Aditya Birla Fashion & Retail, Ashok Leyland, Bandhan Bank, Canara Bank, Hindustan Copper, India Cements, Indus Towers, National Aluminium Company, SAIL and Zee Entertainment Enterprises to the said list. Balrampur Chini Mills, and Delta Corp were removed from the said list.
With inputs from Reuters and other agencies
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