Oil prices slip on surprise build in US crude stocks
Oil prices were lower on Wednesday after industry data showed a surprise build in US crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut. Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll. API data showed refinery crude runs fell by 2.2 million bpd. Brent crude futures slipped by 6 cents, or 0.1 percent, to USD 65.31 a barrel at 0748 GMT, but narrowed losses earlier in the session that sent it to as low as USD 64.80.
HDFC Securities continues to prefer IT, large banks post Q3 earnings
The December quarter was another strong quarter, beating expectations across most sectors, led by margin surprises. Sales also continued to rebound in Q3 at a faster pace than costs post the lockdown. In a results review note, HDFC Securities pointed out that the Q3 margins beat estimates across multiple sectors such as Cement, IT, Chemicals, Paints, Durables due to cost efficiencies and improved pricing power. It added that the festive season and unlocking of the economy led to a sharp demand rebound and larger companies gained market share. Collection trends also improved for lenders while the commodity costs rising sharply helped oil and metals sectors while gross margin pressures were visible in autos/durables etc, it stated. More here
JUST IN: Hang Seng posts biggest daily percentage fall since May 22, 2020
Fortis-IHH Deal Case | SC grills Fortis Healthcare on Rs 4000 cr IHH deal, questions it on the ‘influence’ of Singh brothers even after resignation.
SC directs Fortis Healthcare for details of the IHH deal & Singh brothers’ role by March 1 pic.twitter.com/XALvXxG1tV
— CNBC-TV18 (@CNBCTV18Live) February 24, 2021
Dilip Buildcon share price hits new 52-week high on new project
Dilip Buildcon share price gained over 2 percent to hit 52-week high after the company was declared the lowest bidder for 2 NHAI HAM projects. Dilip Buildcon Limited has been declared as L-l bidder for two new HAM proiects “Bangalore-Chennai Expressway under Bharatmala Pariyoina in the state of Karnataka, Phase -l worth Rs 2,439 crore, the company said in an exchange filing. The completion period is two years and operation period is 15 years. The cost of operation and maintenance in first year will be Rs 3 crore, the company added.
State government bonds rate soars to 11-month high of 7.19%
Despite near record low interest rates, the pricing of state government bonds skyrocketted to an 11-month high of 7.19 per cent, at the latest auction of Rs 23,806 crore market borrowings on Tuesday. It can be recalled that at the first auction of state bonds on April 7, 2020, Kerala was forced to offer 8.96 per cent on its Rs 6,000 crore market borrowing. This happened a fortnight after the RBI unveiled a slew of measures to ensure liquidity. This was the highest any state paid in interest cost for a market borrowing in recent years.
Nava Bharat Ventures surges 15% as board to consider buy back proposal
Shares of Nava Bharat Ventures surged 15 percent after the company announced that its board will consider share buyback proposal on Friday, February 26. The firm, on Tuesday after market hours, informed the stock exchanges that the meeting of the board of directors will be held on February 26, 2021, to consider the proposal for buyback of equity shares of the Company. A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market. A company buys back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply, or to return surplus cash to shareholders.
NSE clarifies, no confirmation about pre-opening session resuming at 1 pm and normal trade at 1:15 pm
Clients with cover orders could get hit because of NSE trading disruption
Trading has been halted on the National Stock Exchange since 11:40 pm as prices for the cash as well as derivatives segments were not updating for more than an hour. NSE has said that trading will resume at 1 pm with a pre-open session and normal trading from 1:15 pm onwards. The exchange has communicated to brokers that all pending orders in the system when trading was halted, will be cancelled, and fresh orders will have to be put in during the pre-open session. Brokers told CNBC-TV18 that clients who have put in cover orders could be hit if the prices on resumption are below the stop loss (for traders with long trades) or above the stop loss (for traders with short trades). More here
BSE continues trading normally: Here are its top gainers and losers at this hour
NSE Spokesperson on the glitch
“NSE has multiple telecom links with two service providers to ensure redundancy and we have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system. We are working on restoring the systems as soon as possible. In view of the above all the segments have been closed at 11.40 and will be restored as soon as issue is resolved.”
Coal India shares rise over 4% as board to consider second dividend
The share price of Coal India rose over 4 percent in the morning trade after the company announced that it is considering a second interim dividend in the board meeting on March 5. The board meeting will consider and approve the payment of a second interim dividend for 2020-21, if any. March 16 has been decided as the record date for the payment of dividend if confirmed. Geojit Financial Services has a ‘buy’ rating on the stock with a target price of Rs 155 apiece. The brokerage firm expects the firm to perform well in the short-medium term. “The long-term outlook remains positive with improvement in realization and the ability of the company to protect margins by improving efficiency,” it told Moneycontrol. More here
Stove Kraft reports 277% rise in PAT, stock jumps 7%
Shares of Stove Kraft jumped over 7 percent high on Wednesday’s pre-open trade, after the kitchen appliances maker posted a 277 percent YoY growth in profit after tax in the December quarter. Profit in the quarter under review came in at Rs 33.5 crore versus Rs 8.9 crore in the year-ago period. The stock rose as much as 7 percent to the day’s high of Rs 535 apiece on BSE. Stove Kraft Ltd is one of the leading brands for kitchen appliances in India. It is one of the major players of the pressure cookers under brand name Pigeon amongst other market leaders. “Despite challenging times this year, our company has managed to deliver stellar results on the back of volumes growth led by good festive, operational efficiencies, better product mix and cost rationalisation programmes,” MD Rajendra Gandhi said. More here
CNBC-TV18 Exclusive: Markets should trust RBI, will not prematurely pull out liquidity, says RBI Governor
Shaktikanta Das, the governor of the Reserve Bank of India (RBI), believes that the bank, as well as the government, have managed the situation reasonably well during this entire COVID period. In an exclusive interview with CNBC-TV18, Das said that RBI has several instruments on the table to manage liquidity and will not prematurely pull out liquidity to stifle growth. He further noted that the Central Bank has many known and unknown tools to deal with liquidity situations and that the market should take the signal from RBI and the market should trust RBI.
Buy Tata Consumer on dips, like Bajaj Finance, Cholamandalam, HDFC, says Deven Choksey
Deven Choksey of KRChoksey on Wednesday discussed the fundamentals of the market as well as various stocks. “Tata consumer remains a good choice. It is getting added into Nifty, so there is enough amount of enthusiasm also further getting added into. This space is particularly liked by many investors now. Any correction in the price would mean the meaningful entry of some of the good long-term investors into this company,” Choksey told CNBC-TV18. The non-banking financial companies (NBFCs) are rallying, he said. “I don’t see any new reason for the stock prices to go up except for the fact that demand for credit is continuously growing,” he said. More here
Tata Consumer to be the fifth Tata group stock to be included in Nifty50; stock hits 52-week high
Tata Consumer Products will replace state-owned Gail India in the Nifty50 index becoming the fifth Tata Group company to be included in the benchmark. The firm will join peers including TCS, Tata Steel, Tata Motors and Titan. The change will take effect on March 31. The stock price of Tata Consumer jumped 4 percent to hit its 52-week high of Rs 652.85 per share post the announcement. Meanwhile, GAIL fell as much as 3 percent to its day’s low of Rs 142.90 per share. Post the inclusion, the weight of Tata Group stocks in the index will rise to 8.75 percent from 8.15 percent.
Rajendra Gandhi, MD, Stovekraft on margins
EBITDA is a function of operating lever because our costs are covered at a certain point, at a certain revenue. We are already at twice the revenue of where we cover all our cost. So, beyond that, 80% of our gross margins float will be done and that is where you are seeing healthy EBITDA numbers.
Market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“Sharp spike in the volatility index VIX to 25.23 indicates a high level of uncertainty & expectations of high ups & downs, going forward. FIIs turning sellers (Rs 1569 cr yesterday) is negative. But DIIs have turned buyers, partly compensating for the FII selling. The global liquidity backdrop continues to be positive since the Fed has reaffirmed its accommodative monetary stance. Fed chief’s comment that 2% inflation in the US is far away, is positive for global markets. Investors can exploit the high volatility to make investments in segments where valuations are attractive & the risk-reward ratio is favourable. IT, presently under a bit of pressure due to rupee appreciation, offers buying opportunity. Valuations are relatively reasonable & earnings visibility is high”
Opening Bell: Sensex opens higher, Nifty nears 14,750; metals shine, RIL continues to gain
Indian indices opened high on Wednesday as heavyweight Reliance Industries continued gaining post O2C reorganisation, contributing the most to the benchmarks. Meanwhile, rise in metal, pharma, auto and banking sectors also lifted the sentiment. At 9:20 am, the Sensex was up 195 points at 49,946 while the Nifty rose 54 points to 14,761. Broader markets were also higher at opening with the midcap and smallcap indices up over half a percent each. On the Nifty50 index, Coal India, JSW Steel, Tata Steel, ONGC, and IOC were the top gainers while GAIl, UPL, TCS, Infosys and Kotak Bank led the losses. All sectors, barring Nifty IT were also in the green at opening. The metal index rose the most, up 2 percent while Nifty Bank and Nifty Auto added 0.6 percent each. Nifty Pharma was also up half a percent.
Oil slips after U.S. crude stocks rise amid deep freeze hit to refiners
Oil prices fell in early trade on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut. Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute (API) reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll. API data showed refinery crude runs fell by 2.2 million bpd. U.S. West Texas Intermediate (WTI) crude futures were down 55 cents or 0.9% at $61.12 a barrel at 0136 GMT, after slipping 3 cents on Tuesday.