Bhushan Power lenders to take final call on JSW Steel offer by next week

Lnders to bankrupt Bhushan Power and Steel Ltd (BPSL) will vote next week on JSW Steel’s proposal for taking over the troubled company. Sources said JSW Steel has offered to pay the lenders Rs 19,350 crore to close the deal by March-end, with conditions attached. JSW Steel has also sought the lenders’ nod to deposit Rs 19,350 crore in an escrow account towards taking over BPSL once the Supreme Court gives its verdict. The Enforcement Directorate has charged former BPSL promoters of diverting funds from the company and sought attachment of the company’s assets. Read more.

Jyoti Roy – DVP- Equity Strategist, Angel Broking 

Ashok Leyland February sales numbers continue to improve in line with economic recovery. However, post the sharp run-up in the stock since the beginning of the year we believe that upsides would be limited from current levels in the stock especially in the backdrop of recent increase in raw material prices which will impact margins in the fourth quarter. We have a neutral rating on Ashok Leyland at current levels.

State Bank of India | The bank has sweetened the offers on Home Loans and now offers interest concession of upto 70 bps with interest rates starting from 6.70 percent onwards (limited period offer ending on 31st March’21). The bank is also giving 100 percent waiver on processing fees. The interest concession are based on loan amount and CIBIL score of the borrower.

Bharti Airtel shares fall over 4% in a strong market; here’s why

Shares of Bharti Airtel fell over 4 percent, in an otherwise strong market, on Monday after Integrated Core Strategies (Asia) Pte sold around 3.7 crore shares of the company. The sentiment was also lower after its competitor Reliance Jio launched JioPhone 2021 on Sunday. The new JioPhone offers a new phone along with three new plans. It has a two-year plan, a one-year plan, and a special plan for existing users.

However, global brokerage firm Credit Suisse said Jio’s 4G feature phone plan was unlikely to have any material impact on Bharti Airtel. If at all, Vodafone Idea may be more prone to subscriber loss, it added. Read more.

Ashok Leyland total sales at 13,703 units Vs CNBC-TV18 poll of 13,500 units

Market Watch: Aditya Agarwala, Yes Securities

 

“If you take a look at the way Apollo Tyres has been moving – in fact the entire tyre space is doing very good and Apollo Tyres passed a very good up move and went into a consolidation. Today it is showing a good traction on the upside. So, at current levels I will buy Apollo Tyres for a target of Rs 260, keeping a stop loss of Rs 234 on the downside.”

 

“I have a buy recommendation on Coal India. Stock has broken out after a long consolidation from the range on the upside. At current levels of Rs 155-156 it makes a very good buy for target of Rs 167, keeping a stop loss at Rs 148 on the downside.”

Spectrum band auction: 5G likely in 12-18 months; no need to bid excessively for 4G, says expert

The telecom spectrum auctions for 5G will be rolled out in the next 12-18 months, which means that there is no need for the telecom companies to bid excessively for the 4G spectrum, said telecom expert Rajiv Sharma. Spectrum auctions kick off today with 2,251 MHz of airwaves up for grabs. The government’s valuation for airwaves up for sale is Rs 3.92 lakh crore. Also note, there will be no auction for the 5G spectrum. Speaking in an interview with CNBC-TV18, Sharma said, “5G should get rolled out before the next general elections, it will suit the narrative of this government. Therefore, keeping that in mind the spectrum auctions for 5G are likely in the next 12-18 months, which means that there is no need for the telecom companies to bid excessively for 4G spectrum.” More here

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking

The short term tide has turned downwards and the view will remain intact as long as 15,200 is not broken. On an immediate basis, 14,750 – 14,920 are to be seen as stiff hurdles. Traders should not get intimidated if all the above mentioned scenarios turn into a reality because the larger degree uptrend is still very much intact. Since a long time, market has not seen any major correction, so this should only be construed as a much awaited profit booking or a short term corrective phase which is healthy in the longer run. Momentum traders should avoid aggressive or leveraged longs for a while; rather use decent declines to accumulate quality propositions with the broader view.

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

We are at a crucial juncture; While the markets have opened with a gap up, there is a resistance for the Nifty between 14,820-14,950. The index could pause around these levels. Unless we do not get past this patch, any rally-up should be looked at as an opportunity to short the markets for a target of 14,350.

Indian Oil shares gain over 3% on Panipat refinery capacity expansion plan

Shares of Indian Oil Corporation Ltd (IOC) rallied over 3 percent in early trade on Monday after the downstream company said it will expand Panipat refinery capacity to 25 million tonnes per year from 15 million tonnes per year earlier. In an exchange filing on Friday, the state-owned refiner said that its board approved capital investment for capacity expansion of Panipat Refinery from 15 MMTPA to 25 MMTPA along with the installation of Polypropylene Unit and Catalytic Dewaxing Unit at an estimated cost of Rs 32,946 crore. The project is expected to be commissioned by September 2024, it added. “The capacity expansion would improve the operational flexibility of the Refinery to meet the domestic energy demand and would also enhance the petrochemicals intensity. The increased prcduction of petrochemicals and value added specialty products would not only improve the margins but also de-risk the conventional fuel business of the company,” IOC said.

BSE, NSE clarify on complaints about difficulties in the execution of trades; says exchanges working normally

 


After a number of investors and brokerages complained about difficulties in the execution of trades, both exchanges clarified that there are no issues from their end. BSE said that there is no issue with fresh orders or square offs at BSE while NSE spokesperson also clarified that all the operations on the NSE platforms are functioning smooth & normal. The BSE MD Ashish Chauhan tweeted that all market segments are working normally. Brokerage house HDFC Securities had confirmed some technical issue on NSE cash trading. Meanwhile, investors are also facing issues on brokerage sites like Zerodha and Angel Broking. More here

Port Shelter’s Richard Harris: Pullback is an opportunity to buy; yields moving to sensible levels

 

A significant pullback in the Indian market is an opportunity to buy, said Richard Harris, chief executive at Port Shelter Investment Management, on Monday. “We should not be surprised to see a pullback every now and then (in India); even if saw a significant pullback, I still think it’s an opportunity to buy,” Harris told CNBC-TV18. On Asian markets, he said, “Although we had a lot of carnage in the modern market last week, in some cases it is not such a bad thing that we are looking at yields may be moving to more sensible levels, certainly in Europe instead of being negative, hope we will see yields positive as they should be.” Watch the video for more

Bajaj Auto February sales rise 6% to 3.75 lakh units, miss estimates

 

Bajaj Auto’s total vehicle sales in February 2021 rose 6 percent to 375,017 units from 354,913 units in the same month of last year. The company’s sales were lower than CNBC-TV18’s estimate of 4.05 lakh units. Domestic sales during the month fell 2 percent to 164,811 units from 168,747 units in February 2020. Exports rose 13 percent to 210,206 units from 186,166 units, YoY. The company’s total two-wheeler sales during the month were up 7 percent at 3.32 lakh units as compared to 3.10 lakh units, YoY. The segment’s domestic sales increased 1 percent to 148,934 units from 146,876 units, while exports rose by 12 percent to 183,629 units from 163,346 units, YoY. More here

AstraZeneca has sold its stake in Moderna for more than $1 billion: Report

AstraZeneca Plc has sold its 7.7 percent stake in Moderna Inc for more than USD 1 billion after the US biotechnology company’s shares soared on the back of its coronavirus vaccine breakthrough, The Times reported. The report added that it was not clear over what period British-based AstraZeneca sold its holding in Moderna. AstraZeneca and Moderna did not immediately respond to requests for comment. AstraZeneca is retaining a partnership with Moderna on other disease treatments and could sell its AstraZeneca/Oxford University COVID-19 vaccine on a commercial basis in the future if the virus becomes endemic, the report added. Moderna, whose vaccine is cleared for emergency use against COVID-19 in the United States, said last week it was expecting sales of USD 18.4 billion from its coronavirus vaccine this year.

Gautam Trivedi of Nepean Capital feels the market is looking very exciting from a 12-18 month perspective

Morning market quote from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

“”The massive sell-off last Friday which saw the Nifty crash by 568 points indicates the market’s vulnerability to negative triggers at high valuations. The massive FII selling of Rs 8295 crores is indeed a  serious concern even though DIIs have turned buyers. Also, FIIs unwinding their longs and opening fresh shorts is a negative signal. The positive factor is the US 10-year yield settling at 1.41%, falling from a high of 1.61%. Stability in bond yields will calm markets. It is also important to appreciate the fact that the rise in yields also indicates a revival of economic growth. In this excessively volatile market, investors may wait for consolidation. Dips may be used to buy quality stocks in segments like financials & IT. Meanwhile, India is technically out of recession with the Q3 GDP data turning positive with 0.4% growth.”

Opening Bell: Sensex, Nifty open a percent higher as bond markets calmed

Indian indices opened a percent higher on Monday recovering from the previous session’s massive selloff. The gains were on the back of a rally in global markets as bond markets calmed a bit after last week’s spike, meanwhile, progress in the huge U.S. stimulus package underpinned optimism about the global economy. At 9:17 am, was trading 500 points higher at 49,600 while the Nifty rose 165 points to 14,694. Domestically, the markets witnessed broad-based buying across all sectors led by banks, financials and energy. Meanwhile, broader markets also started the week on a higher note with the midcap and smallcap indices up over a percent each. On the Nifty50 index, ONGC, IOC, UPL, Coal India and UltraTech cement were the top gainers while only Bharti Airtel and SBI Lifed were in the red in opening deals.

Asian stocks bounce as bond market calms

Asian shares firmed on Monday as some semblance of calm returned to bond markets after last week’s wild ride, while progress in the huge U.S. stimulus package underpinned optimism about the global economy. China’s official manufacturing PMI out over the weekend missed forecasts, but investors are counting on better news from a raft of U.S. data due this week including the February payrolls report. Also helping sentiment was news deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start on Tuesday. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1%, after shedding 3.7% last Friday. Japan’s Nikkei rallied 2.0%, while NASDAQ futures bounced 0.8% and S&P 500 futures 0.7%.

JUST IN: KEC IntL bags new orders of Rs 1,140 cr across its various vusinesses

Oil prices climb after progress on huge US stimulus bill

Oil prices rose more than USD 1 on Monday on optimism in the global economy thanks to progress in a huge US stimulus package and on hopes for improving oil demand as vaccines are rolled out. Brent crude futures for May rose USD 1.07, or 1.7 percent, to USD 65.49 per barrel by 0042 GMT. The April contract expired on Friday. US West Texas Intermediate (WTI) crude futures jumped USD 1.10, or 1.8 percent, to USD 62.60 a barrel. More positive news on the coronavirus vaccination front and signs of an improving Asian economy also boosted prices. More here

Robinhood might confidentially file for IPO in March

Online trading platform Robinhood is planning to confidentially file for an initial public offering (IPO) in March. According to a Bloomberg report, the California-based Robinhood Markets has already held talks with underwriters, but a final decision has not been made. The timing of the listing could change, say people in know of the matter. Robinhood, however, declined to make any comment officially when contacted by Bloomberg. This comes barely three weeks after the company faced a cash crunch when it ran into regulatory trouble. Robinhood had to draw down its credit lines and raise $3.4 billion to post more collateral with the Depository Trust & Clearing Corporation (DTCC), the industry’s clearinghouse. Given wild swings in stocks, including those of video game retailer GameStop and movie theatre chain AMC Entertainment Holdings Inc, the DTCC wanted members to post more cash. More here





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