Cochin Shipyard | The company has been declared the lowest bidder in the tender floated by the Indian Navy for the construction of 6 missile vessels and the estimated total order value is around Rs 10,000 crore.
Bitcoin battles for support at $50,000
Bitcoin dropped below USD 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 percent, its largest daily drop in a month, to hit USD 48,575. That extends a sharp withdrawal of more than 16 percent from a record high hit on Sunday, although bitcoin remains up around 75 percent for the year.
The drop came despite a broad US dollar weakness. ”The market’s rallied almost unimpeded since the beginning of the month and to some degree since the beginning of the year,” said James Quinn, managing director at digital asset platform Q9 Capital in Hong Kong. Read more.
Keshav Lahoti, Associate Equity Analyst, Angel Broking
Heranba Industries is present in a wide range of products across the entire value chain of synthetic pyrethroids. Company has product registrations in the domestic and international markets enabling global outreach. It also has a strong product portfolio and wide distribution network. Although, Absence of large customers and dependence on smaller customers increases uncertainty of demand which may have an adverse impact on the business operations and financial performance. Ahead of the issue, the Company has managed to raise Rs 187.5 crore from anchor investors, allotting them 29.90 lakh equity shares.
We expect a good listing for the Company. We are positive on the long-term prospects of the Company, we recommend “SUBSCRIBE” to the Heranba Industries IPO for long term as well as for listing gains.
Dilip Buildcon buzzing after Nomura call; management says diversification the key
Dilip Buildcon is buzzing in trade after Nomura bets on the company with a buy call. The diversification into coal mine developer-cum-operator (MDO) and rail appears to be synergistic. To discuss this and the outlook for the year ahead, Rohan Suryavanshi, the head of strategy and planning spoke to CNBC-TV18.
Suryavanshi said, “Diversification has been a key strategy for the company over the last few years. We have thought about diversification in three ways, one is the geographical diversification, second through different segments and third is the short-term contract versus long term contracts.” Read more.
Tata Motors shares rally over 5% as CLSA raises target price
Shares of automobile major Tata Motors rallied over 5 percent on Tuesday after global brokerage house CLSA retained its bullish stance on the stock and raised its target price. The brokerage maintained a ‘buy’ call on the stock and raised the target price to Rs 400 per share. It also hiked FY22-23 EPS estimates by 4 percent driven by higher volume and better margin for India business. The stock price of the auto major has risen more than 86 percent in the last three months. Read more.
InterGlobe Aviation | IndiGo Airlines and Dubai Aerospace Enterprise have signed long-term lease agreements for 7 Airbus A321 neo aircraft, scheduled to be delivered in 2021.
Heranba Industries IPO subscribed 35%
The Rs 625-crore initial public offering of Heranba Industries has been subscribed 35 percent so far on February 23 (Tuesday), the first day of bidding. The public issue has received bids for 24.70 lakh equity shares against offer size of 69.81 lakh shares, as per the subscription data available on the exchanges. The portion reserved for retail investors has been booked 50 percent.
Market Watch: Ajit Mishra, Religare Broking
Since yesterday we are seeing that metals stocks despite of whatever we are seeing in the Index are holding strong and Tata Steel is one of the best counter that we see at current levels which one can consider fresh buying. So Tata Steel one can buy at current levels with Rs 690 as a stop loss and Rs 750 as a target.
We are seeing IT counters witnessing selling pressure, so all the IT majors be it Wipro, HCL Technologies, Infosys we are seeing some bit of profit taking, so we expect this profit taking to extend further so one can go short in Wipro at current levels with a stop loss of Rs 428 and target of Rs 404.
Bharti Airtel partners with Qualcomm for 5G services in India
Telecom major Bharti Airtel announced its collaboration with US chipmaker Qualcomm Technologies, Inc. to roll out 5G services in India. Airtel will utilize the Qualcomm 5G RAN Platforms to roll-out virtualized and Open RAN-based SG networks.
RIL demerger: Creates smoother process for Aramco deal to happen, says Centrum Broking’s Probal Sen
Reliance’s reorganisation creates a smoother process for Aramco deal to happen, said Probal Sen, Senior Vice President at Centrum Broking, on Tuesday. The observation comes as Reliance Industries announces that it will spin-off its oil-to-chemical (O2C) business into an independent 100 percent subsidiary which will constitute the refining, petrochemical and fuel retailing businesses. Post reorganisation, Reliance will continue with management control.
Speaking in an interview with CNBC-TV18, Sen said, “This will allow strategic investors to invest in a cleaner balance sheet and also creates a smoother pathway for likes of Aramco to probably look at business without the legacy debt hampering future prospects. This is on expected lines from the time that they have been talking about setting O2C as a separate unit. We all knew that this demerger would happen as and when negotiations advance with interested buyers. So the fact that they have done it and they have put in a clear timeline, for the next 6-months for closing all the required regulatory approvals, implies that discussions with Aramco are back on track.” More here
Hindalco shares jump 4% on announcement of capital allocation framework, debt reduction plan
Shares of Hindalco rose nearly 4 percent to hit a 52-week high on Tuesday after the firm announced a capital allocation framework for Capex growth, debt reduction and shareholders’ returns. The company board also approved amending the dividend distribution policy on February 22. It will now pay an 8-10 percent dividend from the consolidated free cash flow against its existing policy of paying 10-30 percent of the standalone net profit. In an investor presentation, the firm said that the allocation towards growth capex is considered at $2.5-3 billion over the next five years. It also expects to generate over $1-1.2 billion cash flow per annum post its normal working capital and maintenance capex.
Gold rate today: Yellow metal trades flat; crucial support at Rs 46,640 level
Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Tuesday amid a positive momentum in the international spot prices as the dollar weakened. At 11:05 am, gold futures for April delivery gained 0.01 percent to Rs 46,905 per 10 grams as against the previous close of Rs 46,901 and opening price of Rs 46,973 on the MCX. Silver futures traded 0.12 percent higher at Rs 70,517 per kg. The prices opened at Rs 70,675 as compared to the previous close of Rs 70,432 per kg. “The gold prices gained on the back of a weak US dollar and hopes optimism over a massive US stimulus package. The focus will be on comments from the US Federal Reserve Chairman Jerome Powell later today,” said Ajay Kedia, director, Kedia Commodity Comtrade. More here
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking
In last couple of sessions, we had seen a glimpse of profit booking which eventually turned into a decent correction yesterday to break some key supports. The Nifty has now reached to our first target of 14,750 and the way its placed now, 14,550 – 14,470 is very much on cards. As of now, these levels should be considered a key support zone; but one needs to see how market behaves after entering it.
Yesterday, the banking space did not participate to the tune of benchmark in the correction; but going ahead, if we see Bank Nifty sliding below its key support of 35,000, it will drag the Nifty towards 14,300 as well. Hence, the coming session would be quite crucial, especially for banking stocks. As far as Nifty is concerned, it has broken below ’20-day EMA’ and hence, any bounce towards 14,775 – 14,850 is likely to get sold into.
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.
Adani Enterprises | Adani Enterprises and EdgeConneX announced the establishment of a 50:50 joint venture. The JV will develop and operate data centers throughout India.
See a rise in slippages in H2FY20, no need for capital raising, says Axis Bank MD & CEO
In an interview to CNBC-TV18, Amitabh Chaudhry, MD & CEO of the private sector bank spoke at length about how much more stress can come and where will it come from. “We have maintained a steady stance that, from Q2 itself that we will see slippages rise in the retail business in the second half of this financial year. I expect the slippages to remain and every financial player has reacted to this crisis,” Chaudhry stated.
He further noted that slippages in Q4 are likely to be lower as a large part of it has been seen in Q3. The bank did not give any guidance due to volatile conditions but will look at inorganic opportunities at the right price, Chaudhry said. However, some of the risks which are out there are the fact that – is the second-wave of COVID coming in, could it somehow impact the recovery momentum we are on, he added. Read here.
RIL announces O2C business spin-off into 100% subsidiary; shares jump over 1%
Shares of Reliance Industries Ltd (RIL) gained over a percent in early trade on Tuesday after Mukesh Ambani-promoted conglomerate announced that it has initiated the process of carving out its Oil-to-Chemical (O2C) business into an independent subsidiary. In a release issued to exchanges, RIL said that it will retain full control of the business post-restructuring. All the refining, marketing and petrochemical assets will be transferred to the O2C subsidiary. The promoter group will continue to hold a 49.14 percent stake in the O2C business after the reorganisation and that the process will result in no change in shareholding of the company. More here
In talks with NSE for strategic investment in IGX: IEX’s Rajesh Mediratta
The country’s largest power exchange, Indian Energy Exchange (IEX), is in focus as companies like Adani Total Gas, Gail, ONGC have picked up stake in its subsidiary Indian Gas Exchange (IGX). Rajesh K Mediratta, Director-Strategy and Regulatory Affairs at IEX, spoke to CNBC-TV8 To discuss about their business plans and CERC norms on market coupling.
“We started our subsidiary Indian Gas Exchange in June last year and we are seeing a lot of traction in terms of policy reforms. Good thing is that we are aligning, what we are doing with the government vision of increasing gas in the primary energy mix from 6 percent to 15 percent and we also see that there are lot of policy actions happening in terms of making the gas market more vibrant and liquid so that the government is able to meets its vision.” More here
Market quote by Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
“Whilst the markets have opened in the green, the short term trend remains negative for the time being. Until we do not get past 15100 on the Nifty, any up move should be utilized as an opportunity to go short. The index has a support range between 14500-14700 but given the high volumes traded yesterday, there is every possibility we break that range.”
Market Watch: Shubham Agarwal, CEO & Head of Research at Quantsapp Advisory
– Buy Indus Tower with a stop loss of Rs 252 and a target of Rs 285.
– Buy Apollo Hospitals with a stop loss of Rs 2,750 and a target of Rs 3,200.
– Sell Infosys with a stop loss of Rs 30 and a target of Rs 54.
Sectoral trend at opening
Opening Bell: Sensex opens 200 points higher, Nifty around 14,750; RIL, ICICI Bank top contributors
Indian indices opened higher on Tuesday, snapping five sessions of losses, led by broad-based gains across sectors. Heavyweights RIL, TCS, Axis Bank, and ICICI Bank contributed the most. At 9:18 am, the Sensex was up 216 points at 49,961 while the Nifty rose 73 points to 14,748.
