All You Need To Know Going Into Trade On February 10
Commuters exit the Chhatrapati Shivaji Maharaj Terminus railway station in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On February 10

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Most Asian equities are advancing in mid-week trading after a muted start to the session.

Equity markets in Hong Kong are leading the gains. Futures on the Dow Jones are trading 100 points higher after the index ended little changed overnight.

The U.S. Dollar has steadied after an overnight decline, oil prices were little changed after seven straight days of gains while Bitcoin pulled back from a record high.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 15,134 as of 6:55 a.m.

Let’s take a look at the factors that may influence equities in today’s session:

  • Lunar New Year public holidays begin across Asia. Chinese equities will be shut for a week.
  • Global equities have hit new records in the first few days of the month cheering advancing vaccination efforts and a slowdown in new virus cases across the globe.
  • “A pullback here could give tactical opportunities to those who were looking to get involved,” Mona Mahajan, investment strategist at Allianz Global Investors, said on Bloomberg TV.
  • The EIA crude oil inventory report will be released today, as well as the U.S. Consumer Price Index. Federal Reserve Chair Jerome Powell will also be speaking at a Webinar today.
  • Yield on the 10-year treasuries stood at 1.16%.
  • West Texas Intermediate crude was flat at $58.34 per barrel.

Get your daily fix of the global markets here.

Nifty Earnings

Tata Steel Q3FY21 (Consolidated, YOY)

  • Revenue up 11.5% at Rs 39,594 crore Vs Rs 35,520 crore (Bloomberg Estimate: Rs 38,982.4 crore)
  • Net profit at Rs 3,989 crore Vs Net loss of Rs 1,166 crore (Bloomberg Estimate: Rs 3,410.2 crore)
  • Ebitda up 160.7% at Rs 9,540 crore Vs Rs 3,659 crore (Bloomberg Estimate: Rs 8,516.1 crore)
  • Ebitda Margins at 24.1% vs 10.3%
  • Apparent steel consumption in India improved by 17.8% QoQ and 10.7% YoY
  • EU steel imports declined due to low margins. However, the market share of imports remained high

Stocks To Watch

  • Century Plyboards (India): Approved expansion of Medium Density Fiber (MDF) Board unit located at Hoshiarpur in Punjab by making an additional capital expenditure of approximately Rs 200 crore. The existing operating capacity of the plant is 600 cbm per day which is expected to be increased to 1,000 cbm per day, post this expansion.
  • Petronet LNG: Has approved the proposal for incorporating its wholly-owned subsidiary company to undertake businesses/activities, including but not limited to gassing up and/or cool down and supply of heel to LNG vessels, LNG bunkering, training, consultancy, other value-added marine, transport, LNG services, etc.
  • InterGlobe Aviation: Settled case with SEBI that alleged parent of the airline of violating corporate governance norms. The company paid Rs 2.1 crore without admitting or denying any violation on its part. Also, Aditya Pande has resigned as Chief Financial Officer of the company, effective February 21, 2021. The company has appointed Jiten Chopra as CFO with effect from February 22, 2021.
  • The Phoenix Mills: Mindstone Mall Developers, a wholly-owned subsidiary of the company, has announced acquisition of approximately 7.48 acres of prime land in Alipore, Kolkata for a total consideration of Rs 300 crore. The land parcel has development potential of approximately 1 million square feet with the first phase of the development expected to be operational during FY25 subject to local and municipal approvals.
  • Wockhardt: INews reports that the company has received an extension of six months to its contract to put Covid-19 vaccines into glass vials ready for distribution. The INews report cited comments from U.K. Business Secretary Kwasi Kwarteng.
  • IG Petrochemicals: Has approved the Greenfield Expansion of Phthalic Anhydride & its Derivatives up to 80,000 MTPA in Gujarat. The capacity will be added in approximately 3 years at a cost of Rs 600 crore. The expansion will be funded through a mixture of internal accruals and borrowings. The company expects the demand for Phthalic Anhydride in the domestic market to increase due to the government's focus on infrastructure spending and demand growth in downstream products like paints, plasticizers, polyvinyl chloride among others.
  • IRFC: A meeting of Board of Directors is scheduled on February 13 to consider declaration of interim dividend for the Financial Year 2020-21.
  • VST Tillers Tractors: Has appointed VT Ravindra as Managing Director of the company from February 20, 2021. The current Vice Chairman & Managing Director of the company VP Mahendra will retire on February 19.
  • Patel Engineering: The allotment Committee has approved the allotment of 3,54,36,562 shares of face value Re. 1 each to PTC India Financial Services and IDBI Bank at a price of Rs 14.78 per share (i.e. price for conversion of debt into equity) aggregating to Rs 52.37 crore.
  • To Be Part Of F&O From March Series: Alembic Pharma, City Union Bank, Granules India, Gujarat Gas, L&T Technology Services, Mphasis.
  • Nifty Earnings Today: Eicher Motors, GAIL, Hindalco, Titan
  • Non-Nifty Earnings Today: ABB India, Aurobindo Pharma, Bank of India, Bata India, BEML, Bharat Wire Ropes, ENIL, Eveready, Greaves Cotton, GSPL, Happiest Minds Technologies, Indraprastha Gas, Kesoram Industries, Kitex Garments, Max India, NBCC, Page Industries, Procter & Gamble Health, RITES, Schneider Electric, Shalimar Paints, SpiceJet, TTK Prestige, Ujjivan Financial Services

Earnings Post Market Hours

AkzoNobel Q3FY21 (Consolidated, YoY)

  • Revenue up 7% at Rs 774.6 crore Vs Rs 727 crore
  • Net profit up 14% at Rs 87.3 crore Vs Rs 76.9 crore
  • Ebitda up 16% at Rs 135 crore Vs Rs 116 crore
  • Ebitda Margins 17.4% Vs 15.9%
  • Recommended interim dividend of Rs 20 per share.
  • Strong double-digit volume growth during the quarter
  • Witnessing inflationary pressure due to rising raw material costs

GMDC Q3FY21 (Consolidated, YoY)

  • Revenue down 3% at Rs 329.3 crore Vs Rs 339.7 crore
  • Net loss of Rs 2.7 crore Vs Net profit of Rs 28.2 crore
  • Ebitda loss of Rs 38.6 crore Vs Ebitda gain of Rs 12.21 crore

Raymond Q3FY21 (Consolidated, YoY)

  • Revenue down 34% at Rs 1,243.44 crore Vs Rs 1,885.43 crore
  • Net profit down 89% at Rs 22.18 crore Vs Rs 196.83 crore
  • Ebitda down 45% at Rs 114 crore Vs Rs 206 crore
  • Ebitda Margins at 9.2% Vs 10.9%
  • Other income rises to Rs 43 crore Vs Rs 19.2 crore
  • All segments except auto components and real estate see decline in revenue
  • Net debt at Rs 1,583 crore in December 2020 as compared to Rs 1,817 crore in September 2020 and Rs 1,859 crore in March 2020.

Mahanagar Gas Q3FY21 (Standalone, YoY)

  • Net sales down 11% at 666.3 crore Vs 744.5 crore
  • Net profit up 17% at Rs 217.2 crore Vs Rs 186 crore
  • Ebitda up 22% at Rs 316.7 crore Vs Rs 258.8 crore
  • Ebitda margin at 43.5% Vs 31.6%
  • Has approved interim dividend of Rs 9 per share having face value of Rs 10 each for the Financial Year 2020-2021

Torrent Power Q3FY21 (Consolidated, YoY)

  • Revenue down 4% at Rs 2,952.7 crore Vs Rs 3,079 crore
  • Net profit down 24% at Rs 320.5 crore Vs Rs 419.4 crore
  • Ebitda up 4% at Rs 870.3 crore Vs Rs 840.4 crore
  • Ebitda margin at 29.5% Vs 27.3%
  • Tax expense of Rs 77 crore this quarter Vs tax gain of Rs 105.4 crore in the base quarter
  • Interim dividend of Rs 5.5 per share
  • Marked improvement in collection efficiency in franchised distribution business

Lemon Tree Hotels Q3FY21 (Consolidated, YoY)

  • Revenue 66% at Rs 68.37 crore Vs Rs 199.61 crore
  • Net loss of Rs 45.72 crore Vs Net profit of Rs 11.08 crore
  • Ebitda down 75% at Rs 20.08 crore Vs Rs 81.2 crore
  • Ebitda Margin at 29.4% Vs 40.7%

Burger King Q3FY21 (Standalone, YoY)

  • Revenue down 28% at Rs 163.1 crore Vs Rs 227.9 crore
  • Net loss widens to Rs 29 crore Vs Rs 21.7 crore
  • Ebitda down 42% at Rs 15.2 crore Vs Rs 26 crore
  • Ebitda Margins at 9.3% Vs 11.4%

Pledge Share Details

  • Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 15.05 lakh shares between February 4-8.

As Reported On February 9.

Bulk Deals

  • Neuland Laboratories: Employees Retirement System of Texas bought 86,000 shares (0.67%) at Rs 1,842.24 per share.
  • Apollo Tricoat Tubes: Promoter Saket Agarwal sold 3.03 lakh shares (1%) at Rs 910 per share.
  • Crompton Greaves Consumer Electricals: Promoter Amalfiaco sold 1.90 crore shares (3.03%) at Rs 392.45 per share and sold another 1.90 crore shares (3.03%) at Rs 392.92 per share. Societe Generale bought 39 lakh shares (0.62%) at Rs 392.10 per share.

Who’s Meeting Whom

  • Bajaj Electricals: To meet PhillipCapital (India) and Motilal Oswal Securities on February 11.
  • Symphony: To meet Quantum Advisors on February 11.
  • Mahindra Logistics: To meet Locus Investment Group on February 11.
  • Dixon Technologies (India): To meet Makrana Capital on February 11 and Sundaram MF and Sands Capital on February 12. To meet DSP MF on February 16 and Edmond de Rothschild Asset Management on February 17.

Trading Tweaks

  • Price Band Revised From 20% to 10%: Bajaj Electricals
  • Ex-Date Interim Dividend: Coromandel International, Subex, Manappuram Finance, KPR Mill, Transport Corporation of India, Procter & Gamble Hygiene and Health Care.
  • Record Date Interim Dividend: Persistent Systems, Shriram Pistons & Rings, Orient Electric, Dr. Lal Path Labs, Sun Pharmaceutical Industries, Cummins India, Cholamandalam Investment and Finance Company, LT Foods, Indian Oil Corporation, VR Films & Studios.
  • Ex-Date EGM: DCW
  • Move Into ASM Framework: Somany Home Innovation
  • Move Into Short-term ASM Framework: PNC Infratech, SKF India, Karur Vysya Bank, Harita Seating Systems, Minda Industries.

Money Market Update

  • The rupee ended at 72.89 against the U.S. Dollar, as compared to Monday's close of 72.96.

F&O Cues

  • Nifty February futures end at 15,104; discount of five points
  • Nifty February futures shed 1.4% and 1.5 lakh shares in Open Interest
  • Nifty Bank February futures end at 35,998; discount of 58 points
  • Nifty Bank February futures Open Interest flat and shed 1,000 shares
  • Nifty Put-Call Ratio at 1.57
  • Out of F&O Ban: SAIL
  • Stocks In F&O Ban: BHEL, Sun TV
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