News & Impact
· Expect market to open on a weak note on account of global cues. US stocks posted heavy losses by the end of Monday’s as the coronavirus (COVID-19) woes joined inflation concerns and Sino-American tussles to weigh on the sentiment. The Delta covid variant not only pushed Australia to extend local activity restrictions but also forced the US to issue the “Level 4” travel advisory for the UK. Dow Jones slipped 700 points or over 2% while Nasdaq Composite declined 1%. US 10-Year Bond declined 11bps to 5-month low at 1.18%. SGX Nifty declined 0.3% while US Dow Future is up half percent
· European stocks closed in red as fears of another wave of the COVID-19 pandemic worried investors, even as the UK relaxed all the restrictions amid increasing cases. UK, Germany and France Index declined 2.5% each.
· A global stocks selloff continued in Asia early Tuesday as the spread of the delta coronavirus variant stokes concerns about the resilience of the economic recovery and bolsters haven assets. Equities fell in Japan, Australia, Taiwan and South Korea Index declined half to one percent.
· OIL led losses in a broad market selloff while a resurgent virus threatened the global economic recovery just as Opec+ agreed to boost crude supply. Brent Crude declined 7% to below $69/bbl.
· Gold prices were flat at $1815/ounce, as a slide in U.S. Treasury yields offset a firmer dollar amid investor concerns over a relentless surge of the Delta coronavirus variant that could threaten the outlook for global economic recovery.
· Weak global market and FIIs selling pressure may negative impact in the market. However, stock specific action may continue. Fall in oil price, impressive domestic economy data and good quarterly results will be positive for the market. FIIs were net sellers Rs2199cr while DIIs were net buyers Rs1048cr yesterday
· Actionable – BUY India Bull Housing, JK Lakshmi Cement, ACC
· Brokers Radar – HCL Tech TGT by Jefferies at 1180, CLSA TGT on ACC at 1180, HDFC Life TGT by Morgan Stanley at 730, HDFC Life TGT by Mac 850, Nomura TGT on HDFC Life at 750, CLSA TGT on HDFC Life at 790, ACC TGT by Credit Swiss at 2450, ACC TGT by JP Morgan at 2450
· Results - Asian Paints, Bajaj Finance, ICICI Prudential, ICICI Securities, ITDC, Syngyne
· Market Summary - Suzuki to Launch EVs by FY2025, First in India. HDFC Life 1Q Net Income Misses Estimates, Mahindra to Inspect, Replace Engines in Up to 600 Vehicles, India Court Reserves Order on Plea to Halt Piramal’s DHFL Deal. SEBI Investigating Some Adani Group Firms, Minister Says, Top Court Reserves Order on Telcos’ Plea to Cut Past Dues, Govt collects Rs 1.01 lakh cr from excise, Rs 2.41 lakh cr from income tax in Q1.
· Maruti - Suzuki Motor plans to release its first fully electric vehicle by fiscal 2025, EV will be released in India first and be available for 1.5m yen or less – Positive
· Voltas - The company has appointed Jitender P Verma as its chief financial officer (CFO).- Positive
· City Union Bank approves rising capital through QIP worth Rs500cr – Positive
· LIC Housing Finance - Company said that its proposal of preferential allotment of shares to the parent company Life Insurance Corporation of India (LIC).- Positive
· Mahindra Holiday - Company has recommenced its resorts operations starting from June 2021 in a staggered manner and currently, majority of its resorts are operational. – Positive
· Larsen & Toubro's Construction Arm Wins New Orders – L&T has won "significant orders," which the company classifies as those ranging from Rs1000cr to Rs2500cr.- Positive
· Jindal Stainless sign pact with Tata Steel Mining - Positive
· Supreme Court will give its order later on petitions by telecom companies, including Bharti Airtel and Vodafone Idea, seeking a reduction in past dues citing calculation errors. In Jan., Vodafone Idea and Bharti Airtel Petition India Court to Cut Telecom Demand. Vodafone Idea’s lawyer Mukul Rohatgi cites financial difficulties in the company, says the company may “go under”.
By: via @AlliesFin Serve Stock Market
