Market Opening:
Benchmark indices started off last day of the week on a strong note after three-day fall. Likely de-escalation between India and Pakistan after Pakistan Prime Minister announced that his country will release captured IAF Wing Commander lifted sentiment.
The 30-share BSE Sensex rallied 223.53 points to 36,090.97 and the Nifty50 rose 63.80 points to 10,856.30 on first day of March series.
The good news is that foreign institutional investors (FII’s) net cash flow remained positive for February which was negative in 7 out of the last 12 months. As move into March series, Indo-Pak tension is likely to keep the market volatile.
Technical Charts Indicate Consolidation in Market
Index stayed on volatile ground in narrow range of 10,850 to 10,780. Nifty has formed Shaven Top which implies that sellers were active from initial ticks but not stronger enough to pull prices on lower side, Emkay said.
In spite of being on volatile ground, index is operating within its 11-week range of 11,100 to 10,600, it added.
So going forward index seems to be cusp of sideways move, according to the research house.
Below 10,770 index can face more selling pressure and on higher side 10,880 seems immediate resistance point, it said.
Rupee Opening:
The Indian rupee has opened marginally lower at 70.74 against the US dollar, against Thursday's close of 70.72 a dollar. The rupee recovered by 52 paise to close at 70.72 against the dollar on Thursday as investors wagered on de-escalation of tensions between India and Pakistan.
FPIs were net buyers in Indian markets for Rs 3210 crore, compared to DIIs which were net sellers to the tune of Rs 5240 crore, provisional data showed.
Global Markets :
US Markets Close Lower on Earnings Concerns
Wall Street’s main indexes fell slightly on Thursday as support from better-than-feared US GDP data was countered by concerns about earnings and US-China trade relations.
Also on Thursday, President Donald Trump said he had walked out of his Vietnam summit with Kim Jong Un because of demands from the North Korean leader to lift US-led sanctions.
The Dow Jones Industrial Average fell 69.16 points, or 0.27 percent, to 25,916, the S&P 500 lost 7.89 points, or 0.28 percent, to 2,784.49 and the Nasdaq Composite dropped 21.98 points, or 0.29 percent, to 7,532.53.
Commerce Department data on Thursday showed that while the US economy missed a 3 percent annual growth target for 2018, a better-than-expected fourth quarter pushed gross domestic product up 2.9 percent for the year.
positive developments on US-China trade deal is good for the global markets, however progress on Brexit deal front, crude oil price and currency movement would be actively tracked by investors.
Asian shares :
inched higher on Friday with broader gains capped by investor caution as concerns about China’s economy and global trade weighed on sentiment while stronger-than-expected US GDP data pushed the dollar up.
Japan's Nikkei gained 0.9 percent, Hong Kong's Hang Seng was up 0.4 percent and Australia's ASX 200 rose 0.5 percent.
South Korea's Kospi and Taiwan's Taiwan Weighted markets are shut for trading.
SGX Nifty indicates Flat Opening
SGX Nifty futures, which were up 5 points, indicated that there could be flat market opening.
Most experts believe that geopoliticial tensions between India and Pakistan seem to have priced in and the focus will shift to general elections, which is likely to take place in April-May, 2019.
"We expect markets to remain volatile in the near term. On the domestic front, any escalation of tensions between India and Pakistan would keep the markets volatile.
Domestic Markets :
Indian Air Force pilot Wing Commander Abhinandan Varthaman, who was captured by Pakistan after an engagement with Indian forces on February 27, will be released by Islamabad on March 1, Prime Minister Imran Khan has confirmed.
Senators urge Trump to pursue peaceful resolution to India-Pak conflict
Two influential American Senators have asked US President Donald Trump to pursue a peaceful resolution to the conflict between India and Pakistan and ensure that Islamabad does more against the terrorist groups.
In a letter to Trump, Senators Jerry Moran from Kansas and Jeanne Shaheen from New Hampshire said that there is a urgency surrounding the dangerous situation between India and Pakistan in Kashmir.
US again asks Pakistan to deny safe havens to terrorists
The US has reaffirmed its demand that Pakistan abide by its UN Security Council commitments to deny safe havens to terrorists and block their access to funds as it welcomed Islamabad's decision to release the captured Indian Air Force pilot.
Wing Commander Abhinandan Varthaman will be handed over to Indian High Commission in Islamabad today. Exact time of handing over is being worked out, quoting Pakistan government sources. Varthaman's will return to India from Pakistan via Wagah border.
Pakistan violates ceasefire in Uri sector, civilian injured
One civilian was injured in a ceasefire violation by Pakistani troops along the LoC in Uri sector of Jammu and Kashmir. Pakistani troops resorted to unprovoked firing towards Indian posts and villages in Kamalkote area of Uri in Baramulla district on Thursday evening.
Results on March 1: ABB India (CY18), Ceenik Exports, Resurgere Mines
Here are stocks that are in the news today:
DHFL: CARE withdraws rating of the company. CRISIL downgrades commerical papers & short-term deposit rating to A1 from A1+.
Nitin Castings: Company has fixed March 15 as the record date for the purpose of sub-division of each equity share of the face value of Rs 10 each fully paid-up into two equity shares of Rs 5 fully paid-up.
Brigade Enterprises: Company appointed Rajendra Joshi as Chief Executive Officer Designate - Residential [SBU].
Metalyst Forgings Q3: Loss at Rs 63.82 crore versus loss Rs 137 crore; revenue rises to Rs 89.4 crore versus Rs 79.62 crore YoY.
Nu Tek India: Company announced resignation of Ashish Bankar from the post of Chief Financial Officer.
HDFC Bank: The bank has executed an agreement for subscribing to 37,993 equity shares of face value of Rs 1,000 each to be issued by CSC E- Governance Services India Limited (CSC) at Rs. 3,848 per equity share.
Bharti Airtel: Board approved the fund raising of upto Rs 32,000 crore through rights issuance of upto Rs 25,000 crore; and Perpetual Bond with equity credit upto Rs 7,000 crore.
Kotak Mahindra Bank: The bank revises marginal cost of funds based lending rate downwards by up to 5 bps.
Forbes & Company: Board approved the sale of 50 percent business undertaking in Project Vicinia, on a going concern and as-is-where-is basis by way of slum sale for a consideration of Rs 155 crore to Paikar Real Estate Private Limited.
Jet Airways: Additional six aircraft have been grounded due to non-payment of amounts outstanding to lessors under their respective lease agreements.
Central Bank of India: Board allotted 38,74,39,390 equity shares to President of India (Government of India) on preferential basis, aggregating upto Rs 1,678 crore.
Rossell India: ICRA revised its long term rating on company's line of credit facilities to BBB+ with stable outlook from A- with negative outlook.
Majesco: Company announces major update for distribution management.
National Steel & Agro Industries Q3: Loss at Rs 151.5 crore versus profit Rs 6.26 crore; revenue falls to Rs 196.90 crore versus Rs 1,029 crore YoY.
Infosys: On February 13, Kiran Mazumdar-Shaw, Lead Independent Director of the company, had inadvertently, through her portfolio management services, sold 1,600 shares of company without obtaining pre-clearance of trade. The trade occurred when the trading window was open. Audit Committee imposed on Mazumdar-Shaw, a penalty of Rs 9.5 lakh which amount shall be payable to a charitable organisation of her choice.
EPC Industrie: Name of the company has been changed to Mahindra EPC Irrigation with effect from February 28.
Kedia Construction: Company fixed March 15 as the record date for the purpose of sub-division of each equity share of the face value of Rs 10 each fully paid-up into two equity shares of Rs 5 each fully paid-up.
Orient Tradelink: Board approved sub-division of face value of equity shares from Rs 10 to Rs 2 per equity share of the company.
Circuit Limit Update: BSE revised circuit limit for SREI Infrastructure Finance, Reliance Communications, Adroit Infotech, Andhra Cements, Transwarranty Finance to 20 percent; Sankhya Infotech to 10 percent; Orient Green Power Company to 5 percent; and Ejecta Marketing to 2 percent.
RPP Infra: Promoter sold 2.55 lakhs shares on February 26
IndusInd Bank: Buyback opens on February 28 & closes on March 14
REC: Company extended the consent fee deadline from March 1 to March 8.
Chambal Fertilisers: Voluntary liquidation of India Steamship International FZE WOS in UAE, was not having any business operations
Motherson Sumi Systems: Company announces acquisition of Bombardier’s UK rolling stock electrical component and systems business
Vedanta: Board meeting March 3 to consider second interim dividend
L&T: Post February 18 clarification - the company also briefed the Audit Committee of the management-initiated investigation conducted by leading law firms in USA and India with the help of forensic experts from Hong Kong in 2017
Zydus Wellness: Promoter pledged 6.3 percent stake with Kotak Mahindra Investment
Hathway Cable: Promoters bought 20.61 percent stake in company via open offer
Orissa Minerals Development Company: Company will pay Rs 400 crore as a penalty to Odisha Government due to violation of environmental clearance and other norms. The market capitalisation of the company stands at Rs 493 crore as on February 28.
Emami: Promoters pare share pledge to 40 percent from 47.5 percent - ET
Coal India: Company set to miss output target by huge margin: BS
DBS Bank: RBI approves amalgamation of DBS Bank's India operations with DBS Bank India
Vodafone Idea: Cabinet approves company's rights issue
MFs reduce exposure to pledged shares, Sebi may tighten norms to curb lending to promoters against pledged shares: Mint
Bulk Deals on February 28
C & C Constructions: Alpha Leon Enterprises LLP bought 1,39,271 shares of the company at Rs 11.51 per share on the NSE.
Nagarjuna Oil Refinery: Zuari Investments sold 34,33,321 shares of the company at 30 paise per share.
PG Electroplast: Vicky Rajesh Jhaveri purchased 1,00,000 shares of the company at Rs 84.79 per share.
Reliance Infrastructure: STCI Finance sold 18,24,602 shares of the company at Rs 123.8 per share.
Tata Motors DVR 'A' Ordinary: SBI Mutual Fund bought Rs 37,31,600 shares of the company at Rs 87.74 per share.
Viji Finance: Vijay Kothari sold 4,90,323 shares of the company at 70 paise per share.
Analyst or Board Meet/Briefings
Mphasis: Company is participating in the India Corporate Day Event, organized by Nomura in New York, USA on March 4.
Jyothy Labs: Company's officials will meet JP Morgan on March 6 and Credit Suisse on March 8.
Hero MotoCorp: Company's officials will attend Investor Meet organised by UBS on March 5.
Tube Investments of India: Company's officials will meet analysts/investors on March 1.
Allied Computers International (Asia): Board meeting is scheduled on March 7 to fix day, date, time and venue and approve draft of notice for Extra Ordinary General meeting.
Colgate Palmolive: Institutional investors meetings of the company are scheduled between March 1 to March 15 in India, Hong Kong, Singapore and London.
HDFC: Board meeting is scheduled on March 6 to consider payment of interim dividend, on the equity shares of the corporation for the financial year ending March 31, 2019.
TCS: Company's officials will meet Somerset Capital Management on March 12.
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