News and Impact · Southbound journey expected to con | SKM INVESTMENT
News and Impact
· Southbound journey expected to continue on account of escalating tension in Ukraine –Russia and sharp decline across the global market (SGX Nifty slipped nearly 300Pts). Ukraine's parliament declared a national state of emergency aimed at helping to forge a response to the threat of a full-scale Russian invasion. Dow Jones Future fell over 200pts (Yesterday declined nearly 500Pts) to year low at below 33k after the media report that the Russia may attack Ukraine today. Russia has deployed at least 150,000 troops near Ukraine's borders. Brent Crude spiked to 7-year high at $98/bbl and Gold surged to 8-month high of above $1900 on account of geo-political tension. Traders apply caution approach in the market and avoid bargain hunting. FIIs continued selling in Indian equity and net sellers over $4bn during the month of February.
· US stocks fell again Wednesday amid unease over Ukraine and shifting Federal Reserve policy, while oil prices finished a volatile session little changed. Major US indices opened the day higher, but began
· retreating soon thereafter amid fresh Ukraine headlines, finishing the day sharply lower. Nasdaq Composite slipped nearly 3% while Dow Jones nosedived 500 points or 1.4%
· Asian stocks fell Thursday on growing geopolitical tension after the Kremlin said separatists in eastern Ukraine asked President Vladimir Putin for help, a step that could lead to Russian troop deployments.
· Equities declined by 1% each in Japan, South Korea, Taiwan and Australia.
· European stocks mostly ended lower on Wednesday as investors continued to monitor the Russia-Ukraine crisis and corporate earnings. Germany Index slipped nearly half percent while UK Index ended flat.
· Oil climbed on a worsening geopolitical situation in Europe after the Kremlin said separatist leaders in eastern Ukraine called on Russian President Vladimir Putin for help fighting Ukrainian forces. Brent Crude gained over 1% to $97/bbl.
· Gold traded near its highest level in more than eight months as tensions around Ukraine intensified, boosting demand for the haven asset. Gold advance 1% to $1911/ounce.
· Actionable - Crompton Greaves, Balrampur Chini, Bank of Baroda, Vodafone
· Brokers Radar – Crompton Greaves TGT by Morgan Stanley at 442, Credit Swiss TGT on Crompton Greaves at 500, Jefferies TGT on Crompton Greaves at 590, JP Morgan TGT 485.
· Events - February series expiry, ex-dividend - PFC Rs6, PM meeting on Ethinol blending, US Q4 GDP Number, Saregama board meeting for stock split
· Market Summary - Vodafone in Talks on 5% Indus Towers Stake Sale to Airtel, Godrej Agrovet Launches Nisan Chemical's Insecticide in India, Bikaji Foods Files for India IPO Via Sale of Secondary Shares, Bajaj Healthcare Launching Drug To Normalise Magnesium Levels, Vikas Lifecare Unit Ties Up with SICK India to Market Ultrasonic, TVS Motor Clocks 1 Million Two-Wheeler Export Milestone in FY 21-22, Global Premier of Maruti Suzuki New Age Baleno, Adani Enterprises divests stake in subsidiaries to AdaniConnex Pvt Ltd.
· Vodafone is in talks to sell around 5% stake in Indus Towers to Bharti Airtel, proceeds from the sale will go to Vodafone Idea - positive
· Godrej Agrovet has launched an insecticide called Gracia developed by Japan's Nisan Chemical Corporation in the Indian market. This is the second product of Nisan to be launched by Godrej Agrovet in India, after the launch of Hanabi miticidefrom in 2019. – positive
· Watch Sugar stocks (Balrampur Chini, Praj, Ranuka, Eid Parry) ahead of PM meeting today to achieve 20% ethanol-blending in petrol by five years to 2025
· Bikaji Foods Files for India IPO Via Sale of Secondary Shares worth Rs1000cr - Bikaji Foods International Ltd.’s founders and investors seek to sell as many as 29.37 million shares in an initial public offering, according to its draft prospectus. – Positive for Prataap Snacks
