|
|
|
March 02, 2026 TOP NEWS Iran, US and Israel
conflict: Oil prices recorded their sharpest jump in four years after
escalating US‑Israeli military action against Iran sent shockwaves through
global energy markets and effectively shut down the vital Strait of Hormuz.
Brent crude spiked nearly 13%, climbing past $82 a barrel — its highest level
since January 2025 — while West Texas Intermediate approached $72. Shipping
activity through the strait — a narrow maritime passage off Iran that moves
roughly one‑fifth of the world's oil and significant volumes of natural gas —
has come to an abrupt standstill, as tanker owners and commodity traders
temporarily halt operations amid the widening conflict. Positive for upstream
companies such as Oil India, ONGC and Negative for companies such as Asian
Paints, Indigo and downstream companies such as BPCL, HPCL and IOCL. Fino Payments Bank:
MD & CEO Rishi Gupta has been arrested under the CGST/SGST Act; CFO Ketan
Merchant is appointed as the Head of Organisation. Notably, Fino
Payments Bank said in a statement yesterday that the GST issue forming
the basis of the charges against Gupta was related to one of the bank’s
business partners. Negative Strong auto sales:
Vedanta: Company has been declared preferred
bidder for Karnapodikonda bauxite block in Odisha following an auction
process conducted by the state government. Positive Jindal Stainless: JSL Overseas Holding
Limited, a Mauritius-based promoter group entity, has increased its stake in
Jindal Stainless Limited by acquiring 9,00,123 equity shares through open market
transactions. The acquisition, completed over two days in February 2026,
raised the company's shareholding from 16.45% to 16.56%, representing a 0.11%
increase in voting rights. Positive Zydus Lifesciences Limited: The company
received final USFDA approvals on February 28, 2026, for Ivermectin Tablets
USP, 3 mg and Dapsone Tablets USP in 25 mg and 100 mg strengths. The products
target annual US markets worth USD 14.8 million and USD 8.4 million
respectively, with manufacturing planned at Ahmedabad facilities and
distribution through Viona Pharmaceuticals Inc. These approvals bring the
company's total USFDA approvals to 434, with 505 ANDAs filed since FY
2003-04. MACRO WRAP ·
The
DJIA, the S&P500, and the Nasdaq Composite Index fell 1.1%, 0.4%, and
0.9% respectively. The Eurostoxx 50 fell 0.4% last Friday but edged up
0.1% for the week. In February, it rose 3.3%. ·
The
Dollar Index dipped 0.2% to 97.61 last Friday and for the week. The US 2Y
yield fell 5bp to 3.37% last Friday and down 10bp for the week. The US 10Y
yield fell 7bp to 3.94% last, Friday and down 15bp for the week. ·
Brent
crude oil prices rose 2.5% to USD72.48 last Friday and gained 1% for the
week. It rose 2.5% in February. Gold jumped 1.8% to USD5,279 last Friday and
gained 3.4% for the week. It rose 7.8% in February and rose for the seventh
consecutive month. Silver rose 6.2% to USD93.79 last Friday and gained nearly
11% for the week. It rose 10.1% in February. ·
US
President Trump has pledged that military operations will continue “until all
of our objectives are achieved” and he estimated the strikes could go on for
four weeks. It was reported that there were three American casualties, and
President Trump warned there will likely be more US casualties and that US
will avenge the deaths of Americans. Negative for broader markets ·
OPEC+
confirmed it will raise output by 206,000 barrels a day in April. the group
led by Saudi Arabia and Russia decided to raise their oil output by 206,000
barrels in Apr (slightly accelerated pace of increase versus the 137,000
barrels increase made in Dec). sentimentally negative for crude oil prices. ·
The
escalating Middle East conflict could push oil prices higher, While it is
still very early days and the situation is developing at a fast pace, it does
not appear that this military action will be quick and short-lived, Brent
could reach $80-$90/bbl immediately, with risks of rising toward $100/bbl and
potentially $140/bbl in a worst-case scenario if significant, prolonged oil
supply disruptions occur. Positive for Gold, negative for OMC’s and paint co. ·
In
January 2026, US producer prices increased by 0.5%, exceeding the expected
0.3%. Service prices rose 0.8%, with notable gains in equipment wholesaling.
Goods prices dropped 0.3%, mainly due to gasoline. Yearly producer prices
rose 2.9%, and core prices climbed 3.6%, both above forecasts. Negative for
USD ·
Germany's
inflation rate dropped to 1.9% in February 2026, below the 2.0% forecast, and
the harmonized index fell to 2.0%, meeting the ECB's target. Goods inflation
decreased to 0.8%, with sharper energy price declines and slower food
inflation. Services inflation stayed at 3.2%, and core inflation remained at
2.5%. ·
Data
watch: For the week ahead, market attention will continue to centre on
geopolitical developments in the Middle East. The key US data will be the ISM
surveys for manufacturing (2 Mar) and services (4 Mar), and most importantly,
the employment report for Feb on Fri (6 Mar). INVESTMENT CALL Pharma Sector Update – Q3FY26 Review -
Robust Q3; Outlook Positive on CDMO and complex drugs
OTHER NEWS Stocks with Significant Middle
East Exposure amid Iran Conflict: • Kalyan Jewellers –
~12% of revenue from the region; operates 36–38 stores with expansion plans. • KEC International –
Strong presence in Saudi Arabia & UAE; recently won ₹1,000+ crore T&D
orders in Saudi. • Welspun Corp –
Significant Saudi exposure; investing ~₹1,700 crore in new pipe facilities in
the region. • Sterling &
Wilson Renewables – Active in Saudi Arabia, UAE and Oman. • VA Tech Wabag –
Executing large desalination and sewage treatment projects in Saudi Arabia. New India Assurance: The National
Faceless Appeal Centre issues a favourable order, deleting a tax demand of Rs
672 crore for AY23. H.G. Infra: The company has received
an LOA from NHAI for a 40.33 km six-lane ring road project in Odisha under
HAM, with a bid value of ₹1,582 crore. IMFA: Indian Metals & Ferro Alloys Ltd
(IMFA), India's largest fully integrated ferrochrome producer, has completed
the acquisition of Tata Steel's ferrochrome plant in Kalinganagar, Odisha,
for a total transaction value of Rs 707.26 crore, funded entirely from
internal accruals. The 115-acre facility, with four furnaces producing
100,000 TPA Brigade: The company has
launched a residential project — Brigade Stellaris — in Chennai, with a gross
development value of Rs 1,700 crore. The project will be developed on a
5.19-acre prime land parcel. Gross GST Collections Rise 8.1%
to Rs 1.83 Lakh Crore in February: The total gross Goods and Services Tax,
GST collections grew 8.1 per cent to over one lakh 83 thousand crore rupees
in February this year as compared to the same month last year. The total
gross GST revenue in February 2025 was over one lakh 69 thousand crore
rupees. The Central GST collection in February this year stood at 37 thousand
473 crore rupees, and the State GST is at 45 thousand 900 crore rupees. The
Integrated IGST collected amounts to over one lakh crore rupees. |
|
|
