Coronavirus, SBI Card IPO among 10 key factors that will keep traders busy

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Last week, the Indian stock markets remained under pressure, tracking a collapse in global equities amid growing concerns about novel coronavirus’ impact on global economy.

Nifty50 registered its worst weekly fall in since 2009, while making it one of the worst monthly fall since September 2018.

While the S&P BSE Sensex plunged 5.96 percent, Nifty50 was down 6.21 percent in the month of February.

“In the forthcoming week, all eyes would be glued on the most awaited SBI Cards IPO and RITES OFS by the Government of India. No matter the outcome, markets would broadly be driven by the virus and global sentiment,” Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said.

While the Sensex lost 2,872.83 points (7 percent) to end at 38,297.29 in the past week, the Nifty shed 879.05 points (7.3 percent) to end at 11,201.8.

The BSE large-cap index shed 7.4 percent, BSE small-cap index and mid-cap index fell 7 percent last week.

Here are 10 key factors that will keep traders busy this week:

February auto sales numbers:

This week, auto companies are going to report their monthly sales numbers for the month of February 2020.

According to experts, the wholesale numbers are expected to be under pressure in CVs, 2Ws and PVs due to inventory correction by dealers before the BS6 transition.

However, marginal growth is likely to be seen in tractors due to the low base from last year and improved customer sentiment.

While M&M is expected to see 5 percent YoY growth, Escorts should register flat growth. The low base from last year and better customer sentiment are supporting demand, Emkay said.

In the domestic market the volume declines are expected for TVS Motor (-22 percent YoY), Hero MotoCorp (-16 percent) and Bajaj Auto (-14 percent).

According to Motilal Oswal, in February 2020, the wholesale volumes are estimated to decline 20 percent/11 percent/35 percent YoY for 2Ws/PVs/CVs due to stopping of BS4 production. Tractors are expected to grow by 5.5 percent YoY.

SBI Card IPO:

The initial public offering of SBI Cards and Payment Services, the credit card arm of State Bank of India (SBI), will open for subscription on March 2 and will close on March 5.

The company plans to issue new shares worth Rs 500 crore and an offer for sale of up to 13,05,26,798 equity shares.

As a part of the offer for sale, parent company SBI will sell up to 3,72,93,371 shares and CA Rover Holdings, an affiliate of the Carlyle Group, will sell up to 9,32,33,427 shares.

SBI Cards proposed to raise Rs 10,289 crore at the lower end of the price band (Rs 750 per share) and Rs 10,355 crore at the upper end (Rs 755 per share).