Pre Market: Indian Markets Set for Positive Open; RBI M&A Norms, Fed Minutes in Focus

1. GLOBAL MARKET SUMMARY

US Market Overnight (February 18)

• S&P 500: 6,881.31 (+0.56%)
• Nasdaq Composite: 22,753.63 (+0.78%)
• Dow Jones Industrial Average: 49,662.66 (+0.26%)

European Markets (February 18)

• Stoxx 600: Ended session 1.2% higher
• FTSE: UK inflation data reported; British Pound fell 0.2% to $1.3547
• DAX: German markets closed higher
• CAC 40: French markets closed higher

Asian Markets (February 19)

• Nikkei 225: Added 0.52%
• Hang Seng: Closed for Lunar New Year holiday
• KOSPI: Jumped 2.76% to fresh record high
• Shanghai Composite: Closed for Lunar New Year holiday
• Australia’s S&P/ASX 200: Rose 1.1%
• Kosdaq: Advanced 0.59%
• Topix: Rose 0.39%

2. KEY HEADLINES & EVENTS (Last 16-17 Hours)

Government Announcements (India)

RBI Liberalizes M&A Funding Norms

• Reserve Bank of India issued new guidelines for merger and acquisition financing
• Banks can now fund up to 75% of acquisition costs with 3:1 debt-equity ratio
• Total acquisition finance cap doubled to 20% of a bank’s Tier-1 capital
• Eligibility extended to unlisted companies and substantial creeping acquisitions permitted
• Estimated $10-15 billion annual opportunity unlocked for domestic lenders
• Key beneficiaries identified: Kotak Mahindra Bank, State Bank of India, ICICI Bank, Axis Bank

RBI Mandates Unique Transaction ID for OTC Derivatives

• RBI announced mandatory unique transaction identifiers (UTI) for all over-the-counter derivative trades
• Framework applicable from January 1, 2027
• Applicable to FX derivatives, rupee interest rate derivatives, forward contracts in government securities, credit derivatives
• Aims to enhance traceability, aggregation and systemic risk monitoring
• Market participants required to upgrade systems for compliance
• Clearing Corporation of India (CCIL) expected to provide operational guidelines

SEBI Forms Working Group to Review ESG Rating Providers

• Securities and Exchange Board of India constituted working group to review regulatory framework for ESG Rating Providers
• Working group comprises representatives from issuers, investors, ESG rating users, domestic and global ESG rating providers, ESG analysts, legal experts and academia
• Mandate includes comprehensive review of existing framework and examining market participant representations
• Tasked with recommending measures to enhance transparency, reliability and investor confidence in ESG ratings
• Working group will submit report with findings and recommendations on policy changes

Company Results & Announcements (India)

Cochin Shipyard Secures Major Order

• Bagged new shipbuilding orders worth around $360 million (approximately Rs 3,267 crore)
• Orders from France-based CMA CGM Group for six LNG-powered vessels
• Total order book reached approximately Rs 23,000 crore with latest order

Bharat Forge Technology Collaboration

• Signed pact with VVDN Technologies to explore strategic collaboration
• Partnership spans key technology-driven sectors including automotive and defence
• Parties intend to jointly pursue opportunities in next-generation technologies across automotive, defence, AI, and data centre domains

Hindustan Unilever Expansion Plans

• Plans to invest up to Rs 2,000 crore over next two years
• Investment to expand manufacturing capacity in fast-growing premium segments
• Focus on Beauty & Wellbeing and Home Care liquids portfolio
• Investment spread across multiple locations aimed at scaling production and responsiveness to consumer preferences

Dr Reddy’s Trademark Acquisition

• Acquired trademarks of specialty brands Progynova and CycloProgynova for India
• Acquisition from Mercury Pharma Group, UK-headquartered specialty pharmaceutical company
• Includes related assets for these specialty pharmaceutical brands

L&T AI Infrastructure Venture

• Announced proposed venture under India AI Mission at India AI Summit
• Plan to build sovereign, scalable GW-scale Nvidia AI factory infrastructure
• Integration of L&T’s engineering, infrastructure development, and execution capabilities
• Incorporates Nvidia AI infrastructure including GPUs, CPUs, networking, accelerated storage platforms

Zydus Lifesciences USFDA Approval

• Received final approval from United States Food and Drug Administration for Bosentan tablets for oral suspension, 32 mg
• Product indicated for treatment of Pulmonary Arterial Hypertension (PAH) in children aged three years and older
• Drug is dual endothelin receptor antagonist that helps lower high blood pressure in lungs
• Approved product to be manufactured at formulation manufacturing facility in SEZ, Ahmedabad
• Company now has 432 approvals and has filed 505 ANDAs since FY 2003-04

NCC NHAI Tender Ban

• Received order of debarment from National Highways Authority of India
• Company and its step-down subsidiary M/s O B Infrastructure debarred from participating in any tenders or bids issued by NHAI
• Debarment period of two years effective February 17, 2026
• Company stated debarment will have no impact on existing order book or ongoing projects
• Company reviewing order and will take appropriate steps in accordance with applicable law

Go Digit Partnership

• Partnered with Anvayaa Kin Care to provide elderly care services to policyholders
• Arrangement allows Digit customers to opt for sachet-size experience package curated by Anvayaa
• Partnership provides access to elderly care services at preferential rates

Reliance Industries Appointment

• Reema H Kundnani joined Reliance Industries as CMO of Jio World Centre
• Following exit from Brookfield Properties where spent four years in leadership role
• Will be responsible for driving overall brand narrative, strategic marketing and stakeholder engagement for Jio World Centre

Zee Entertainment Content Strategy

• Sharpening syndication strategy to unlock greater value from content library
• Partnership with micro-drama platform Story TV
• Select titles being adapted into vertical, short-duration episodes for mobile-first audiences
• Move aligns company with rapidly expanding short-form content ecosystem

Marushika Technology Listing

• Marushika Technology set to debut on NSE SME platform on February 19
• Company operates in IT and telecom infrastructure, including defence projects
• Raised Rs 26.97 crore through IPO
• Proceeds to fund working capital and debt repayment
• Modest grey market premium suggests slight listing gain

Metal Sector Performance

• Indian metal stocks performing strongly
• Prices for steel and non-ferrous metals have risen significantly
• Current quarter typically strong for metal volumes

Kiaasa Retail IPO Scheduled

• Kiaasa Retail IPO to open on February 23 and close on February 25
• Company raising up to Rs 69.7 crore via initial share sale
• Price band fixed at Rs 121-127 per share
• Company valued at Rs 231.50 crore at upper price band
• Offer comprises entirely fresh issue of 54.90 lakh equity shares
• Intends to spend Rs 46.4 crore of proceeds for opening new stores
• Trading in equity shares to commence on BSE SME effective March 2

Clean Max Enviro Energy IPO Scheduled

• Clean Max Enviro Energy IPO to open on February 23
• Rs 3,100 crore issue

Mobilise App Lab IPO Scheduled

• Mobilise App Lab IPO to open on February 23

Accord Transformer & Switchgear IPO Scheduled

• Accord Transformer & Switchgear IPO to open on February 23

Global News & Events

Federal Reserve Minutes Released

• Federal Reserve officials at January meeting indicated divided views on interest rate path
• Several participants commented that further downward adjustments to target range for federal funds rate would likely be appropriate if inflation declines in line with expectations
• Some participants commented that it would likely be appropriate to hold policy rate steady for some time
• Some even entertained notion that rate hikes could be on the table
• Meeting minutes showed members conflicted between fighting inflation and supporting labor market
• Fed reduced benchmark borrowing rate by three-quarters of percentage point in consecutive cuts in September, October and December
• Key rate currently in range between 3.5%-3.75%
• Participants generally expected inflation to come down through the year
• Futures traders placing best bet for next cut to come in June
• Fed’s key personal consumption expenditures prices metric around 3%

Japan Pledges $36 Billion Investment in US Projects

• Japan pledged to invest nearly $36 billion in oil, gas and critical mineral projects in Texas, Ohio and Georgia
• Commitment represents first tranche of investments by Japan following landmark trade deal with US
• Under deal, Tokyo pledged to invest $550 billion in American-based projects and US cut tariffs on most Japanese imports to 15%
• Largest investment is natural gas facility in Ohio expected to generate 9.2 gigawatts of power
• Portsmouth Powered Land Project valued at $33 billion operated by SB Energy, subsidiary of Japan’s SoftBank
• US Commerce Department said Japan will finance $2.1 billion deepwater crude oil export facility off Texas coast
• Texas GulfLink project expected to generate up to $30 billion in annual US crude exports
• Third major project refers to plans to create synthetic diamond grit facility in Georgia
• Japan set to invest approximately $600 million in Georgia facility

Bayer Falls on Roundup Settlement Proposal

• German life sciences company Bayer fell 7.2%
• Monsanto Unit proposed paying $7.25 billion to settle lawsuits claiming weed killer Roundup was causing cancer
• Bayer expects provisions and litigation liabilities to rise from 7.8 billion euros ($9.24 billion) to 11.8 billion euros
• Approximately 5 billion euros in litigation-related payments expected in 2026
• Bayer expects negative free cash flow for year

UK Inflation Falls

• UK inflation rate fell to 3% in January according to Office for National Statistics
• Economists had forecast CPI to fall to 3%, down from 3.4% in December
• Data shows tide changing on inflation
• Inflation expected to drop to 2% by end of year if not earlier
• British Pound fell 0.2% against the dollar to $1.3547 following data
• British government bond yields held steady
• UK unemployment rate rose to five-year high
• Wage growth slowed

South Korean Kospi at Record High

• South Korea’s Kospi jumped to fresh record high
• Regional rally tracking gains on Wall Street
• Index heavyweights Samsung Electronics up 4.14%
• SK Hynix up 1.48%

European Markets End Higher

• Pan-European Stoxx 600 ended session 1.2% higher
• Major bourses and most sectors in positive territory

Trump Family Announces Cryptocurrency Plans

• Trump family said US dollar needs an upgrade and they are the ones to do it

Reserve Bank of New Zealand Comments

• RBNZ governor sees neutral official cash rate between 2.25% to 4%

3. WHAT TO WATCH TODAY

Scheduled Earnings Releases

• No major earnings releases specifically mentioned in news coverage

Scheduled Corporate Events

• Marushika Technology: Listing on NSE SME platform today (February 19)

IPOs to Watch

• Kiaasa Retail IPO: Opens February 23, closes February 25; BSE SME listing March 2
• Clean Max Enviro Energy IPO: Opens February 23; Rs 3,100 crore issue
• Mobilise App Lab IPO: Opens February 23
• Accord Transformer & Switchgear IPO: Opens February 23

Expected Economic Data Releases

• No specific economic data releases mentioned in news coverage for February 19

Government/Regulatory Events

• RBI’s new M&A funding norms now in effect, creating opportunity for banks
• SEBI working group on ESG Rating Providers framework review ongoing
• RBI UTI mandate for OTC derivatives to be implemented from January 2027

4. SUMMARY

Indian markets are set for a positive opening as GIFT Nifty indicates an upward trend, supported by gains in global equity markets. US markets closed higher with technology stocks leading the advance. Asian markets traded positively with South Korea’s Kospi reaching a record high. European markets ended the previous session higher. On the regulatory front, the Reserve Bank of India introduced liberalized merger and acquisition financing norms, potentially unlocking significant opportunities for domestic banks. The central bank also announced mandatory unique transaction identifiers for over-the-counter derivatives from January 2027 to enhance transparency. SEBI constituted a working group to review the regulatory framework for ESG Rating Providers. Corporate developments include Cochin Shipyard securing major orders worth Rs 3,267 crore, Bharat Forge exploring technology collaborations with VVDN Technologies, Hindustan Unilever planning Rs 2,000 crore investment in manufacturing capacity, Dr Reddy’s acquiring specialty pharmaceutical trademarks, and L&T announcing an AI infrastructure venture with Nvidia. Zydus Lifesciences received USFDA approval for Bosentan tablets. NCC faced a two-year NHAI tender ban but stated existing order book and ongoing projects remain unaffected. Metal stocks are performing strongly. On the global front, Federal Reserve minutes showed divided views on interest rate path, Japan pledged $36 billion investment in US energy and mineral projects, UK inflation fell to 3%, and Bayer declined following announcement of a $7.25 billion Roundup settlement proposal.

Details for information purposes only. Don’t treat this as financial advice.