Stocks in Asia fluctuated and U.S. equity-index futures rebounded as trade worries remained a key market driver, keeping risk appetite in check.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent at 10,313 as of 6:55 a.m.
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BQ Live
Here’s a quick look at all that could influence equities on Monday.
Global Cues
- U.S. stocks ended the week with a deep selloff, leaving them lower for the five days as the White House’s latest trade bluster rattled global financial markets.
- The yield on 10-year Treasuries declined six basis points to 2.77 percent, the largest fall in more than a week.
- The S&P 500 fell 2.2 percent, capping a 1.4 percent drop in the week.
- The Nasdaq Composite Index slid 2.3 percent and the Dow lost 2.3 percent.
Europe Check
- European stocks retreated as investors weighed the latest threat to global trade as the spat between the U.S. and China escalated.
- The Stoxx Europe 600 Index fell 0.4 percent, paring a weekly gain to 1.1 percent.
- The euro rose 0.4 percent to $1.2286.
- The British pound gained 0.7 percent to $1.4094.
- Germany’s 10-year yield dipped three basis points to 0.497 percent.
Asian Cues
- Japan’s Topix index fluctuated.
- Australia’s S&P/ASX 200 Index fell 0.1 percent.
- South Korea’s Kospi index was little changed.
- Hang Seng Index futures were up 0.4 percent
- Futures on the S&P 500 gained 0.4 percent. The underlying gauge fell 2.2 percent Friday.
- The yen fell 0.1 percent to 107 per dollar..
- The yield on Australia’s 10-year bond was steady at 2.65 percent.
Here are some key events for the remainder of this week:
- Bank of Japan Governor Haruhiko Kuroda speaks in Tokyo Monday at the start of his second term.
- President Xi Jinping gives a keynote address at Boao Forum Tuesday.
- Facebook’s Mark Zuckerberg testifies at two Congressional hearings Tuesday and Wednesday.
- U.S. CPI data and FOMC minutes due Wednesday.
- JPMorgan and Citigroup first-quarter earnings Friday.
Commodity Cues
- West Texas Intermediate crude nudged 0.2 percent higher to $62.17 a barrel after dipping 2.3 percent on Friday.
- Gold was little changed at $1,331.86 an ounce.
- Brent traded higher at $67.23 per barrel; up 0.2 percent.
- Sugar ended lower at 12.3 cents per pound; down 0.1 percent.
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Stocks To Watch
- Titan said 2017-18 was a very satisfactory year in terms of overall business performance. The company achieved excellent retail growth in all businesses.
- Inox wind won 100 megawatt in SECI-4 auction. Bid won at a fixed price of Rs 2.51 per unit for 25 years. Order book increased to 950 megawatt.
- NMDC kept prices of lump ore and fines unchanged at Rs 3000 per tonne and Rs 2660 per tonne.
- Nitesh Estates awarded a claim of Rs 15 crore in a land dispute.
- Century Plyboard unit writes off its entire investment in Indonesian subsidiary.
- Visaka Industries begins trial production at new ATUM manufacturing facility.
- Piramal Enterprises received NCLT approval for merger of Piramal Finance and Piramal Capital with Piramal Housing Finance.
- ICICI Bank: Some board directors are likely to meet soon to discuss the way ahead for CEO Chanda Kochhar (Economic Times).
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Bulk Deals
- Apollo Pipes: Hober Mallow Trust bought 59,307 shares or 0.5 percent equity at Rs 580 each.
AIA Engineering
- DSP Blackrock Mutual Fund bought 5.72 lakh shares or 0.6 percent equity at Rs 1400 each.
- Promoter Bhadresh Shah sold 29.99 lakh shares or 3.2 percent equtiy at Rs 1400.06 each.
Magma Fincorp
- Reliance Mutual Fund bought 42.39 lakh shares or 1.8 percent equity at Rs 154 each.
- IDBI Mutual Fund bought 45.39 lakh shares or 1.9 percent equity at Rs 154 each.
- Zend Mauritius VC Investments Ltd. sold 2.5 crore shares or 10.5 percent equity at Rs 154.25 each.
Indian ADRs
X
Trading Tweaks
- Monnet Ispat & Energy Ltd circuit filter revised to 10 percent.
New Listing/Offering
- Lemon Tree Hotels Limited to list on exchanges today. Its Rs 1,040 crore initial public offer was subscribed 1.19 times on the final day of bidding.
- Sona Koyo Steering offer-for-sale shares to non-retail investors gets 6.64 times demand; offer for retail investors opens today
Who’s Meeting Whom
- Tata Motors to meet several fund houses including DSP Merrill lynch, Norges Bank, Reliance Nippon Life Asset Management, etc. from April 9 – 12.
- Kaya Ltd. to meet several fund houses including HDFC Life, Reliance mutual fund, IDBI mutual fund etc. from April 9 – 10.
- Siemens to meet ICICI Securities and IIFL Holdings on April 9.
- Radico Khaitan to meet several fund houses including GSA Capital, Steadview Capital, Amundi Asset Management etc. from April 9 – 12.
Insider Trades (As reported on April 6)
- Raymond promoter J K Investors (Bombay) Ltd. acquired 20,016 shares from April 4 – 5.
- West Coast Paper promoter The Indra company Ltd. acquired 10,000 shares on April 4.
- Capital Trust Promoter Moonlight Equity Pvt. Ltd acquired 20,000 shares from April 2 – 3.
- Power Mech Projects promoter Vignatha Sajja sold 50,762 shares on April 5.
Rupee
- Rupee closed at 64.98/$ on Friday versus 64.96/$ on Thursday.
F&O Cues
- Nifty April Futures closed trading at 10,352.8 with a premium of 21 points versus 27 points.
- April series-Nifty open interest up 3 percent, Bank Nifty open interest down 2 percent.
- India VIX ended at 14.7, down 0.3 percent.
- Max open interest for April series at 11,000 call strike, open interest at 38 lakh, up 1 percent.
- Max open interest for April series at 10,000 Put, open interest at 49.2 lakh, open interest up 1 percent.
F&O Ban
- In ban: Jet Airways
- New in ban: Jet Airways
Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.
Put-Call Ratio
- Nifty PCR at 1.44 versus 1.42.
- Nifty Bank PCR at 1.70 versus 1.96.
Stocks Seeing High Open Interest Change
X
Fund Flows
X
Brokerage Radar
Geojit on Cochin Shipyard
- Initiated ‘Buy’ with a price target of Rs 625.
- Market leader in ship repair and poised to grow further led by JVs and MoUs.
- Visibility to enlarge order book, led by defence.
- Expect to garner Rs 18,000 crore of orders over the next two years.
- Capacity to double in ship building & repairs by March 2022.
- Ship repair growth fuelled by capacity expansion.
- Return ratios to improve with ramp up in execution.
- Expect revenue, operating income and net profit to compound at 23 percent, 19 percent and 16 percent respectively over the fiscal 2017-2020.
ICICI Securities on Yes Bank
- Reinitiated ‘Buy’ with a price target of Rs 464; implying a potential upside of 48 percent from the last regular trade.
- Growth opportunity fairly abundant given smaller but growing balance sheet.
- Opportunties: new exposures to large corporates, refinancing opportunities in select NCLT cases.
- Expect retail expansion across the balance sheet.
- Stock to rerate as retail becomes a meaningful part.
- Expect 30 percent compounded growth rate in loans over the fiscal 2018-2020.
- Expect return on assets and return on equity to expand to 1.9 percent and 22.5 percent respectively by March 2020.
Angel Broking on GMM Pfaudler
- Initiated ‘Buy’ with a price target of Rs 861.
- Seeing strong order inflow from the user industries.
- Expect increase in share of non-GL business to 50 percent by 2020
- Non-GL business and exports to boost growth.
- GMM likely to maintain above 20 percent growth trajectory through the financial years till March 2020.
- Expect margins to remain healthy.
- Strong balance sheet and healthy return ratios.
- Stock valuations offers good opportunity to enter.
Macquarie on Jubilant Life Sciences
- Maintained ‘Outperform’ with a price target of Rs 1,096; implying a potential upside of 34 percent form the last regular trade.
- Specialty ramp-up to be back in focus.
- Keep an eye on green shoots in pricing for Jubilant’s US generics biz.
- Expect solid Q4FY18 led by aftereffects of LSI and pickup in specialty pharma.
- Valuations look attractive; Top mid-cap pharma pick.
Citi on Zee Entertainment
- Maintained ‘Neutral’; cut price target to Rs 605 from Rs 650.
- Expect higher investments in Zee due to competitive intensity.
- Advertising trends remain healthy.
- TRAI tariff regulations remains key variable for subscription revenue.
- Q4: OTT losses weigh on earnings; Base business steady.
HSBC on Larsen & Toubro
- Maintained ‘Buy’ with a price target of Rs 1,535.
- Order inflows set to surprise positively for December quarter.
- Expect 9 percent (YoY) order inflow growth for Q4 versus 16 percent (YoY) decline implied from company guidance.
- Expect modest revenue growth but a marginal decline in EPS owning to one-offs.
- Expect Earnings to compound at 21 percent over the fiscal 2017-2019 and return on equity to improve to 16.3 percent by March 2020.
Investec on PNB Housing Finance
- Initiated ‘Buy’ with a price target of Rs 1,600.
- Expect PNB Housing Finance to grow at healthy pace.
- PNBHF has best asset quality, productivity and diversified asset/liability mix.
- PNBHF is the fastest growing HFC with best-in-class asset quality.
- Business is highly scalable with reasonable return ratios.
- Growth to drive return on equity to expand to 18 percent by March 2020.
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