KEY HIGHLIGHTS
BQ Live
Sensex, Nifty Log Biggest Single-Day Decline In A Month
Indian equity benchmarks fell close to a percent, its biggest intraday loss since February 26. The S&P BSE Sensex ended 0.93 percent lower at 37,808.91 and the NSE Nifty 50 declined 0.90 percent at 11,354.25. This is after gains in oil retailers were pressured by losses in Zee Entertainment and Vedanta.
The market breadth was tilted in favour of sellers. About 1,329 stocks fell and 434 shares advanced on National Stock Exchange. All sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index.
Jet Airways Surges After Promoters Stepdown
Shares of the cash-strapped airline rose 11.7 percent intraday to Rs 252.50 apiece.
Promoter Naresh Goyal and wife Anita have quit their positions on the board, according an exchange filing. Also, the company to receive immediate funding support of upto 1,500 crore by lenders.
The trading volume was more than four times the 20-day average for this time of the day, Bloomberg data showed.
Sun Pharma Falls After Receiving Form 483
Shares of the country's largest drugmaker fell 2.6 percent intraday to Rs 461.20 per share.
Sun Pharma received Form 483 from U.S. FDA with one observation for its Baska Plant in Gujarat, according to Bloomberg.
Stocks Moving On Heavy Volumes
Securities & Intelligence Services:
- Stock rose as much as 8 percent to Rs 880.40.
- Trading volume was almost 40 times its 20-day average.
Welspun India:
- Stock fell nearly 3.7 percent to Rs 58.30.
- Trading volume was almost five times its 20-day average.
Hathway Cables And Datacom:
- Stock gained 17 percent intraday to Rs 30.75.
- Trading volume was almost nine times its 20-day average.
Zydus Wellness:
- Stock fell as much as 1.5 percent to Rs 1320.
- Trading volume was almost seven times its 20-day average.
REC:
- Stock fell rose 10.6 percent to Rs 155.85.
- Trading volume was almost six times its 20-day average.
Rahul Gandhi Announces Minimum Income Guarantee Sop
- Congress President Rahul Gandhi assures Rs 12,000 per month minimum income plan.
- The income plan to cover 20 percent of Indians.
- Rahul Gandhi said the Congress government would make up for the income falling short of Rs 12,000 per month if voted to power.
Catch more on the development here.
Europe Stocks Decline Amid Growth Concerns
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks were trading at day’s low. Sensex fell over 430 points during the day while the Nifty gives up 11,350.
Block Deal Alert: Motherson Sumi Systems
About 24.9 lakh shares of the auto-parts maker changed hands in a single block on Bombay Stock Exchange,according to Bloomberg data. Buyers and sellers were not known immediately.
The shares declined 2.8 percent to Rs 142.85 per share. The shares trade at 23 times its estimated earnings per share for the coming year.
Arvind Fashions Locked In The Upper Circuit For The Tenth-Straight Session
Arvind Fashions Ltd., the retailing arm carved out of the Lalbhai Group, relisted on stock exchanges at about Rs 590 apiece, and then has hit the maximum limit allowed in the 10 sessions since then.
The listing price was about half the lowest expected price that BloombergQuint had calculated based on valuations forecast by analysts.
This is one of the examples of exchanges’ price-discovery mechanism gone wrong.
International Paper Declines After Plant Shut For Maintenance
Shares of the Andhra-Pradesh based paper manufacturer slumps as much as 4 percent to Rs 436.50 apiece.
The company said that the maintenance at Rajahmundry plant from March 25, 2019 to March 30, 2019, according to its notification to the bourses. The shutdown would lead to estimated loss of production of around 500 tonnes per day, the filing added.
However, the stock advanced 53 percent in the last 12 months compared with a 16 percent gain in the Sensex.
Midday Newsmakers: TTK Prestige, Infosys
TTK Prestige: Shares of the kitchen appliances manufacturer rose for the third-straight session, after it advanced over 5 percent intraday to Rs 8,189 per share. The company is planning to discuss on issuing bonus shares during its board meet scheduled on March 29, according to its exchange filing.
Infosys: Shares of the IT firm declined 1.4 percent to Rs 733 per share. The Bengaluru-based company plans to invest $10 million in venture capital investment entity House Fund II, targeting startups from University of California, Berkley.
F&O Check: Nifty 11,500 Call Option Falls Nearly 60%
Nifty’s 11,500 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract declined 59.63 percent to Rs 23.15. Over 15.37 lakh shares were added to the open interest which stood at over 44.62 lakh shares.
Block Deal Alert: IDBI Bank
About 13.9 lakh shares of private bank changed hands in a block deal on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.
The shares declined nearly 1.5 percent to Rs 42 per share. The shares declined 41 percent in the past 12 months compared with a 16 percent gain in the Sensex.
Is The Rupee Rally A Temporary Gain Or Backed By Strong Fundamentals?
A surge in foreign portfolio flows and a weaker dollar have fired up the latest leg of the rupee rally. While the surge in equity flows has been more dramatic. Also, the view on India’s external account has also improved, at least for now. However, are these indicators fundamentally supportive of a more stable Indian currency?
InterGlobe Aviation Gains After Credit Suisse Upgrade
Shares of the country’s largest airliner gained for the fifth day in a row and rose 1.8 percent intraday to Rs 1,452 apiece.
Brokerage firm Credit Suisse upgraded its recommendation on the stock to ‘Outperform’ from ‘Neutral’. It also hiked the price target to Rs 1,650 from Rs 1,075, indicating a potential increase of about 15 percent from previous close.
Here’s what else the firm had to say on the stock:
- Space opens up for strong capacity addition, taking away yield risk.
- Non-metro routes have responded well to capacity addition.
- Jet Airway's restructuring plan has not progressed as operations slide.
The trading volume was more than four times the 20-day average for this time of the day, according to Bloomberg data. The relative strength index on the stock was above 70, indicating the stock may be overbought.
Oil Retailers Gain As Crude Cools Off
Shares of oil marketing companies were the top gainers on Nifty Index after Brent Crude futures fell more than a percent to $66.36 per barrel.
- Shares of Indian Oil rose 2.9 percent intrday to Rs 161.55
- Shares of HPCL gained as much as 1.6 percent to Rs 272.70 apiece.
- Shares of BPCL rose 1.7 percent to Rs 385.20 per share.
Here’s why crude oil is falling:
Tata Motors Declines For The Third Straight Session
Shares of the carmaker declined as much as 2.2 percent to Rs 171.60, its lowest in over a month.
JLR won Evoque copy case in Chinese Courts. The decision said Evoque’s has five features copied directly in ‘Landwind X7’ built by Jiangling Motor Corp, which had led to widespread consumer confusion, according JLR’s statement.
Also, Tata Motors is said to increase prices of its passenger vehicles from April 2019 by upto Rs 25000. The hike in prices is due to rising input costs and external economic conditions.
The stock declined 48 percent in the past 12 months compared with a 16 percent gain in the Sensex.
Opening Bell: Sensex, Nifty Open Lower
Indian equity benchmarks opened lower, mirroring their Asian peers amid concerns that momentum is slowing in the global economy.
The S&P BSE Sensex declined as much as 0.71 percent to 37,867.25 and the NSE Nifty 50 fell as much as 0.82 percent to 11,360.25.
The market breadth was tilted in favour of sellers. About 1,190 stocks declined and 644 shares advanced on National Stock Exchange.
All sectoral gauges compiled by NSE declined, led by the NSE Nifty Realty Index’s 1.46 percent fall.
Money Market Update: Rupee Opens Lower Against $
The Indian rupee opened weaker after six straight weeks of gains. India continues to see strong inflows. Foreigners bought about 2,100 crore rupees of Indian assets on Friday. Traders will watch out for auction of foreign exchange swap announced by RBI tomorrow. Rupee depreciated 0.2 percent to 68.98 against the dollar on Friday. The central bank's monetary policy committee will meet next week.
Sovereign bonds are poised to rally as crude oil prices fall and U.S. Treasury yields decline amid concerns that global growth is slowing. Oil is trading at the lowest level in more than two weeks. Yield of the most traded government debt fell 1 basis points to 7.50 percent on Friday.
BQ Heads-Up: Fund Flows, Indian ADRs, Who's Meeting Whom, Insider Trading
Your Complete F&O Trade Setup
F&O Cues
- Nifty March futures closed trading at 11472, premium of 18 points
- Max open interest for March 28 series at 11,600 Call (open interest at 38.6 lakh shares).
- Max open interest for March 28 series at 11,000 Put (open interest at 38.2 lakh shares).
Stocks In F&O Ban
- In Ban: Adani Enterprises, Adani Power, IDBI, Jet Airways, PNB, Rel Power
- New in Ban: PNB
Brokerage Radar: InterGlobe Aviation, HDFC Life
Credit Suisse On InterGlobe Aviation:
- Upgrade to ‘Outperform’ from ‘Neutral’, price target hiked to Rs 1,650 from Rs 1,075.
- Space opens up for strong capacity addition, taking away yield risk.
- Non-metro routes have responded well to capacity addition.
- Jet Airway's restructuring plan has not progressed as operations slide.
Morgan Stanley On HDFC Life:
- Maintain Equal Weight, price target lowered to Rs 380 from Rs 425.
- Lower target price mainly driven by lower VNB estimates.
- Slower than expected growth in savings premiums in recent months.
- HDFC Life remains a superior insurance franchise, in our view for long term.
Pledged Share Details: CG Power, GATI
- CG Power and Industrial Solutions promoter Avantha Holdings invoked pledge of 6.76 crore shares on March 20.
- GATI promoter group Mahendra Kumar Agarwal and Sons HUF created pledge of 1.2 lakh shares on March 19.
- Bajaj Consumer promoter Bajaj Resources created pledge of 3.08 lakh shares on March 19.
Stocks To Watch; Tata Motors, Max India, Dr. Reddy's, TTK Prestige
- Max India named Analjit Singh as Chairman.
- State Bank of India’s board approved extension validity period for raising equity capital of up to Rs 20,000 crore to March 31, 2020. Besides, the lender raised Rs 1,251.3 crore via bond issuances.
- Tata Motors: JLR won Evoque copy case in Chinese Courts. The decision said Evoque’s has five features copied directly in ‘Landwind X7’ built by Jiangling Motor Corp, which had led to widespread consumer confusion, according JLR’s statement. The Chinese Court has ruled that sales, manufacturing and marketing of Landwind model must cease an JLR to be paid compensation. (Bloomberg News)
- Dr. Reddy’s Laboratories’ Hyderabad Unit receives no observation under form 483 by the U.S. FDA. The inspection was completed on March 21.
- Infosys to invest $10 million in venture capital investment entity House Fund II, targeting startups from University of California, Berkley.
- Greenlam Industries’ board approved increasing manufacturing capacity to additional 1.6 million laminate sheets per annum, for an investment of Rs 25 crore. Existing Capacity stands at 14.02 million sheet and the proposed addition of capacity will be completed in period of nine months.
- Ramco Cements increased its stake in IT Services arm to 94.12 percent via rights issue for Rs 4.5 crore.
- Amber Enterprises signs definitive agreement to acquire 80 percent stake in Sidwal Refrigeration Industries. The target company is engaged in the business of manufacturing and sale of heating, ventilation, air conditioning and refrigeration equipments for railway coaches, metro coaches, buses, telecom, commercial refrigeration and related components.
- Eid Parry’s board approved investment of Rs 70 crore in wholly owned arm Parry Sugars Refinery.
- Tata Coffee named Chacko Purackal Thomas as MD and CEO with effect from April for a period of three years.
- TTK Prestige to consider issuing bonus share on March 29.
- Tata Steel BSL allots redeemable preference shares worth Rs 6700 crores to Tata Steel.
- International Paper said that the maintenance at Rajahmundry plant from March 25, 2019 to March 30, 2019 would lead to estimated loss of production of around 500 tonnes per day.
- Tata Motors to increase prices of its passenger vehicles from April 2019 by upto Rs 25000. The hike in prices is due to rising input costs and external economic conditions.
Commodity Cues: Crude Falls
- Brent crude traded 0.67 percent at $66.58 per barrel.
- West Texas Intermediate crude slipped 0.6 percent to $58.71 a barrel.
- Gold slid 0.2 percent to $1,311.30 an ounce.
London Metal Exchange
- Aluminium snapped its two-day blip and ended 0.18 percent lower.
- Nickel traded a little changed.
- Lead declined for the second-straight session, ending 0.44 percent lower.
- Tin ended 0.23 percent higher.
- Copper fell for the third day in a row and ended 1.70 percent lower.
- Zinc ended 0.71 percent lower.
Nifty Futures Trade Lower; Asian Stocks Suffer
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.5 percent lower to 11,413.50 as of 8:30 a.m.
Stocks in Asia tracked heavy losses in U.S. equities as bond yields continued to march lower amid concerns that momentum is slowing in the global economy.
The risk-off tone that built on Friday extended into Asia early Monday, as indexes of shares in South Korea, Japan and Australian fell more than 1 percent. Australia’s 10-year bond yield hit an all-time low after the yield on Germany’s 10-year bonds tumbled below zero.
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