Nifty Ends Near 9,150; Automakers Drag On SC Order

Indian shares climbed for a second day and the local currency rallied to a fresh 17-month high as foreign funds flows gathered pace.

The S&P BSE Sensex gained 0.4 percent to 29,531 while the NSE Nifty rose almost 0.5 percent to 9,143. The market breadth, however, turned negative at close of the trading session. About 3 stocks declined to every 1 stock that gained on the NSE.

The action is now shifting to the midcaps and the smallcaps, said Dipan Mehta, member, BSE adding, that he expects the larger benchmarks to remain rangebound on lack of newsflow.

Likewise Jayant Manglik of Religare Securities said the consolidation is still not over yet and market needs broader participation for a sustainable move.

Mehta advised investors to stay invested as it was “a great time to be in the markets”. For investors waiting on the sidelines, he said they should enter only on corrections and be very careful in terms of stock picking. “Banks should continue to do well, since there seem to be signs of things getting better rather than worsening from here,” he told BloombergQuint over the phone.

Mehta has a contrarian view on the pharma sector while I.T. remains an avoid for him.

Shares of Hero MotoCorp, Tata Motors declined between 3-4 percent after the Supreme Court bans sale of existing stocks of Bharat Stage III vehicles from April 1.

Public health more important than sale of existing stock, the apex court said adding that manufacturers were fully aware of the deadline in advance.

The 2015 notification of the road transport and highways ministry made it mandatory for automakers to switch to BS-IV norms from April 1, but didn’t say whether the sale of BS-III inventory would be allowed.

Hero Moto Corp Ltd.’s counsel KK Venugopal said the two-wheeler maker will suffer losses of around Rs 1,600 crore if the sale or registration of BS-III vehicles is banned.

The S&P BSE Auto index pared earlier gains and was down 0.74 percent after the ruling.

• Nitesh Estates has 37.5 lakh shares change hands in a single block deal
• Bank of Baroda has 1.1 crore shares change hands in a single block
• IDFC has 1 crore shares change hands in two block deals
• Idea Cellular has 1.05 crore shares change hands in two block deals
• JM Financial has 40 lakh shares change hands in two block deals

Shares of bio-pharmaceutical firm jumped as much as 9 percent to Rs 167.80.

Panacea Biotec launched new vaccine EasySix, used to protect newborn babies against six preventable diseases, the company said in a regulatory filing.

Shares of private sector lender were down 0.56 percent to Rs 854. Managing Director Uday Kotak will hold a press conference after market hours.

Kotak Mahindra Bank will also hold a board meeting on Thursday to consider raising equity capital, the company said in a regulatory filing.

Century Enka Up For Second Straight Day

• The stock rose as much as 5.5 percent intraday
• It has gained 34 percent so far this month
• The textile products maker is valued at Rs 951.8 crore

Shares of power and infrastructure company gained as much as 8.9 percent to Rs 315 after the company won three orders amounting to Rs 1,200 crore, it said in an exchange filing.

The three orders included:

• Transmission line turnkey project by the Transmission Corporation of Telangana Ltd. worth Rs 402 crore
• Project for construction of railway infrastructure in Telangana for the Railway Vikas Nigam Ltd. worth Rs 464 crore
• Transmission line turnkey project in Abu Dhabi worth Rs 336 crore

The next big support level is seen at 64.40 against the dollar, Mahendra Jajoo, head of fixed income at Mirae Asset Global Investment told BloombergQuint in a phone conversation.

He said the rupee rally will continue as long as inflows keeps pouring in. However, he cautioned that any strong intervention by the Reserve Bank of India in the forex market could derail the rally.

To read the full interview transcript, click HERE

Franklin Templeton Investments and other foreign funds are piling into Indian bonds after Prime Minister Narendra Modi’s key election victory. That’s pitting them against local naysayers who predict that benchmark securities will post their first loss in four years.

To read the full article, click HERE

Nifty rollover stood at 46 percent on Tuesday, higher than the three-month average of 41 percent, according to Bloomberg data.

Market wide rollover at 41.02 percent was lower than the three-month average of 44.52 percent. March futures and options series is set to expire on Thursday.

Shares of infrastructure firm rose 2.2 percent to Rs 347.15, snapping a three-day losing streak.

Dilip Buildcon won an order worth Rs 503.1 crore from National Highway Authority of India, the company said in a regulatory filing.

Stock has a total return of 51 percent year-to-date compared with an 11 percent return for the Sensex.

The rupee advanced 9 paise against the dollar on Wednesday, to breach the 65-mark for the first time since October, 2015. The local currency rose 0.2 percent to 64.91 -- a fresh 17-month high -- in early session on increased liquidation of the American currency by exporters and banks.

A higher stock opening and continued foreign inflows made the going easy for the rupee. However, the dollar's recovery against some currencies overseas restricted the rupee upmove.

(With inputs from PTI)

Shares of the tower infrastructure company gained as much as 3 percent to their highest level since February 15.

• About 20.91 crore shares or 11.3 percent equity changed hands in four block deals, according to Bloomberg data
• Buyers and sellers were not immediately known

UPDATE

Bharti Airtel completed an inter-se transfer of a 11.3 percent stake in Bharti Infratel to a wholly-owned unit Nettle Infrastructure Investments Ltd., the company said in an exchange filing.

Post transfer, Bharti Airtel will hold 50.3 percent in Bharti Infratel, while Nettle will have 11.3 percent. The remaining shares are held by public/other shareholders, the Airtel statement said.

Also Read: Bharti Airtel Sells 10.3% Stake In Bharti Infratel For Rs 6,200 Crore

Shares of Healthcare Global rose 1.6 percent to Rs 230 after the speciality healthcare provider said its unit would buy Cancer Care Kenya Ltd. for 93.1 million Kenya shillings.

The company expects to bridge demand supply gap existing in the cancer care space in Kenya through the acquisition, it said in a regulatory filing.

Other Movers & Shakers: Persistent Systems, Om Metals, State Bank Of India

Shares of the lender rose as much as 2 percent after 46 lakh shares change hands in single block deal.

Indian shares climbed for a second day along with Asian peers after positive U.S. consumer confidence data rekindled optimism. The S&P BSE Sensex gained 0.3 percent to 29,494 while the NSE Nifty rose almost 0.4 percent to 9,134. The market breadth was firmly skewed in favour of the buyers at 3:1.

Among the sectoral indices, the Nifty PSU Bank Index extended its winning streak to day 5 while the Nifty Metal index dropped the most.

• Healthcare Global: Says unit to acquire Cancer Care Kenya Ltd. for 93.1 million Kenya shillings
• Hero MotoCorp: Lawyer says company faces Rs 1,600 crore loss on BS3 issue
• Indiabulls Ventures: To issue up to 33.8 million warrants to group companies
• MIC Electronics: To consider allotting 43.3 million shares at Rs 20 each on March 31
• OM Metal: Wins Rs 13.5 crore of contract
• Oracle Financial Services: To consider mid-year dividend
• Persistent: To provide support to customers using Amazon connect
• Subros: To consider issue of NCDs on private placement
• TV Today Network: Says to hold 100 percent stake in unit India Today Online
• Dilip Buildcon: Wins NHAI order worth Rs 503 crore
• Grasim Industries: Karnataka pulp plant shut since February after severe drought

For a complete list of stocks to watch, click HERE

Brokerage Calls

• Arvind Rated new accumulate at Systematix Shares
• Bharti Infratel raised to hold at HSBC, price target Rs 340
• Tata Consultancy raised to buy at Morningstar

The U.S. 10-year treasury yields kept climbing after the Federal Reserve's Stanley Fischer reinforced the case for two more rate hikes this year. He told CNBC that risks to the economy are more or less balanced.

Back home, India issued an indicative schedule for borrowing Rs 3.72 lakh crore in April to September period. Markets have been waiting for this number and may be cautious as the borrowings seem to be on the higher side.

Asian currencies were trading lower against the dollar. The Thai baht was the biggest loser followed by the Malaysian ringgit. The moves indicate a bearish session for the Indian rupee.

Bad loans at banks have been one of the key nagging issues that the finance ministry is trying to address. Going forward, one can expect some concrete measures from the government on this front. Chief Economic Adviser Arvind Subramanian said the ministry is in serious discussions to resolve the issue.

• Uday Kotak of Kotak Mahindra Bank to hold a press conference today. Word on the street suggest, he may announce a big acquisition.
• India plans borrowing of Rs 3.72 lakh crore in first half of FY18
• Government issues indicative schedule for first half borrowing
• RBI to auction Rs 1.82 lakh crore of treasury bills April-June
• India top court to give verdict on BS3 vehicles sale case
• India needs to fix bad loans, bad assets in companies: Subramanian
• NSE postpones tick-by-tick market data via Multicast to May 6
• Templeton leads foreign bets on India bonds as locals see losses
• India monsoon may be close to normal in 2017: Weather Risk
• South Korea seeks Finance Minister meeting with India (MoneyToday)

Also Read: SBI To Relocate 1,800 Branches Following Merger With Associates

• Jet Airways said in talks to raise funds via stake sale (CNBC-TV18)
• Wadia Group to buy Solvay’s 25 percent stake in National Peroxide (Economic Times)
• Global funds buy Rs 6,420 crore of local stocks; domestic funds buy Rs 356 crore yesterday: Provisional data

5 Things To Watch

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, gained 0.3 percent to 9,140.

Asian stocks outside Japan built on gains for a second day as rise in consumer confidence rekindled optimism in the strength of the U.S. economy.

Equities in Australia, Hong Kong and New Zealand all rose after the S&P 500 Index posted its biggest gain in two weeks, lifted by data showing Americans consumers are more upbeat than any time since 2000.

Energy producers climbed in Asia as crude topped $48 a barrel. The Bloomberg Dollar Spot Index was little changed, after adding 0.5 percent on Tuesday, halting a two-day slide.

Oil prices rose above $48 a barrel as Libya was said to halt output from its biggest field, easing global supply glut worries. Gold fell to $1,248.9 per ounce, extending Tuesday’s 0.2 percent drop.

In cues to watch out, the start of two years of Brexit negotiations will be formally triggered by a letter from U.K. Prime Minister Theresa May today. Also, proposals to design and build U.S. President Donald Trump’s promised 2,000-mile border wall between U.S. and Mexico are due March 29.