Nifty Ends At New Record High Of 9,173

Indian shares climbed for a third session, with a key benchmark closing at a new record high as investors rolled over their positions into the next series.

The S&P BSE Sensex gained 0.4 percent to 29,647 while the NSE Nifty closed 0.3 percent at 9,173. The market breadth was firmly skewed in favour of the buyers. About 3 stocks gained to every 1 stock that declined.

Independent market analyst Lancelot D Cunha said the market continues to run on liquidity. “For the Nifty to break above the 9,200 level, fourth quarter earnings season will be key,” he told BloombergQuint in a phone conversation.

While the market may be looking stretched, he said, a positive performance from India Inc could result in an earnings upgrade. If that happens, he said, then the valuations may not look so expensive.

Meanwhile, he does not expect the rupee to sustain at current levels for an extended period. “Investors can look at pharma stocks as a contrarian bet with a longer-term view,” he said.

The Reserve Bank is likely to keep key interest rates unchanged on April 6, while there is scope for a rate cut in the August meet on slow growth and benign inflation, says a report.

The RBI shifted to a neutral stance from accommodative in February and this, in turn, may prompt the central bank to hold rates in the ensuing meet early next month.

At the February 8 policy review meet, the RBI kept key interest rates unchanged at 6.25 per cent and said it is awaiting more clarity on inflation trend and the impact of demonetisation on growth. The next meeting of the Monetary Policy Committee (MPC) is scheduled for April-5-6, 2017.

PTI

• JSW Steel has 118 lakh shares change hands
• Future Consumer has about 90 lakh shares change hands

Buyers and sellers were not immediately known.

Eros International Media fell as much as 12.6 percent, the biggest move since Feb 11, 2016, with trading volume 1.9 times the 20-day average for this time of day.

Shares in the private sector lender were up 0.7 percent to Rs 864. The bank’s board of directors on Thursday approved raising equity capital via issue of 6.2 crore shares.

The funds will be raised for pursuing consolidation opportunities, it said in a regulatory filing. The fund raising is also aimed at acquiring stressed assets.

As per BloombergQuint calculations:

• At current market price of Rs 866.65 per share, the bank can raise up to Rs 5,373.2 crore.
• Promoter holding will fall to 31.01 percent post fund raising
• Public shareholding will be 67.5 percent

Big Plans, But No Acquisitions On The Anvil

Bank’s Managing Director Uday Kotak on Wednesday said lender has no acquisitions or mergers to announce as of now. The bank launched zero-balance digital accounts that will offer free transactions as it looks to double its customer base of 80 lakh over the next year and a half.

The metals and mining major approved total dividend payout of Rs 6,580 crore to shareholders and holders of shares in Cairn, according to the company’s exchange filing.

• To pay Rs 17.70 per share as second interim dividend to shareholders and same to Cairn India shareholders.
• Dividend payout to Cairn shareholders as they will become Vedanta Ltd. holders upon completion of proposed merger
• Sets April 12 as record date for dividend payout to Vedanta shareholders.

For more details, click HERE

• Vendata (+1.9%)
• Cairn India (+1.8%)

Shares of logistics companies rose between 1 to 4 percent after the Lok Sabha on Wednesday passed the four supporting bills, which would facilitate the implementation of the Goods and Services Tax by July 1 deadline.

• GATI +1 percent,
• Allcargo Logistics +4 percent,
• VRL Logistics +2.7 percent,
• Patel Integrated Logistics +1.7 percent
• Transport Corporation of India +1.4 percent.

Shares of the auto component maker gained as much as 11.7 percent to 218 -- a fresh 52-week high for the stock. The company reopened its Manesar plant after a major fire incident in May last year.

After the fire, one of the company's largest customers Maruti Suzuki India had announced that it was suspending production following disruption of supplies.

Subros provides airconditioning compressors to Maruti Suzuki. Subros' Manesar plant supplies over 90 per cent of its production to meet requirements of Maruti Suzuki.

(With inputs from PTI)

Shares of the utility company jumped as much as 2.8 percent to Rs 92.35, highest since February 22. The company sold stake in Indian Energy Exchange for Rs 133 crore, it said in a filing.

Trading volume 3.1 times its 30-day average. Stock has returned 25 percent so far this year and has gained 51 percent in the past 52 weeks.

Shares of pharmaceutical research firm extended gains and were up nearly 1 percent to Rs 677.10.

U.S. Food and Drug Administration approved Aurobindo's generic epzicom tablets used for the treatment of HIV-1 infection.

The approved product has an estimated market size of $388 million for the 12 months ended December 2016, the company said in a regulatory filing.

• Nifty rollover stood at 57.2 percent on Wednesday, higher than the three-month average of 55 percent, according to the NSE data.
• Market wide rollover at 59.3 percent was lower than the three-month average of 60.3 percent.
• March futures and options series is set to expire on Thursday.

Prestige Estate Jumps On High Volumes

• Shares gain as much as 9.08 percent for the day.
• The stock has risen in eleven times in thirteen trading session and is up little over 32 percent in this period.
• Volumes remain high at seven-times its 20-day average volumes on NSE.
• Real estate developer has market capitalization of around Rs 7,959.38 crore.

The rupee was trading lower by 5 paise at 64.96 against the American currency in early trade.

Forex dealers said that increased demand for the U.S. currency from importers and the dollar's gains against other currencies overseas put pressure on the rupee. However, a higher opening in the domestic equity market capped the rupee's losses, they said.

Yesterday, the rupee had marched to a new 17-month high to close at 64.91, up 13 paise. This was a level not seen since October 2015, as speculative traders and exporters resorted to heavy selling of the greenback.

PTI

Shares of infrastructure firm rose as much as 2.8 percent to Rs 351.

Dilip Buildcon won three order worth Rs 3,269 crore from National Highway Authority of India, the company said in a regulatory filing. The completion period for all projects is 30 months.

Trading volume was 2 times the 20-day average for this time of day. The stock has returned 53 percent so far this year.

Shares of the construction firm gained as much as 0.8 percent after its unit bagged a major onshore EPC contract in the Middle East. Besides that, its modular fabrication business also secured an order for supply of structures and skids for refinery projects in Middle East and Africa, the company said in its filing.

Shares in book publisher and stationery provider surged as much as 14 percent to Rs 174.90 after Motilal Oswal initiated its coverage on the stock with a ‘Buy’ rating.

Navneet Education is “perfectly placed” to capture several growth opportunities like changing syllabus, common curriculum across India and increasing conversion of SEB schools to CBSE, Motilal Oswal analyst Niket Shah wrote.

The brokerage has put a price target of Rs 210 a share, implying 36.6 percent upside from the previous close. Navneet Education had 3 buys, with no sell or hold ratings on the stock, according to Bloomberg data.

The trading volume jumped 744 times its 30-day average. The Relative strength index (RSI) is 78 indicating that the stock may be overbought.

Indian shares picked up pace after a flat opening, shrugging off subdued trade in Asian equities, as investors rolled over their positions ahead of March futures and options expiry.

The S&P BSE Sensex rose 0.11 percent to 29,557 while the NSE Nifty was little changed at 9,153. The market breadth was firmly skewed in favour of the buyers at 3:1.

Among the sectoral indices, the S&P BSE Oil & Gas index and S&P BSE Information Technology Index both gained nearly 0.5 percent while BSE Auto index was unchanged.

• Yes Bank: Lender managed to raise Rs 4,907 crore from the qualified institutional placement.
• Alkem Laboratories: Submits a corrective and preventive action plan to the U.S. FDA in response to the form 483.U.S. FDA has reviewed the CAPA and has found it to be acceptable.
• NBCC (India): Cabinet approves proposal of restructuring Hindustan Steelworks Construction Ltd. to enable its takeover by NBCC.
• Minda Industries: Raises Rs 300 crore through QIP.
• Thermax: To acquire 100 percent stake in Barite Investments, Poland.
• Orient Green Power: Shareholders approve conversion of loan into equity shares.
• Punjab & Sind Bank: Proposes to raise funds through issue of Basel-III compliant AT-1 up to Rs 1,000 crore and Basel-III compliant Tier-II bonds up to Rs 500 crore.
• Coffee Day to consider issue of Rs 150 crore non-convertible debentures
• Jindal Steel to consider fund raising via preferential allotment
• Kotak Mahindra Bank to consider fund raising selling shares
• Vedanta to consider mid-year dividend

For a complete list of stocks to watch, click HERE

The Indian rupee's stunning performance against the dollar is continuing and the outlook for the short-term looks bright as foreign investors continue to binge on local bonds and shares. The Lok Sabha's approval of GST bills will also support the currency.

The currency yesterday rallied past the 65 level for the first time since October 2015 and is now set for the biggest monthly gain since March 2015. The big boost to the rupee came early this month with Prime Minister Narendra Modi's triumph in assembly elections.

But, if we look at bonds, they disappointed yesterday as the government's first half borrowing numbers were higher than what the market was expecting. Still, with higher inflows from foreign investors, securities may find some support.

Buoyed by expectations of more economic reforms and an appreciating currency, overseas investors have poured $3.7 billion into government and corporate rupee bonds in March alone, that's the most since January 2015.

• India’s Lok Sabha approves all four bills supporting Goods and Services Tax
• India may ease rules for foreign food retailers before November
• Competition Commission of India seeks views on proposed Agrium-Potash Corp merger

Did You Know? Income Tax Return Form Simplified Further

• India said to negotiate multi-million dollar Russia tank upgrade
• Foreign Investment Promotion Board clears 10 FDI proposals out of 26 listed: Official

Bloomberg Read: Gold Seen Soaring to $1,500 as Inflation Poised for Comeback

• India Employee Provident Fund board to mull raising stock market investment cap
• Fosun Pharma says Gland Pharma deal needs Cabinet Committee on Economic Affairs approval
• India ban laves 800,000 non-compliant vehicles unsaleable
• Global funds buy Rs 461 crore of local stocks; domestic funds buy Rs 1280 crore on Wednesday: Provisional data

Also Read: No Acquisitions On The Anvil, Says Uday Kotak

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, gained 0.11 percent to 9,155.

Most Asian stocks declined in early trade as crude rose for the third session, and the yen weakened. Overnight, the U.S. benchmarks closed mixed as the U.K. formally triggered the Brexit process and the Republican Party leadership indicated that they were looking to revive its legislative agenda.

Also Read: Two Fed Officials Signal Possible Need for Faster Rate-Hike Path

The Bloomberg Dollar Spot Index rose 0.1 percent, while the euro fell 0.1 percent after declining 0.9 percent over the previous two days.

Oil fell less than 0.1 percent to $49.47 a barrel, after surging 2.4 percent on Wednesday as a bigger-than-forecast decline in U.S. gasoline stockpiles countered an expansion of crude production to the highest level in more than a year.

Meanwhile, gold erased Wednesday’s gains to trade 0.22 percent lower at $1,250.6 per ounce.

Investors will keep a close eye on China’s current account data scheduled for release later in the day. Also, proposals to design and build Trump’s promised 2,000-mile border wall between the U.S. and Mexico are due.