Nifty Snaps 5-Day Losing Streak On Global Growth Optimism

Indian shares snapped a five-day losing streak as better-than-expected data from two of world’s largest economy boosted optimism around global economic recovery.

The S&P BSE Sensex gained 0.29 percent to 29,422 while the NSE Nifty rose 0.36 to 9,136. The market breadth remained skewed in favour of the buyers through the trading session.

Among the sectoral indices, the Nifty Media index was the top gainer while the Nifty Private Bank Index dragged the most on Yes Bank’s disappointing earnings.

“There seem to be an air of caution surrounding equity trading at the moment,” Dipen Mehta, member of BSE told BloombergQuint over phone. While he said the structurally the Indian equities remains in a bull market, the current leg of the rally may be coming to an end. “We have entered the earnings season at record levels. So, any disappointment will probably get a sharp reaction like we saw in case of Yes Bank.”

Mehta advised investors to wait for more clarity from the fourth quarter earnings season – in terms of both numbers and market commentary – before taking up fresh investments.

Brokerages remained cautious over Yes Bank’s asset quality performance, attributing the high risk of corporate slippages to be one of the key factors for the stock to see a ‘significant correction’ going ahead.

To read what brokerages had to say about Yes Bank Q4 performance, click HERE

Shares of the Kishore Biyani firm gained as much as 7.1, the most since February 07, after it announced the demerger of its home retail operations

Future Retail will demerge its home retail business operated via HomeTown stores into Praxis Home Retail, the company said in its exchange filing.

Post the demerger, the company will look to list Praxis Home retail. “Praxis Home will issue 1 share to Future Retail holders for every 20 shares held,” the filing said.

Besides the demerge nod, the company also raised its foreign investment limit to 49 percent from 24 percent.

Shares of airline companies gained anywhere between 8.5 percent and 3 percent after the industry regulator released January domestic market share data.

• SpiceJet (+10.1%)
• Jet Airways (+6.8%)
• InterGlobe Aviation (+5%)

Coromandel Engineering Posts Biggest Jump In Nearly Two Years

Coromandel Engineering Company rose as much as 20 percent to hit the upper circuit today, its biggest surge in nearly two years.

The volumes stand at 25 times its 20-day average.

The construction company, which has a market capitalisation of Rs 180 crore, has gained 32 percent in the past month compared to a 0.3 percent decline in the benchmark S&P BSE Sensex Index.

Shares of the media firm jumped as much as 6.2 percent to its highest intraday level since at least April 2006 after two broking firms upgraded their rating on the stock.

Credit Suisse raised its rating on Sun TV to outperform versus neutral earlier anticipating a period strong earnings growth on multiple drivers. The broking firm expects the South-based firm to double its subscription income over the next 3 to 4 years.

It has also raised its target price to Rs 1,000 from Rs 790 earlier.

The second brokerage house to upgrade the stock is CLSA citing the digitisation roll out in Tamil Nadu. Besides that, it says the recent end of legal and political risks of Sun TV is another positive for the stock.

CLSA has upgraded the stock to ‘Buy’ compared to their earlier ‘Sell’ rating. They too have upgraded their price target to Rs 1,015 from Rs 661 earlier.

Shares of the private sector lender as much as 5.3 percent, the most since November 21, 2016, making it the worst performer on the Nifty index.

Yes Bank Ltd. reported a surge in the quantum of bad loans during the January-March quarter as the lender was prompted by the regulator to recognise one large account as a non-performing asset. (Catch the complete earnings report HERE)

The rupee lost 13 paise against the dollar to 64.71 in early trade as increased demand for the greenback from importers also put pressure on the rupee.

Dealers attributed the rupee's fall to dollar gains against other currencies overseas but a higher opening of the domestic equity market capped the fall.

Yesterday, the rupee had gained 5 paise to close at 64.58 a dollar on fresh selling of the American currency by banks and exporters.

PTI

Shares of the joint venture company of JBM Group and Maruti Suzuki India rose as much as 16 percent to touch a new 52-week high after reporting a 72 percent jump in fourth quarter net profit.

Total income of the company was up 41.3 percent at Rs 550.2 crore versus Rs 389.4 crore. The operating profit (EBITDA) gained 24.2 percent at Rs 42.1 crore and EBTIDA margin was at 7.7 percent.

The company has recommended 50 percent dividend (Rs 2.5 per share) for the year ended March 31, 2017.

Movers & Shakers: NALCO, Shalimar Paints, Reliance Industries

Indian stocks rebounded from a five-day losing streak as a slew of data boosted optimism in global economy. Investors bought shares of beaten down information technology companies while offloaded lenders after Yes Bank disappointed the street with its fourth quarter earnings.

The S&P BSE Sensex gained 0.2 percent to 29,403 while the NSE Nifty climbed 0.2 percent as well to 9,126. The market breadth was firmly tilted in favour of the buyers. About 4 stocks gained to every 1 stock that declined on the NSE.

Investors will look forward to the minutes of the RBI's April 5-6 monetary policy meeting. The minutes will show biases of individual members of the committee and would give cues to the market.

Today's Asia-Pacific currency market is mixed against the dollar. The New Zealand Kiwi was the biggest gainer, while the Indonesian Rupiah lost the most in the region.

Indian benchmark government bonds may see a weak opening tracking declines in the U.S. treasuries. Markets will also be watching the outcome of the RBI's auction of more than Rs 1 lakh crore of reverse-repo auctions under LAF.

Indian Masala Bonds are Back in Fashion

Companies are vying to sell at least $1 billion of masala bonds in the coming months on expectations Prime Minister Narendra Modi will take measures to boost the economy.

• CRISIL
• Cyient
• Hindustan Zinc
• MindTree

Earnings Reaction To Watch

• RS Software: Q4 loss Rs 3.63 crore versus Rs 3.23 crore loss YoY
• Sasken: Q4 net Rs 35.57 crore versus Rs 175 crore
• Yes Bank: Q4 profit Rs 914 crore, estimate Rs 900 crore; bad loans, provisions rise

• Bharti Airtel: Announce partnership with Amazon on Fire TV Stick
• Kitex Garment: To consider proposal for issue of free shares on April 28
• Network 18 Media: Approves plan to sell unit BURRP to investors
• NTPC: Board approves issue of up to Rs 5,000 crore in rupee bonds
• Reliance Industries: Commissions ethane project at Dahej faciliy

Offerings

• Government’s offer for sale 5 percent or 9.66 crore shares in National Aluminium for retail investors opens; non-retail portion gets 184 percent demand yesterday
• S Chand & Co. to sell shares at Rs 660-670 each in IPO

For a complete list of stocks to watch, click HERE

• 30 Lakh Enrolments Pending, 58,000 Taxmen To Be Trained Yet GSTN Confident Of July 1 Launch (Read full BloombergQuint special report here)

A Must-Read: Cow-Saving Vigilantes Are A Sign Of Rising Political Risk

• The Indian bank bonds everyone wants. If only someone would sell (Read the Bloomberg report HERE)
• India’s OPaL said to seek sale of 50 percent stake to Saudi Aramco
• Tata Steel to consider a proposal for fund raising
• Global funds sell Rs 673 crore of local stocks; domestic funds buy Rs 526 crore yesterday: Provisional data
• Sebi said to plan tighter IPO, commodity broker scrutiny (Mint)
• India said to sell 10 percent IRCTC stake during listing (ET Now)
• REC plans to sell offshore clean energy bonds by end June
• UIDAI files FIRs against eight websites for collecting user data illegally (PTI)
• Prime Minister Theresa May wins support from parliament to hold early U.K. election

Also Read: Gold's Top Forecaster Says Prices May Hit $1,350 by Year-End

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 9,129.

Asian stocks climbed in early trade as better-than-forecast trade figures in Japan and a recovery in crude oil prices lifted sentiment. The kiwi climbed after New Zealand inflation reached the central bank’s target for the first time in more than five years.

Japanese exports grew at the fastest rate in more than two years in March, boosting optimism in the global economy. The Federal Reserve’s Beige Book report showed the U.S. economy continued to expand steadily. Fed Vice Chairman Stanley Fischer too painted a picture of brightening global growth that can better manage the spillover of the gradual monetary tightening.

However, BlackRock Inc. chief Laurence D. Fink raised a red flag over the U.S. economy's trajectory, citing lacklustre growth and uncertainty around the Trump administration’s ability to quickly pass key reforms.

Investors will also watch out for the first round of voting in France’s presidential election this weekend.

In commodities, crude added 0.7 percent in early trading after tumbling 3.8 percent a day before after a reported showed U.S. gasoline supplies increased for the first time since February, amid rising output.

Gold, meanwhile, was little changed at $1,279 an ounce after dropped 0.7 percent on Wednesday.