Pedestrians exit an escalator that runs past an electronic screen and ticker board that indicates stock figures at the Singapore Exchange Ltd. (Photographer: Bryan van der Beek/Bloomberg)

All You Need To Know Going Into Trade On March 8

Asian stocks advanced as worries surrounding a trade war dissipated and U.S. equities recouped losses.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 10,205.50 as of 7:05 a.m.

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DayBreak

Here’s a quick look at all that could influence equities on Thursday.

Global Cues

  • U.S. stocks erased deep losses to end the day mixed as White House officials left open the possibility that President Donald Trump’s tariff proposals will spare neighbors from the most severe penalties.
  • Treasuries pared an advance to trade little changed.

Europe Check

  • European equities rallied as gains in real estate firms offset losses in media companies.

Asian Cues

  • The Topix index was up 0.6 percent and the Nikkei 225 Stock Average rose 0.7 percent.
  • Australia’s S&P/ASX 200 Index rose 0.4 percent.
  • South Korea’s Kospi index was up 0.5 percent.
  • Futures on Hong Kong’s Hang Seng Index gained 0.2 percent, though those contracts stopped trading prior to the bulk of Wednesday’s rally in the S&P 500.
  • The MSCI Asia Pacific Index rose 0.3 percent.

Here are some key events coming up this week:

  • The Chinese People’s Political Consultative Conference runs through March 15 and overlaps with the National People’s Congress meetings in Beijing, through March 20.
  • China reports on its trade balance on Thursday.
  • The ECB isn’t expected to change policy on Thursday, but the Governing Council may discuss a change to pave the way for the end of quantitative easing.
  • BOJ monetary policy decision and briefing on Friday.
  • U.S. monthly payrolls data come Friday.

Commodity Cues

  • West Texas Intermediate crude inched up 0.3 percent to $61.31 a barrel after dropping 2 percent.
  • Brent snapped three-day winning streak, ended lower at $64.3 per barrel, down 2.2 percent.
  • Gold was steady at $1,325.81 an ounce.
  • Sugar ends lower for second day at 12.8 cents per pound, down 4.9 percent.

Shanghai Exchange

  • Steel trades lower for fifth day; down 1.3 percent.
  • Aluminium trades lower for second day; down 1.1 percent.
  • Zinc trades lower; down 0.8 percent.
  • Copper snaps two-day winning streak; down 0.8 percent.
  • Rubber trades lower for third day; down 0.04 percent.

Indian ADRs

Stocks To Watch

  • Cadila Health partners with Medicure to launch New Drug Application product, Zypitamag in U.S.
  • Canara Bank hikes marginal cost loan rates by 10-15 basis points.
  • Bharat Dynamics to raise around Rs 960 crore from IPO.
  • Hero MotoCorp launches new Super Splendor at Rs 57,190 (ex-showroom, Delhi).
  • JSW Steel clarifies it hasn't signed any memorandum of understanding to buy Italy's Aferpi.
  • RBI imposes Rs 40 lakh penalty on SBI for breach of norms on counterfeit notes.
  • CCI imposes penalties collectively worth Rs 55 crore on Jet Airways, IndiGo and SpiceJet for concerted action in fixing fuel surcharge on cargo transport.
  • Pidilite Industries partners with Germany’s Jowat SE for sale and distribution of Jowat adhesives in India and other neighbouring countries.
  • HDFC to sell 5.1 percent stake in Computer Age Management Services Pvt. Ltd..
  • 3i Infotech allots 21.05 lakh preferential shares to Bank of Baroda under DRS package.
  • Tata Steel says it is the highest bidder to acquire Bhushan Steel.
  • 63 Moons Technologies says Mauritius regulator terminated exchange license.
  • Strides Shasun to launch Ranitidine 75mg (OTC) tablets in U.S.
  • Reliance Infra seeks shareholder nod for raising up to Rs 2,000 crore via QIP.
  • Coal India defers meeting to consider interim dividend to March 19.
  • Torrent Power to commission 124.40 MW project for Maharashtra Electricity Distribution Company
  • Marico sells entire 45 percent stake in Bellezimo Professionale products for Rs 1.6 crore.
  • Gayatri Projects QIP opens today at a floor price of Rs 211.65 per share.
  • Telecom companies: Cabinet approves restructuring of deferred payment liabilities of telecom operators and raises spectrum limits.
  • Bharti Airtel to consider raising funds via local, foreign bonds.
  • Heineken looks to buy ED seized Mallya shares in United Breweries to up stake to 58.2 percent from 44 percent now (Economic Times).

Bandhan Bank Sets Price Range For IPO

Bandhan Bank Ltd. has set the price range for its initial public offering in India, which could raise as much as Rs 4,473 crore, according to terms for the deal obtained by Bloomberg.

  • Company to offers shares at Rs 370-375 apiece
  • Anchor books open/close on March 14
  • Bid/issue opening date is March 15, closing date March 19

According to the terms, company aims to finalize basis of allotment around March 22, start trading around March 27. The proceeds will be used to augment bank’s Tier 1 capital base.

JPMorgan, Kotak Mahindra Capital, Axis Capital, Goldman Sachs, JM Financial are book-running lead managers

Bulk Deals

  • Punjab Alkalies and Chemicals: IDBI Bank sold 8 lakh shares or 3 percent equity at Rs 30.7 each.

TeamLease Services

  • Heineken bought 3.71 lakh shares or 2.2 percent equity at Rs 2,150.04 each.
  • Indus India Fund (Sv) bought 1.06 lakh shares or 0.6 percent equity at Rs 2,150.04 each.
  • HDFC Prudence fund sold 6 lakh shares or 3.5 percent equity at Rs 2,150.02 each.

Harrisons Malayalam

  • Promoter Carniwal Investment sold 13 lakh shares or 7 percent equity at Rs 77.75 each.
  • Vayu Udaan Aircroaft bought 13 lakh shares or 7 percent equity at Rs 77.75 each.

Foods Inn

  • Shital P Dalal sold 10,000 shares or 0.6 percent equity at Rs 1,450 each.
  • Salim Mohammed Hussein Punjani bought 11,043 shares or 0.7 percent equity at Rs 1,449.56 each.

Who’s Meeting Whom

  • Federal Bank to meet several fund houses including Amansa Capital, Enam Asset Management, Kotak Offshore March 8-9 in Singapore.
  • Eris Lifesciences to meet Mondrian Investment Partners and CLSA on March 8.
  • Dilip Buildcon to host an investor day and site visit for institutional investors and sell-side analysts on March 16-17.
  • Dixon Technologies to meet Spark Capital, Asian Markets Securities, Allard Partners and SBI Capital Securities from March 8–12.
  • Royal Orchid Hotels to meet several fund houses including Axis MF, SBI MF, Reliance MF between March 8-9.
  • M&M Financial Services to meet Tata Asset Management on March 8.
  • Voltas to meet several fund houses including SBI Capital, Investec, Enam on March 8 and 21.

Insider Trades

  • Chambal Fertilizers promoter SIL Investments acquired 54,749 shares on Feb. 28.
  • JSW Steel promoter Sahyog Holdings Pvt. Ltd. acquired 4.75 lakh shares from March 5–6.
  • Kalyani Steel promoter Sundaram Trading & Investment Pvt. Ltd acquired 9,932 shares on March 5.
  • Raymond promoter JK Investors (Bombay) Ltd. acquired 42,500 shares from March 1–5.
  • UPL promoter Shilpa P Sagar sold 50,000 shares on March 5.
  • Chaman Lal Setia promoter Sukarn Setia sold 12,000 shares from March 5–6.
  • Rane (Madras) promoter Shanti Narayan sold 2,000 shares on March 1.
  • Nelcast promoter P Deepak acquired 50,000 shares on March 6.
  • Man Infra promoter Vatsal Shah acquired 45,000 shares on March 6.
  • KCP Sugar promoter MRS Irmgard Velagapudi acquired 20,000 shares from March 1–5.
  • Kalyani Investment co promoter Sundaram Trading and Investment Pvt Ltd acquired 1,820 on March 5.
  • Vishal Fabrics promoters sold 1.25 lakh shares on March 5.
  • L&T Infotech promoter L&T sold 86,313 shares from Feb. 6–March 6.
  • Mas Financial promoter Mukesh Chimanlal Gandhi acquired 1,651 shares from March 5–6.

Rupee

  • Rupee closed at 64.89/$ on Wednesday from 64.96/$ on Tuesday.

Top Gainers And Losers

Index Trends

F&O Cues

  • Nifty March futures closed trading at 10,171.5 premium of 17.3 points versus discount of 0.6 points.
  • All series: Nifty open interest down 2 percent , Bank Nifty open interest down 2 percent.
  • India VIX ended at 15.7, down 3.3 percent.
  • Max open interest for March series at 10,600 call strike (open interest at 51.3 lakh, up 34 percent).
  • Max open interest for March series at 10,000 Put (open interest at 40.8 lakh, up 10 percent).

F&O Ban

  • In ban: Dewan Housing, HDIL, IDBI, Oriental Bank
  • Out of ban: Fortis Healthcare

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

  • Nifty PCR at 1.08 versus 1.13.
  • Nifty Bank PCR at 0.59 versus 0.66.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Motilal Oswal On Aegis Logistics

  • Initiated ‘Buy’ with price target of Rs 303.
  • Attractive play on India’s rising LPG consumption.
  • Continue to believe in Aegis’ structural growth story.
  • Aegis to be biggest beneficiary of rising LPG imports.
  • Ramp-up of Haldia and Pipavav terminals to drive throughput.
  • Gas sourcing and retail & distribution segment to grow at steady pace.
  • Liquids division remains a cash cow.
  • Expect LPG throughput, operating income and earnings per share to compound at 51 percent, 42 percent and 51 percent respectively over the fiscal 2017-2020.
  • Expect strong free cash flow as major capex behind.
  • Expect return on equity and return on capital eomployed to improve to 35 percent and 31 percent respectively by March 2020.
  • Management expected to announce new gas terminal in coming days.
  • Further capacity expansion by March 2019 will pose an upside risk.
  • Bull case price target of Rs 342.

Angel Broking on Ashok Leyland

  • Initiated ‘Buy’ with price target of Rs 163.
  • Vehicle scrappage policy to trigger growth.
  • Ashok Leyland set to capture additional growth opportunity.
  • GST, improved rural demand and boom in e-commerce to drive LCV demand.
  • To launch one product every six months.
  • Targeting to capture new export markets.
  • Expect net profit to compound at 19 percent over the fiscal 2017-2020 due to improvement in replacement demand.

INDSEC on Time Technoplast

  • Initiated ‘Buy’ with price target of Rs 224.
  • Dominant player in Industrial Packaging.
  • Established products to maintain steady growth.
  • Value added products-catalyst to margin expansion.
  • Composite Cylinders– enormous opportunity for the company to capitalize.
  • Company to Capitalize on huge demand for DWC Pipes.
  • Mox Films – New product offering to benefit in the long run.
  • Remain positive on prospects of Time Techno, given dominant position and nature of products.

JP Morgan on Grasim Industries

  • Maintained overweight; revised price target to Rs 1450 from Rs 1375 per share, implying a potential upside of 30 percent from the last regular trade.
  • Grasim offers attractive risk-reward at current levels.
  • Trading at a 52 percent Hold Co discount -near all-time high levels.
  • Discount despite strong operating performance, receding capital allocation concerns.
  • Standalone biz i.e. VSF & caustic business offers steady growth.
  • Large capex plan of Rs 6500 crore over three years in high ROCE business a positive.
  • Idea’s recent capital rasing plan allays investors’ concerns of meaningful investments.
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