Sensex Falls Sixth Time In Eight Sessions; Nifty Ends Flat

Indian equity benchmark ended lower for a sixth time in eight trading sessions this month as index heavyweight Tata Consultancy Services Ltd. dropped after multiple block deals.

The S&P BSE Sensex Index closed 0.2 percent lower at 33,856.78, while the NSE Nifty 50 Index ended flat at 10,426.85.

The market breadth was tilted in favour of buyers. Nine out of 11 stocks compiled by NSE advanced, led by NSE Nifty PSU Bank Index's 2.3 percent gain. On the flipside, NSE Nifty IT Index was the top sectoral loser, down 1.5 percent.

European stocks are little changed as traders turn their focus to U.S. inflation and retail sales data for clues on the trajectory of monetary policy ahead of the Federal Reserve meeting next week.

• Arvind: About 30 lakh shares changed hands in two block deals.

Buyers and sellers were not known immediately.

Source: Bloomberg

Key highlights from the conversation:

• To file offer document for HDFC AMC IPO soon.
• Expect HDFC AMC IPO in May-June.
• HDFC Standard Life to sell 8 percent in the IPO.
• Total stake to be sold will be 12 percent.

Key highlights from the conversation:

• Expect GNPA to reduce by 3% on account of recoveries.
• See no issues on SBLC as a product.
• Q1 and Q2FY19 expected to be good for banks
• Have recovered Rs 7,000 crore Within two months which is very significant.
• Another Rs 2,000 crore expected to be recovered.

Shares of the tungsten filament maker extended gains for the second day and rose as much as 9 percent to Rs 60.90, the highest since Jan. 16.

The company bagged contract worth Rs 335 crore for LED street lighting, according to its stock exchange notification.

Trading volume was six times its 20-day average. The stock has returned 12.8 percent so far this year

There is value in Binani Cement Ltd.’s assets for UltraTech Cement Ltd. even after the billionaire Kumar Mangalam Birla-led company topped Dalmia Bharat-led consortium’s offer. (Click here to read more).

Shares of the drug maker extended gains for the second day and rose as much as 2.1 percent to Rs 397.35.

The pharmaceutical company’s Zydus unit received final approval from the U.S. drug regulator for its Tizanidine Tablets, used during the treatment of spinal chord, according to its stock exchange notification.

The stock declined 9.6 percent so far this year and a loss of 9.9 percent in the past 12 months.

PSU Banks rallied in today’s trade, led by Bank of India after the lender recovered around Rs 7,000 crore in last two months, PTI reported, quoting bank’s executive director.

Shares of the Mumbai-based consumer products firm rose as much as 13.2 percent, the most in three months, to Rs 57.25.

Motilal Oswal has initiated coverage on Future Consumer Ltd. with a 'Buy' rating and price target of Rs 76, a near 42 percent upside to today's highest price so far.

Out of the four brokerage firms covering this stock, three have a ‘Buy’ rating and one has a ‘Hold’ recommendation.

Traded volume is 4.1 times the 30-day average, and the stock's consensus price target is nearly 50 percent higher than the current price.

Shares of the footwear maker fell as much as 3 percent, the most in since Feb. 16, to Rs 690 after SEBI ordered the company to conduct an internal probe.

The markets regulator’s preliminary investigation revealed that Bata’s third-quarter results in 2015 were leaked on WhatsApp before they surfaced on the exchanges, PTI reported. The company has been asked to complete the inquiry within three months.

The stock has declined 5.3 percent, compared to S&P BSE Sensex Index’s decline of 0.3 percent since the beginning of the year.

Shares of the budget carrier extended decline and fell as much as 3 percent to Rs 1,238.

IndiGo has cancelled as many as 47 flights today after the country's aviation regulator DGCA grounded its eight A320Neo planes with faulty Pratt & Whitney engines, along with three such aircraft of GoAir, according to a PTI report.

InterGlobe trades at 27.3 times trailing 12-month earnings per share and 19 times its estimates for the coming year. The stock has gained 48 percent in the past 12 months.

Shares of the county’s second-largest firm fell as much as 6 percent, the most in over 16 months, to Rs 2,872.

About 2.84 crore shares or 1.5 percent equity changed hands in six block deals, Bloomberg data showed.

The stock was the worst performer on both Sensex and Nifty. Trading volume was 87.7 times the 30-day average. The scrip returned 8.5 percent so far this year, compared to 0.6 percent decline in Sensex.

Indian equity benchmarks rose after swinging between gains and losses in opening trade, weighed by TCS.

The S&P BSE Sensex Index rose as much as 0.1 percent to 33,956.41 and likewise for the NSE Nifty 50 Index traded at 10,437.80 after rising as much as 0.2 percent.

The market breadth was tilted in favour of buyers. Eight out of 11 sectoral indices compiled by the National Stock Exchange advanced, led by NSE Nifty PSU Bank Index’s 0.5 percent gain. On the flipside, NSE Nifty IT Index was the top loser, down 0.7 percent.

Sovereign bonds are likely to gain as February inflation slowed more than expected, which will prompt traders to push back any near-term rate hike fears.

Government data on Monday showed inflation at 4.44 percent in February, lower than the 5.07 percent pace in January and 4.7 percent estimated in Bloomberg poll.

Traders said the RBI’s 250 billion-rupee liquidity injection plan and 10-year U.S. Treasury not breaching 2.9% despite blockbuster payrolls are also helping Indian bonds. The 10-year benchmark bond fell 10 basis points to end at 7.63 percent.

Meanwhile, the rupee is expected to strengthen amid improved sentiment towards emerging market assets. The implied forwards suggest the rupee will start trading at 64.93 per dollar having ended at 65.04 on Monday, up around 0.2 percent on the day.

• Nifty March Futures closed trading at 10,432.8 premium of 11.4 points versus discount of 10.3 points.
• March series: Nifty open interest down 1 percent, Bank Nifty open interest up 4 percent.
• India VIX ended at 14.4, down 0.2 percent.
• Max open interest for March series at 10,600 call strike (open interest at 51.7 lakh, up 41 percent).
• Max open interest for March series at 10,000 put (open interest at 53.8 lakh, up 10 percent).

F&O Ban

• In ban: Andhra Bank, Balrampur Chini, BEML, Dewan Housing, IDBI, JP Associates
• New in ban: Andhra Bank, BEML

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 1.26 versus 1.14.
• Nifty Bank PCR at 1.15 versus 0.81.

Credit Suisse on NIIT Technologies

• Maintained ‘Outperform’; hiked price target to Rs 1,050 from Rs 850.
• Smaller companies are relatively better positioned.
• Sharper focus on sub-segments.
• More focus on top clients.
• Stock has done well but valuations are not stretched.
• Revenue is growing ahead of industry and margins are expanding slightly.

Macquarie on Info Edge

• Maintained ‘Neutral’ with price target of Rs 1,300.
• Expect company to steadily increase shareholder payout.
• Expect dividend per share for the next two financial years at Rs 8 and Rs10 respectively.
• Remain confident on ability to maintain market share.
• Cautious over growth outlook due to a slowdown in IT hiring and real estate market.
• With increasing cash pile effective utilisation of cash is vital.

Citi on BHEL

• Maintain Sell with a price target of Rs 83.
• Strong inflows in current fiscal. However, outlook continues to be weak.
• L1 pipeline has weakened YoY.
• December quarter was disappointing.
• Solar taking a toll on coal.

Motilal Oswal on Future Consumer

• Initiated ‘Buy’ with price target of Rs 76.
• Best play on huge window of opportunity for brands using modern retail.
• Best placed among Future Group companies.
• Improving mix and operating leverage expected to drive significant margin expansion.
• Likely to be profitable at consolidated net level only in the next fiscal.
• Growing rapidly via distribution network and portfolio expansion.
• Expect revenue and operating income to compound at 39 percent and 147 percent respectively over the fiscal 2017-2022.
• Attractive opportunity from a three-year perspective as well.

IIFL on PNB Housing Finance

• Maintain ‘Buy’; cut price target to Rs 1,360 from Rs 1,700.
• Overhang: increasing interest rates.
• Overhang: prospects of stake sale by key shareholders.
• Overhang: expectation of potential impact on credit rating.
• Higher interest rates would lead to margin compression.
• Expect AUM to compound at 42 percent over the fiscal 2018-2020. Expect AUM to drive superior revenue growth and operating leverage.
• Remain constructive on the stock.

Morgan Stanley on Insurance

• Private insurers posted 11 percent YoY growth in February.
• HDFC Life and SBI Life grew 22 percent and 18 percent YoY respectively; ICICI Pru declined 16 percent YoY.
• Expect private sector premiums to rise in mid-teens over the next couple of year.

IIFL on Future Retail

• Multiple tailwinds to support operating income growth
• Expect revenue and operating income to compound at 17 percent and 31 percent respectively over the fiscal 2018-2020.
• Expect SSS strength to sustain in Big Bazaar format.
• Hypercity turnaround to aid performance.
• Expect value positioning to sustain strong growth in FBB format.
• Balance sheet improvement should continue.

Morgan Stanely on Ambuja-ACC

• Intent is to drive cost efficiency, such that both companies benefit equally.
• Agreement could drive faster volume growth and some cost savings.
• Limited clarity on company-level benefits.
• Gain for each company could vary based on time and market conditions.

• State-owned Bharat Dynamics will open its initial public offer for subscription, with a price band of Rs 413-428 per share. (Here’s an all you need to know)

• Shankara: Amansa Holdings bought 3.6 lakh shares at price of Rs 1,755 per share.

Shree Renuka Sugars Q3 (YoY)

• Revenue down 13.84 percent at Rs 1,758.8 crore.
• Net loss at Rs 2,267 crore.
• EBITDA down 0.82 percent at Rs 60 crore.
• Margin at 3.41 percent from 2.96 percent.
• Exceptional loss of Rs 2,410 crore.
• Rs 2,087 crore of investment and debt restructured.

• Tata Sons to sell 28.3 million TCS shares at Rs 2,872–2,925 per share: Bloomberg
• Infosys to voluntarily delist American Depositary Shares from some Euronext exchanges and Euronext London Exchanges.
• NBCC says no charges proved against chairman Mittal after CBI Probe.
• Power Grid enters into term loan facility agreement with State Bank of India worth Rs 5,000 crore.
• Andhra Bank says exposure to Sterling group of companies at Rs 1,147 crore.
• JSPL board to meet on March 16 to consider QIP.
• Aviation stocks: Government grounds Airbus A320neo planes with new Pratt & Whitney engines.

• Inflation relief, IIP boost may not be enough for monetary policy panel.
• CBI questions CFO of Nirav Modi’s firm in Rs 321 crore loan default case.
• SEBI asks Bata India to probe results leak, strengthen systems.
• RBI releases final norms on hedging commodity price risks abroad.
• Cement prices drop in March as firms eye higher volumes.

• China data on industrial production, retail sales and fixed-asset investment all out on Wednesday are likely to point to slower growth, according to Bloomberg Economics forecasts.
• Key indicators for the Fed dominate the economic agenda in the coming week. Headline inflation may have edged up to 2.2 percent in February from 2.1 percent, though consensus before Tuesday’s report is for core inflation to remain at 1.8 percent.
• Prices and factory output are focal points in the euro area. Friday’s second inflation report for February may touch 1.2 percent from 1.1 percent the previous month.
• Also this week, Germany’s Angela Merkel is inaugurated to a fourth term, EU27 government officials discuss the European Union’s Brexit position, and U.K. Chancellor of the Exchequer Philip Hammond issues his spring statement.

• West Texas Intermediate crude held onto losses after decreasing 1.1 percent to trade at $61.28 a barrel.
• Brent traded lower for second day at $64.82 per barrel; down 0.2 percent.
• Gold rose 0.1 percent to $1,324.62 an ounce.
• Sugar ended higher at 12.93 cents per pound; up 0.7 percent.

Shanghai Exchange

• Steel snapped seven-day losing streak; up 0.1 percent.
• Aluminium traded lower for fifth day; down 1.5 percent.
• Zinc traded 0.3 percent lower.
• Copper 02 percent lower.
• Rubber 0.3 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 10,417.50 as of 8:30 a.m.

Asian equity traders adopted a cautious tone Tuesday following a dip in U.S. stocks, with focus turning to a U.S. inflation report for clues on the pace of Federal Reserve policy tightening.