A man reads a newspaper outside Chhatrapati Shivaji Terminal in Mumbai, India, on October 5, 2016. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On March 20

Stocks in Asia and U.S. equity futures fell, building on losses on Wall Street after a sell-off in technology shares bruised trader sentiment before a key Federal Reserve policy meeting.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,084 as of 6:55 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

DayBreak

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

Global Cues

  • Stocks declined globally on Monday as a technology selloff sent the Nasdaq indexes to the steepest losses in six weeks.
  • The yield on 10-year Treasuries were little changed at 2.85 percent, after rising as much as three basis points.

Europe Check

  • European stocks fell, pushed lower by technology companies that tumbled amid reports a political advertising firm retained information on millions of Facebook Inc. users without their consent.
All You Need To Know Going Into Trade On March 20
  • The euro climbed 0.4 percent to $1.2341.
  • The British pound climbed 0.7 percent to $1.403, the biggest increase in almost eight weeks.
  • Germany’s 10-year yield was little changed at 0.57 percent, after posting the largest climb in almost two weeks.
  • Britain’s 10-year yield climbed two basis points to 1.44 percent, after seeing the biggest surge in almost 11 weeks.

Asian Cues

  • Japan’s Topix index fell 0.8 percent and the Nikkei 225 Stock Average slid 1.1 percent.
  • Australia’s S&P/ASX 200 Index dropped 0.5 percent.
  • South Korea’s Kospi index fell 0.4 percent.
  • Futures on Hong Kong’s Hang Seng Index retreated 0.7 percent.
  • Futures on the S&P 500 Index fell 0.1 percent and Nasdaq contracts lost 0.4 percent.

Here are some key calendar events coming up this week:

  • The Fed decision and Powell’s news conference come on Wednesday.
  • The Reserve Bank of Australia releases minutes of the March meeting on Tuesday.
  • The Bank of England is expected to keep interest rates and its asset-purchase program unchanged on Thursday. Attention will be on language and the odds for a May hike.
  • Saudi Crown Prince Mohammed bin Salman is expected to meet with President Donald Trump at the White House this week as part of a U.S. visit.
  • Company earnings scheduled for this week include Tencent, FedEx, Porsche, Hermes, PetroChina and Nike.

Commodity Cues

  • West Texas Intermediate crude for April delivery, which expires on Tuesday, dropped 28 cents to settle at $62.06 a barrel on the New York Mercantile Exchange.
  • Brent traded higher at $66.21 per barrel; up 0.2 percent.
  • Gold rose 0.2 percent to $1,317.06 an ounce.
  • Sugar snapped two-day losing streak, ends at 12.9 cents per pound; up 1.9 percent.

Shanghai Exchange

  • Steel trades lower for third day; down 0.4 percent.
  • Aluminium trades higher for second day; up 0.1 percent.
  • Zinc trades lower; down 0.2 percent.
  • Copper trades lower for third day; down 0.5 percent.
  • Rubber trades lower for third day; down 0.8 percent.

Indian ADRs

All You Need To Know Going Into Trade On March 20

Stocks To Watch

  • Elpro Internaitonal is looking to sell 1.25 percent equity in PNB Metlife Insurance Company. It currently owns 12.75 percent equity in the company.
  • Binani Industries says Binani Cement will apply to NCLT for insolvency exit and sell assets to UltraTech.
  • BGR Energy Systems wins order worth Rs 87.68 crore from Tamil Nadu Transmission Corporation.
  • Granules gets ANDA approval for Metformin tablets.
  • Inox Wind offer for sale to non-retail gets 122 percent demand for shares offered.
  • Sona Koyo offer for sale to non-retail gets 28 percent demand for shares offered.
  • IndiGo market share at 39.9 percent versus 39.7 percent (MoM).
  • Jet Airways at 16.8 percent versus 16.6 percent (MoM).
  • SpiceJet at 12.4 percent versus 12.6 percent (MoM).
  • GAIL plans pipeline to link Northeast India to National Gas Grid (Bloomberg).
  • Nitesh Estates says discussions with investors for Pune Mall in advanced stage and is expected to conclude by April 30.
  • IFCI says Supreme Court has upheld the sale of the assets of Blue Coast Hotels for recovery of dues.
  • RBI allows raising FPI limit in Future Retail to 49 percent from 24 percent.
  • Religare Enterprises says India Horizon Fund has withdrawn its petition against the company.
  • Prism Cement's JV completes expansion of tiles capacity at Matel plant, Morbi.

Bulk Deals

  • TD Power Systems: India Value Fund IV sold 6 lakh shares or 1.8 percent equity at Rs 201 each.
  • GSS Infotech: Elara India Opportunities Fund bought 1 lakh shares or 0.6 percent equity at Rs 67.5 each
  • Samtel Color: ICICI Bank Ltd A/c ICICI Treasury sold 4.29 lakh shares or 0.5 percent equity at Rs 0.45 each.
  • Punjab Alkalies & Chemicals: IDBI Bank sold 5.25 lakh shares or 1.9 percent equity at Rs 36.4 each.

Sintercom India:

  • India Max Investment Fund sold 8 lakh shares at Rs 73.97 each
  • Jagdish Master bought 7 lakh shares at Rs 74 each

Trading Info

  • Igarashi Motors acquisition window for takeover from March 20 to April 4.

Who’s Meeting Whom

  • Shriram City Union Finance to meet Tata Asset Management, CLSA, Nomura & LGM Investments from March 20–23.
  • Endurance Technologies to meet Axis MF on March 20.
  • VERSUST Tillers to meet Centrum, Stewart Investors & Kotak securities from March 21–23.
  • Shoppers Stop to meet Motilal Oswal Securities and Optis Capital on March 26.
  • Cholamandalam Investment & Finance to meet Motilal Oswal securities on March 21.
  • Pfizer to meet IDFC Securities on March 20.

Insider Trades

  • Chambal Fertilizers promoter SIL Investments acquired 1.99 lakh shares on March 16.
  • Omax Auto promoter Varun Mehta sold 12,305 shares on March 16.
  • Kewal Kiran Clothing promoter Kewal Kiran Finance Pvt Ltd acquired 1,500 shares from March 15–16.
  • Archidply promoter Mysore Chipboards acquired 57,000 shares on March 19.
  • Sharda Motor Industries promoter Mala Relan acquired 1,400 shares on March 16.
  • L&T Infotech promoter L&T sold 25,863 shares on March 16.

New Offerings

  • Bandhan Bank IPO subscribed 14.6 times on final day.
  • Hindustan Aeronautics IPO continues on day 3. The issue is subscribed 0.45 times.
  • Karda Construction IPO continues on day 3. The issue is subscribed 1.24 times.
  • Sandhar Technologies IPO continues on day 2. The issue is subscribed 0.02 times.

Rupee

  • Rupee closed at 65.18/$ on Monday from 64.94/$ on Friday.

Top Gainers And Losers

All You Need To Know Going Into Trade On March 20

Index Trends

All You Need To Know Going Into Trade On March 20

F&O Cues

  • Nifty March Futures closed trading at 10,122.8, premium of 28.8 points from 37 points.
  • March series: Nifty open interest down 3 percent, Bank Nifty open interest up 5 percent.
  • India VIX ended at 15.8, up 4 percent.
  • Max open interest for March series at 10,500 call strike (open interest at 66 lakh, up 13 percent).
  • Max open interest for March series at 10,000 Put (open interest at 62.9 lakh, up 36 percent).

F&O Ban

  • In ban: BEML, Dewan Housing, HDIL, IDBI Bank, JP Associates, Reliance Communications, SAIL.
  • New in ban: Reliance Communications.
  • Out of ban: Bank of India, TV18 Broadcast.

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 1.04 from 1.09.
  • Nifty Bank PCR at 0.99 from 1.02.

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On March 20

Fund Flows

All You Need To Know Going Into Trade On March 20

Brokerage Radar

Morgan Stanley on Metals

  • Hindalco: Downgraded to ‘Equalweight’ from ‘Overweight’; cut price target to Rs 256 from Rs 292.
  • Vedanta: Maintained ‘Overweight’; cut price target to Rs 386 from Rs 395.
  • Coal India: Maintained ‘Underweight’; raised price target to Rs 245 from Rs 221.
  • Vedanta benefits from strong volume growth in aluminium and zinc.
  • Hindalco’s earnings are geared to aluminium prices; Volumes have peaked.
  • Upside risk to Coal India’s earnings is less likely.

Motilal Oswal on Shilpa Medicare

  • Maintained ‘Buy’ with a price target of Rs 749; implying a potential upside of 53 percent from the last regular trade.
  • Issuance of EIR by U.S. FDA comforting.
  • EIR lowers regulatory risk over medium term.
  • Strong oncology ANDA pipeline pending for approval.
  • Oncology API and CRAMS on steady track.
  • Expect revenue and net profit to compound at a rate of 16 percent and 35 percent respectively over the fiscal 2017-2020.

Credit Suisse on Zee Entertainment

  • Maintained ‘Outperform’ with a price target of Rs 650.
  • Digital platform Zee5 launched with differentiated content.
  • Await response to Zee5.
  • Advertising growth remains strong.
  • Subscription income should grow mid-teens.
  • Regional remains a key focus area.
  • Operating margins to remain strong.

CLSA on SBI Subsidiaries Meet

  • Subsidiaries scaling up well.
  • Potential listing can unlock value.
  • Subsidiaries are seeing healthy growth – better than parent.
  • Listing of AMC/others can unlock value.
  • Insurance – Large in life, but smaller in general.
  • SBI Card – among the fastest-growing companies.
  • SBI Funds – Growing, but lags on profitability.

CLSA on HCL Tech

  • Maintained ‘Buy’ with a price target of Rs 1,170.
  • Building HCL into a next gen IT services business.
  • Revenue trajectory to remain robust.
  • Organisational structure aids agility.
  • Strategic bet on IP licensing in the creation of its own IP.
  • Valuations attractive; Top pick in sector.