All You In Need To Know Going Into Trade On March 23
Asian stocks followed their U.S. counterparts lower after President Donald Trump’s decision to slap tariffs on China heightened concern a trade war could hurt global growth.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.2 percent at 9,996 as of 6:55 a.m.
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Here’s a quick look at all that could influence equities on Friday.
- U.S. stocks tumbled, pushing benchmark gauges back toward the lows set during the worst of the February rout, as President Donald Trump’s decision to slap tariffs on Chinese goods heightened concern that a trade war could throttle global growth.
- The yield on 10-year Treasuries fell six basis point to 2.82 percent.
- European equities declined, led by miners and bank shares, as investor sentiment was weighed down by concerns over a potential global trade war.
- The euro fell 0.2 percent to $1.2318.
- The British pound dropped 0.2 percent to $1.4111.
- Germany’s 10-year yield dropped six basis point to 0.53 percent, declining from the highest in more than a week.
- Britain’s 10-year yield fell nine basis points to 1.44 percent.
- The MSCI Asia Pacific Index sank 1.3 percent.
- Topix index sank 2.4 percent.
- Kospi index sank 1.9 percent.
- Australia’s S&P/ASX 200 Index decreased 1.6 percent.
- Futures on the S&P 500 Index fell 0.4 percent.
Here are some key events on the schedule for the remainder of this week:
- The Bank of Russia’s rate decision is on Friday.
- U.S. government funding is due to expire at the end of the day on Friday.
- West Texas Intermediate crude rose 0.5 percent to $64.64 a barrel.
- Brent traded higher at $69.4 per barrel; up 0.8 percent.
- Gold rose 0.2 percent to $1,332.33 an ounce.
- LME copper dipped 1.4 percent to $6,695.00 per metric ton.
- Sugar ended higher for second day at 12.8 cents per pound; up 0.8 percent.
- Steel trades lower for second day; down 2.4 percent.
- Aluminium trades lower; down 0.9 percent.
- Zinc trades lower; down 0.8 percent.
- Rubber trades lower for sixth day; down 3.1 percent.
Stocks To Watch
- Anjani Portland Cement to set up an additional clinker producing unit for Rs 400 crore.
- Future Market sold Ahmedabad city mall for Rs 16.54 crore.
- Schaeffler India said shareholders and creditors vote for merger of INA India, LuK India with self.
- Hero Motocorp increased stake in Colombia joint venture to 68 percent from 51 percent.
- L&T Technology Services won multi-million-dollar order from German plastic maker Covestro.
- JSW Energy secured order from Punjab State Power Corp for supply of 200 megawatt power.
- 20 Microns subsidiary filed DRHP for IPO.
- REC board approved Rs 60000 crore market borrowing plan for FY19.
- United Spirits to consider stock split on April 13.
- Infosys invested an additional $1.5 million in Waterline Data Science.
- SQS India said German subsidiary completed winding process; awaits tax refund pending with German authorities.
- Shalimar Paints to raise Rs 49.73 crore via rights issue. Board approved issue of 35.52 lakh shares at a price of Rs 140 each.
- Alankit Ltd. sold 49 percent stake in subsidiary Alankit Technologies for Rs 1.07 crore. Also, subsidiary Alankit Life Care received FFMC (Full Fledged Money Changer) License from RBI.
- Mahindra and Ford signed MoUs to co-develop midsize and Compact SUV, EV and connected car solutions.
- Cipla received Tentative nod for Darunavir 800MG: FDA (Bloomberg).
- India amended Foreign Trade Policy to provide IGST exemption (Bloomberg).
- Balesh Sharma to be CEO of Idea-Vodafone merged entity.
- Ashapura Intimates: Promoter Harshad Thakkar bought 3 lakh shares or 1.2 percent equity at Rs 450 each.
- Jubilant Foodworks: William Blair & Co. LLC bought 3.77 lakh shares or 0.6 percent equity at Rs 2260.5 each.
- Shaily Engineering Plastics: HDFC MF bought 50,000 shares or 0.6 percent equity at Rs 1140 each.
- Jindal Drilling: Jindal Drilling & Industries Limited Employees Welfare Trust sold 2.20 lakh shares or 0.8 percent equity at Rs 164.43 each.
- MEMG Family Office bought 10 lakh shares or 0.7 percent equity at Rs 1023 each.
- Ramdas Pai sold 10 lakh shares or 0.7 percent equity at Rs 1023 each.
- JBF Industries circuit filter revised to 10 percent.
- Bharat Dynamics to list on exchanges.
Who’s Meeting Whom
- ACC and Ambuja Ltd. to meet several fund houses including Capital World, Fidelity Mgmt & Research on March 23.
- Bodal Chemicals to meet ICICI Prudential MF on March 27.
- MGL to meet ICICI Securities on March 26.
- Dabur India promoter Ratna Commercial Enterprises Pvt Ltd acquired 52,544 shares from March 19 – 20.
- Vardhman Textiles promoters sold 38,746 shares on March 20.
- Vivimed Labs promoter BBR Projects Pvt Ltd acquired 1 lakh shares on March 21.
- Meghmani Organics promoter Popatbhai Meghjibhai Patel acquired 18,438 shares on March 13.
- V2 retail promoter Vishal Waterworld Pvt Ltd acquired 39,079 shares from March 20 – 21.
- Asian Granito promoter Hasmukhbhai D Patel sold 3,000 shares on March 15.
- PPAP Automotive promoter Rashi Jain acquired 2,666 shares on March 20.
- PSP Projects to meet ASK Investment Managers on March 23.
- ICICI Securities IPO subscribed 0.29 times.
- Mishra Dhatu Nigam IPO subscribed 0.64 times.
- Rupee closed at 65.11/$ on Thursday from 65.21/$ on Wednesday.
Top Gainers And Losers
- Nifty March Futures closed trading at 10,127.8 premium of 13 points versus 24.9 points.
- March series-Nifty open interest unchanged, Bank Nifty open interest up 7 percent.
- India VIX ended at 15.2, up 1 percent.
- Max open interest for March series at 10,500 call strike, open interest at 62.8 lakh, open interest up 3 percent.
- Max open interest for March series at 10,000 Put, open interest at 58.8 lakh, open interest up 2 percent.
- In ban: HDIL, IDBI Bank, IFCI, Jet Airways, Jindal Steel, JP Associates, Reliance Communications
- New in ban: Jet Airways
- Out of ban: SAIL
Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.
- Nifty PCR at 1.05 versus 1.06.
- Nifty Bank PCR at 1.15 versus 1.01.
Stocks Seeing High Open Interest Change
HSBC on Bharti Airtel
- Maintained ‘Buy’ with a price target of Rs 590.
- Revenue pressure may continue in the current quarter.
- Focused on adding quality subscribers.
- Remain positive; Expect Bharti gaining market share over the next 12 months.
- Long term market structure improvement to drive sector revenues.
- Several steps being taken to improve balance sheet.
IDFC Securities on Dish TV
- Maintained ‘Outperform’ with a price target of Rs 125.
- Videocon D2H has been merged with and into Dish TV.
- Benefits of merger to be visible incrementally from April.
- Distribution businesses has tremendous economies of scale.
- Expect the merger to yield both revenue and cost synergies.
- Expect 19 percent market share with comfortable net debt-to-ebitda.
JP Morgan on Phoenix Mills
- Maintained ‘Overweight’; raised price target to Rs 710 from Rs 605.
- Double rental growth combined with residential business to boost earnings.
- Expect operating income and net profit to compound at 12 percent and 35 percent respectively over two years.
- Phoenix should generate positive free cash flow from April.
- Funds can be used for additional growth and increase dividend payouts.
- Phoenix remains best proxy plays on retail growth in India.
Macquarie on ICICI Bank
- Maintained ‘Outperform’ with a price target of Rs 425.
- ICICI Securities IPO to bring in around Rs 35-40 billion gains.
- Monetisation and value unlocking continues.
- IPO gains could add roughly about 60 basis points to the CET1 of 13.7 percent of ICICI.
- ICICI Securities IPO priced at expensive multiples.
- Broking business is high cash generating and asset-light; Leads to high dividend payouts.
Kotak Securities on SH Kelkar
- Upgraded to ‘Buy’ from ‘Add’; maintained price target at Rs 325.
- Rating upgrade post the recent sharp correction.
- Raw material disruption impact likely to be temporary.
- RM inflation to get passed on to the customers with lag.
- RM situation could to remain challenging for the current and next quarter.
Nomura on Max Financial Services
- Maintained ‘Buy’ with a price target of Rs 605; implying a potential upside of 39 percent from the last regular trade.
- Most bad news in the price.
- Incremental risk reward better.
- Believe stock underperformance is nearing end.
- Stock trading down on the back of distribution, regulatory and M&A risks.
Nomura on NBCC India
- Upgraded to ‘Buy’ from ‘Neutral’; raised price target to Rs 258 from Rs 250.
- Management meeting boosts confidence.
- Execution hindrances now over.
- Catalysts visible as contract awards and monetisation pick up.
- Recent stock correction provides an entry point.
BoFA ML on Vedanta
- Initiated ‘Buy’ with a price target of Rs 380.
- Business mix is favorable with most coming from zinc.
- Zinc is preferred metal with strong pricing outlook.
- High visibility on growth with projects in advanced stages.
- Outlook for aluminium, oil and gas improving/stabilizing.
- Expect Ebitda to compound at 21 percent over the fiscal 2017-2019.
- Deleveraging to continue with FCF yield of 15 percent and 17 percent respectively over the next two fiscals.