Employees pass though a security check at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  

All You Need To Know Going Into Trade On March 27

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Stocks in Asia followed their U.S. counterparts higher on signs that an escalation of trade tensions was beginning to ease.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.4 percent at 10,187.50 as of 7:05 a.m.

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BQ Live

Global Cues

  • U.S. equities surged back from the biggest weekly rout in two years, with major benchmarks climbing more than 2.7 percent on signs that an escalation of trade tensions was beginning to ease.
  • The yield on 10-year Treasuries climbed four basis points to 2.85 percent.

Europe Check

  • European shares head for their first gain in four days as investors assess the latest developments in a trade conflict between the world’s two largest economies.
  • The euro climbed 0.8 percent to $1.2456.
  • The British pound jumped 0.7 percent to $1.4232, the strongest since Feb. 1.
  • Germany’s 10-year yield was little changed at 0.52 percent.
  • Britain’s 10-year yield was little changed at 1.44 percent.

Asian Cues

  • Japan’s Topix index rose 1.2 percent as of 9:34 a.m. in Tokyo.
  • Australia’s S&P/ASX 200 Index climbed 0.6 percent.
  • Kospi index rose 0.6 percent.
  • Futures on Hong Kong’s Hang Seng Index slipped 0.2 percent.
  • Futures on the S&P 500 Index gained 0.3 percent.
  • The yen traded at 105.52 per dollar, down 0.1 percent, after falling 0.6 percent.
  • The won jumped 0.6 percent to 1,074.35 per dollar.
  • Australia’s 10-year yield was steady at 2.67 percent.

Here’s a list of of the main events coming up this week:

  • U.S. personal income and spending data for February are due to be released on Thursday.
  • The big four euro-area economies are due to release March CPI readings.
  • The U.S. Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.

Commodity Cues

  • Gold fell 0.2 percent to $1,351.98 an ounce, after two days of gains.
  • WTI crude oil was steady at $65.57 after slipping 0.5 percent.
  • Brent ended traded marginally higher at $70.2 per barrel.
  • Sugar ended lower for second day at 12.4 cents per pound; down 1.2 percent.

Shanghai Exchange

  • Steel snapped three-day losing streak; up 0.2 percent.
  • Aluminium snapped two-day losing streak; up 0.4 percent.
  • Zinc traded higher for second day; up 1.3 percent.
  • Copper traded lower for third day; down 0.9 percent.
  • Rubber snapped seven-day losing streak; up 1.3 percent.

Indian ADRs

Stocks To Watch

  • PFC board approves Rs 57,000 crore market borrowing plan for the next financial year.
  • Punj Lloyd gets EPC order worth Rs 505.2 crore in Odisha from NHAI.
  • Arihant Superstructures signs MOU with Maharashtra government to develop affordable housing project in Navi Mumbai.
  • Wipro and Adobe expand partnership to offer enhanced digital services and solutions.
  • NMDC to pay interim dividend of Rs 4.3 per share.
  • Dilip Buildcon declared L1 for four new HAM projects in Karnataka and Maharashtra worth Rs 4,114.5 crore.
  • KNR Constructions bags two HAM projects worth Rs 2,964 crore from NHAI.
  • IDFC Bank–Capital First merger gets NSE approval.
  • Mindtree launches “Decision Moments” platform to help markets drive faster conversions and increase customer lifetime value.
  • Brigade group unveils Brigade Financial Centre at GIFT City.
  • Precision Camshafts to acquire 76 percent stake in Germany based MFT Motoren und Fahrzeugtechnik GmbH.
  • Future Enterprises hikes stake in subsidiary Future E-commerce Infrastructure to 86.71 percent from 70.43 percent.
  • Tata Metaliks says operations to be impacted due to shutdown of one of the blast furnaces at Kharagpur Plant.
  • Dolphin Offshore-consortium wins order worth Rs 154 crore from ONGC.
  • Cipla completes stake sale in UAE joint venture.

Bulk Deals

  • MT Educare: Kitara India Microreo Cap Growth Fund sold 3.70 lakh shares or 0.9 percent equity at Rs 70 each.
  • Shaily Engineering Plastics: HDFC MF bought 50,000 shares or 0.6 percent equity at Rs 1,150 each.
  • Venky’s: Dr Cyrus Poonawalla bought 83,186 shares or 0.6 percent equity at Rs 3916.60 each.

Acrysil

  • Ashish Kacholia bought 2.21 lakh shares or 4.3 percent equity at Rs 486 each.
  • Everest Finance & Investment Co sold 2.21 lakh shares or 4.3 percent equity at Rs 486 each.

Carborundum Universal

  • Reliance Small Cap Fund bought 20.20 lakh shares or 1.1 percent equity at Rs 337 each.
  • Promoter Ambadi Investments Ltd sold 25 lakh shares or 1.3 percent equity at Rs 337 each.

TCPL Packaging

  • Vijay Kedia sold 98,000 shares or 1.1 percent equity at Rs 600 each.
  • Vighnahar Holdings Pvt Ltd bought 98,000 shares or 1.1 percent equity at Rs 600 each.

TD Power Systems

  • MSD India Fund bought 8.56 lakh shares or 2.6 percent equity at Rs 185.06 each.
  • India Value Fund IV sold 7.55 lakh shares or 2.3 percent equity at Rs 185.14 each.

Elpro International

  • IGE (India) Pvt Ltd bought 15 lakh shares or 1.1 percent equity at Rs 47.5 each.
  • Elara India Opportunities Fund sold 11 lakh shares or 0.8 percent equity at Rs 47.5 each.

Transpek Industry

  • Hypnos Fund ltd bought 1.09 lakh shares or 2 percent equity at Rs 1,239.73 each.
  • Ruchit Patel sold 88,454 shares or 1.6 percent equity at Rs 1239.22 each.

T I Global

  • SMIFS Capital Marchkets bought 49,000 shares or 1 percent equity at Rs 68.5 each.
  • Maya Trade Links sold 49,559 shares or 1 percent equity at Rs 68.5 each.

International Conveyors

  • IGE (India) Pvt Ltd bought 13.89 lakh shares or 2.1 percent equity at Rs 21.5 each.
  • Elara India Opportunities Fund sold 11 lakh shares or 1.6 percent equity at Rs 21.5 each.

Trading Tweaks

  • East India Securities circuit filter revised to 20 percent.
  • GAIL India ex-date for 1:3 bonus issue. F&O lot size revised to 2,667.
  • Oil India ex-date for 1:2 bonus issue. F&O lot size revised to 3,399.
  • Kellton Tech Solutions ex-date for 1:1 bonus.
  • Talwalkars Better Value Fitness ex-date for demerger.

Who’s Meeting Whom

  • Purvankara to meet Fidelity Mgmt & Research on March 27.
  • Bodal Chemicals to meet Mahindra AMC on March 27.
  • PI Industries to meet Taiyo Pacific Partners and Narnolia Securities on March 27.
  • AIA Engineering to meet Edelweiss Securities on March 27.
  • Rallis India to meet Franklin Templeton MF on March 27.
  • Vakrangee to meet investors on March 27 and 28 in Singapore.
  • Magma Fincorp to meet several fund houses including Goldman Sachs, Samsung AMC, Marchshall Wace from March 27–29.
  • VRL Logistics to meet ICICI Prudential AMC on March 27.
  • Astra Poly Technik to meet ICICI Prudential MF and Emkay Global Financial Services on March 27.
  • TVS Motors to meet Goldman Sachs on March 28.
  • Pidilite to meet Axis Capital on March 28.

Insider Trades

  • Chambal Fertilizers promoter Mrs Nandini Nopany sold 2.75 lakh shares on March 23.
  • Cerebra Integrated Techologies promoters acquired 35,072 shares on March 23.
  • V2 retail promoter Vishal Waterworld acquired 80,207 shares from March 22–23.
  • Man Infra promoter Vatsal Shah acquired 68,500 shares on March 23.
  • Lasa Supergenerics promoter Svaks Biotech India Pvt Ltd sold 30,816 shares from March 19–20.

IPO Watch

  • Bandhan Bank to list on exchanges with a base price of Rs 375 per share. The issue was subscribed 14.6 times.
  • Lemon Tree Hotels IPO continues on day 2. The issue is subscribed 0.25 times
  • ICICI Securities fully subscribed after issue size cut to Rs 3,500 crore from Rs 4,000 crore earlier as retail and High Networth Investors stay away.

Rupee

  • Rupee closed at 64.87/$ on Monday from 65.01/$ on Friday.

Top Gainers And Losers

Index Trends

F&O Cues

  • Nifty March Futures closed trading at 10,146 premium 15.6 points versus 6 points.
  • Nifty April futures closed trading at 10,178 with a premium 47.7 points from 49.6 points.
  • All series: Nifty open interest down 2 percent, Bank Nifty open interest down 9 percent.
  • Rollover: Nifty 41 percent, Bank Nifty 24 percent.
  • India VIX ended at 15.1, down 2.2 percent.
  • Max open interest for March series at 10,500 call strike (open interest at 47.8 lakh, down 12 percent).
  • Max open interest for March series at 10,000 Put (open interest at 61.3 lakh, up 18 percent).

F&O Ban

  • In ban: IFCI, Jet Airways, JP Associates and Oriental Bank.
  • New in ban: JP Associates.
  • Out of ban: HDIL, IDBI Bank.

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 1.14 from 1.04.
  • Nifty Bank PCR at 1.21 from 1.04.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Citi on Voltas

  • Maintained ‘Buy’ with a price target of Rs 744.
  • Indian AC market is at an inflection point.
  • Daikin is a formidable competitor for Voltas.
  • Daikin has set aggressive growth targets.
  • Daikin planning to set up third plant to grow.
  • Daikin has been a front-runner in R&D spending.
  • Voltas has successfully defended its turf in the past.
  • Voltas top India consumer electrical pick.

Citi on Cipla

  • Maintained ‘Buy’ with a price target of Rs 680.
  • Cipla launched an authorized generic version of Roche’s Aloxi.
  • Expect gAloxi to be 3-4 player market for six months.
  • Low gross margins but operating leverage upside.
  • FY19 could be a year of inflection in U.S. for Cipla.
  • Cipla continues to stand out among peers in difficult times.
  • Cipla continues to be top pick in the sector.

Morgan Stanley on Cadila

  • Maintained ‘Overweight’ with a price target of Rs 560.
  • Cadila announced USFDA approval of gToprol-XL; Market size of $700 million.
  • Product to help cushion gLialda/gTamilflu's upcoming normalization.
  • Expect more such launches over the next few quarters.
  • Launches to help re-rate the stock.

Jefferies on Syngene

  • Maintained ‘Buy’ with a price target of Rs 760.
  • Signs strategic deal with GSK.
  • Strong client addition provides growth visibility.
  • Pace of addition is a positive sign on earnings delivery.
  • Believe Syngene is best placed to gain market share.
  • Premium valuations to sustain given the structural growth drivers and strong execution.

Antique on NBCC (India)

  • Initiated ‘Buy’ with a price target of Rs 276; implying a potential upside of 45 percent from the last regular trade.
  • NBCC’s order backlog has swelled to an all-time high.
  • NBCC’s competitive edge is protected by legislations.
  • Expect compounded growth rate of 63 percent in revenue.
  • Revenue recognition is clustered around March 2020.
  • Current valuation attractive

INDSEC on Future Consumer

  • Initiated ‘Buy’ with a price target of Rs 69; implying a potential upside of 33 percent from the last regular trade.
  • Catering to changing consumption patterns through consumer centric approach.
  • Modern trade driven distribution network.
  • Diverse Product portfolio catering to niche segments.
  • Expect revenue to grow at a compounded rate of 42 percent over the fiscal 2017-2020.
  • Expect operating income to grow by 2.2 times between fiscal 2017-2020.
  • Expect loss in the current fiscal as well; Expect net profit in the next financial year.
  • Future Consumer could trade at better valuations going ahead.

Morgan Stanley on Banks

  • Borrowing calendar for the second half of the next fiscal has meaningful positive for PSU banks.
  • Borrowing budgeted is just 48 percent of annual budget.
  • Government intends to increase issuances in short and long-term maturity bucket.
  • Reduce medium-term issuance segment of 10-14 years to around 29 percent.
  • RBI and government in final stage of discussions for increasing FPI limit.
  • SBI preferred pick among PSU banks.
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