A financial trader monitors his computer screens inside the Frankfurt Stock Exchange in Frankfurt, Germany. (Photographer: Hannelore Foerster/Bloomberg)

Sensex, Nifty Gain For Second Straight Day Led By Banks

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Closing Bell

Indian equity benchmarks rose for second straight day led by banks after the government reduced its borrowings for April-September by half. Strong global markets on the back of easing U.S.-China trade tensions also aided gains.

The S&P BSE Sensex rose 108 points or 0.3 percent to 33,174.39 and the NSE Nifty 50 index advanced 0.5 percent or 53 points to 10,184.15.

All sector gauges compiled by the National Stock Exchange ended higher led by the Nifty PSU Bank index's 3 percent gain.

Gains were broad-based as the Nifty Midcap 100 index climbed 1.3 percent and the Nifty Smallcap index gained 1.7 percent.

BQ Live

Lupin Gains On U.S. FDA Nod For Clobex Spray

Shares of the Mumbai-based drug maker rose as much as 1.7 percent to Rs 752.80 after the U.S. drug regulator approved Clobetasol Propionate Spray (Clobex spray), Lupin said in an exchange filing.

The spray is used in treatment of moderate to severe plaque psoriasis affecting up to 20 percent body surface area and has market of $30.5 million in U.S.

Fab Four Stocks Of The Day

  • Punj Lloyd: The Delhi-based infrastructure construction company rose as much as 18 percent, the most in over two months, to Rs 19 after it won an EPC order worth Rs 505.2 crore in Odisha from NHAI.
  • Shaily Engineering Plastics: The Gujarat-based plastic maker rose as much as 8.4 percent, the most in a month, to Rs 1,252 after HDFC mutual fund 1 lakh shares or 1.2 percent equity in the company in two tranches.
  • Eicher Motors: The Delhi-based maker of Royal Enfield motorcycles rose as much as 2.46 percent to Rs 28,560 after Jefferies upgraded the stock to 'Buy' from 'Hold' and raised its target price to Rs 31,880 from Rs 31,271.
  • Scooters India: The Lucknow-based two-wheeler maker was locked in a 5 percent upper circuit at Rs 57.60 after its board approved to hive off 89.69 acres of non-core land.

European Shares Trade On Strong Note

European stocks rallied, tracking gains across Asia as investors began to recalibrate the chances of an all-out global trade war. Both the dollar and Treasuries edged higher, while the pound fell.

Stock Moving On Heavy Volumes

  • Sharda Cropchem: The Mumbai-based crop protection company rose 2.3 percent to Rs 375. Trading volume was 15.8 times its 20-day average.
  • SH Kelkar & Company: The Mumbai-based specialty chemical maker rose 0.8 percent to Rs 260. Trading volume 3.8 times its 20-day average.
  • Unichem Labs: The Mumbai-based drug maker fell 1.2 percent to Rs 292.30. Trading volume was 4.5 times its 20-day average.
  • Syngene International: The Bangalore-based healthcare research firm rose 3 percent to Rs 602. Trading volume was 4.2 times its 20-day average.

Steel Strips Wheels Pares Losses On Winning New Order

Shares of the Chandigarh-based steel wheel rim maker came off day's low after it informed exchanges that it has won an order from European Union for supply of 7,500 steel wheels for caravan market, the company said in an exchange filing.

The order will be shipped from its plant in Chennai, the filing added.

F&O Check: Nifty 10,200 Strike Price Call Option Most Active

Nifty 10,200 strike price call option was among the most active options contract on the National stock Exchange a day ahead of expiry. The premium on the contract fell 0.17 percent to Rs 30 and over 26 lakh shares were added to the open interest which stood at 62.99 lakh shares.

Market Check

  • Indian equity benchmarks held on to gains led by ICICI Bank, State Bank of India, Axis Bank and Kotak Mahindra Bank.
  • The S&P BSE Sensex rose 0.4 percent or 121 points to 33,189 and the NSE Nifty 50 index gained 0.49 percent or 49 points to 10,180.
  • All sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty PSU Bank index's 3 percent gain.

Top five Nifty gainers

  • Indian Oil up 3.3 percent
  • Hindustan Petroleum up 3.1 percent
  • State Bank of India up 2.9 percent
  • Hindalco up 2.8 percent
  • Bajaj Finance up 2.7 percent

Top five Nifty losers

  • Bharti Infratel down 2.8 percent
  • Bharti Airtel down 2.7 percent
  • Bajaj Auto down 1.4 percent
  • HDFC Bank down 0.7 percent
  • Hero MotoCorp down 0.6 percent

Fortis Healthcare Says Got Unsolicited Non-Binding Offer From Manipal

Shares of the Delhi-based hospital chain operator rose as much as 4.3 percent to Rs 154 after it clarified that it got an unsolicited non-binding offer from Manipal indicating interest for a possible deal.

Meanwhile, Fortis added that it is evaluating offer from Manipal.

Binani Cement Seeks Termination Of Insolvency Case

  • NCLT gives CoC two days to consider Binani proposal
  • Binani Cement seeks termination of insolvency proceedings.
  • Binani argues that NCLT can allow termination application by exercising power.
  • Binani argues that Dalmia Bharat trying to buy assets at a low value.
  • Binani Industries asks tribunal for 10 days to pay all creditors.
  • Judge suggests if COC can consider out of court settlement. Says it's a suggestion not order.
  • Judge asks resolution professional if they can consider giving Binani two weeks to pay all debts.
  • Judge says Binani Industries application for paying off all debts cannot be taken in NCLT.
  • Judge says Binani Industries needs to submit the application in Supreme Court first.
  • Judge to first discuss petitions related to objections to committee of creditors (CoC) approval of resolution plan.
  • Judge inquires why resolution professional has not presented UltraTech email offer to CoC.
  • Resolution professional says CoC unanimously decided on Dalmia as H1 bidder.
  • SBI Hong Kong challenges resolution plan that proposes it take 90 percent haircut.

JMC Projects Surges On Bagging New Orders Worth Rs 634 Crore

Shares of the Ahmedabad-based industrial construction company rose as much as 5.59 percent, the most since March 7, to Rs 565.95 after it won new orders worth Rs 634 crore.

The orders include construction of residential and commercial projects in South India totaling Rs 509 crore and construction of office complex for Karnataka Power Transmission Corporation in Bangalore for Rs 125 crore, the company said in an exchange filing.

Essar Steel Insolvency Case: Next Hearing On April 2

  • Numetal and Arcelor Mittal arguing before NCLT.
  • Numetal asks for hearing to be deferred until April 2, 2018; says no fresh bids should be allowed.
  • Arcelor Mittal says don't mind fresh bidding.
  • Numetal says they are being forced to make a fresh bid; Resolution Professional says Numetal can make the same bid again.
  • NCLT Ahmedabad asks all parties to file replies by April 2, Monday. Parties directed to file advance copies with the Bench.

Karnataka Polls To Be Held On May 12

Block Deal Alert

  • State Bank of India has 10 lakh shares change hands in a block deal. Stock up 1.79 percent at Rs 250.80.

Buyers and sellers were not immediately known

Source: Bloomberg

Kalpataru Power Rises On Winning Orders Worth Rs 901 Crore

Shares of the Mumbai-based maker of transmission line towers rose as much as 1.88 percent to Rs 473.50 after it won orders worth Rs 901 crore.

KNR Constructions Gains On Order Win

Shares of the Hyderabad-based infrastructure construction firm rose as much as 7.3 percent to Rs 302 after it bagged two Hybrid Annuity Projects with a bid project cost of Rs 2,964.1 crore from NHAI for a six lane-project in Andhra Pradesh and four-lane project in Telengana.

Larsen & Toubro Bags Construction Order; Shares Advance

Shares of the Mumbai-based infrastructure firm rose as much as 1.32 percent to Rs 1,314 after its power transmission and distribution business won orders worth Rs 4,353 crore from Sonelgaz group for the turnkey construction of a 220/60 kv Air Insulated Substation in the city of Draa Errich in Algeria.

IDFC Bank-Capital First Merger Gets NSE Approval; Shares Gain

Shares of the Mumbai-based private sector lender rose as much as 2.6 percent to Rs 48.75 and the consumer finance firm, Capital First rose as much as 3.5 percent, the most in over a month, to Rs 640 after their merger got a nod from the National Stock Exchange.

Earlier this year in January, IDFC Bank and Capital First had announced a plan to merge, creating a bank with an asset base of roughly Rs 90,000 crore. (More details here)

V-Mart Retail Surges After Block Deal, Brokerage Upgrade

Shares of the Delhi-based departmental store chain operator, rose as much as 11.3 percent to record high of Rs 2,103.

Batlivala and Karani Securities has initiated coverage on the stock with a ‘Buy’ for target price of Rs 2,100, implying that the stock will increase 11 percent from yesterday’s close. As many as 75 lakh shares of V-Mart Retail changed hands in a single block in pre-market trading.

Punj Lloyd Gains Rises On NHAI Order Win

Shares of the Delhi-based infrastructure construction company rose as much as 14.64 percent, most in almost three months, to Rs 18.4.

Punj Lloyd has been awarded a contract worth Rs 505.22 crores by National Highways Authority of India on an engineering, procurement and construction (EPC) basis. The order is for six and four laning of NH 5 project to be completed between Puintola and Tangi in Odisha.

Bandhan Bank Makes Strong Debut On Stock Exchanges

Shares of the Kolkata-based private sector lender made a strong debut on stock exchanges. The stock opened at a premium of 29 percent at Rs 485 against its issue price of Rs 375 per share.

The stock rose as much as 33 percent to Rs 499.

Bandhan Bank’s Rs 4,473-crore initial public offering was subscribed 14.6 times on the final day of bidding.

Saurabh Mukherjea Of Ambit Capital To BloombergQuint

  • Do not think RBI has reason to worry with rupee being near 65-mark against the dollar.
  • Expect 10-year yield to harden further if GST revenue number disappoints.
  • Consumption driven recovery in GDP is underway in India.
  • Both RBI and the Centre are clueless about how to resurrect the banking system.
  • Inflation coming through strongly will likely help double digit growth in earnings recovery.
  • NBFCs and HFCs suffer from higher inflation and higher rates.
  • Happy to pay steep price to equity multiple for companies with retrun on equity greater than cost of capital.

Banks Extend Gains After Government Cuts Borrowing Plan

Shares of government and private sector lenders were trading higher after the government cut its first half borrowing plan to 48 percent of its budgeted borrowings.

Gauge of state-run lenders — Nifty PSU Bank index rose 1.4 percent and the gauge for banks — Nifty Bank index gained 0.87 percent.

Banks stand to gain from the government's move as they are among the largest buyers of bonds issued by the government.

Also Read: Rural Stocks Good Bet In Struggling Market, BofAML Says

Opening Bell

Indian equity benchmarks, bonds and rupee rose after the government decided to cut its first half market borrowing to 48 percent of its annual borrowing plan.

The S&P BSE Sensex rose 0.4 percent or 130 points to 33,196 and the NSE nifty 50 index advanced 0.4 percent or 45 points to 10,175.

All sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty PSU Bank and Nifty Metal index's 1.4 percent gain.

Gains were broad-based as the mid- and small-cap shares were outperforming their large-cap counterparts. Both the S&P BSE MidCap and SmallCap indices rose over 1 percent each.

Bond Yields Drop As Government Lowers Borrowing Target

Yield on 10-year sovereign government bond fell the most since 2013 to 7.356 percent against yesterday's close of 7.623 percent after the government decided to cut its first half market borrowing to 48 percent.

Rupee Hits 1-Month High Against U.S. Dollar

Rupee rose as much as 0.17 percent to hit one-month high of 64.75 against the U.S. dollar after the government decided to cut its first half market borrowing to 48 percent.

Money Market Heads Up!

The government decided to cut its first half market borrowing to 48 percent. Investors expect that the move is likely to help bond yields fall by 10-15 basis points in the session from its last close of 7.62 percent. This will hence bring an end to the worst bond market rout in two decades.

However, though it is too early to say this, analysts remain cautious on the government's second half borrowing plan which will coincide with the busy season for bank loans.

In the currency market, implied opening from forwards suggest rupee may start trading higher at 64.78 a dollar. With strong clues from Asian equity markets, traders see the currency in a range of 64.60-65 a dollar in the day.

BQ Heads-Up!

New Offerings

  • 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.

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.

F&O Cues

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

Bulk Deals

Acrysil

  • Ashish Kacholia bought 2.21 lakh shares (4.3 percent equity) at Rs 486 per share.
  • Everest Finance & Investment Co. sold 2.21 lakh shares (4.3 percent equity) at Rs 486 per share.

Carborundum Universal

  • Reliance Small Cap Fund bought 20.20 lakh shares (1.1 percent equity) at Rs 337 per share.
  • Promoter Ambadi Investments Ltd sold 25 lakh shares (1.3 percent equity) at Rs 337 per share.

Shaily Engineering Plastics

  • HDFC MF bought 50,000 shares (0.6 percent equity) at Rs 1,150 per share.

TCPL Packaging

  • Vijay Kedia sold 98,000 shares (1.1 percent equity) at Rs 600 per share.
  • Vighnhar Holdings Pvt Ltd bought 98,000 shares (1.1 percent equity) at Rs 600 per share.

Venky’s India

  • Dr Cyrus Poonawalla bought 83,186 shares (0.6 percent equity) at Rs 3,916.60 per share.

TD Power Systems

  • MSD India Fund bought 8.56 lakh shares (2.6 percent equity) at Rs 185.06 per share.
  • India Value Fund IV sold 7.55 lakh shares (2.3 percent equity) at Rs 185.14 per share.

MT Educare

  • Kitara India Micro Cap Growth Fund sold 3.70 lakh shares (0.9 percent equity) at Rs 70 per share.

Elpro International

  • IGE (India) bought 15 lakh shares (1.1 percent equity) at Rs 47.5 per share.
  • Elara India Opportunities Fund sold 11 lakh shares (0.8 percent equity) at Rs 47.5 per share.

Transpek Industry

  • Hypnos Fund ltd bought 1.09 lakh shares (2 percent equity) at Rs 1239.73 per share.
  • Ruchit Patel sold 88,454 shares (1.6 percent equity) at Rs 1239.22 per share.

TI Global

  • SMIFS Capital Markets bought 49,000 shares (1 percent equity) at Rs 68.5 per share.
  • Maya Trade Links sold 49,559 shares (1 percent equity) at Rs 68.5 per share.

International Conveyors

  • IGE (India) bought 13.89 lakh shares (2.1 percent equity) at Rs 21.5 per share.
  • Elara India Opportunities Fund sold 11 lakh shares (1.6 percent equity) at Rs 21.5 per share.

Trading Tweaks

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

Talking Points

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.24 percent to 10,175 as of 7:31 a.m.

Stocks in Asia followed their U.S. counterparts higher on signs that an escalation of trade tensions was beginning to ease. The yen slipped and the South Korean won rallied as news emerged of a surprise visit to China by North Korea’s leader.

Shares climbed in Japan, South Korea and Australia, while U.S. equity futures built on a Monday rally that saw the S&P 500 Index post its biggest one-day jump since August 2015.

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.

Bonds

  • The yield on 10-year Treasuries held at 2.85 percent after climbing four basis points on Monday.
  • Australia’s 10-year yield was steady at 2.67 percent.

Commodities

  • 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.
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