All You Need To Know Going Into Trade On March 28
Equities in Asia declined at the open after a sell-off in technology shares spooked investors assessing threats to earnings growth for the industry that propelled last year’s rally.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.6 percent at 10,110.00 as of 6:45 a.m.
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Here’s a quick look at all that could influence equities on Wednesday.
- A selloff in technology shares sent U.S. equity benchmarks lower, with losses accelerating late in the day.
- The Bloomberg Dollar Spot Index added 0.3 percent.
- The yield on 10-year Treasuries declined eight basis points to 2.77 percent.
- European stocks jumped the most in six weeks amid signs the trade spat between the U.S. and China is easing.
- The euro fell 0.4 percent to $1.2399.
- The British pound decreased 0.5 percent to $1.4153.
- Britain’s 10-year yield dipped two basis points to 1.42 percent.
- Germany’s 10-year yield decreased two basis points to 0.5 percent.
- Japan’s Topix index slid 2.1 percent as of 9:23 a.m. Tokyo time.
- Australia’s S&P/ASX 200 Index lost 0.6 percent.
- South Korea’s Kospi index fell 1 percent.
- Futures on the S&P 500 Index rose 0.2 percent.
- The yen fell 0.2 percent to 105.54 per dollar.
- Australia’s 10-year yield dipped about five basis points to 2.61 percent.
Here’s a list of of the main events coming up this week:
- Thailand’s rate decision is due Wednesday.
- The big four euro-area economies are due to release March CPI readings this week.
- U.S. personal income and spending data for February are due to be released on Thursday.
- The Treasury will probably auction about $294 billion of bills and notes this week, its largest slate of supply ever.
- West Texas Intermediate crude slipped 0.6 percent to $64.83 a barrel.
- Gold was at $1,344.91 an ounce after dropping 0.6 percent.
Stocks To Watch
- Fortis Healthcare to Demerge hospitals business into Manipal Hospitals.
- Reliance Industries to sell select Eagle Ford shale assets in U.S. for $100 million.
- SBI allots shares to government for Rs 8,800 crore capital infusion.
- GSK Consumer says parent is initiating a ‘strategic review’ of Horlicks, other products and 72.45 percent shareholding in the company.
- Indoco Remedies gets seven observations (three critical and four major) for Goa drug manufacturing plant from UK-MHRA.
- MT Educare allots 3.19 crore equity shares at Rs 62.57 per share to Zee Learn.
- Mercator raises Rs 100 crore via private placement of bonds to UTI. It is seeking to raise an additional Rs 100 crore via bond issuance.
- Tejas Networks gets expansion order of Rs 336 crore from BSNL for BharatNet.
- Sical Logistcs says JV has won contract from Damodar Valley Corporation for tubed Coal Mine.
- Majesco gets deal from Tier 1 global insurer for billing software.
- Orchid Pharma says resolution professional has sought turnaround plans by April 10.
- Bodal Chemicals starts commercial production at Gujarat plant.
- MEP Infra JV gets NHAI order for 3 projects in Maharashtra worth Rs 2,922.73 crore.
- IDBI Bank says found lapses in some loan disbursals in Andhra Pradesh.
- Bhansali Engineering Polymers says it has cleared all outstanding dues amounting to Rs 216.5 crore.
- Avanti Feeds starts commercial production of the additional capacity of 1,75,000 million tonne shrimp feed plant at Andhra.
- CDB Aviation and SpiceJet sign lease pact for five 737 Max.
- Bandhan Bank: Nomura India Investment Fund Mother Fund bought 83.34 lakh shares at Rs 478.76 each.
- Conquest Business Services bought 74.89 lakh shares or 41.4 percent equity at Rs 1,892 each.
- Promoter Lalit Agarwal sold 74.89 lakh shares or 41.4 percent equity at Rs 1,892 each.
- Bathina Reddy bought 16.75 lakh shares or 0.6 percent equity at Rs 119.63 each.
- JM Financial Capital sold 16.75 lakh shares or 0.6 percent equity at Rs 119.63 each.
- Promoter IGE (India) Pvt Ltd bought 20 lakh shares or 1.4 percent equity at Rs 47.99 each.
- Cresta Fund sold 19.76 lakh shares or 1.4 percent equity at Rs 48 each.
- Promoter Karam Chand Thapar & Bros bought 2.60 lakh shares or 0.6 percent equity at Rs 270.75 each.
- Nead Trading & Investments sold 2.60 lakh shares or 0.6 percent equity at Rs 270.75 each.
- Amtek Auto and Jyoti Structures last trading day before shifting to Z group.
Who’s Meeting Whom
- Blue Star to meet Enam AMC on March 28.
- Shriram Transport to meet Prabhudas Lilladhar on March 28.
- Eris Life to meet IIFL on March 28.
- Rashesh Manhar Bhansali promoter of Goldiam International bought 21,03,428 shares on March 26.
- Balkrishna Goenka promoter of Welspun Enterprises bought 15.5 lakh shares from March 23-26.
- Kusuma Maniraju, director of Lakshmi Vilas Bank sold 48,100 shares on March 21.
IPO Watch/New Listing
- Lemon Tree Hotels IPO day 3. The issue is subscribed 0.44 times.
- HAL lists on exchanges at Rs 1,215. The issue was subscribed 0.99 times.
- Rupee closed at 64.97/$ on Tuesday from 64.87/$ on Monday.
Top Gainers And Losers
- Nifty March futures closed trading at 10,179, discount of 5 points from a premium of 15.6 points.
- Nifty April futures closed trading at 10,215.8, premium 31.7 points versus 47.7 points.
- All series: Nifty open interest up 2 percent, Bank Nifty open interest up 4 percent.
- Rollover: Nifty rollover at 53 percent, Bank Nifty rollover at 54 percent.
- India VIX ended at 15.5, up 2.3 percent.
- Max open interest for March series at 10,500 call strike (open interest at 43.4 lakh, down 9 percent).
- Max open interest for March series at 10,000 Put (open interest at 47.2 lakh, down 23 percent).
- In ban: Balrampur Chini, GMR Infra, IFCI, JP Associates.
- New in ban: Balrampur Chini, GMR Infra.
- Out of ban: Jet Airways, Oriental Bank.
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 1.15 from 1.14.
- Nifty Bank PCR at 1.19 from 1.21.
Stocks Seeing High Open Interest Change
JPMorgan on GSK Consumer Healthcare
- Maintained ‘Overweight’ with a price target of Rs 7,050.
- GSK Plc to initiate strategic review of Horlicks and other consumer nutrition products.
- India is key market for Horlicks and other nutrition products.
- Domestic companies with interest in this space include ITC, Marico, Britannia and Dabur.
Jefferies on Container Corp
- Maintained ‘Buy’; Raised price target to Rs 1,750 from Rs 1,198.
- Railways continues to gain market share from roads.
- EXIM enquiries on an uptick.
- Margin improvement could surprise.
- Expect 30 percent compounded growth rate in earnings over the fiscal 2017-2020, backed by strong cash flow generation.
Macquarie on Metals
- Maintain downward price forecast trajectory.
- Despite price peak-out, commodities should be flat to marginally higher YoY in the next financial year.
- Lack of growth capex to generate free cash and continue deleveraging.
- Hindalco is top pick; Remain positive on Vedanta.
- Recent correction makes risk-reward attractive in TataSteel, Coal India and NMDC.
Macquarie on Utilities
- Proposed SPV which will be owned by PFC, REC and NTPC would not buy stressed assets.
- SPC would operate them so that they do not slip into being NPAs.
- PFC and REC would gain by avoiding large stress coming onto their books.
- For NTPC operating fee only projects do not make sense.
- NTPC would like to buy assets cheaply.
- Distribution is only space in power value chain that offers growth and returns.
- Generation will continue to remain stressed while transmission is slowing.
- Top picks are CESC and NTPC.
- Avoid JSW Energy and Adani Power.
- Remain Neutral on Power Grid and Tata Power.
BoFA ML on Oil Marketing Companies
- Constructive view on OMCs as valuations eases.
- Recent recovery of marketing margins encouraging.
- Refining - excesses gone; Expect it to be stable to positive near term.
- Marketing business benefits from steady, economy led volume growth.
- IOCL: Upgraded to ‘Buy’ from ‘Neutral’; cut price target to Rs 210 from Rs 223
- BPCL: Upgraded to ‘Neutral’ from ‘Underperform’; raised price target to Rs 443 from Rs 434
- HPCL: Upgraded to ‘Neutral’ from ‘Underperform’; raised price target to Rs 457 from Rs 340