Pedestrians walk past an electronic ticker board that indicates stock figures for Oil & Natural Gas Corp. (ONGC), from left, Reliance Industries Ltd., State Bank of India and Sun Pharmaceutical Industries Ltd. at the Bombay Stock Exchange (BSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

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.

Global Cues

  • 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.

Europe Check

  • 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.

Asian Cues

  • 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.

Commodity Cues

  • 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.

Indian ADRs

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.

Bulk Deals

  • Bandhan Bank: Nomura India Investment Fund Mother Fund bought 83.34 lakh shares at Rs 478.76 each.

Vmart

  • 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.

Karnataka Bank

  • 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.

Elpro International

  • 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.

Waterbase

  • 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.

Trading Tweak

  • 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.

Insider Trades

  • 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

  • Rupee closed at 64.97/$ on Tuesday from 64.87/$ on Monday.

Top Gainers And Losers

Index Trends

F&O Cues

  • 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).

F&O Ban

  • 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.

Put-Call Ratio

  • Nifty PCR at 1.15 from 1.14.
  • Nifty Bank PCR at 1.19 from 1.21.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

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
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