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.
All You Need To Know Going Into Trade On March 28

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

All You Need To Know Going Into Trade On March 28

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

All You Need To Know Going Into Trade On March 28

Index Trends

All You Need To Know Going Into Trade On March 28

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

All You Need To Know Going Into Trade On March 28

Fund Flows

All You Need To Know Going Into Trade On March 28

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