Index graphs run across a computer screen on the investment floor. (Photographer: Jason Alden/Bloomberg News)

Automakers Help Sensex, Nifty Rebound After First Quarterly Drop

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Closing Bell

Indian equity benchmarks rebounded from first quarterly drop since Dec. 2016 led by strong gains in auto and drug makers.

The S&P BSE Sensex rose 0.87 percent or 286.68 points to 33,255.36 and the NSE Nifty 50 index climbed 0.97 percent or 98.10 points to 10,211.80.

All sector gauges barring the Nifty PSU Bank index ended higher led by the Nifty Pharma index's 3.14 percent gain.

Gains were broad-based as the S&P BSE MidCap index advanced 1.4 percent and the S&P BSE SmallCap index gained 2.3 percent.

BQ Live: Countdown

ICICI Bank Says Not Received Any Communication From ED On Loan To Videocon

Shares of the country's second largest lender were trading 6 percent lower at Rs 261.75.

Meanwhile, the bank has clarified that it has not received any communication from the Enforcement Directorate enquiring about the loan it gave to Videocon Group.

Fab Four Stocks Of The Day

  • Navkar Corp: The Mumbai-based logistics services provider rose as much as 17 percent to Rs 177 after the NCLT, Mumbai approved scheme of amalgamation of Navkar Terminals into Navkar Corporation, the company said in an exchange notification on Saturday.
  • Dilip Buildcon: Shares of the Bhopal-based road maker rose as much as 12 percent, the most in over five months, to record high of Rs 1,124 after international brokerage Bank of America Merrill Lynch initiated coverage on the stock with a 'buy' for target price of Rs 1,244.
  • Escorts: The Gurugram-based agriculture machinery maker rose 8 percent to Rs 883 after its March tractor sales rose 67 percent to 11,790 units from 7,079 units during the same month year ago.
  • Ashoka Buildcon: The Mumbai-based road maker rose nearly 7 percent to Rs 264.85 after it won two EPC orders worth Rs 447.51 crore in Maharashtra.

Navkar Corp Surges After NCLT Approves Scheme Of Amalgamation

The Mumbai-based logistics services provider rose as much as 17 percent to Rs 177 after the NCLT, Mumbai approved scheme of amalgamation of Navkar Terminals into Navkar Corporation, the company said in an exchange notification on Saturday.

Stocks Moving On Heavy Volumes

  • Mahindra Holidays: The Chennai-based hospitality firm rose 2 percent to Rs 299.35. Trading volume was 7.8 times its 20-day average.
  • Tata Coffee: The Bangalore-based coffee producer rose 5.7 percent to Rs 119.45. Trading volume was 6.5 times its 20-day average.
  • GSK Consumer Healthcare: The Gurugram-based packaged food products maker fell 4.2 percent to Rs 5,845. Trading volume was 6.3 times its 20-day average.
  • Kesoram Industries: The Kolkata-based auto parts maker rose 11 percent to Rs 120.15. Trading volume was 3.5 times its 20-day average.

Block Deal Alert

  • Federal Bank has 23 lakh shares change hands in a block on the BSE.

Buyers and sellers were not immediately known

Source: Bloomberg

Axis Bank Falls After RBI Asks Board To Reconsider Fourth Three-Year Term

Shares of the country's third largest private sector lender fell as much as 3.6 percent to Rs 492.20 after the Reserve Bank of India asked its board to reconsider fourth three-year term it handed to CEO Shikha Sharma, The Economic Times reported citing people aware of the development.

Meanwhile, the bank has clarified that it follows a standard process with regard to senior appointments and forwards its recommendations to the regulator (to the extent required) and the process is currently in progress.

Dr Reddy's Labs Gains After U.S. Unit Files NDA For Migraine Drug

Shares of the Hyderabad-based drug maker rose as much as 2.6 percent to Rs 2,135 after its U.S. subsidiary Promius Pharma filed for New Drug Application (NDA) for its migraine candidate.

Market Check

  • Indian equity benchmarks held on to gains led by Kotak Mahindra Bank, Reliance Industries, HDFC Bank and Larsen & Toubro.
  • The S&P BSE Sensex rose 0.4 percent or 147 points to 33,115 and the NSE Nifty 50 index gained 0.5 percent or 50 points to 10,164.
  • Sixteen out of 19 sector gauges compiled by the BSE were trading higher led by the S&P BSE Healthcare index's 2 percent gain. On the other hand, the S&P BSE Bankex index fell 0.8 percent owing to 7 percent decline in ICICI Bank.
  • The small cap shares were outperforming their large cap counterparts. The gauge of small cap shares on BSE — S&P BSE SmallCap index rose 1.7 percent.
  • Overall market breadth was positive as 1,862 shares were advancing while 573 were declining on the BSE.

Click here for more stock market data

#AskBQ: Find Out How To Play Markets In The New Financial Year

CL Educate Shares Fall After Bulk Deals

Shares of the Delhi-based educational service provider fell as much as 11.24 percent to Rs 168.20 after large number of shares changed hands on Wednesday in bulk deals.

BNP Paribas Arbitrage bought 1 lakh shares or 0.7 percent equity at Rs 190.5 each.

While, Macquarie Emerging Markets Asian Trading Pte. Ltd sold 1 lakh shares 0.7 percent equity at Rs 190.5 each.

Reliance Infrastructure Gains On Order Win

Shares of the Mumbai-based infrastructure company rose 2.9 percent to Rs 439.85 after it won an EPC contract worth Rs 441 crore from Ministry of Road Transport & Highways.

Firstsource Solutions Rises After Unit Repays Outstanding Debt

Shares of the Mumbai-based IT services company rose as much as 3.58 percent to Rs 54.90 after its U.S. unit repaid outstanding debt on March 29, the company said in an exchange filing.

The unit has repaid $135 million of loan availed by it in May 2015.

Binani Cements’ Creditors Panel Reject UltraTech's Offer

Shares of the Mumbai-based cement maker were trading 2 percent higher at Rs 84.85 after its panel of creditors informed National Companies Law Tribunal (NCLT) that it cannot consider UltraTech's offer.

Meanwhile, the NCLT has adjourned the matter and will be taken up by NCLT Kolkata on April 9.

Electrosteel Steels Gains As Vedanta Wins Acquisition Bid

Shares of the Kolkata-based steel producer rose as much as 6.7 percent to Rs 2.56 after Vedanta agreed to buy Electrosteel Steels, the company informed the exchanges.

The deal closure however is subject to regulatory approval. Earlier, Tata Steel Ltd., Renaissance Steel India and Edelweiss Alternative Asset Advisors had submitted resolution plans for the company, according to an earlier stock exchange filing.

Can Fin Homes Falls As Canara Bank Calls Off Stake Sale

Shares of the Bengaluru-based housing finance firm fell as much as 8 percent to Rs 445.6.

The state-owned lender called off its plan to divest its entire stake in its housing finance subsidiary Can Fin Homes after getting a lower-than-expected price quotation, according to a wire report.

Jaiprakash Associates Rises After IndusInd Bank Releases Shares

Shares of the Noida-based company rose as much as 5.8 percent to Rs 20 after IndussInd Bank released 1.2 equity shares and transferred it back to Jaiprakash Associates account.

Hot Money: Find Out Is Fortis A Good Bet After Takeover By Manipal Hospital

Cummins India Gains On Credit Suisse Upgrade

Shares of the Pune-based internal combustion engine maker rose as much as 1.9 percent to Rs 713.75 after Credit Suisse upgraded the stock to 'outperform' from 'neutral' and raised its target price to Rs 975 from Rs 875.

F&O Check: Nifty 10,000 Put Option Most Active On NSE

Nifty 10,000 strike price put option was the most active options contract on the National Stock Exchange. As many as 7.23 lakh shares were added in open interest which rose to over 39 lakh shares.

On the other hand, Nifty 10,400 strike price call was the most active call options contract which saw addition of over 4 lakh shares to 21.67 lakh shares.

Click here to see complete options chain

The F&O Show: Catch The Latest Trends In F&O Segment

Kwality Slumps 35% In Three Sessions

Shares of the Delhi-based dairy products maker was locked in a 10 percent lower circuit at Rs 53.15 after the company informed stock exchanges that a director and investor in the company informed it that a registered broker F6 Finserve located in Gurugram fraudulently offloaded some shares of the company.

Meanwhile, the investor is in the process of initiating legal proceedings and police complaint against the broker.

The shares of the company have fallen as much as 35 percent in the last three trading sessions to hit its lowest level in 21 months.

Dilip Buildcon Surges After BofAML Initiates Coverage

Shares of the Bhopal-based road maker rose as much as 12 percent, the most in over five months, to record high of Rs 1,124 after international brokerage Bank of America Merrill Lynch initiated coverage on the stock with a 'buy' for target price of Rs 1,244.

BofAML in a note said:

  • Highway order flows to rise 2.5 times in the current financial year.
  • Competition on the rise; prefer players with superior track record.
  • Dilip Buildcon has seen superior execution and robust order book.
  • Expect sales and earnings per share to compound at 24 percent and 22 percent respectively over the fiscal 2018-2020.
  • Dilip Buildon to maintain industry leading RoEs.
  • Valuation undemanding; stock could further re-rate.

Karda Constructions Makes Weak Stock Market Debut

The Nashik-based construction company listed at a discount of 24.4 percent at Rs 136 per share on the National Stock Exchange, compared to its issue price of Rs 180 apiece.

The stock fell as much as 28.2 percent to Rs 129.20 thereafter.

The construction company’s Rs 77.4 crore initial public offering was subscribed 2.44 times on the final day of bidding.

Sandhar Technologies Lists At 4% Premium On Stock Market Debut

Shares of the Gurugram-based auto parts maker rose 3.91 percent to open at Rs 345 compared with its issue price of Rs 332 per share.

The stock rose as much as 5.42 percent to Rs 350.

Sandhar Technologies Ltd.’s Rs 512-crore initial public offering was subscribed 6.12 times on the final day of bidding.

Auto Stocks Gain On March Sales Numbers

Shares of auto makers were trading higher on the back of robust sales numbers reported in March. Gauge of auto makers on the National stock Exchange — NSE Nifty Auto index rose 1.2 percent led by Tata Motors and Maruti Suzuki.

Block Deal Alert

  • Lakshmi Vilas Bank has 11 lakh shares change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

ICICI Bank Falls Most In Over 2 Months As SEBI Begins Enquiry In Loan To Videocon

Shares of the country's leading private-sector lender fell as much as 4.6 percent, the most in over two months, to Rs 265.55, also its lowest level since Oct. 2017.

Reports alleged quid pro quo between Videocon Group and the bank's Chief Executive Officer Chanda Kochhar as well as her family members with respect to extending a loan worth Rs 3,250 crore, an issue that has snowballed into a controversy even as the lender has come out in defence of Kochhar.

Meanwhile, market regulator Securities and Exchange Board of India has begun looking into the matter for any possible disclosure and corporate governance-related lapses.

Opening Bell

Indian equity benchmarks rose led by auto stocks like Tata Motors and Maruti Suzuki after they ended financial year 2017-18 with a double-digit sales growth.

However, the gains were capped as ICICI Bank fell after reports alleged quid pro quo between Videocon Group and the bank's Chief Executive Officer Chanda Kochhar as well as her family members with respect to extending a loan worth Rs 3,250 crore

The S&P BSE Sensex rose 0.26 percent or 75 points to 33,041 and the NSE Nifty 50 index gained 0.4 percent or 42 points to 10,160.

Nine out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the NSE Nifty Auto index's 1.1 percent gain. On the flipside, the NSE Nifty Private Bank index was the top sectoral loser, down 0.4 percent.

Bajaj Auto Sales Rise 23% In March

The two-wheeler makers' sales rose 22.8 percent to 3.34 lakh units versus 2.72 lakh units during the same period last year.

ICICI Bank Falls Over3% In Pre-Market Trade

Shares of the country's leading private sector lender fell as much as 3.02 percent to Rs 270 after reports alleged quid pro quo between Videocon Group and the bank's Chief Executive Officer Chanda Kochhar as well as her family members with respect to extending a loan worth Rs 3,250 crore, an issue that has snowballed into a controversy even as the lender has come out in defence of Kochhar.

Nifty Changes Effective Today

Inclusion

  • Bajaj Finserv
  • Grasim Industries
  • Titan Company

Exclusion

  • Ambuja Cements
  • Aurobindo Pharma
  • Bosch

Money Market Heads Up!

Although markets are shut on Monday It will be a fairly big week for bond traders with the Reserve Bank of India set to announce monetary policy on Thursday.

The central bank is widely expected to hold rates but what investors will be on the lookout is whether it retains its hawkish tone towards inflation. The inflation rates have been edging lower, but that could be temporary.

India’s benchmark 10-year sovereign bonds complete their first monthly advance since July in March. Bulk of those gains came in one day, after the government said it will sell less debt than the market expected in the first half of the fiscal year starting April 1.

The 10-year yield finished at 7.40 percent on Wednesday, having dropped 33 basis points in March.

BQ Heads Up!

Brokerage Radar

BofAML on Dilip Buildcon

  • Initiated ‘Buy’ with a price target of Rs 1,244
  • Highway order flows to rise 2.5 times in the current financial year.
  • Competition on the rise; prefer players with superior track record.
  • Dilip Buildcon has seen superior execution and robust order book.
  • Expect sales and earnings per share to compound at 24 percent and 22 percent respectively over the fiscal 2018-2020.
  • Dilip Buildon to maintain industry leading RoEs.
  • Valuation undemanding; stock could further re-rate.

IDFC Securities on S Chand & Company

  • Initiated Outperform with a price target of Rs 520.
  • Clean play on India’s growing K-12 education space.
  • K-12 content market has huge potential.
  • Growth to come from increasing reach.
  • Strengthening balance sheet to help inorganic growth.
  • Ramp-up of digital business could aid margins .
  • Expect revenue, operating income and net profut to compound at 14 percent, 14 percent and 32 percent respectively over the fiscal 2017-2020.
  • Debt to reduce over the fiscal 2018-2020; return ratios to improve.

Credit Suisse on Cummins India

  • Upgraded to ‘Outperform’ from ‘Neutral’; raised price target to Rs 975 from Rs 875.
  • Deep underperformance and positive early indicators drive upgrade.
  • Lacklustre results on spike in expenses to even out.
  • Domestic business recovers from GST can strengthen further.

HSBC on Tata Motors

  • Maintained ‘Buy’ with a price target of Rs 480; implying a potential upside of 44 percent from the last regular trade.
  • U.S. volumes and pricing expected to be stable in 2018.
  • Europe outlook is slightly better than U.S.
  • Expect continued strong growth in China.
  • Better traction in Rest of the world markets.
  • Growing R&D need is negative if volume growth doesn’t pick-up.
  • Risk-reward favourable despite demand challenges JLR.

Axis Capital on RBL Bank

  • Maintained ‘Buy’ with a price target of Rs 650; implying a potential upside of 36 percent from the last regular trade.
  • Well poised for strong growth.
  • Growth rates to remain healthy.
  • Net interest margins to remain intact.
  • Expect RBL to scale up materially without any significant issues.
  • RBL will command a premium to peers.

IIFL on CESC

  • Maintained ‘Buy’ with a price target of Rs 1,270; implying a potential upside of 33 percent from the last regular trade.
  • NCLT hearing improves demerger visibility.
  • Expect demerger completion by June.
  • Weakness in stock price good entry point.

Morgan Stanley on Oil & Gas

  • Quantum of hike was in line with expectations.
  • Believe gas distributors will pass hike to maintain margins.
  • Likely the last gas price hike until September 2019.
  • GAIL (India) remains preferred gas play.

Macquarie on ICICI Bank

  • Maintained ‘Outperform’ with a price target of Rs 425.
  • Bank’s press release raised more questions.
  • Trust deficit could emerge if prompt clarifications not released.

CLSA on Dish TV

  • Maintained ‘Buy’ with a price target of Rs 108.
  • Dish TV and VD2h merger complete.
  • Significant merger synergy ahead.
  • Expect 5-7 percent compounded growth rate in operating income and Rs 300 crore synergies.
  • Stock can deliver 26-40 percent upside.
  • Risk-reward favourable.

Morgan Stanley on Biocon

  • Maintained ‘Overweight’ with a price target of Rs 785.
  • Glargine approval for E.U. markets is major milestone in monetisation efforts.
  • Assumed 15-20 percent market share and 45-50 percent price erosion.
  • Expect Biocon to generate topline of $70-100mn in two years.
  • Expect more approvals in 2018 and meaningful monetization in 2019 and beyond.

CLSA on ICICI Lombard

  • Maintained ‘Buy’ with a price target of Rs 970.
  • To report underwriting profit from the current financial year.
  • Correction in bond yields abate concern.
  • Premium growth to remain healthy.
  • To benefit from regulatory actions .
  • Expect gross premium and profit to compound at 17 percent and 24 percent respectively over the fiscal 2017-2020.

Stocks To Watch

  • ICICI Bank said its credit approval processes are robust and reposes “full faith” in CEO Chanda Kochhar.
  • ICICI Bank said exposure to Videocon at the time was at Rs 3,250 crore, less than 10 percent of the total amount lent by the consortium.
  • UltraTech received CCI nod for Binani Cement bid.
  • Daiichi Sankyo moves SEBI to block Fortis-Manipal deal (Business Line)
  • Tata Motors’ domestic sales jumped 35 percent in March aided by the commercial vehicles and passenger vehicles segments.
  • Maruti Suzuki sales rose nearly 15 percent in March led by the mini segment.
  • Dalmia Cement Bharat said Binani evaluation criteria was fair.
  • Canara Bank has called-off move to divest its entire shareholding in housing finance subsidiary Canfin Homes after receiving lower than expected price quotation.
  • Government set domestic natural gas price at $3.06/mmBtu For April-September.
  • Tata Power sold its defense business to Tata Sons unit at an enterprise value of Rs 2,230 crore.
  • Cadila Healthcare said that the U.S. FDA completed inspection of Topical facility with 0 observations under Form 483.
  • PNB to settle all 352 LOUs and foreign letters of credit (FLCs) worth Rs 6,500 maturing by March 31.
  • Coal India targets 20 GW solar capacity in 10 years.

For a comprehensive list of stocks to watch, click here

IPO/New Listings

  • Sandhar Technologies to list on exchanges. Issue price of Rs 332 per share.
  • Karda Constructions to list on exchanges. Issue price of Rs 180 per share.
  • Lemon Tree Hotels IPO closes. Issue subscribed 1.2 times on final day.
  • Mazagon Dock Shipbuilders seeks SEBI approval for IPO. (Bloomberg)
  • Rail Vikas Nigam files draft papers for IPO. (Bloomberg)

F&O Cues

  • Nifty April Futures closed trading at 10,152 with a premium of 38.2 points versus 31.7 points.
  • All series-Nifty open interest (OI) up 6 percent, Nifty Bank OI down 4 percent.
  • Rollovers: Nifty 69 percent, Nifty Bank 75 percent.
  • India VIX ended at 15.7, up 1.3 percent
  • Max OI for April series at 11,000 strike price call option, OI at 33.6 lakh shares, up 8 percent.
  • Max OI for April series at 10,000 strike price put option, OI at 32 lakh shares, up 29 percent.

Bulk Deals

Fortis Healthcare

  • East Bridge Capital Master Fund bought 2 crore shares or 3.9 percent equity at an average price of Rs 129.5 each.
  • UBS Principal Capital Asia bought 58.60 lakh shares or 1.1 percent equity at Rs 106.44 each.
  • BNP Parbas Arbitrage sold 39 lakh shares or 0.8 percent equity at Rs 123.3 each.
  • Societe Generale sold 89.9 lakh shares or 1.7 percent equity at Rs 127.75 each.

Gati Ltd

  • Reliance Financial sold 5.85 lakh shares or 0.5 percent equity at Rs 87.09 each.

Jain Irrigation

  • Societe Generale sold 26.28 lakh shares or 0.5 percent equity at Rs 106.44 each.

Bank of Baroda

  • Theleme Master Fund bought 7.31 crore shares or 3.2 percent equity at Rs 141.95 each.
  • Merrill Lynch Markets Singapore Pte Ltd sold 7.31 crore shares or 3.2 percent equity at Rs 141.95 each.

CL Educate

  • BNP Paribas Arbitrage bought 1 lakh shares or 0.7 percent equity at Rs 190.5 each.
  • Macquarie Emerging Markets Asian Trading Pte. Ltd sold 1 lakh shares 0.7 percent equity at Rs 190.5 each.

International Conveyors

  • Promoter IGE (India) Pvt Ltd bought 4.98 lakh shares or 0.7 percent equity at Rs 23.65 each.
  • Cresta Fund sold 5 lakh shares or 0.7 percent equity at Rs 23.65 each.

Kaveri Seeds

  • BNP Paribas Arbitrage bought 4.15 lakh shares or 0.6 percent equity at Rs 485.5 each.
  • Macquarie Emerging Markets Asian Trading Pte. Ltd sold 4.15 lakh shares or 0.6 percent equity at Rs 485.5 each.

Trading Tweaks

  • Fortis Healthcare circuit limit revised to 20 percent.
  • Kwality circuit limit revised to 10 percent.
  • Bandhan Bank added to BSE IPO index.
  • Amtek Auto and Jyoti Structures shifted to Z group of shares.

Talking Points

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India was little changed at 10,240 as of 6:35 a.m.

However, on Thursday and Friday when Indian markets were shut the SGX Nifty rose over 100 points.

Asian shares edged higher, the dollar steadied and Treasuries slipped as the second quarter began for some of the region’s traders. Volumes are expected to be subdued with many markets across the world still closed for the Easter holiday.

Here are some key events coming up this week:

  • Easter Monday is a public holiday in many areas including the U.K., Australia, Canada, and most of Europe.
  • U.S. manufacturing PMI and ISM manufacturing data due Monday.
  • Reserve Bank of Australia April monetary policy decision due Tuesday.
  • New York Fed debuts the Secured Overnight Financing Rate on Tuesday.
  • Reserve Bank of India April policy decision due Thursday.
  • U.S. employment data due Friday; jobless rate probably fell in March after holding at 4.1 percent for five straight months.

Bonds

  • The yield on 10-year Treasuries rose two basis points to 2.76 percent.

Commodities

  • West Texas Intermediate crude rose 0.4 percent to $65.17 per barrel.
  • Gold was flat at $1,325.50 an ounce.
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