Pedestrians look up at an electronic ticker board showing a budget news report outside the Bombay Stock Exchange (BSE) in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On April 9

Stocks in Asia fluctuated and U.S. equity-index futures rebounded as trade worries remained a key market driver, keeping risk appetite in check.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent at 10,313 as of 6:55 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

Here’s a quick look at all that could influence equities on Monday.

Global Cues

  • U.S. stocks ended the week with a deep selloff, leaving them lower for the five days as the White House’s latest trade bluster rattled global financial markets.
  • The yield on 10-year Treasuries declined six basis points to 2.77 percent, the largest fall in more than a week.
  • The S&P 500 fell 2.2 percent, capping a 1.4 percent drop in the week.
  • The Nasdaq Composite Index slid 2.3 percent and the Dow lost 2.3 percent.

Europe Check

  • European stocks retreated as investors weighed the latest threat to global trade as the spat between the U.S. and China escalated.
  • The Stoxx Europe 600 Index fell 0.4 percent, paring a weekly gain to 1.1 percent.
  • The euro rose 0.4 percent to $1.2286.
  • The British pound gained 0.7 percent to $1.4094.
  • Germany’s 10-year yield dipped three basis points to 0.497 percent.

Asian Cues

  • Japan’s Topix index fluctuated.
  • Australia’s S&P/ASX 200 Index fell 0.1 percent.
  • South Korea’s Kospi index was little changed.
  • Hang Seng Index futures were up 0.4 percent
  • Futures on the S&P 500 gained 0.4 percent. The underlying gauge fell 2.2 percent Friday.
  • The yen fell 0.1 percent to 107 per dollar..
  • The yield on Australia’s 10-year bond was steady at 2.65 percent.

Here are some key events for the remainder of this week:

  • Bank of Japan Governor Haruhiko Kuroda speaks in Tokyo Monday at the start of his second term.
  • President Xi Jinping gives a keynote address at Boao Forum Tuesday.
  • Facebook’s Mark Zuckerberg testifies at two Congressional hearings Tuesday and Wednesday.
  • U.S. CPI data and FOMC minutes due Wednesday.
  • JPMorgan and Citigroup first-quarter earnings Friday.

Commodity Cues

  • West Texas Intermediate crude nudged 0.2 percent higher to $62.17 a barrel after dipping 2.3 percent on Friday.
  • Gold was little changed at $1,331.86 an ounce.
  • Brent traded higher at $67.23 per barrel; up 0.2 percent.
  • Sugar ended lower at 12.3 cents per pound; down 0.1 percent.

Stories You Might’ve Missed

  • Nirav Modi and Mehul Choksi have got their second non-bailable warrant from a special Mumbai court.
  • Here's how much does India plans to spend in the first year of its mega-health insurance scheme.
  • LTCG Impact: Equity mutual fund inflows at their lowest in 13 months as investors withdraw funds to avoid new tax on long-term gains.
  • Donald Trump has vowed that China will be first to yield in trade war.
  • George Soros now has plans to trade cryptocurrencies, two months after calling it a bubble.
  • Bentley, Porsche and Rolls-Royce sell great cars. But here's some more great stuff that you can buy from them.
  • Bond investors get access to $16 billion of extra debt in India

Stocks To Watch

  • Titan said 2017-18 was a very satisfactory year in terms of overall business performance. The company achieved excellent retail growth in all businesses.
  • Inox wind won 100 megawatt in SECI-4 auction. Bid won at a fixed price of Rs 2.51 per unit for 25 years. Order book increased to 950 megawatt.
  • NMDC kept prices of lump ore and fines unchanged at Rs 3000 per tonne and Rs 2660 per tonne.
  • Nitesh Estates awarded a claim of Rs 15 crore in a land dispute.
  • Century Plyboard unit writes off its entire investment in Indonesian subsidiary.
  • Visaka Industries begins trial production at new ATUM manufacturing facility.
  • Piramal Enterprises received NCLT approval for merger of Piramal Finance and Piramal Capital with Piramal Housing Finance.
  • ICICI Bank: Some board directors are likely to meet soon to discuss the way ahead for CEO Chanda Kochhar (Economic Times).

Bulk Deals

  • Apollo Pipes: Hober Mallow Trust bought 59,307 shares or 0.5 percent equity at Rs 580 each.

AIA Engineering

  • DSP Blackrock Mutual Fund bought 5.72 lakh shares or 0.6 percent equity at Rs 1400 each.
  • Promoter Bhadresh Shah sold 29.99 lakh shares or 3.2 percent equtiy at Rs 1400.06 each.

Magma Fincorp

  • Reliance Mutual Fund bought 42.39 lakh shares or 1.8 percent equity at Rs 154 each.
  • IDBI Mutual Fund bought 45.39 lakh shares or 1.9 percent equity at Rs 154 each.
  • Zend Mauritius VC Investments Ltd. sold 2.5 crore shares or 10.5 percent equity at Rs 154.25 each.

Indian ADRs

All You Need To Know Going Into Trade On April 9

Trading Tweaks

  • Monnet Ispat & Energy Ltd circuit filter revised to 10 percent.

New Listing/Offering

  • Lemon Tree Hotels Limited to list on exchanges today. Its Rs 1,040 crore initial public offer was subscribed 1.19 times on the final day of bidding.
  • Sona Koyo Steering offer-for-sale shares to non-retail investors gets 6.64 times demand; offer for retail investors opens today

Who’s Meeting Whom

  • Tata Motors to meet several fund houses including DSP Merrill lynch, Norges Bank, Reliance Nippon Life Asset Management, etc. from April 9 – 12.
  • Kaya Ltd. to meet several fund houses including HDFC Life, Reliance mutual fund, IDBI mutual fund etc. from April 9 – 10.
  • Siemens to meet ICICI Securities and IIFL Holdings on April 9.
  • Radico Khaitan to meet several fund houses including GSA Capital, Steadview Capital, Amundi Asset Management etc. from April 9 – 12.

Insider Trades (As reported on April 6)

  • Raymond promoter J K Investors (Bombay) Ltd. acquired 20,016 shares from April 4 – 5.
  • West Coast Paper promoter The Indra company Ltd. acquired 10,000 shares on April 4.
  • Capital Trust Promoter Moonlight Equity Pvt. Ltd acquired 20,000 shares from April 2 – 3.
  • Power Mech Projects promoter Vignatha Sajja sold 50,762 shares on April 5.

Rupee

  • Rupee closed at 64.98/$ on Friday versus 64.96/$ on Thursday.

F&O Cues

  • Nifty April Futures closed trading at 10,352.8 with a premium of 21 points versus 27 points.
  • April series-Nifty open interest up 3 percent, Bank Nifty open interest down 2 percent.
  • India VIX ended at 14.7, down 0.3 percent.
  • Max open interest for April series at 11,000 call strike, open interest at 38 lakh, up 1 percent.
  • Max open interest for April series at 10,000 Put, open interest at 49.2 lakh, open interest up 1 percent.

F&O Ban

  • In ban: Jet Airways
  • New in ban: Jet Airways

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 1.44 versus 1.42.
  • Nifty Bank PCR at 1.70 versus 1.96.

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On April 9

Fund Flows

All You Need To Know Going Into Trade On April 9

Brokerage Radar

Geojit on Cochin Shipyard

  • Initiated ‘Buy’ with a price target of Rs 625.
  • Market leader in ship repair and poised to grow further led by JVs and MoUs.
  • Visibility to enlarge order book, led by defence.
  • Expect to garner Rs 18,000 crore of orders over the next two years.
  • Capacity to double in ship building & repairs by March 2022.
  • Ship repair growth fuelled by capacity expansion.
  • Return ratios to improve with ramp up in execution.
  • Expect revenue, operating income and net profit to compound at 23 percent, 19 percent and 16 percent respectively over the fiscal 2017-2020.

ICICI Securities on Yes Bank

  • Reinitiated ‘Buy’ with a price target of Rs 464; implying a potential upside of 48 percent from the last regular trade.
  • Growth opportunity fairly abundant given smaller but growing balance sheet.
  • Opportunties: new exposures to large corporates, refinancing opportunities in select NCLT cases.
  • Expect retail expansion across the balance sheet.
  • Stock to rerate as retail becomes a meaningful part.
  • Expect 30 percent compounded growth rate in loans over the fiscal 2018-2020.
  • Expect return on assets and return on equity to expand to 1.9 percent and 22.5 percent respectively by March 2020.

Angel Broking on GMM Pfaudler

  • Initiated ‘Buy’ with a price target of Rs 861.
  • Seeing strong order inflow from the user industries.
  • Expect increase in share of non-GL business to 50 percent by 2020
  • Non-GL business and exports to boost growth.
  • GMM likely to maintain above 20 percent growth trajectory through the financial years till March 2020.
  • Expect margins to remain healthy.
  • Strong balance sheet and healthy return ratios.
  • Stock valuations offers good opportunity to enter.

Macquarie on Jubilant Life Sciences

  • Maintained ‘Outperform’ with a price target of Rs 1,096; implying a potential upside of 34 percent form the last regular trade.
  • Specialty ramp-up to be back in focus.
  • Keep an eye on green shoots in pricing for Jubilant’s US generics biz.
  • Expect solid Q4FY18 led by aftereffects of LSI and pickup in specialty pharma.
  • Valuations look attractive; Top mid-cap pharma pick.

Citi on Zee Entertainment

  • Maintained ‘Neutral’; cut price target to Rs 605 from Rs 650.
  • Expect higher investments in Zee due to competitive intensity.
  • Advertising trends remain healthy.
  • TRAI tariff regulations remains key variable for subscription revenue.
  • Q4: OTT losses weigh on earnings; Base business steady.

HSBC on Larsen & Toubro

  • Maintained ‘Buy’ with a price target of Rs 1,535.
  • Order inflows set to surprise positively for December quarter.
  • Expect 9 percent (YoY) order inflow growth for Q4 versus 16 percent (YoY) decline implied from company guidance.
  • Expect modest revenue growth but a marginal decline in EPS owning to one-offs.
  • Expect Earnings to compound at 21 percent over the fiscal 2017-2019 and return on equity to improve to 16.3 percent by March 2020.

Investec on PNB Housing Finance

  • Initiated ‘Buy’ with a price target of Rs 1,600.
  • Expect PNB Housing Finance to grow at healthy pace.
  • PNBHF has best asset quality, productivity and diversified asset/liability mix.
  • PNBHF is the fastest growing HFC with best-in-class asset quality.
  • Business is highly scalable with reasonable return ratios.
  • Growth to drive return on equity to expand to 18 percent by March 2020.