Sensex, Nifty Settle At Over Three-Week High Led By ITC

Indian equity benchmarks rose for fourth straight day to settle at their highest level in over three weeks led by ITC, HDFC Bank, Axis Bank and Reliance Industries.

The S&P BSE Sensex rose 0.48 percent or 161.57 points to 33,788.54 and the NSE Nifty 50 index climbed 0.46 percent or 46.75 points to 10,739.35.

Fourteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Consumer Durables index's 1.7 percent gain. The S&P BSE Oil & Gas index also ended 1.5 percent higher led by oil marketing companies (OMCs) which rose after crude oil posted its biggest weekly decline since February.

On the flipside, the S&P BSE Teck index was the top sectoral loser, down 0.99 percent.

• ICICI Bank has 3 crore shares or 0.5 percent equity change hands in two blocks on NSE and BSE. Stock up 0.04 percent at Rs 280.75.
• Bank of Baroda has 12.1 lakh shares change hands in a block. Stock up 2.2 percent at Rs 153.75.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of most of the consumer durable companies were trading higher led by Titan Company and Bajaj Electricals. Gauge of consumer durable stocks — the S&P BSE Consumer Durables index rose nearly 2 percent.

• Lemon Tree: The Delhi-based hotel chain operator made a stellar debut on exchanges. The stock rose as much 32 percent to Rs 73.90 against its issue price of Rs 56.
• Smartlink: The Goa-based communications equipment maker rose as much as 6 percent to Rs 110 after board approved to buyback 56 lakh equity shares or 24.85 percent equity at a price of Rs 120 each.
• Datamatics Global: The Mumbai-based IT services company rose nearly 16 percent to Rs 130.60 after its subsidiary acquired 75 percent stake in RJ Globus Solutions, a voice-based BPO service provider.
• HPCL: The Delhi-based oil refiner rose as much as 4.3 percent to Rs 369.30 after crude posted its biggest weekly drop since February.

• Suven Life Sciences: The Hyderabad-based drug maker rose as much as 5.7 percent, the most in over two months, to Rs 180.60. Trading volume was 13.6 times its 20-day average.
• Take Solutions: The Chennai-based IT company rose as much as 8.5 percent, the most in over five months, to Rs 189.95. Trading volume was 11.8 times its 20-day average.
• Astral Polytechnik: The Ahmedabad-based CPVC plumbing system maker rose 1.1 percent to Rs 931. Trading volume was 10.4 times its 20-day average.
• CRISIL: The Mumbai-based credit rating agency fell 0.4 percent to Rs 1,896. Trading volume was 5.7 times its 20-day average.

Stocks in Europe climbed and U.S. equity-index futures pointed to a higher open as investors weighed the likelihood that the world’s two largest economies will resolve their trade dispute. Treasuries fell and the dollar steadied.

Shares of the Mumbai-based travel company rose 0.9 percent to Rs 238.45 after its subsidiary MEININGER will open a 121-room hotel in Lisbon, Portugal, the company said in an exchange filing.

• Indian equity benchmarks were trading firmly higher led by ITC, Axis Bank, Larsen & Toubro and IndusInd Bank.
• The S&P BSE Sensex rose 0.5 percent or 160 points to 33,787 and the NSE Nifty 50 index gained 0.5 percent or 50 points to 10,381.
• Sixteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Consumer Durables index's 1.7 percent gain. On the flipside, the S&P BSE Teck index was the top sectoral loser, down 1 percent.
• The small-cap shares were underperforming their large-cap counterparts as the S&P BSE SmallCap index was up 0.2 percent.
• The overall breadth was positive as 1,594 shares were advancing while 978 were declining on the BSE.

Top Nifty gainers

• HPCL up 4 percent
• BPCL up 3.9 percent
• Axis Bank up 3.85 percent
• Hindalco up 3.4 percent
• Indian Oil up 3 percent

Top Nifty losers

• Zee Entertainment down 2 percent
• Infosys down 1.4 percent
• Vedanta down 1.3 percent
• Bharti Airtel down 1.2 percent
• Tata Motors down 0.2 percent

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Shares of government-owned oil marketing companies — Indian Oil, Hindustan Petroleum and Bharat Petroleum were among the top gainers in the Nifty 50 index after crude oil price posted its biggest weekly decline since February.

• Hindustan Petroleum rose 4 percent
• Bharat Petroleum rose 3.9 percent
• Indian Oil rose 3.2 percent

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• Yes Bank has 29.6 lakh shares change hands in a block deal, Stock rises 0.6 percent to Rs 316.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Vadodara-based pharmaceutical firm rose as much as 5.4 percent to Rs 570.

Alembic Pharmaceuticals has received approval from the U.S. drug regulator for Acyclovir, which is used in the treatment of genital herpes, it said in a notification to the stock exchanges.

Shares of the Mumbai-based telecom firm fell 1 percent to Rs 24.10 after HSBC moved Supreme Court against NCLAT order allowing banks to proceed with sale of Reliance Communications' assets with some riders, news agency Bloomberg reported.

Shares of the Chennai-based software developer rose 7.4 percent, the most in nearly two months, to Rs 758.25.

The stock was the top gainer on the Nifty 500 index and trading volume was 3.5 times its 20-day average for this time of the day.

Shares of the newly listed Lemon Tree Hotels came off day's high but continue to trade above its IPO price of Rs 56.

The stock which touched high of Rs 65 was trading at Rs 59.95, up 7 percent from the issue price.

Gautam Singhania To BloombergQuint

• Domestic profile of customers will lead to growth in fabrics business
• Fabric continues to be a strong segment for growth opportunities
• Parx doing will in multi-brand outlets in India.
• See huge potential in Khadi clothing.
• Have been supplying to Air Force and Navy.
• Would like to be a preferred supplier to Patanjali once they foray into apparels and clothing.
• Women wear is doing well under the Park Avenue brand.
• There is big market for traditional wear business.
• Open to sell non-core business segments at a fair price.
• Would not comment on Thane Land development plans.
• To a certain extent Raymond is a professionally run business.

Shares of the Mumbai-based vehicle maker were trading 0.85 percent lower at Rs 361.

• Jaguar Land Rover (JLR) sales fell 7.8 percent in March o 83,732 units.
• FY18 sales rose 1.7 percent YoY to 6,14,309 units.

Shares of the Mumbai-based cement maker were little changed at Rs 90.50 after it sought termination of insolvency case for cement unit, news agency Bloomberg reported.

Binani Industries has sought for Supreme Court's approval on settlement plan for its cement unit.

Nifty 10,300 strike price put option contract was among the most active options contract on the National Stock Exchange. The premium on the contract fell 15.47 percent to Rs 90.40.

Over 6.3 lakh shares were added to the open interest of 3.5 million shares.

On the other hand, 10,500 strike price call was the most active options contract. The premium rose 26 percent to Rs 72.75.

Over 1.3 lakh shares were added to open interest of 3.86 million shares.

Click here to see the complete options chain

Shares of the Noida-based wind power producer rose as much as 3.12 percent to Rs 119 after it won bid for 100-megawatt power production at SECI-4 auction, the company said in an exchange filing.

The bid was won by the company at a fixed price of Rs 2.51 per unit for 25 years.

Lemon Tree Hotels listed at a premium of 10 percent at Rs 61.60 per share on the National Stock Exchange, compared to its issue price of Rs 56.

The stock rose as much as 16 percent to Rs 65 from its issue price thereafter.

The initial public offer of hospitality chain Lemon Tree Hotels was subscribed 1.19 times on the final day of bidding on the final day.

Yield on the 10-year government bond fell sharply to 7.15 percent after the Reserve Bank of India increased the FPI investment limit in central government bonds to 5.5 percent in 2018-19 from 5 percent in two tranches.

• Positive on retail private sector banks.
• Loans and deposit market share is increasing for retail private sector banks.
• Asset quality issues significantly lower in private banks.
• We have been cautious on PSU banks from fairly long period of time.
• Capital infusion which PSU banks got will be largely used to provide for bad loans and they will be left with very little growth capital.
• Hopefully earnings to take off from where Q3 left.
• Expect automobile companies to do good.
• Rural focused companies will show improving trend.
• Cost of funds will abate for select NBFCs.

On IndianOpen: Find Out What To Expect From India Inc In Q4

• Crompton Greaves has 29 lakh shares change hands in two blocks. Stock 1.11 percent at Rs 233.25.
• HDFC has 11 lakh shares change hands in a block. Stock up 0.6 percent at Rs 1,841.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Bangalore-based watch and jewellery retailer rose as much as 2.7 percent to record high of Rs 965.85 after it said FY17-18 was a very satisfactory year in terms of overall business performance.

Meanwhile, international brokerage Morgan Stanley has maintained its 'overweight's stance on stock for target price of Rs 1,050.

Morgan Stanley in a note said:

• Company is seeing strong operating profit growth for jewellery and watch segments.
• Revenue growth and operating profits for jewellery and watches have been strong.
• Titan to achieve its guidance of 2.5 times jewellery business revenues by FY22.
• It expects revenue to grow at 16 percent, EBITDA at 63 percent and net profit at 55 percent in Q4FY18.

Shares of the country's second-largest private sector lender fell as much as 2 percent to Rs 274.70 as its board is divided over whether to ask her to step down as federal authorities investigate allegations of impropriety over loans made to Videocon group, Bloomberg reported citing people with knowledge of the matter.

At least some outside directors are opposed to Kochhar continuing in her role, Bloomberg report added citing people who asked not to be identified.

Indian equity benchmarks edged higher, but gains were capped as gains in Hindalco, BPCL, HPCL and Cipla were offset by losses in ICICI Bank, Bharti Airtel and Infosys.

The S&P BSE Sensex was little changed at 33,648.60 and the NSE Nifty 50 index rose 0.15 percent to 10,348.

Sixteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Consumer Durables index's 1.4 percent gain. On the other hand, the S&P BSE Telecom index was the top sectoal loser, down 0.6 percent.

The mid- and small-cap shares were outperforming their large-cap counterparts as the S&P BSE MidCap index rose 0.4 percent and the S&P BSE SmallCap index gained 0.6 percent.

The rupee strengthened by 12 paise to 64.85 against the US dollar in early trade today on fresh selling of the greenback by banks and exporters.

Besides, a higher opening of the domestic equity market and weakness in the dollar against other global currencies, following data that showed the US economy created the least number of jobs in six months in March, supported the rupee, forex dealers said.

The domestic unit had ended flat at 64.97 against the US dollar in a quiet range-bound trade on Friday as local equities consolidated their recovery momentum.

Source: Press Trust of India

• Increase in rate on lower side of expectation
• Increase in FPI Limit to have neutral to positive impact for bond markets
• Expect utilization rate to increase in FY19
• Expect 10-year bond yield to trade in the range of 7.05-7.25 percent in the near term

• First half borrowing program should not be a problem for bond markets
• Government securities will be a preferred source of investment for FPIs
• Have been constructive on bond market even before this FPI limit hike

Sovereign bonds are seen opening on a positive note after the central bank allowed foreign investors to own more of the nation’s debt. The RBI on late Friday evening raised limits for overseas investors that could lure $16 billion of additional funds into the India’s government as well as corporate debt.

The proportion of outstanding central government securities that FIIs would be allowed to own will be increased by 0.5 percent each year, taking the limit to 5.5 percent this fiscal year and to 6 percent in the following 12-month period. Limit in state development loans would remain unchanged at 2 percent of outstanding securities, while the overall limit for such investment in corporate bonds will be fixed at 9 percent of outstanding.

While traders have cheered the initiative, a trade war brewing between the U.S. and China may fuel volatility and reduce demand for emerging market assets like India. Implied opening from forwards suggests onshore spot will start trading around 64.8464 today.

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.

• Titan says FY17-18 was a very satisfactory year in terms of overall business performance. The company achieved excellent retail growth in all businesses.
• Inox Wind wins 100MW in SECI-4 auction. Bid won at a fixed price of Rs 2.51 per unit for 25 years. Orderbook increased to 950MW.
• NMDC keeps prices of lump ore and fines unchanged at Rs 3,000 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 receives 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)

• 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. (More on the company here)

• 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.

Stocks Seeing High Open Interest Change

AIA Engineering

• DSP Blackrock mutual fund bought 5.72 lakh shares or 0.6 percent equity at Rs 1,400 each.
• Promoter Bhadresh Shah sold 29.99 lakh shares or 3.2 percent equity at Rs 1,400.06 each.

Apollo Pipes

• Hober Mallow Trust bought 59,307 shares or 0.5 percent at Rs 580 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 sold 2.5 crore shares or 10.5 percent equity at Rs 154.25 each.

• Arun Jaitley continues to be under observation for second day at AIIMS
• Tata Chemicals to acquire Allied Silica for Rs 123 crore
• SBI General Insurance expects to wipe out losses in FY19, may go for IPO next year
• Agriculture Ministry to soon move cabinet note to ensure farmers get MSP
• Nobel Laureate Yunus not in favour of privatisation of PSBs in India
• Flipkart-Amazon combine may face close scrutiny for competition aspects
• DIPP calls meeting of stakeholders on FDI in tobacco sector
• See telecom industry earnings under pressure for another four quarters: COAI
• Bad omen for markets from first signs of yield curve inversion
• Second non-bailable warrant against Nirav Modi and Mehul Choksi
• Everybody loses in a trade war, says Nouriel Roubini
• AAI seeks ‘green signal’ from MoEF for 7 airports expansion
• Indian startup gets another chance to land Rover on moon
• RBI: FPI Investment limit in G-secs to be raised by 0.5 percent a year.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India fell 0.71 percent or 73 points to 10,268 as of 6:37 a.m.

Stocks in Asia fluctuated and U.S. equity-index futures rebounded as trade worries remained a key market driver, keeping risk appetite in check. Treasury yields edged higher and the dollar steadied.

Benchmarks were little changed in Japan, Australia and South Korea. Chinese equity markets are due to reopen after a holiday, with traders getting their first chance to react to President Donald Trump’s order for a review of additional tariffs that prompted an aggressive response from China.

Here’s what is coming up 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.

Bonds

• The yield on 10-year Treasuries rose one basis point to 2.78 after dropping six basis points on Friday.
• The yield on Australia’s 10-year bond was steady at 2.65 percent.

Commodities

• 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.