Sensex, Nifty Post Longest Winning Streak In Nearly Three Months

Indian equity benchmarks rose for sixth straight day posting their longest winning streak since Jan. 24 led by gains in IT stocks.

The S&P BSE Sensex rose 0.47 percent or 160.69 points to 34,101.13 and the NSE Nifty index advanced 0.4 percent or 41.50 points to 10,458.65.

Fourteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Realty index's 1.8 percent drop. On the flipside, the S&P BSE Information Technology index was the top sectoral gainer, up 3.2 percent.

The mid- and small-cap shares underperformed their large-cap counterparts as the S&P BSE MidCap index fell 0.13 percent and the S&P BSE SmallCap index declined 0.27 percent.

Shares of JSW Steel fell 1.3 percent to Rs 308.15 while that of Monnet Ispat and Energy rose 1 percent.

JSW Steel informed exchanges that it along with AION Investments has been identified as a successful bidder for Monnet Ispat and Energy.

Shares of the Hyderabad-based cigarette maker rose 1.85 percent to Rs 3,136 after it reported March quarter earnings.

Key earning highlights:

• Revenue up 27 percent at Rs 279.1 crore versus Rs 219.9 crore (YoY)
• Net profit up 35.7 percent at Rs 48.33 crore versus Rs 35.6 crore (YoY)
• EBITDA up 27 percent at Rs 79.6 crore versus Rs 62.8 crore (YoY)
• EBITDA margin at 28.5 percent versus 28.6 percent (YoY)

• Orissa Mineral Development: The Kolkata-based iron ore miner was locked in 20 percent upper circuit at Rs 1,901 after the company received six iron and manganese ore mines from government of Odisha.
• Dish TV: The Noida-based direct-to-home cable TV service provider rose as much as 6.76 percent to Rs 78.95 after promoter World Crest and others made open offer to buy up to 50.02 crore shares.
• Capacite Infra: The Mumbai-based construction company rose as much as 5.14 percent to Rs 352.90 after it won a contract worth Rs 163 crore from Sea View Developers for civil and structure work package for construction tower 11 and multi-level car park.
• Hatsun Agro: The Chennai-based dairy products maker rose more than 11 percent to Rs 785 on the back of heavy volumes. Trading volume was 6.9 times its 20-day average.

• Expect Jubilant to clock 16-18 percent same store sales growth for this quarter
• Believe there would be more PE expansion for Eicher and Balkrishna Industries

Stocks in Europe drifted after Asian shares declined as investors digested escalating tensions in the Middle East and the latest signals from the Federal Reserve on its interest-rate outlook. Crude headed for a fourth day of gains, while Treasuries and the dollar steadied.

• Shares of Tata Group companies were trading higher led by IT heavyweight TCS.

• Indian equity benchmarks extended gains led by IT heavyweights — TCS, Infosys and HCL Technologies.
• The S&P BSE Sensex rose 0.5 percent or 167 points to 34,107 and the NSE Nifty 50 index gained 0.36 percent or 38 points to 10,455.
• Six out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty IT index's 3.3 percent surge. On the other hand, Nifty Realty index was the top sectoral loser, down 1.2 percent.
• The broader markets were trading on a flat note as the S&P BSE MidCap and S&P BSE SmallCap indices rose as little over 0.1 percent.
• Overall breadth was negative as negative as 1,315 stocks were declining while 1,186 were advancing on the BSE.

Top Nifty gainers

• TCS up 4.4 percent
• HCL Technologies up 3.8 percent
• Infosys up 3.7 percent
• Tech Mahindra up 2.4 percent
• Tata Motors up 1.6 percent

Top Nifty Losers

• Bharat Petroleum down 2.2 percent
• Hindustan Petroleum down 1.8 percent
• Dr. Reddy's Labs down 1.8 percent
• Lupin down 1.6 percent
• Vedanta down 1.5 percent

Click here for more stock market data

• Relaxo Footwears: The Delhi-based footwear maker rose as much as 1.78 percent to Rs 713. Trading volume was 29 times its 20-day average.
• Tata Sponge Iron: The Kolkata-based sponge iron maker rose as much as 15 percent, most in three months, to record high of Rs 1,245. Trading volume was 15.6 times its 20-day average.
• Inox Leisure: The Vadodara-based movie theatre operator rose as much as 5.74 percent to Rs 278. Trading volume was 7.9 times its 20-day average.
• Hatsu Agro Products: The Chennai-based dairy products maker rose as much as 11.4 percent to Rs 785. Trtading volume was 8.5 times its 20-day average.

• Currently operating at 90 percent capacity utilisation
• Prices to remains around Rs 34,000 per metric tonne

The recent governance issues in India's banking sector involving ICICI Bank and Axis Bank reiterate the need to improve risk management and maintain strong governance practices, S&P Global Ratings said today.

"As a number of banks in India confront serious governance and risk issues, the 'tone at the top' is crucial. Leadership groups in Indian banks need to ensure that they enhance the risk culture, reputation, and financial strength of banks," S&P Global Ratings credit analyst Michael Puli said.

Source: Press Trust of India

Nifty Bank 25,200 strike price call option contract was among the most active options contracts on the National Stock Exchange ahead of its weekly expiry later in the day.

The premium on the contract fell 64 percent to Rs 16.70. Over 16 lakh shares were added to the open interest of 23.8 lakh shares.

Click here to see the complete options chain

Shares of the Mumbai-based non-residential construction company fell as much as 6.5 percent to Rs 96.25 after it informed exchanges that NCLT has accepted petition filed by operational creditors against the company.

The NCLT has appointed an Interim Resolution Professional (IRP) to conduct the insolvency process, Petron Engineering said in an exchange notification.

Shares of the Delhi-based hospital chain operator rose as much as 4 percent to Rs 153.90 after Bloomberg citing sources reported that IHH is proposing a potential offer for Fortis Healthcare that could value it at as much as $1.3 billion, which would top the bid from a TPG-backed consortium.

• IHH is said willing to pay as much as Rs 160 per share for Fortis
• IHH is said to seek time for due diligence, eyes friendly bid
• IHH said to send letter to Fortis board Wednesday on bid plans

Shares of the Indore-based alcohol maker gained for second day and rose as much as 4.18 percent to record high of Rs 348.

Well-known investor Dolly Khanna has picked up 1.04 percent stake in the company, according to March shareholding available on stock exchanges.

Shares of the Mumbai-based construction company rose as much as 1.15 percent to Rs 339.50.

The company has won a contract worth Rs 163 crore from Sea View Developers for civil and structure work package for construction tower 11 and multi-level car park.

Shares of the government-owned lender extended decline to second day and fell as much as 3.2 percent to Rs 69.80.

The Reserve Bank of India slapped a penalty of Rs 3 crore on the bank for non-compliance of bad loan norms, according to a notification to the exchanges.

Shares of the direct-to-home cable TV service provider rose nearly 3 percent to Rs 76.10 after 9.15 crore or 5 percent equity changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

Shares of information technology (IT) companies were trading higher a day ahead of January-March quarter and full financial year 2017-18 earnings of Infosys.

Gauge of IT companies on the National Stock Exchange — Nifty IT index rose over 2 percent led by gains in TCS, HCL Technologies and Infosys.

According to data compiled by BloombergQuint brokerages expect IT companies to report steady growth rate:

• Expect steady growth rates, commentary for the current year to be the key
• Strong deal momentum in earlier quarters will aid midcap IT stocks in Q4
• HCL Tech likely to report highest dollar revenue growth while Wipro will be the lowest
• Pickup in the banking and financial services segment in the U.S. will be watched in Tata Consultancy Services as that will aid double digit growth

Click here for more stock market data

• Halol resolution will not lead to meaningful shift in the earnings for Sun Pharma
• Dr Reddy's Labs earnings will be relatively weaker and U.S. will be weak and they are leverd more towards U.S.
• Cipla will hold out much better than other pharma companies
• For M&M Finance usually Q4 is the best
• Q4 will be strong quarter for metal sector as a whole
• For metals companies earnings will be strong but key thing to watch out for will be outlook
• In Lupin, key will be management commentary on clearances
• Will keenly watch out for Taro numbers
• Sun pharma should do well as they are leveraged to the Indian market
• Expect domestic gas production increase in the next 3-4 years
• City gas companies are showing decent volume growth
• Regulatory support is also working in favour of city gas distribution companies
• Will watch out for gas companies
• Positive on GSPL, Petronet LNG
• Upstream oil companies should report good quarter. Prefer Reliance Industries over other companies
• Upstream companies have disappointed on cost side in the past
• Revenue growth will be the important parameter to watch out for in IT
• Keenly awaiting on Infosys guidance
• Expect decent growth from L&T Infotech and Mindtree in Q4
• Valuation divergence between retail and public banks has widened because of consistent growth
• Retail focused banks have always traded at a higher premium to corporate banks and now the premium has expanded
• Very difficult to estimate bank earnings
• Bigger NBFCs have been delivering growth and gaining market share
• For pharma companies U.S. business will be weak but India business will be good because of low base
• Expect 10 earnings growth in Q4
• High oil prices to benefit upstream companies
• Seen decent growth in monthly volume numbers of auto companies
• For last four years earnings were muted
• Seen decent growth in monthly volume numbers for auto companies
• North America and Europe have done better for UPL in Q4
• Expect UPL to end the year better than expectations
• Marketing margins were strong for downstream companies in Q4
• Expect sequential growth from Reliance Industries because of expansion of downstream business

BQ Exclusive: Citi India On Earnings Expectations For Fourth Quarter

Shares of oil retailers were trading lower for second day in a row after crude oil prices in international markets rose to levels last seen in 2014.

Futures in New York jumped 2 percent on Wednesday. Saudi Arabia, the world’s biggest oil exporter, intercepted a missile attack over the kingdom’s capital just hours after U.S. President Donald Trump warned American missiles soon may strike Syria. A U.S. government report on expanding domestic oil inventories barely fazed traders caught up in the rush of world events.

• Hindustan Petroleum fell 2.2 percent
• Bharat Petroleum fell 2 percent
• Indian Oil fell 1 percent

Indian equity benchmarks swung between gains and losses as buying in IT stocks was offset by selling pressure in oil retailers and pharma shares.

The S&P BSE Sensex was little changed at 33,952 and the NSE Nifty 50 index fell 0.13 percent or 13 points to 10,404.

Nine out of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty PSU Bank index's 0.7 percent drop. On the other hand, the Nifty IT index was the top sectoral gainer, up 1 percent.

The broader markets were trading on a muted note with the S&P BSE MidCap and S&P BSE SmallCap indices trading on a flat note.

• Dish TV has 9.15 crore shares or 5 percent equity change hands in pre-market trade.

Buyers and sellers were not immediately known

Source: Bloomberg

• Rupee opened lower at 65.33 per dollar against U.S. dollar against yesterday's close of 65.30.

Market players will be watching out for inflation and industrial production data today which due at about 5:30 pm. Retail inflation is seen at 4.10 percent in March versus 4.44 percent in February, while February factory output data is expected at 6.8 percent versus 7.5 percent in January, according to a Bloomberg survey.

Later in the day Reserve Bank of India will hold underwriting auctions for Rs 12,000 crore of government bonds that will be sold tomorrow. Yield on 10-year debt climbed 16 basis points in yesterday's session, taking the four-day advance to 41 basis points and erasing most of the gains bonds posted in five days to April 5.

The rupee is seen declining in line with Asian currencies amid a slightly hawkish tilt by the Federal Reserve and speculation the U.S. is poised to strike Syria. Implied opening from forwards suggests onshore spot will start trading around 65.2634 today.

• U.S. has signaled its move on Syria very clearly, world economies will be impacted
• Expect oil to be under some pressure
• Tariff tensions between U.S.-China to impact earnings going forward
• India is a relatively closed economy, domestic factors more dominant
• Oil prices will drive/impact sentiment of Indian markets going forward

Goldman Sachs on Oil Marketing Companies

• OMC share prices are close to pricing in zero marketing margins.
• Market worries over subsidy sharing overdone.
• Maintain positive view on OMCs.
• Use the recent weakness to add to positions.

JPMorgan on Cement

• Lack of pricing discipline will continue to weigh on profitability.
• Supply-side risks evolving; to constrain pickup in utilisation levels in near term.
• Competitive intensity to remain elevated.
• Remain constructive on the sector; The current financial and calendar year will be challenging.
• Ultratech: Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 4,000 from Rs 4,750.
• ACC: Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 1,680 from Rs 2,020.
• Shree Cement: Maintained ‘Overweight’; cut price target to Rs 19,600 from Rs 21,500.
• Ambuja: Maintained ‘Overweight’; cut price target to Rs 270 from Rs 320.
• Grasim: Maintained ‘Overweight’; cut price target to Rs 1,350 from Rs 1,450.

Morgan Stanley on Cadila

• Maintained ‘Overweight’ with a price target of Rs 560.
• Mylan's court case win to facilitate its market entry in gLialda.
• Decision along expected lines, given the earlier Appeals Court ruling.
• Assuming 4-5 player market Cadila could make annual sales of $100-130 million per year.

Nirmal Bang on Uflex

• Initiated ‘Buy’ with a price target of Rs 504; implying a potential upside of 44 percent from the last regular trade.
• Aseptic liquid packaging to boost top-line and margins.
• Focus on packaging business will improve return ratios.
• Packaging business enjoys higher realisations and margins.
• Improving BOPET film industry scenario.
• Expect revenue, operating income and net profit to compound at 11 percent, 13 percent and 16 percent over the fiscal 2017-2020.
• Packaging business to get higher multiple than commoditised film business.

Credit Suisse on Alkem Labs

• Maintained ‘Outperform’ with a price target of Rs 2,275.
• Daman facility Form 483 is concerning.
• High probability of escalation to Warning Letter or Import Alert.
• Form 483 implies understaffing at Daman plant.
• Expect earnings per share to take a hit at 5 percent and 15 percent in case of warning letter and import alert respectively.

Credit Suisse on Alkem Labs

• Maintained ‘Outperform’ with a price target of Rs 2,275.
• Daman facility Form 483 is concerning.
• High probability of escalation to Warning Letter or Import Alert.
• Form 483 implies understaffing at Daman plant.
• Expect earnings per share to take a hit at 5 percent and 15 percent in case of warning letter and import alert respectively.

• Tata Motors group global wholesales up 18 percent (YoY) at 1,53,156 units in March 2018
• Biocon says Mylan partners with Fujifilm Kyowa to commercialise Adalimumab Biosimilar in EU
• IEX signs pact with JEPX to jointly explore opportunities in electricity market
• Airtel ties up with Balaji Telefilms unit for digital content (Bloomberg News)
• GMR to set up defence manufacturing hub at Krishnagiri, TN
• RBI imposes monetary penalty of Rs 3 crore on IDBI Bank for non-compliance of NPA norms
• Indian consortium of BPCL, IOC and HPCL sign memorandum of understanding with Saudi Aramco to jointly develop and build refinery complex at Ratnagiri, Maharashtra

Earnings Today

• VST Industries
• Reliance Industrial Infrastructure

• Nifty April futures closed at 10,425 with a premium of 8 points versus premium of 19.3 points.
• April series Nifty open interest (OI) up 5 percent, Bank Nifty OI down 3 percent.
• India VIX ended at 14.7, up 1.5 percent.
• Max OI for April series at 10,500 strike price call, at 43.8 lakh shares, up 5 percent.
• Max OI for April series at 10,000 strike price put, OI at 45.7 lakh shares.

Stocks Seeing High Open Interest Change

Kwality

• Letko Brosseau Emerging Markets Equity Fund bought 39.90 lakh shares or 1.7 percent equity at Rs 57.26 each.
• Sidhant Gupta sold 40 lakh shares or 1.7 percent equity at an average price of Rs 57.11 per share.

Mahanagar Gas

• Societe Generale bought 12.92 lakh shares or 1.3 percent equity at Rs 905 each.
• Promoter BG Asia Pacific Holdings Pte Ltd sold 83.96 lakh shares or 8.5 percent equity at an average price of Rs 906.9 each.

Praxis Home Retail

• Cedar Support Services sold 10.91 lakh shares or 4.4 percent equity at Rs 200 each.

Shalimar Paints

• Promoter Nalwa Investments sold 9.23 lakh shares or 4.9 percent equity at Rs 150 each.

Trading Tweaks

• Talwalkars Better Value Fitness circuit filter revised to 10 percent and shifted to B group.
• Amrutanjan Health Care last trading day before stock split.

• Just not good enough, RBI view on India’s social sector spending
• Zuckerberg says Facebook collects internet data on non-users
• Crude hits three-year high as global tensions rock oil markets
• Office space leasing at all-time high in India’s top cities
• Aramco wants more India deals in plan to double refining output
• Tata Sons to consolidate aerospace, defence companies across the group
• Vedanta’s Agarwal offers to help Anglo expand in India
• Mahindra Defence strikes pact to make seaplanes, marine UAVs for navy
• Why India’s bond traders are worried
• Modi puts inflation goals at risk in bid to meet farm pledges
• Zuckerberg survives unruffled after two days before Congress
• Note to bank boards: Protect the banks, not the bankers
• Fed leans toward faster pace of hikes as trade war poses risk
• One reason why fuel prices are pinching you
• Indian government toys with the idea of a sovereign dollar bond

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.4 percent to 10,462 as of 6:18 a.m.

Stocks in Asia were mixed in early trading Thursday as investors digested the latest signals from the Federal Reserve on the monetary-policy outlook, escalating tensions in the Middle East and a fractious U.S. political landscape.

Bonds

• The yield on 10-year Treasuries was unchanged at 2.78 percent.

Commodities

• West Texas Intermediate crude was steady at $66.87 a barrel, around a three-year high. It surged 2 percent on Wednesday.
• Gold was little changed at $1,352.03 an ounce after jumping 1 percent.