Stock price information is reflected in a glass panel as a trader monitors financial data during the official opening of the stock trading floor. (Photographer: Andrey Rudakov/Bloomberg)

Sensex, Nifty Register Longest Rally In Over Three Years

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Closing Bell

Indian equity benchmarks closed higher for the ninth straight trading session, registering their longest winning streak in over three years.

The S&P BSE Sensex Index ended 0.3 percent higher at 34,395.06, while the NSE Nifty 50 Index closed at 10,548.70, up 0.2 percent. Both the 31-stock index and the 50-stock index posted their longest winning streak since September 2014 and January 2015 respectively.

The market breadth was tilted in favour of buyers. Six out of 11 sectoral gauges compiled by NSE fell, led by NSE Nifty Media Index's 0.6 percent decline. On the flipside, Nifty Realty Index was the top sectoral gainer, up 1.1 percent.

Stocks Moving On Heavy Volumes

Indiabulls Ventures

  • Stock fell as much as 4.6 percent to Rs 362.80.
  • Trading volume was 4.8 times its 20-day average.

Puravankara

  • Stock rose as much as 11.3 percent to Rs 166.50.
  • Trading volume was 7 times its 20-day average.

EIH

  • Stock rose as much as 20 percent to Rs 206.75.
  • Trading volume was 6 times its 20-day average.

DCB Bank

  • Stock rose as much as 7.6 percent to Rs 204.60.
  • Trading volume was 12.3 times its 20-day average.

Hotel Stocks Rally As Vacation Season Begins

Anil Agarwal, Chairman At Vedanta Speaks To BloombergQuint

Key highlights from the conversation:

  • We have completed NCLT procedure
  • Have sweetened the bid for Electro steel.
  • Have hiked offer by Rs 500 crore for Electrosteel Steel to Rs 5,000 crore.
  • Great pride for Vedanta Group to add value to assets like Electrosteel Steels.
  • Looking to complete the process to take over Electrosteel Steel very shortly.
  • Bankruptcy process for Electrosteel Steel was conducted by the government, agencies in a transparent process.
  • Will take all efforts to turnaround Electrosteel Steel.
  • Have turnaround various companies in the past as well.

Countdown

Europe Shares Rise After U.S. Gains As Focus Returns To Earnings

European shares gain after U.S. stocks rebounded; investors’ focus returning to earnings and the economic outlook, from geopolitical risks.

CRISIL's Profit Rose To Rs 82.2 Crore In March Quarter

Key Highlights:

  • Net profit at Rs 82.2 crore versus Rs 72.14 crore (YoY).
  • Revenue At Rs 420.6 crore versus Rs 402.2 crore (YoY).
  • Stock rose as much as 2.1 percent to Rs 1,990.

Muthoot Capital’s Profit Rise 94% In March Quarter

  • Net profit rose 93.5 percent to Rs 21.52 crore (YoY).
  • Revenue rose 48.6 percent to Rs 118.6 crore (YoY)
  • Shares of Muthoot Capital snapped 13 day gains the longest winning streak since 2006 and fell 2.6 percent to Rs 969, after the results announcement.

Tractor Makers Rally After IMD Predicts Normal Monsoon

Shares of the tractor makers rallied today after IMD forecast stated that India’s monsoon rains, that water half of the country’s cultivated land, are expected to be normal for the third straight year.

  • Shares of M&M rose as much as 2.2 percent to Rs 819.10.
  • Shares of Escorts rose as much as 2.2 percent to Rs 944.50.
  • Shares of VST Tillers Tractors rose as much as 1.3 percent to Rs 2,798.90.

Jaitley Says Cash Crunch In Parts Of India Temporary, Will Be Tackled Soon

Finance Minister Arun Jaitley said the cash crunch that some parts of the country were facing was temporary and will be resolved soon (more details here).

R Gandhi, Former Deputy Governor At RBI Speaks To BloombergQuint

Key highlights from the conversation:

  • RBI will definitely take relief measures to control the current situation
  • Difficult to predict by when can cash shortage could be resolved.
  • Upcoming elections, festival seasons and state government schemes few reasons for increased cash demand.
  • Mismatch in supply-demand of currency must have led to temporary cash shortage.

Power Lunch

Block Deal Alert

  • Aditya Birla Fashion: About 42 lakh shares changed hands in two block deals.
  • Jagran Prakashan: About 24.6 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.

Source: Bloomberg

#AskBQ: Get All Your Market Related Queries Answered

Rajendra V Gogri, Chairman And Managing Director At Aarti Industries Speaks To BloombergQuint

Key highlights from the conversation:

  • Do not see impact of rising crude oil prices on margins.
  • Targeting 15 percent volume growth over next two-to-three years.
  • Sharp rise in raw material prices pressurised costs.
  • Ebitda margin from pharma sector improving.

Shekhar Bajaj, Chairman And Managing Director At Bajaj Electricals Speaks To BloombergQuint

Key highlights from the conversation:

  • Total order in the last 10 days is close to Rs 5,000 crore excluding GST.
  • Order book is now more than Rs 8,000 crore.
  • Have enough orders to keep us busy for next two years.
  • Not looking for any more orders.
  • Margins to remain at similar levels.
  • No compromise on margin front.
  • Expect Ebitda level to improve from current levels of 7-8 percent.

MK Dhanuka, Managing Director At Dhanuka Agritech Speaks To BloombergQuint

Key highlights from the conversation:

  • Normal monsoon to enable farmers save more, thus accelerating growth for the company.
  • Expect to deliver 15 percent growth this year, of which 12 percent on volume growth and 3 percent from pricing.
  • Expect Ebitda margin around 18.5 percent.
  • Plans to launch two new products this year.

Rupee Hits Fresh Six-Month Low Against U.S. Dollar

Liberty House Bid For ABG Shipyard Rejected For A Second Time

Lenders to ABG Shipyard Ltd. have rejected a resolution plan submitted by Liberty House UK for the second time, two people in the know confirmed. The Committee of Creditors rejected the bid unanimously at a meeting on Monday, these people said. (Click here to know more)

Block Deal Alert

  • NTPC: About 10.3 crore shares changed hands in a block deal.
  • ITC: About 18 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.

Source: Bloomberg

Market Check

  • Indian equity benchmarks traded higher after a volatile start.
  • The S&P BSE Sensex index rose as much as 0.3 percent to 34,402.90, while the NSE Nifty 50 Index rose as much as 0.3 percent to 10,557.55.
  • About 1,113 stocks advanced, and 485 stocks declined on NSE.

Power Grid Gains On Heavy Volumes

Shares of the state-run central transmission utility of India rose as much as 3.9 percent, most in six months, to Rs 207.1, extending a three-day gaining period.

Trading volume of the stock was 11 times the 20-day average. It was the top gainer on the S&P BSE Power Index.

The stock is 14 percent below the Bloomberg consensus one-year target price while the analyst consensus rating is equivalent to ‘buy’.

Around 83 percent of the analysts covering Power Grid Corporation of India Ltd. have a ‘buy’rating on the stock, 14 percent have ‘hold’, and the rest recommend ‘sell’. The stock has returned 2.2 percent so far this year as compared to 5.9 percent decline in the power index.

The F&O Show: Get Top Trading Strategies To Deploy In April Series To Combat Volatility

Rakesh Singh, President At India Cements Speaks To BloombergQuint

Key highlights from the conversation:

  • Seeing around 37 percent growth from states like Telangana, Andhra Pradesh
  • Tamil Nadu contributed least due to sand mining issues.
  • Clocked around 4 percent growth last year
  • Affordable housing, upcoming elections aiding to growth from Karnataka.
  • Demand primarily coming from Telangana, Andhra Pradesh.
  • Q4 capacity utilisation rose to 70 percent.
  • Expect FY19 average pricing going up due to increasing cost pressures.
  • Expect to make more profits on better pricing going ahead.

Gopal Mahadevan, Chief Financial Officer At Ashok Leyland Speaks To BloombergQuint

Key highlights from the conversation:

  • Expect momentum for CV demand to continue moving ahead.
  • Higher Infra spending, road construction and decline in truck overloading aiding demand.
  • Oil and Gas, Logistics and FMCG sector are driving demand for trucks.
  • Economics for higher tonnage trucks have improved.
  • Auto ancillaries and vendors have been ramping up production to meet higher demand.
  • Order for Defence worth Rs 100 crores is one of its kind.
  • No point in getting market share via heavy discounting.

Jinesh Gopani, Head of Equities At Axis Mutual Fund Speaks To BloombergQuint

Key highlights from the conversation:

  • Big events like upcoming elections are the key to look for in markets.
  • Good monsoon to aid rural sector, increasing bets on same.
  • Have added technology, consumer and private sector banks to the portfolio
  • Maintaining position in auto space, will continue to buy on corrections.
  • IT sector remains decent till the time companies use margin for future growth.
  • domestic sector should continue doing well once earnings, rural economy pick up.

Sobha Rises On Plan To Invest Rs 500 Crore In Gujarat

Shares of the real estate developer rose as much as 3.3 percent to Rs 568.

The construction company plans to invest Rs 500 crore for a residential project in GIFT City, Gujarat, according to its stock exchange notification.

The stock trades at 21.6 times its estimated forward earnings per share compared to 16.5 times for the two-year historical average., according to Bloomberg data

Bajaj Electricals Surges To Record High After Order Win

Shares of the consumer electrical maker rose as much as 7.6 percent to surge to a record high at Rs 665.95.

The company bagged order worth Rs.3577.93 crore from Madhyanchal Vidyut Vitaran Nigam Ltd. from Uttar Pradesh state, according to its stock exchange notification.

Trading volume was 11.2 times its 20-day average, Bloomberg data showed. The stock trades at 64.2 times trailing 12-month earnings per share.

Idea Cellular Gains After Block Deals

Shares of the telecom operator rose as much as 3.1 percent to Rs 73.50.

About 4.23 crore shares or 1 percent equity changed hands in two block deals, according to Bloomberg data. Buyers and sellers were not known immediately.

Trading volume was 256.6 times its 20-day average. The stock declined 33 percent so far this year.

Opening Bell

Indian equity benchmarks traded higher for the ninth straight trading session, set to post its longest streak in nearly three-and-a-half years.

The S&P BSE Sensex Index opened 0.2 percent higher at 34,381.80, while the NSE Nifty 50 Index opened at 10,557.30, up 0.3 percent.

The market breadth was tilted in favour of buyers. Seven out of 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Metal Index's 0.7 percent gain. On the flipside, NSE Nifty IT Index was the top sectoral loser, down 0.4 percent.

BQ Heads Up

Ram Gopal, Director Of Refineries At India Oil Speaks To BloombergQuint

Key highlights from the conversation:

  • Have signed MoU with Saudi Aramco.
  • Saudi Aramco will hold equal partnership but stake is not finalised yet.
  • Maharashtra government is keen to provide land.
  • Tied-up with Aramco for setting up 60 million ton refinery in Ratnagiri.
  • Yet to decide holding stake for IOC, BPCL,HPCL and Aramco.
  • Ratnagiri refinery to cost almost Rs 3 lakh crore.
  • We are in talks with Maharashtra govt for land acquisition and other formalities.
  • Will be deciding weather to complete project in phases.

Watch the full conversation here:

Money Market Update

Investor appetite for rupee bonds will be tested today as state governments come to the market to raise Rs 88.50 billion by selling bonds. This is higher than the initial plan to raise Rs 68.5 billion. Important to note here that yield on the 10-year note is heading north again and climbed six basis points to 7.49 percent in the last session.

The only comfort investors can derive in this market is from the Met forecast of a nearly normal monsoon for the third year in a row. Yield may stay in a range of 7.45-7.52 percent in the session.

In the currency market, the dollar-rupee pair had little impact on U.S. decision to put India on a watch list for currency manipulation. The rupee fell 0.4 percent in the last session and is expected to open around the current levels of 65.45-65.50 a dollar. During the day, it may trade in a range of 65.30-65.60 a dollar.

F&O Cues

  • Nifty April futures closed trading at 10,543 with a premium of 14.6 points versus 9.8 points.
  • April series: Nifty open interest up 1 percent, Bank Nifty open interest up 4 percent.
  • India VIX ended at 14.2, up 0.8 percent.
  • Max open interest for April series at 10,700 (open interest at 44 lakh, up 9 percent).
  • Max open interest for April series at 10,300 (open interest at 55 lakh, up 6 percent).

F&O Ban

  • In ban: Balrampur Chini, IRB Infra, JP Associates, TV18 Broadcast and Reliance Communications.
  • New in ban: Reliance Communications.

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

  • Nifty PCR at 1.65 versus 1.63.
  • Nifty Bank PCR at 1.53 versus 1.45.

Brokerage Radar

Angel Broking on Parag Milk Foods

  • Initiated ‘Buy’ with a price target of Rs 333.
  • Likely to be one of the key beneficiaries of shift towards organized sector.
  • Product portfolio shifting towards high margin products.
  • Margin expansion to be highest in industry by March 2020.
  • Reducing leverage and improving return ratios.
  • Expect revenue and net profit to compound at 13 percent and 27 percent respectively over the fiscal 2018-2020.

IIFL on Prataap Snacks

  • Maintained ‘Buy’ with a price target of Rs 1,720.
  • Attractively placed to tap the huge opportunity in organised snacks.
  • Multiple revenue drivers in sight.
  • Expect revenue and net profit to compound at 19 percent and 107 percent over the fiscal 2017-2020.
  • Margin to improve led by raw material cost saving and favorable mix.
  • Prataap is attractively valued to nearest listed competitor.

Credit Suisse on NTPC

  • Maintained ‘Outperform’ with a price target of Rs 190.
  • Coal shortage situation has not eased.
  • Coal stocks remained well below last year level.
  • NTPC plants continue to face availability issue on coal.
  • Valuations attractive with multiple earnings growth catalysts.

Motilal Oswal on L&T Finance

  • Maintained ‘Buy’ with a price target of Rs 240; implying a potential upside of 41 percent from the last regular trade.
  • Post equity raise, NBFC well capitalised for growth.
  • Don’t need to raise equity capital at least for next 3-4 years.
  • Non-fund based businesses on a strong growth trajectory.

CLSA on Nestle

  • Downgraded to ‘Outperform’ from ‘Buy’; hiked price target to Rs 9,750 from Rs 8,950.
  • Working-capital improvement and strong free cash flow generation seen in 2017.
  • Return ratios improved, but remain below the past peak.
  • Aggression on launches has increased, but near-flat advertising spends disappoint.
  • Downgraded on 13 percent rally seen in past one month.

CLSA on M&M

  • Maintained ‘Buy’; raised price target to Rs 960 from Rs 910.
  • Rural demand outlook improved with normal monsoon forecast.
  • Big hike in government support prices for agri commodities on the anvil.
  • Launch of new MPV to boost utility vehicle segment volumes.
  • Good volume growth outlook.
  • Valuations attractive despite better earnings outlook.

Brokerages On India’s Monsoon Forecast

CLSA says

  • Normal monsoon forecast to aid rural recovery.
  • Agri output likely to stay steady.
  • Expect rural wage growth to pick up.
  • Key beneficiaries: ITC, Emami, M&M, Godrej Consumer and Ramco.

Morgan Stanley says

  • IMD projects normal monsoon.
  • Don't expect any adverse impact on underlying food inflation trends.
  • Government's procurement policy of crops will be key to watch.

Kotak says

  • Normal monsoon on the cards.
  • Premature to conclude on effects on growth and prices.
  • Forecast to bode well for the rural sector.
  • Expect extended pause from the RBI.

Bulk Deals

  • GSS Infotech: Nomura Singapore bought 1 lakh shares or 0.6 percent equity at Rs 61 each.
  • Majesco: Promoter Sudhakar Ram sold 1.50 lakh shares or 0.5 percent equity at Rs 520 each.
  • Goodluck India: Union KBC Equity Fund sold 2.35 lakh shares or 1 percent equity at Rs 86.74 each.

Teamlease Services

  • Franklin India Smaller Companies Fund bought 3 lakh shares or 1.8 percent equity at Rs 2,150 each.
  • Promoter HR Offshore Ventures PTE sold 1.70 lakh shares or 1 percent equity at Rs 2,150 each.
  • Promoter NED Consultants LLP sold 85,483 shares or 0.5 percent equity at Rs 2,150 each.

Stocks To Watch

  • WS Industries proposed a one-time settlement with SBI and discussed settlement with Edelweiss Arc among others.
  • Sobha will invest Rs 500 crore for residential project in GIFT City, Gujarat.
  • Sterlite Technologies board to consider raising funds through issue of securities on April 25.
  • Omkar Specialty Chemicals says Bank of Baroda classified its loan account as NPA.
  • Bajaj Electricals bags orders worth Rs 3,578 crore for rural and urban electrification projects in Uttar Pradesh.
  • Reliance Communications says NCLAT to hear tower sale appeal on tower sale on April 18.
  • BlueStar signs up with Sands International and its partners for distribution of products in Saudi Arabia.
  • Goa Carbon resumes operations at Orissa plant which was shut for maintenance.
  • Adani Ports signs long term regasification pact with Indian Oil for Dhamra LNG Terminal.
  • Fortis Board to meet on April 19 to consider various offers received.
  • HDFC says AMC units FY18 total revenue up 18 percent (YoY) to Rs 1,867 crore, net profit up 31 percent to Rs 721 crore.
  • Alok Industries says resolution professional seeks liquidation.
  • Amtek Auto says submitted resolution plan with NCLT.
  • Religare Enterprises received order from HC stating that the long stop date under SPA cannot be extended further.
  • JM Financial unit acquires additional 8.78 lakh shares in Spandana.

Talking Points

  • IMD forecast that India will recieve normal monsoon for a third consecutive year.
  • Here's what was on the shopping list of the top three mutual funds in India.
  • In charts: Why has India's trade deficit ballooned?.
  • Manufacturers may soon find themselves in a tax pickle thanks to a recent Supreme Court ruling.
  • Analysts say RBI will give rupee a freer rein after making it to the U.S. Treasury's forex watchlist.
  • In pictures: India at the Commonwealth Games 2018.
  • This tool will help you get out of bed quickly when a work emergency strikes.
  • Robots in the dockyard: How shipbuilders are automating.
  • Planning a vacation? Here are the best under-rated spots you can visit.

Commodity Cues

  • Gold rose 0.1 percent to $1,347.83 an ounce.
  • West Texas Intermediate crude rose 0.5 percent to $66.56 a barrel after dipping 1.7 percent on Monday in the first retreat in more than a week.
  • Brent traded higher at $71.8 per barrel; up 0.5 percent.
  • Sugar snaps two-day winning streak ends lower at 12.2 cents per pound; down 0.3 percent.

Shanghai Exchange

  • Steel traded lower for second day; down 1.2 percent.
  • Aluminium traded higher for third day; up 2.4 percent (highest level since Jan. 30).
  • Zinc traded higher for second day; up 0.3 percent.
  • Copper snapped three-day losing streak; up 0.8 percent.
  • Rubber traded lower for second day; down 1.7 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 10,535 as of 7:15 a.m.

Stocks in Asia edged higher at the open on Tuesday as investors assessed early indications from America’s corporate earnings season and traders awaited a slew of data on China’s economy.

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