Sensex, Nifty Resume Rally After One-Day Blip

Indian equity benchmarks resumed rally after a one-day blip led by strong gains in metal stocks which rose after aluminium prices rose to multi-year highs in international markets.

The S&P BSE Sensex rose 95.61 points or 0.28 percent to 34,427.29 and the NSE Nifty 50 index advanced 0.37 percent or 39.10 points to 10,565.30.

Fourteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Metal index's 4.46 percent surge. On the other hand, the S&P BSE Oil & Gas index was the top sectoral loser, down 1.3 percent as oil retailers slumped after Brent Crude topped $74 a barrel mark for the first time since May 2015.

The mid- and small-cap shares outperformed their large-cap counterparts as the S&P BSE MidCap and S&P BSE SmallCap indices rose 0.6 percent each.

Shares of the Mumbai-based owner of coffee, cardamom, tea and rubber plantation rose as much as 10.4 percent to Rs 1,511.70, on top of yesterday's 7.77 percent rally.

Shares of the luggage bag maker rose 2.92 percent to record high of Rs 426.25.

The luggage industry is likely to grow 15-20 percent as rising incomes means Indians are travelling a lot more.

With a significant pick-up in sectors such as aviation, and rail and road transport, the demand for travel bags has risen, Dilip Piramal, chairman of VIP Industries Ltd., India’s largest homemade luggage company, told BloombergQuint in an interview.

Shares of liquor makers staged an up move led by sharp surge in Radico Khaitan.

• Radico Khaitan up 8 percent
• GM Breweries up 1.4 percent
• Som Distilleries up 2.72 percent
• Globus Spirits up 3.47 percent
• Pincon Spirit up 5 percent
• Pioneer Distilleries up 1.90 percent

• Indian equity benchmarks held on to gains led by buying metal counters. However, the gains were capped as oil retailers and private sector lenders came under selling pressure.
• The S&P BSE Sensex rose 0.16 percent to 34,383 and the NSE Nifty 50 index advanced 0.28 percent to 10,556.
• Fourteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's 4.7 percent gain. On the flipside, the S&P BSE Oil & Gas index was the top sectoral loser, down 1.6 percent.
• The mid- and small-cap shares were outperforming their large-cap counterparts as the S&P BSE MidCap index rose 0.6 percent and the S&P BSE SmallCap index 0.52 percent.
• The overall market breadth was marginally positive as 1,320 stocks were advancing while 1,274 were declining on the BSE.

Top Nifty gainers

• Hindalco up 9.39 percent
• Vedanta up 7.40 percent
• UltraTech Cement up 3.43 percent
• Tata Steel up 3.39 percent
• Yes Bank up 2.55 percent

Top Nifty losers

• Bharat Petroleum down 7 percent
• Hindustan Petroleum down 6.59 percent
• Indian Oil down 4.64 percent
• Titan down 2.52 percent
• Axis Bank down 1.19 percent

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• Hindalco: The Mumbai-based aluminium and copper producer rose as much as 9.97 percent, the most in 23 months, to Rs 266.40 after aluminium prices hit multi year high in international markets.
• Phoenix Mills: The Mumbai-based real estate company rose as much as 6.55 percent to Rs 643.40 after Motilal Oswal initiated coverage on the stock with a buy for target price of Rs 732.
• Vascon Engineers: The Pune-based real estate developer rose as much as 4.7 percent to Rs 34.80 after it won orders amounting to Rs 119 crore.
• UltraTech Cement: The Mumbai-based cement maker rose as much as 4.17 percent to Rs 4,159 after it commissioned greenfield clinker capacity of 2.5 million tonnes per annum at Dhar in Madhya Pradesh.

Shares of the country's largest IT company rose as much as 1. percent to Rs 3,217.20 ahead of its March quarter earnings.

Below are Bloomberg consensus estimates for March quarter earnings:

• Dollar revenue seen up 2.3 percent at $4,896 million versus $4,787 million
• Total income seen up 2.4 percent at Rs 31,660 crore versus Rs 30,904 crore
• EBIT seen up 3.6 percent at Rs 8,063 crore versus Rs 7,781 crore
• EBIT margins seen at 25.5 percent versus 25.2 percent
• Profit seen up 4.3 percent at Rs 6,810 crore versus Rs 6,531 crore

• ICICI Bank has 34.2 lakh shares change hands in a single block. Stock down 0.14 percent at Rs 289.65.
• Axis Bank has another 17.5 lakh shares change hands in a single block. Stock down 1.34 percent at Rs 511.
• Axis Bank has 20 lakh shares change hands in a block. Stock down 1.2 percent at Rs 509.10.
• Aditya Birla Fashion and Retail has 20 lakh shares change hands in a block. Stock up 0.2 percent at Rs 148.

Buyers and sellers were not immediately known

Source: Bloomberg

Ramesh Sobti, MD and CEO of IndusInd Bank, in a press conference after reporting March quarter earnings said:

• Q4 PAT growth came in at 27 percent despite the fact that industry suffered mark-to-market losses on bonds.
• Trading income fell 56 percent
• Interest margin remained stable
• Raised MCLR by 40 basis points
• Credit growth came in at 28 percent, saw solid growth in vehicle finance business
• QoQ disbursements for vehicle finance rose 12 percent (QoQ); 47 percent (YoY)
• MHCV finance disbursements grew 22 percent (QoQ); 67 percent (YoY)
• Have classified a diamond trader's account as fraud
• On track to open 2,000 branches
• Client base grew at 11 million
• Credit cost flat at 62 basis points (YoY)
• Targeting customer base of 20 million

Shares of the Mumbai-based private sector lender fell 1.6 percent to Rs 1,814 after it reported divergence in NPAs to the tune of Rs 1,350 crore in March quarter. The bank met Bloomberg consensus estimates in the recently concluded quarter.

Key earnings highlights:

• Net interest income (NII) up 20.4 percent at Rs 2,007.6 crore versus Rs 1,667.4 crore (YoY)
• Net profit up 26.8 percent at Rs 953.09 crore versus Rs 751.61 crore (YoY); Bloomberg estimate of Rs 964 crore
• Divergence in Gross nin-performing assets (NPA) at Rs 1,350 crore
• Gross NPAs as a percentage of total advances at 1.17 percent versus 1.16 percent (QoQ); 0.93 percent (YoY)
• Net NPAs as a percentage of total advances at 0.51 percent versus 0.46 percent (QoQ); 0.39 percent (YoY)
• Provisions at Rs 335.5 crore versus Rs 236.1 crore (QoQ); Rs 430 crore (YoY)

• Merck: The Mumbai-based drug maker rose as much as 20 percent to record high of Rs 1,812. Trading volume was 105.2 times its 20-day average.
• Hindustan Copper: The Kolkata-based copper producer rose as much as 14.29 percent to Rs 81.60. Trading volume was 12.4 times its 20-day average.
• Coffee Day Enterprises: The Bangalore-based cafe chain operator rose as much as 7.4 percent to Rs 326.75. Trading volume was 10.4 times its 20-day average.
• Take Solutions: The Chennai-based IT company rose as much as 10.6 percent to record high of Rs 215.80. Trading volume was 7.5 times its 20-day average.

S&P BSE Metal Index surged as much as 4.15 percent to a 6-week high, best performer among 19 sector gauges.

Aluminum and nickel led a surge in metals prices amid turmoil unleashed by U.S. sanctions against United Co. Rusal.

Hindustan Copper, National Aluminium, MMTC, Hindalco among best performers on S&P BSE 500, Nifty 500 indexes

• Hindustan Copper jumps as much as 13 percent to highest since Feb. 14
• National Aluminium as much as 10 percent, most since Sept. 7
• MMTC as much as 9.5 percent to highest since March 19
• Hindalco Industries as much as 7 percent to highest since Feb. 2
• Vedanta as much as 5.8 percent to highest since March 19
• Tata Steel as much as 3.6 percent to highest since March 14

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India's 10-year sovereign bonds declined, with the benchmark 10-year yield rising to its highest level since March 21.

• Two-judge National Company Law Appellate Tribunal panel directs hearing on Binani Cement insolvency case to continue in National Company Law Tribunal.
• Appellate tribunal defers hearing on Binani Industries’ appeal against decision of lenders to choose Dalmia’s offer to May 9.

Source: Bloomberg

Shares of the Kolkata-based carbon black maker were locked in a 5 percent upper circuit at Rs 236.95 after it went ex-stock split in ratio of 5 shares to one.

• Hathway Cable and Datacom has 1.9 crore shares or 2.3 percent equity change hands in a block on BSE. Stock up 4.3 percent at Rs 42.40.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Hyderabad-based defence equipment maker rose as much as 4.25 percent to record high of Rs 421.90 after it signed an agreement with Defence Research Development Organisation (DRDO) for Astra MK-1 Weapon System.

Nifty 10,600 was among the most active call option contracts on the National Stock Exchange. The premium on the contract rose 14.45 percent to Rs 45.55.

Over 5.44 lakh shares were added to open interest of 41.17 lakh shares.

Click here to see complete options chain

Shares of the state-run oil retailers fell after Brent Crude price rose above $74 a barrel, its highest level since May 2015.

Higher crude oil prices lead to lower margins for oil retailers.

• Indian Oil fell 3.6 percent
• Bharat Petroleum declined 4.91 percent
• Hindustan Petroleum fell 4.97 percent

Shares of the Mumbai-based real estate company rose as much as 6.55 percent to Rs 643.40 after Motilal Oswal initiated coverage on the stock with a buy for target price of Rs 732.

Motilal Oswal in a note said:

• See huge growth opportunity in India’s retail industry.
• Expect revenue/EBITDA/net profit to grow at a CAGR of 15 percent/16 percent/37 percent respectively over FY18-20.
• Expect strong cash flows from operations going forward.

Shares of the Hyderabad-based metal alloy maker were locked in a 10 percent upper circuit at Rs 169.10 for second day in a row.

The company has signed two confidential pacts in the recently concluded Defence Expo India 2018, Mishra Dhatu said in an exchange filing.

Shares of the Mumbai-based dairy products maker rose as much as 3.6 percent to Rs 282.95 after it acquired Danone India's manufacturing facility of curd, yogurt and other related products near Delhi, the company said in an exchange filing.

The acquisition will help expand its footprint in North India, the exchange filing added.

Shares of metal producers were trading higher led after copper and aluminium prices rose in international markets.

Aluminium prices settled 5.49 percent higher on the London Metal Exchange. While, copper rose 2.1 percent in trade yesterday.

Gauge of metal shares on the BSE — the S&P BSE Metal index rose 2.18 percent led by NALCO, Hindalco and Vedanta.

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Shares of the Ahmedabad-based hospital operator rose as much as 3.4 percent to Rs 232.80 after Elara Capital initiated 'buy' on the stock with a target price of Rs 275.

Elara Capital in a note said:

• Best placed to capture the orthopedic care treatment opportunity.
• Asset-light operating model with better cost structure.
• New hospitals to start contributing; Mature hospitals to contribute the most.
• Expect revenue and operating income to compound at 27 percent and 25 percent respectively over the fiscal 2018-2020.
• EPS to double to Rs 7.4 by March 2020; RoCE to improve by 200 basis points over the fiscal 2018-2020.
• With zero net debt company in sweet spot to explore inorganic opportunities.

Shares of the Delhi-based hospital chain operator rose as much as 2.87 percent after Hero Enterprises led by Sunil Kant Munjal and Burman family revised offer for Fortis Healthcare.

Munjals and Burmans have offered to invest Rs 1,500 crore directly into Fortis.

Shares of the Mumbai-based cement maker rose as much as 2.96 percent to Rs 1,620 after it beat consensus Bloomberg estimates in the first quarter.

Key earnings highlights:

• Net sales rose 15 percent to Rs 3,557 crore versus estimate of Rs 3,508 crore
• EBITDA rose 18 percent to Rs 491 crore versus estimate of Rs 380 crore
• Net profit advanced 15.8 percent to Rs 245.1 crore versus estimate of Rs 189 crore
• ACC said increased government spending on infrastructure is expected to reinvigorate the construction sector and boost demand for cement and concrete during 2018

Indian equity benchmarks edged higher led by gains in ITC, Hindalco, Vedanta and Tata Steel.

The S&P BSE Sensex rose 0.3 percent or 117 points to 34,451 and the NSE Nifty 50 index gained 0.35 percent or 37 points to 10,563.

Fifteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's 1.6 percent gain. On the flipside, the S&P BSE Oil & Gas index was the top sectoral loser, down 0.6 percent.

The rupee depreciated 15 paise to 65.81 against the US dollar in opening trade at the interbank forex market today on increased demand for the greenback from importers and banks amid soaring crude oil prices overseas.

Foreign capital outflows too weighed on the domestic unit.

However, weakness in the US dollar against select currencies and higher opening in domestic equity market capped the fall in the rupee, dealers said.

Yesterday, the rupee had slipped by 2 paise to settle at a seven-month low of 65.66 against the US currency due to sustained dollar demand.

On a net basis, foreign funds sold worth equities Rs 915.71 crore yesterday, provisional data showed.

Source: Press Trust of India

Munjals and Burmans offer to invest Rs 1,500 crore directly into Fortis Healthcare.

Speaking to BloombergQuint Sunil Kant Munjal said:

• Company at this time does not have enough time to go through due diligence process
• Multiple offers making it difficult for the decision makers
• Waiving of due diligence could ease of process
• No plans to buy shares from open market
• Offer revised to benefit company
• Believe the new offer will meet every need of the company

Sovereign bonds may open lower today tracking a surge in crude oil prices and a rise in U.S. treasury yields. The market seems is caught in a tug of war. While the number of government measures helped revive sentiment, rising oil prices and more borrowing by state governments is posing a challenge.

The 90-day historical volatility for the 10-year note has surged to a 13-month high. The important thing to watch for today will be the minutes of RBI's April monetary policy meeting, which investors feel was dovish in its tone.

In the currency market, the rupee was little changed in the last session at 65.6625 a dollar. Implied opening suggests a sharply lower opening at around 65.83. The pressure from oil prices persist and investors see the pair trading in a range of 65.60-65.95 in the day.

Elara Capital on Shalby

• Initiated ‘Buy’ with a price target of Rs 275.
• Best placed to capture the orthopedic care treatment opportunity.
• Asset-light operating model with better cost structure.
• New hospitals to start contributing; Mature hospitals to contribute the most.
• Expect revenue and operating income to compound at 27 percent and 25 percent respectively over the fiscal 2018-2020.
• EPS to double to Rs 7.4 by March 2020; RoCE to improve by 200 basis points over the fiscal 2018-2020.
• With zero net debt company in sweet spot to explore inorganic opportunities.

Citi on Adani Ports

• Maintained ‘Buy’ with a price target of Rs 575.
• Healthy volume growth to continue.
• Cash flows are improving.
• Capex to decline over next 2-3 years.
• Top-pick in India infrastructure.

Citi on InterGlobe Aviation

• Maintained ‘Buy’ with TP of Rs 1,600.
• Domestic passenger air traffic growth unabated.
• Marginal decline in IndiGo's market share due to forced grounding.
• Expect improvement in market share going forward.

Prabhudas Lilladher on Mindtree

• Maintained ‘Accumulate’; raised price target to Rs 930 from Rs 685.
• March quarter was strong; Revenue and Ebitda beat estimates.
• Current fiscal’s full year margin guidance remains conservative.
• Preponing of wage hikes is positive; Indicates robust revenue growth outlook.
• Mindtree is likely to grow twice the pace of TCS in the current financial year.

MOSL on Mindtree

• Maintained ‘Buy’; raised price target to Rs 1,000 from Rs 725.
• March quarter’s revenue beat estimates despite BFSI weakness.
• Strong exit to an overall subdued year.
• Strong revenue momentum to offset lower other income and higher tax rate.
• Expect $ Revenue and earnings to compound at 14 percent and 29 percent over the fiscal 2018-2020.

Prabhudas Lilladher on HDFC Standard Life

• Maintained ‘Buy’; raised price target to Rs 518 from Rs 500.
• Positive surprise on new business margins.
• APE growth was quite robust compared to peers.
• Margins to improve as share of protection increases and ULIP mix remains the same.

MOSL on HDFC Standard Life

• Maintained ‘Buy’ with a price target of Rs 475.
• March quarter was a steady quarter; Business momentum remains strong.
• Return ratios remain steady; Dividend payout healthy at 30 percent.
• Expect 26 percent compounded growth rate in new business APE over the fiscal 2018-2020.
• Valuations to sustain at premium levels.

• IndusInd Bank
• TCS
• Reliance Power

ACC Q1CY18 (YoY)

• Net sales up 14.4 percent at Rs 3,556.9 crore versus Rs 3,108.1 crore
• EBITDA up 17.9 percent at Rs 491 crore versus Rs 416.1 crore
• EBITDA margin at 13.8 percent versus 13.4 percent
• PAT up 15.8 percent at Rs 245.1 crore versus Rs 211.5 crore

Mindtree Q4 (QoQ)

• Revenue up 6 percent at Rs 1,464 crore versus Rs 1,378 crore
• Net profit up 29 percent at Rs 182 crore versus Rs 141.5 crore
• EBIT up 19 percent at Rs 197 crore versus Rs 166 crore
• Margin at 13.5 percent versus 12 percent

HDFC Standard Life Insurance Q4 (YoY)

• Net premium income up 24 percent at Rs 8,900 crore versus Rs 7,178 crore
• Net profit up 40 profit at Rs 347crore versus Rs 247 crore
• Loss from Investment at Rs 937 crore versus income of Rs 4,866 crore

• Tata Steel is said to buy 75 percent of Bhushan Steel (The Economic Times)
• Minority shareholders of Fortis call for EGM to remove 4 directors; IHH says it is ready to infuse Rs 4,000 crore
• Parag Milk buys Danone India manufacturing facility near Delhi
• Mercator says coal mining operations in Indonesia have attained near optimum levels. Also, revenue from third party logistics operations and coal handing have also stabilized
• Dynamatic Technologies signs MoU with France’s Daher Aerospace
• Mishra Dhatu Nigam signed 2 pacts in Defence Expo India 2018 (Bloomberg)
• IHH is said to ask for time, financial details before Fortis bid (Bloomberg)
• Six more Indian states to roll out intra state e-way bills
• India, U.K. sign £1 billion of commercial deals (Bloomberg)
• Infosys clarifies it has not received any anonymous whistleblower complaint
• GEE to enter into pact with Avion Investments for development of IT Pak Project at Thane Plant
• Container Corp to consider stock split on April 30
• ABG Shipyard IRP invites fresh bids for the company
• Infibeam gets online marketplace contract from NSDC
• Dynemic Products gets closure notice for Gujarat unit from Gujarat Pollution Control Board
• NMDC cuts prices of lump ore and fines by Rs 100 each to Rs 2,900/tonne and Rs 2,560/tonne with effect from April 18

For a complete list of stocks to watch, click here

• Nifty April Futures closed trading at 10,538 with a premium of 12.6 points versus 2.5 points.
• April series Nifty open interest (OI) up 1 percent, Bank Nifty OI down 5 percent.
• India VIX ended at 14.01, up 0.5 percent.
• Max OI for April series at 10,700 strike price call option, OI at 50.5 lakh shares, up 9 percent.
• Max OI for April series at 10,400 strike price put option, OI at 51.4 lakh shares, OI down 2 percent.

Stocks Seeing High Open Interest Change

DCB Bank

• Abu Dhabi Investment Authority bought 21 lakh shares or 0.7 percent equity at Rs 198.18 each.

GSS Infotech

• Elara India Opportunities Fund bought 6.50 lakh shares or 3.8 percent equity at Rs 74 each.
• Nomura Singapore bought 5 lakh shares or 3 percent equity at Rs 74 each.

Huhtamaki PPL

• Promoter Huhtavefa B.V bought 5.50 lakh shares or 0.7 percent equity at Rs 353.55 each.
• Amar Chhajed sold 5.50 lakh shares or 0.7 percent equity at Rs 353.55 each.

Teamlease Services

• Kotak India Mid-Cap Fund bought 5.82 lakh shares or 3.4 percent equity at Rs 2,210 each.
• Gaja Capital India Fund I sold 1.07 lakh shares or 0.6 percent equity at Rs 2,210 each.
• GPE (India) sold 5.75 lakh shares or 3.4 percent equity at Rs 2,210 each.

Tata Sponge Iron

• AJO Emerging Markets Small-Cap Master Fund sold 81,844 shares or 0.5 percent equity at Rs 1,148.41 each.

Trading Tweaks

• Phillips Carbon Black ex-date for 5:1 stock split.
• Foods & Inns ex-date for 10:1 stock split.
• Sequent Scientific last trading day under T group.

• Fed says tariff concerns cloud otherwise solid growth outlook
• Fortis shareholders call for EGM to remove four directors from its board
• ICICI Bank loan case: CBI questions CFO of NuPower Renewables
• U.S. debt load seen worse than Italy’s by 2023, IMF predicts
• Facebook gets its first downgrade since Cambridge Analytica
• IHH asks for time, financial details before Fortis bid
• UIDAI brings updated QR code for offline Aadhaar verification
• Taxman warns salaried class against filing wrong returns
• Air passenger traffic grows the fastest in 32 months
• RBI steps up defence of its new stressed asset framework
• No plastic surgery, act your age: Aswath Damodaran on Infosys
• Lightsource BP, Everstone forms green fund focused on India

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.48 percent to 10,605 as of 6:21 a.m.

Asian stocks traded mostly higher following a U.S. session dominated by the drop in Treasuries, as investors continue to assess the speed of monetary policy tightening. The dollar was little changed and the yen drifted.

Here’s what to watch out for this week:

• Finance ministers and central bank chiefs from around the world gather for spring meetings at the IMF in Washington.
• Bank Indonesia will probably hold its benchmark at 4.25 percent, extending a pause after easing in August and September was followed by bouts of rupiah weakness.

Commodities

• West Texas Intermediate crude rose 0.4 percent to $68.76 a barrel.
• Gold rose 0.1 percent to $1,350.64 an ounce.
• LME copper rose 0.2 percent to $7,037.00 per metric ton.