All You Need To Know Going Into Trade On April 10

Asian stocks edged lower as traders look for any response to the barrage of tariff threats from the Trump administration in a speech from China President Xi Jinping, and U.S. political risks reemerge.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded flat at 10,387.50 as of 6:55 a.m.

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BQ Live

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

Global Cues

• The rally in U.S. stocks faltered in the final hour of trading, with a report that federal agents raided the offices of President Donald Trump’s lawyer adding to the swoon.
• The yield on 10-year Treasuries added one basis point to 2.7753 percent.

Europe Check

• European stocks ended the session little changed, trimming an earlier gain of as much as 0.6 percent, as a stronger euro weighed on exporters.

• The euro gained 0.3 percent to $1.2321.
• The British pound advanced 0.3 percent to $1.4132.
• Britain’s 10-year yield increased one basis point to 1.407 percent.
• Germany’s 10-year yield climbed one basis point to 0.504 percent.

Asian Cues

• Japan’s Topix index fell 0.4 percent as of 9:14 a.m. in Tokyo.
• Australia’s S&P/ASX 200 Index fell 0.2 percent.
• The Kospi index lost 0.8 percent.
• Futures on Hong Kong’s Hang Seng Index added 0.3 percent.
• Futures on the S&P 500 fell 0.1 percent.

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

• China’s Xi gives a keynote address at Boao Forum Tuesday.
• Facebook Inc. Chief Executive Officer Mark Zuckerberg testifies at two Congressional hearings Tuesday and Wednesday.
• U.S. CPI data and FOMC minutes due Wednesday.
• JPMorgan Chase & Co. and Citigroup Inc. report first-quarter earnings Friday.
• India car sales data for March

Commodity Cues

• West Texas Intermediate crude fell 0.3 percent to $63.25 a barrel after climbing 2.1 percent Monday.
• Brent traded 0.2 percent lower at $68.51 per barrel.
• Gold was little changed at $1,337.44 an ounce.
• Sugar ended higher at 12.4 cents per pound; up 0.2 percent.

Shanghai Exchange

• Steel traded higher for second day; up 2.1 percent.
• Aluminium traded higher for second day; up 1.1 percent.
• Zinc snapped three-day losing streak; up 0.3 percent.
• Copper snapped two-day losing streak; up 0.7 percent.
• Rubber traded higher for second day; up 0.4 percent.

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Stocks To Watch

• Axis Bank board has accepted Shikha Sharma’s request to shorten her new three-year term till December 2018.
• Wipro said net income to see 65-75 basis points impact in fourth quarter as one of its client filed for insolvency.
• Max Financial approved submission of various fund raising proposal including from KKR, Stanchart, TPG.
• RBI allowed raising FPI limit in Future Supply Chain to 49 percent from 24 percent.
• Gravita India started commercial production of PPCP Granules at its Andhra Pradesh plant.
• HDFC raised Retail Prime Lending Rate (RPLR) by 20 basis points effective from April 1.
• Neuland Labs to issue 16.75 lakh equity shares via QIP; proceeds to be used for debt repayment and business growth.
• Dalmia said, it will fight against Binani in Supreme Court: Bloomberg.

Bulk Deals

• IRB Infrastructure Developers: Ascension Healthcare Master Pension Trust bought 18.62 lakh shares or 0.5 percent equity at Rs 243 each
• Suven Life Sciences: Canara Robeco MF sold 7.14 lakh shares or 0.6 percent equity at Rs 171.48 each.

ICICI Bank

• Merrill Lynch Marchkets Singapore Pte. Ltd bought 2.94 crore share 0.5 percent equity at Rs 280 each.
• Baillie Gifford Emerging Marchkets Fund sold 2.94 crore shares or 0.5 percent equity at Rs 280 each.

Lemon Tree Hotels

• Mirae Asset Asia Sector Leader Equity Fund bought 51.5 lakh shares at Rs 65.61 each.
• DB International Asia sold 44.62 lakh shares at Rs 62.07 each.

Indian ADRs

Trading Tweaks

• Powerhouse Gym & Wellness ex-date for 1:20 bonus

Who’s Meeting Whom?

• V2 Retail to meet Kitara Capital on April 10.
• Hikal Ltd to meet investors / analysts from April 10 – 11.
• Magma Fincorp to meet Investec on April 11 and Janchor on April 12.
• Purvankara to meet Sundaram AMC, West Bridge Capital, Goldman Sachs and Premji Invest on April 10.
• Ramco Cement to meet investors from April 11 – 13.
• Hind Rectifiers to meet IIFL Wealth on April 10.
• Bodal Chemicals to meet B&K Securities on April 11.
• Shriram City Union Finance to meet Maybank & Newton Investment on April 10.
• Royal Orchid Hotels to meet Bank of India AXA on April 10.

Insider Trades

• Nirlon Ltd promoter Shital Trading & Interiors sold 7,100 shares from March 12 – 22.
• Deepak Fertilizers promoter Nova Synthetic acquired 20,000 shares on April 4.
• S H Ke lakhar promoter Kedar Vaze sold 71,611 shares from April 4 – 6.
• Avadh Sugar promoters acquired 95,000 shares from April 5 – 6.

Rupee

• Rupee closed at 65.03/$ on Monday from 64.98/$ on Friday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty April futures closed trading at 10,393.9 with a premium of 14.6 points from 27 points.
• April series: Nifty open interest up 2 percent, Bank Nifty open interest down 2 percent.
• India VIX ended at 14.8, up 0.8 percent.
• Max open interest for April series at 10,500 call strike (open interest at 39.6 lakh, up 6 percent).
• Max open interest for April series at 10,000 Put (open interest at 46.3 lakh, down 6 percent).

F&O Ban

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 a rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.43 from 1.44.
• Nifty Bank PCR at 1.67 from 1.70.

Fund Flows

Brokerage Radar

Ventura on Raymond

• Initiated ‘Buy’ rating with a price target of Rs 1,535.
• Raymond’s performance now at an inflection point.
• Well thought out strategy to propel earnings.
• Expect revenue, operating income and net profit to compound atr 12 percent, 28 percent and 81 percent respectively by March 2020.
• High growth of branded apparel segment is the primary driver.
• Apparel market presents enormous growth opportunity.
• Turnaround of non-core assets to be further growth drivers.
• Firming of strategic monetisation plans on real estate business to lead to significant re-rating.
• Value the 125-acre Thane land at Rs 3,125 crore.

Credit Suisse on Hindalco

• Maintained ‘Outperform’ with a price target of Rs 310.
• Aluminium has bounced sharply from bottom, driven by news of sanctions on Rusal.
• Impact of these sanctions is unclear.
• Hindalco's EV/EBITDA multiples near six-year lows.
• May be some concerns on global growth given renewed.
• geopolitical tensions in Syria.

IIFL on Torrent Pharma

• Maintained ‘Buy’; raised price target to Rs 1,560 from Rs 1,400.
• No major acquisitions/capital raising planned.
• Initial trends from Unichem acquisition are in line with expectations.
• US continues to be one of the key focus markets.
• Torrent remains one of the top picks in sector, driven by its strong India business.

Deutsche Bank on India Real Estate

• Godrej Properties: Initiated ‘Buy’ with a price target of Rs 1,000.
• Oberoi Realty: Initiate ‘Buy’ with a price target of Rs 650.
• Real estate sector entering a structured growth phase.
• Worst of sector specific policy drags is behind.
• Cyclical recovery momentum is beginning to turn supportive.
• Improving demand-supply dynamics in commercial segment.
• Demand-supply dynamics gradually bottoming out in residential property market.
• Sector under-owned by domestic mutual funds which is beginning to reverse now.
• Valuations appear expensive as they reflect cyclical lows in activity momentum.
• Valuations do not price in potential cyclical acceleration.

IDFC Securities on IPCA Labs

• Maintained ‘Outperform’; raised price target to Rs 920 from Rs 753.
• Believe the worst is over for IPCA.
• Domestic formulations and branded formulation exports are normalizing.
• Global Fund institutional malaria sales to resume from the current quarter.
• Expect potential resolution of FDA issues by second half of the current financial year to drive growth
• Expect revenue, operating income and net profit to compound at 16 percent, 30 percent and 37 percent over the fiscal 2018-2021.
• IPCA is one of the preferred mid-cap stock.

IDFC Securities on Axis Bank

• Maintained ‘Neutral’ with a price target of Rs 605.
• Change in top management is positive in long run.
• New CEO would join when most of the clean-up is done.
• Expect short term pressure on asset quality and growth.
• Possibility of the stress loan pool rising over reported levels.

Macquarie on Axis Bank

• Maintained ‘Outperform’ with a price target of Rs 651.
• CEO to step down in December 2018.
• Management transition needs to now be managed well.
• Appointment of credible successor will be critical for bank’s performance.
• There may be significant challenges to growth and operations.

Edelweiss on Metals

• Aluminium gained 7 percent after U.S. imposed sanctions on Rusal.
• This adds to the alumina cost push post partial closure of Alunorte.
• Believe that both Vedanta and Hindalco are likely to benefit.
• Novelis might face cost pressures in near term.
• Supply disruption, alumina cost push and low inventory to render support to aluminium prices.

CLSA on Future Lifestyle

• Initiated ‘Buy’ with a price target of Rs 535.
• Future Lifestyle is an integrated play on premium and value retailing.
• Brand Factory - Unique business model.
• Central focuses on premiumization.
• Brands business - Emerging option value.
• Expect Brand Factory and Central revenue to compound at 31 percent and 18 percent respectively over the financial years till march 2021.
• Expect 22 percent compounded growth rate in operating income over 2018-2021.
• Balance sheet on an improving trajectory.
• Possibility of stake sale in investee brands to create value.