A trader works on the trading floor of the Multi Commodity Exchange of India in Mumbai, India. (Photographer: Amit Bhargava/Bloomberg News)

All You Need To Know Going Into Trade On April 10

Asian stocks declined Wednesday after renewed concern about a global economic slowdown and an escalation in trade tensions.

Shares in Japan bore the brunt of losses, with equities seeing modest declines in Seoul and Sydney. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 11,713 as of 7 a.m.

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BQ Live

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

U.S Market Check

U.S. stocks ended the longest winning streak in 18 months Tuesday amid renewed concerns about slowing global growth and an escalation of trade tensions. Treasuries advanced.

Also read: Trump Has a Message for the World: My Trade Wars Aren't Over Yet

Asian Cues

  • Japan’s Topix index lost 0.9 percent.
  • Hang Seng Index futures earlier declined 0.4 percent.
  • South Korea’s Kospi slid 0.3 percent.
  • Australia’s S&P/ASX 200 Index dropped 0.1 percent.
  • Futures of S&P 500 were little changed.

Also read: Saudi Aramco Sells $12 Billion of Bonds in Unprecedented Debut

Commodity Cues

  • Brent crude traded 0.3 percent higher at $70.83 per barrel.
  • West Texas crude added 0.4 percent to $64.22 a barrel.
  • Gold was little changed at $1,304.64 an ounce.

Also read: Putin Keeps Options Open on Possible Extension of OPEC+ Oil Cuts

London Metal Exchange

  • Aluminium halted a three-day fall, ended 0.37 percent higher.
  • Copper ended higher for the second consecutive trading session, up 0.19 percent.
  • Lead resumed declines after a one-day breather, ended 0.78 percent lower.
  • Tin halted a five-day decline, ended 0.24 percent higher.
  • Zinc ended lower for the second day, down 1.55 percent.
  • Nickel ended higher for the second consecutive trade, down 0.11 percent.

Also read: Don’t Bet on More Platinum Supply Anytime Soon

Key Data/Events To Watch This Week

  • U.S. banks begin reporting first-quarter earnings, led by JPMorgan and Wells Fargo.
  • The spring meetings of the World Bank Group and the IMF continue in Washington.
  • The Federal Reserve release minutes of its March meeting Wednesday.
  • The ECB will probably leave its key interest rates unchanged Wednesday. Investors will be looking for further details on TLTRO.

Also read: IMF Cuts Global Growth Outlook to Lowest Pace Since Crisis

Indian ADRs

All You Need To Know Going Into Trade On April 10

Stocks To Watch

  • The State Bank of India reduced its MCLR and home loan rates with effect from April 10. The MCLR was reduced by five basis points across various tenors, with one-year MCLR at 8.5 percent. Home Loan interest rates were cut by 10 basis points for loans up to Rs 30 lakh, applicable interest rates for housing loans to range from 8.6 percent to 8.9 percent. Bank said that it will pass on the benefit of reduced repo rate to cash credit/ overdraft customers with effect from May 1.
  • IndusInd Bank announced pricing of its inaugural dollar denominated public bond for $400 million at a coupon rate of 3.875 percent per annum, payable semi-annually. The Notes will be listed on Singapore SGX and India INX (Gift City).
  • Praj Industries signed a construction license agreement with the U.S. based ‘Gevo’ to commercialize technology for production of lsobutanol using sugary-based feedstocks, such as juice, syrup and molasses.
  • Vodafone Idea said the rights issue of up to Rs 25,000 crore will open from April 10 till April 24. Last date for split application form is April 17. The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible equity shareholders. The issue will be for 20 billion fully paid up shares at Rs 12.5 per share aggregating to Rs 25,000 crore.
  • Tata Sponge Iron completed the acquisition of steel business including captive power plants of Usha Martin, pursuant to cash consideration of Rs 4,094 crore to Usha Martin. The decision for this corporate action was taken by the board on Oct. 24 last year through a slump sale on a going concern basis.
  • Kiri Industries: Singapore Court reserved its judgement in Dystar’s minority oppression case. The company said it will update the exchanges once the verdict is made available to them.
  • Lakshmi Vilas Bank said it will consider raising funds on April 12. The board stated in their press release that it is mulling to raise funds by preferential allotment of equity shares and additional tier I bonds.
  • Jet Airways pilots body served a legal notice to management for salary delays and set April 14 deadline. (Press Trust of India)
  • JSW Steel: Gagandeep Credit Capital increased its stake in the company from 1.91 percent to 1.97 percent, by acquiring additional 15 lakh shares, as per exchange filings.
  • Panacea Biotec has done one-time settlement with consortium lenders to resolve the current debt situation of the company. The company said that all consortium lenders had approved bilateral one-time settlement at 65 percent of their outstanding debt.
  • Mahindra CIE Automotive said that it completed 100 percent acquisition of Aurangabad Electricals.
  • Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will see the U.S. automaker cease its independent operations in the country. Under the terms of the deal being negotiated, Ford will form a new unit in India in which it will hold a 49 percent stake, while India’s Mahindra will own 51 percent. (Reuters)
  • Indian Overseas Bank reduced its MCLR by five basis points across various tenors with effect from April 10. One Month MCLR at 8.3 percent and one-year MCLR at 8.65 percent.
  • Mindtree to consider declaration of interim or special dividend on April 17. If the aforementioned dividend is approved, then the record date is set on April 27.
  • IDBI to consider exercising call option for Rs 500 crore worth of tier II bonds. (Bloomberg News)
  • Olectra Greentech board approved the allotment 27 lakh shares worth Rs 21.6 crore to promoter group Goldstone Power, against a conversion of balance 27 lakh warrant out 54 lakh warrants which were allotted to the promoter group in October 2017.
  • IndInfravit Trust board to consider and approve operational matters on April 17.
  • Info Edge increased its stake in ShoeKonnect to 29.79 percent for a consideration of Rs 6 crore.

Offerings

  • Polycab India Ltd. was subscribed 51.9 times on the last day of its IPO offering. The capital raising exercise for the company gets demand for 91.56 crore shares versus 1.76 crore shares offered. (Bloomberg News)

Bulk Deals

  • Zee Media: IFCI sold 32.4 lakh shares (0.69 percent) at Rs. 15.23 each.

PRICOL

  • AKG Finvest acquired 9.7 lakh shares (1.03 percent) at Rs.34.5 each.
  • Ashmore India Opportunities Fund sold 10.9 lakh shares (1.15 percent) at Rs 34.5 each.

MEP Infra Developers

  • Monarch Infra Ventures acquired 12.5 lakh shares (0.69 percent) at Rs. 40.15 each.
  • Premjayanti Enterprise acquired 13.5 lakh shares (0.74 percent) at Rs. 40.15 each.
  • GMO Emerging Illiquid Mauritius Fund sold 51.8 lakh shares (2.82 percent) at Rs.40.15 each.

Pledge Share Details

  • Max Financial Services promoter group Max Ventures Investment Holdings created pledge of 23.3 lakh shares on April 4.
  • Ashok Leyland promoter Hinduja Automotive created pledge of 3.9 crore shares on April 8.
  • Adani Enterprises promoter group Gautam Adani revoked pledge of 23.2 lakh shares on April 5.
  • Emami promoter groups released pledge of 12.77 lakh shares on April 5.
  • Bajaj Consumer Care promoter Bajaj Resources created pledge of 35.6 lakh shares on April 5.
  • Adani Transmission promote group Gautam Adani released pledge of 31.48 lakh shares on April 5.
  • Max India promoter group Max Ventures Investment Holdings created a pledge of 12 lakh shares on April 4.

(As reported on April 9)

Trading Tweaks

  • Bajaj Healthcare record date for bonus issue at 1:1.
  • HT Media record date for demerger.

Stocks Moving Into Short-Term ASM Framework:

  • Indo Count Industries
  • Religare Enterprises
  • Dilip Buildcon
  • Arvind Fashions
  • Arshiya
  • Ganesha Ecosphere
  • MT Educare
  • Bharat Road Network
  • Bharat Road Network
  • JBF Industries
  • Matrimony.Com
  • Lakshmi Vilas Bank

Stocks Moving Into ASM Framework:

  • Cantabil Retail India
  • Dhampure Speciality Sugars
  • Mishtann Foods
  • Reliance Communications
  • Vikas Proppant & Granite

Who’s Meeting Whom

  • DCM Shriram to meet B&K Securities on April 10.
  • IRB Infra Developers to meet MK Ventures on April 10.
  • Mahindra Lifespace Developers to meet Aditya Birla Sun Life AMC, Abakkus Asset Managers and Motilal Oswal Financial Services from April 10-18.
  • Mahindra Logistics to meet Aegon Life Insurance and Quest Investment Advisors from April 10-16.

Insider Trading

  • Crest Ventures promoter Fine Estates acquired 46,000 shares from April 5-8.

Money Market Update

  • The rupee on Tuesday snapped its three-day losing streak to close at 69.68/$. It closed at 69.30/$ on Monday.

F&O Cues

April Futures

  • Nifty open interest up 1 percent adds 1.7 lakh shares in open interest.
  • Bank Nifty open interest unchanged.
  • Nifty futures premium at 70.4 points, closed trading at 11,742.3.
  • Bank Nifty futures premium at 201 points Vs 165.56, closed trading at 30,314.8.

Options

  • Nifty PCR at 1.47 versus 1.38 (across all series).

Nifty Weekly Expiry (April 11)

  • Max open interest at 11,800 Call (18.3 lakh shares), 11,600 Put (18 lakh shares) and 11,500 Put (15.5 lakh shares).
  • Open interest addition seen at 11,850 Call strike, adds 6.4 lakh shares in open interest.
  • Open interest addition seen at 11,600 Put, adds 5.3 lakh shares.
  • Open interest shedding seen at 11,700 Call strike, sheds 8 lakh shares in open interest.

Nifty Monthly Expiry (April 25)

  • Max open interest at 12000 Call (28.7 lakh shares) and 11,000 Put (27.2 lakh shares).
  • open interest addition seen for put strikes 11,600 and 11,500.

Stocks In F&O Ban

In Ban:

  • Adani Power
  • DLF
  • IDBI
  • Jet Airways
  • PC Jeweller
  • Reliance Power
  • Wockhardt
All You Need To Know Going Into Trade On April 10

Brokerage Radar

Jefferies on ICICI Prudential

  • Maintained ‘Underperform’ with a price target of Rs 285.
  • Growth highly cyclical, but loss of HNI customer base more worrying.
  • VNB growth to be tepid & margin is peaking out.
  • Upside triggers missing, near-term outlook weak.

JMFinancial on Blue Star

  • Initiated ‘Hold’ with a price target of Rs 700.
  • Well placed to further increase its market share, but will be an uphill task.
  • Domestic investments to rise amidst rising duties and depreciating rupee.
  • Rising domestic investments and depreciating rupee may restrict margin expansion.

Motilal Oswal on Aditya Birla Fashion

  • Initiated ‘Buy’ with a price target of Rs 260.
  • Healthy portfolio mix to help sustain growth.
  • Revamped Pantaloons set to drive earnings.
  • Healthy balance sheet, growing cash flow.
  • Expect overall Revenue and Ebitda to grow at a compounded annual growth rate of 14 percent and 23 percent over FY19-21.