All You Need To Know Going Into Trade On April 5

Stocks in Asia followed U.S. equities higher as investors reassess of the danger of a trade-damaging spiral of tariff increases in the world’s top two economies. Japanese shares led gains in the region and Australian equities nudged higher, with markets in China and Hong Kong closed Thursday for holidays.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1.5 percent at 10,287 as of 7:15 a.m.

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BQ Live

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

Global Cues

U.S. equities stormed back from deep losses sparked by trade tensions as investors speculated the Trump administration won’t enact the most protectionist proposals and risk derailing economic growth.

Europe Check

• European stocks fell, widening their loss this week to 1 percent, as concern mounted that a trade spat between the U.S. and China would halt global growth.
• The euro was little changed at $1.228.
• Germany’s 10-year yield dipped one basis point to 0.49 percent, the lowest in 12 weeks.
• Britain’s 10-year yield declined two basis points to 1.359 percent, the lowest in almost 11 weeks.

Asian Cues

• Japan’s Topix index gained 0.8 percent.
• Australia’s S&P/ASX 200 Index added 0.2 percent.
• South Korea’s Kospi index rose 0.8 percent.
• Futures on the S&P 500 were up 0.1 percent.

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

• It’s policy day! Find out what to look for in the MPC’s first meet of the new fiscal here.
• U.S. employment data are due Friday; the jobless rate probably fell in March after holding at 4.1 percent for five straight months.
• The Reserve Bank of India decides on policy Thursday.

Commodity Cues

• West Texas Intermediate crude rose 0.4 percent to $63.65 a barrel.
• Brent trades higher at $68.2 per barrel; up 0.3 percent.
• Gold futures were little changed at $1,331.54 an ounce.
• Sugar ended lower for second day at 12.3 cents per pound; down 1.6 percent.

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Indian ADRs

Stocks To Watch

• Cabinet approved demerger and transfer of surplus land from Tata Communications to Hemisphere Properties.
• ICICI Bank clarified that it did not give individual loans to any of five companies.
• Adani Enterprises unit bagged order worth Rs 1,140 crore from NHAI in Chhattisgarh.
• BHEL commissioned 330MW Kishangana HEP in Jammu and Kashmir.
• Indoco’s API plant at Patalganga received Japanese accreditation, valid till May 2023.
• Natco Pharma launched first generic version of oral tablets for multiple sclerosis in India.
• HFCL foray into defence manufacturing.
• BEPL completed expansion of ABS capacity from 80 KTPA to 100 KTPA at its Abu Road unit.
• Force Motors March domestic sales at 4,364 units; exports at 154 units.
• Smartlink Network Systems to consider share buyback on April 7.
• Jet Airways signed up additional 75 Boeing 737 Max aircraft taking the total order to 150.
• Kansai Nerolac to acquire Marpol Pvt for Rs 36 crore.
• IFGL refractories says foreign promoter has requested for classification of its entire 15.51 percent stake to public category.

Bulk Deals

• Sunil Hitech Engineers: Reliance Financial sold 38.87 lakh shares or 0.8 percent equity at Rs 7.65 each.

Mishra Dhatu Nigam

• Canara Bank sold 9.69 lakh shares at Rs 89 each.
• Union Bank of India sold 10 lakh shares at Rs 90.03 each.

Trading Tweaks

• Aditya Birla Money circuit filter revised to 10 percent.
• Marathon Nextgen ex-date for 2:1 stock split.
• Adani Enterprises ex-date for demerger. Shareholders to get 761 shares of Re 10 each of Adani Green Energy Ltd for every 1,000 shares of Re 1 of Adani Enterprise.
• Strides Shasun last trading day before demerger. All F&O contracts will expire today.
• Sequent Scientific Ltd. last trading day before demerger.

Who’s Meeting Whom

• Siemens to meet Antique Stock Broking on April 5 and Motilal Oswal on April 6.
• Veto Switchgears & Cables to meet SAIF Partners, Investors and Analysts on April 5.
• Shriram Transport Finance Co to meet Elara Capital on April 5.
• Great Eastern Shipping to meet Bajaj Allianz on April 5 and First State Investments on April 20.
• Astral Poly to meet IIFL institutional equities on April 5.
• Deepak Fertilizers to meet Emkay Global on April 5.

Insider Trades

• Parish Meghani director of Onward Technologies buys 45,250 shares on March 23-30.
• Prem Kumar Bhajanka promoter of Shyam Century Ferrous sold 2.2 lakh shares on April 2.

Rupee

• Rupee closed at 65.15/$ on Wednesday from 65.01/$ on Tuesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty April futures closed trading at 10,146.6 with a premium of 18 points from 40 points.
• April series: Nifty open interest up 13 percent, Bank Nifty open interest up 16 percent.
• India VIX ended at 16.3, up 7.6 percent.
• Max open interest for April series at 10,500 call strike (open interest at 38.8 lakh, up 17 percent).
• Max open interest for April series at 10,000 Put (open interest at 44.2 lakh).

F&O Ban

No stocks in ban.

Put-Call Ratio

• Nifty PCR at 1.33 from 1.42.
• Nifty Bank PCR at 0.99 from 1.43.

Fund Flows

Brokerage Radar

HDFC Securities on Symphony

• Initiated ‘Buy’ with a price target of Rs 2,150.
• Branded air coolers offer a huge opportunity.
• Power availability to drive penetration.
• Strong summers to support air coolers demand.
• Expect revenue, operating income and net profit to compound at 22 percent, 28 percent and 29 percent respectively over the fiscal 2018-2020.
• High RoCE, market leadership and multi-year growth visibility warrants high valuations.

Goldman Sachs on Aster DM

• Initiated ‘Buy’ with a price target of Rs 213.
• Aster to now enter a phase to sweat assets, improve cash flows and leverage.
• Solid demand across GCC and India to drive utilisations.
• Expect utilisations to improve to 65 percent over the next three years.
• Expect 17 percent compounded growth rate in revenue over the next three years
• Expect 500 basis points margin expansion over the fiscal 2017-2020.
• Valuations attractive; Stock trading at discount to Indian/GCC peers.

CLSA on Oil India

• Maintained ‘Underperform’; cut price target to Rs 230 from Rs 250.
• Oil India is the best performing stock since budget.
• A clear shifting opportunity.
• Oil India to lose more than ONGC if subsidy burden returns.
• Subsidy burden scenarios suggest 36-50 percent downside from current levels.
• ONGC to see bigger gains if subsidy exemption continues.
• ONGC is much better placed.