Pedestrians walk past the Bombay Stock Exchange (BSE) building in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On March 12

Stocks in Asia climbed after U.S. peers gained overnight, while the pound jumped after the U.K. and European Commission modified their Brexit deal ahead of a key vote in Britain’s parliament.

Japanese stocks advanced more than 1 percent at the open, leading gains in Australia and South Korea. Futures suggested shares will trade higher in Hong Kong. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.42 percent to 11,260 as of 7:10 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

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

U.S Market Check

  • U.S. stocks jumped the most in six weeks as chipmakers rallied on deal news and the latest retail-sales data boosted confidence that the economy isn’t headed for a downturn.
  • The yield on 10-year Treasuries increased about two basis points to 2.66 percent.

Also read: May Strikes New Brexit Deal With the EU, Asks Parliament to Back It

Asian Cues

  • Japan’s Topix index gained 1.4 percent as of 9:08 a.m. in Tokyo.
  • Australia’s S&P/ASX 200 Index rose 0.5 percent.
  • Korea’s Kospi index added 0.9 percent.
  • Hong Kong’s Hang Seng Index contracts gained 0.6 percent overnight.
  • The S&P 500 futures gained 0.3 percent.

Also read: Investor FOMO Could Lift China Stocks 50%, Goldman Says

Commodity Cues

  • Brent crude traded 0.24 percent higher at $66.74 per barrel.
  • WTI crude oil rose 0.3 percent Tuesday to $56.96 a barrel.
  • Gold was flat at $1,293.20 an ounce.

Also read: How Donald Trump Plays Havoc With OPEC Policy

Key Events To Watch This Week

  • Chinese retail sales and industrial production data are scheduled for release this week. The National People’s Congress is set to wrap up with a speech on Friday from Premier Li Keqiang.
  • U.K. House of Commons votes Tuesday on May’s revised Brexit deal, 20 days before Britain is scheduled to leave the EU.
  • Bank of Japan Governor Haruhiko Kuroda will speak on Friday, after he and his board meet to decide on monetary policy.

Also read: Why India’s Election Is Among the World’s Most Expensive

Indian ADRs

All You Need To Know Going Into Trade On March 12

Stocks To Watch

  • HDFC Standard Life Insurance: Standard Life (Mauritius Holdings) said it will sell via offer for sale mechanism up to seven crore shares, or 3.47 percent of the equity shares with an option to sell an additional 2.95 crore shares aggregating to a sale stake of 4.93 percent stake in the Insurance company. The floor price of the offer is set at Rs 357.5 per share, which will aggregate up to Rs 3,557 crore in sales if the offer is fully subscribed along with the over-subscription. As per the recent exchange filings Standard Life has 29.23 percent stake in the company. Sale on March 12 is for non-retail investors and for retail investors it is March 13.
  • Jet Airways denied that it received Rs 2,050 crore as a loan from Punjab National Bank. The aviation company clarified that it has existing credit facilities of $300 million from the bank and no fresh credit facilities have been provided.
  • Jet Airways said it is not flying any Boeing 737 Max Plane and the company says it in contact with manufacturers and regulators to ensure all directives are implemented. The company has 225 Max Jets on order and currently five of them are in its fleet. The company delayed part repayment of external commercial borrowings due on March 11 to temporary liquidity constraints.(Bloomberg News)
  • NHPC planned a capex of Rs 3,800 crore for financial year 2020 and to bid for JAL Power in NCLT. Chairman Balraj Joshi also stated the company has plans to have 10 GW generation capacity by financial year 2022. (Bloomberg News)
  • Piramal Enterprises arm launched pain management drug ‘Mitigo’ in the U.S.
  • Sundaram Clayton re-appointed Venu Srinivasan as MD for a five-year term. However, the company stated that Sudarshan Venu will relinquish his position as joint-MD with effect from March 11, but he will continue to be the non-executive and non-independent director of the company. It also declared an interim dividend of Rs 16 per share.
  • Welspun Corp received additional pipe order of 212 KMT. Out of these, 151KMT will be serviced from India. The company stated that its order book stood at 1667 KMTs valued at Rs 14,500 crore.
  • TRF Concall Updates: Company said it was looking to issue Rs 250 crore worth of preference shares to Tata Steel in order to restructure the balance sheet and repay debts. The Tata group arm is looking to enter into related party transaction with Tata Steel towards sales, services and purchases for Rs 540 crore during financial year 2020.
  • Corporation Bank: The Reserve Bank of India imposed a penalty of Rs 1 crore due to deficiency in regulatory compliance.
  • Kei Industries said the second phase of capex for medium voltage cables in Rajasthan was operational.
  • Selan Exploration received letter of approval from Ministry of Petroleum and Natural Gas for grant of extension of 10 years with effect from March 2020 for Lohar Field. For the same field company extension of product sharing contracts has been approved by the authorities.
  • Tata Motors won an order of 2,500 units. (Bloomberg News)
  • PSP Projects received work orders worth Rs 601.21 crore from various clients. The total work orders for financial year 2019 (till date) stand at Rs 1,442.47 crore.
  • Kalpataru Power Transmission increased its stake in Shree Shubham Logistics from 71.52 percent to 80.06 percent. The company also acquired 15 percent stake in the afore-mentioned arm, to increase its preference stake to 100 percent.
  • DHFL: Independent director VK Chopra resigned.

NSE FPI Investment Limit Order (Dissemination date: March 8)

Red Flag List

Overall Limit

  • HDFC Bank
  • IndusInd Bank

Aggregate FPI Investment Limit

  • Ashapura Minechem
  • Bliss GVS Pharma
  • Cyient, Delta Corp
  • SH Helkar
  • Trent

Aggregate NRI Investment Limit (Key Stocks)

  • Astra Microwave Products
  • CCL Products
  • Aarvee Denims
  • Autoline Industries
  • Cyient
  • Deccan Cements
  • EIH Associated Hotels
  • Garden Silk Mills
  • EIH Associated Hotels

(Note: A red flag shall be activated in respect of listed Indian companies whenever the foreign investment is within 3 percent or less than 3 percent of the aggregate NRI/FPI limits or the sectoral cap.)

Breach List

Overall Limit

  • Abbot India (Breached on May 31, 2018)

Aggregate FPI Investment Limit

  • JVL Agro Industries (Breached on June 8, 2018)

Aggregate NRI Investment Limit (Key Stocks)

  • Page Industries (Breached on May 31, 2018)
  • Sobha (Breached on May 31, 2018)

(Note: List of Companies where foreign investment has reached its permissible limit.)

(As reported on March 11)

Also read: How Can India Inc. Get Over Its Financing Hump?

Bulk Deals

  • Reliance Communications: Indusind Bank sold 1.7 crore shares or 0.62 percent equity at Rs 5.54 each.
  • Tourism Finance Corporation: Motilal Oswal Focused Emergence Fund acquired 5.55 lakh shares or 0.69 percent equity at Rs 120.12 each.

Matrimony.com

  • Nalanda India Equity Fund acquired 21.11 lakh shares or 9.29 percent equity at Rs 509.87 each.
  • HDFC Mutual Fund sold 20.13 lakh shares or 8.83 percent equity at Rs 510.07 each.

Lemon Tree Hotels

  • Zaaba Pan Asia Master Fund acquired 52.16 lakh shares or 0.66 percent equity at Rs 84.84 each.
  • Morgan Stanley Asia (Singapore) sold 52.84 lakh shares or 0.67 percent equity at Rs 84.15 each.

Xelpmoc Design

  • Trust Investment Advisors acquired 2.26 lakh shares or 1.65 percent equity at Rs 67.5 each.
  • Washington University sold 3.07 lakh shares or 2.24 percent equity at Rs 67.59 each.

Pledge Share Details

  • Apollo Tyres: Promoter group Apollo International created a pledge of 9.84 lakh shares or 0.17 percent equity on March 7.
  • Satin Creditcare Network: Promoters revoked pledge of 3.21 lakh shares or 6.15 percent equity on March 5.

(As reported on March 11)

Trading Tweaks

  • NALCO, REC record date for interim dividend payment at Rs 4.5 per share and Rs 11 per share, respectively.
  • Advanced Enzyme Technologies, Khadim, Oricon Enterprises to move into short term ASM Framework.
  • Thirumalai Chemicals price band revised to 5 percent.

Who’s Meeting Whom

  • DCM Shriram to meet Motilal Oswal Securities on March 14.
  • BSE to meet Seven Canyons Advisors on March 12.
  • Dr Lal PathLabs to meet Marshall Wace, Taiyo Pacific Partners and other investors from March 12-22.
  • Shriram City Union Finance to meet JM Financial, Motilal Oswal and other investors from March 14-28.
  • Vedanta to meet Mondrian Investment Partners and Ruffer & Co. on March 12.
  • Shopper’s Stop to meet Motilal Oswal Financial Services on March 15.
  • Indraprastha Gas to meet Ambit Capital and Reliance Securities from March 12-13.
  • Mahindra Lifespace Developers to meet Antique Stock Broking on March 13.

Insider Trading

  • Sequent Scientific promoter Padmakumar Karunakaran Pillai sold 8.75 lakh shares between March 6-8.
  • Satin Creditcare Network promoters acquired 73,000 shares on March 5.

Money Market Update

  • The rupee on Monday closed at its highest in over two-months at 69.89/$ versus Friday’s 70.15/$.

Also read: Foreigners Boost India Company Bond Holdings to New High

F&O Cues

  • Nifty March futures closed trading at 11,202, premium of 32 points.
  • Max open interest for March 28 series at 11,500 Call, open interest at 22.4 lakh shares.
  • Max open interest for March 28 series at 11,000 Put, open interest at 37.9 lakh shares.

Stocks In F&O Ban

In Ban

  • IDBI Bank
  • Jet Airways
  • Reliance Power

New in Ban

  • Reliance Infrastructure

Put-Call Ratio

  • Nifty PCR at 1.73 versus 1.6.
  • Bank Nifty PCR at 1.29 versus 1.23 .
All You Need To Know Going Into Trade On March 12

Brokerage Radar

Goldman Sachs on Motherson Sumi

  • Downgraded to ‘Neutral’ from ‘Buy’; maintained price target at Rs 159.
  • Post rally see limited upside; long term thesis still intact.
  • Investors appear to have turned incrementally positive.
  • Catalyst: ramp-up of new plants, fall in commodity prices and improvement in profitability of acquisition.

HSBC on Escorts

  • Maintained ‘Buy’ with a price target of Rs 980.
  • Downcycle is imminent, but it may not be as acute as street fears.
  • Demand cycle and operating leverage analysis shows risk-reward is favourable.
  • Operating parameters continue to improve.

JPMorgan on HDFC Life

  • Maintained ‘Neutral’ with a price target of Rs 440.
  • Stock looks pricey and product development becoming less capital-light.
  • Not supportive of company’s unique product mix.
  • Concerned about potentially faster capital consumption outlook.

Morgan Stanley on InterGlobe Aviation

  • Maintained ‘Overweight’ with a price target of Rs 1,311.
  • See downside risk to industry capacity addition.
  • Lower capacity addition could lead to stronger yields.
  • Indigo is best placed to benefit.

Edelweiss on GMDC

  • Initiated ‘Buy’ with a price target of Rs 105.
  • See imminent volume uptick post production ramp up at new mines.
  • Stock trading at lowest end of its 8-year EV/EBITDA band.
  • Business significantly undervalued; cash per share 43 percent of market cap.