Monitors indicating stock prices are reflected in a glass panel at a brokerage firm in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On March 14 

Asian stocks climbed, following U.S. equities higher, as data signaling resilience in the American economy gave some comfort amid recent signs of deteriorating global growth.

Japanese shares posted the largest gains as trading began, with equities in Australia and South Korea also higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded a little changed at 11,380.50 as of 7:10 a.m.

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

U.S Market Check

  • U.S. equities gained as data signaled a resilient economy and modest pressure on inflation.
  • The yield on 10-year Treasuries held at 2.62 percent.

Also read: U.S. Inches Closer to Ending 18-Year Conflict in Afghanistan

Asian Cues

  • Japan’s Topix index rose 0.7 percent.
  • Australia’s S&P/ASX 200 Index rose 0.3 percent.
  • South Korea’s Kospi index gained 0.3 percent.
  • Hang Seng Index futures earlier added 0.4 percent.
  • Futures of S&P 500 were flat.

Also read: Asia Is Getting Tougher on Auditors After High-Profile Defaults

Commodity Cues

  • West Texas Intermediate crude increased 0.1 percent to $58.34 a barrel. It jumped 2.4 percent in the previous session.
  • Gold rose 0.1 percent to $1,309.71 an ounce.

Also read: U.S. Cuts Oil Production Forecast for the First Time in 6 Months

London Metal Exchange

  • Nickel ended higher for the second day, up 0.8 percent.
  • Aluminium ended higher for the second day, up 1.7 percent.
  • Lead ended higher for the second day, up 2.1 percent.
  • Tin resumed decline after a one-day rally, down 0.8 percent.
  • Copper ended a little changed after rallying for two consecutive trading sessions.
  • Zinc ended higher for the third day, up 0.3 percent.

Also read: Parliament Votes Against No-Deal Brexit as Theresa May Suggests Delay

Key Events To Watch This Week

  • Chinese retail sales, fixed-asset investment and industrial production data are scheduled for release Thursday and the National People’s Congress is set to wrap up on Friday.
  • Bank of Japan Governor Haruhiko Kuroda will speak on Friday, after he and his board conclude their discussions on monetary policy.

Also read: China Again Blocks Bid At UN To List Masood Azhar As Global Terrorist

Indian ADRs

All You Need To Know Going Into Trade On March 14 

Stocks To Watch

  • The U.S. FDA classified inspection of Lupin’s Mandeep facility as Official Action Indicated. The regulatory authority stated that the pharma company will be subjected to regulatory action and it may withhold approval of any pending applications in which the facility is listed. The company said this classification by the U.S. FDA will not have on disruption of supplies or existing revenues from this facility.
  • Wipro’s Azim Premji increased commitment in philanthropic arm ‘Azim Premji Foundation’ by renouncing more of his personal assets and earmarking for the foundation’s endowment. The press release stated that he has done this additionally by earmarking 34 percent shares in Wipro valued at Rs 52,750 crores.
  • Jubilant Foodworks promoter Jubilant Consumer Private Limited to sell 40 lakh shares at the floor price of Rs 1,272.6 apiece, aggregating to Rs 503.8 crore via secondary placement of shares. The floor price is at a discount of 4 percent as compared to current market price.
  • Spice Jet said it was rationalizing and optimizing the use of its Boeing 737 NG and Bombardier Q400 aircraft to address the current situation and minimize inconvenience to its passengers. The aviation company has rounded its entire B737 Max fleet as per DGCA directions. (Bloomberg News)
  • Reliance Industries said its U.S. unit halted all supplies of Diluent to Venezuala’s PDVSA and has not increased any oil purchases from the Venezualan company. The company also stated that it will continue dialogue with U.S. to ensure compliance. (Bloomberg News)
  • HCL Technologies said it will acquire U.S. based company ‘Strong—Bridge Envision’ for increasing the company’s digital solutions portfolio.
  • GE&TD awarded grid modernization project by Rajasthan’s Transmission Grid. Company to provide real-time data monitoring solutions to Gujarat’s state utility.
  • Star Cement received Rs 115 crore of freight subsidy claims by the central government. The company also stated in its press release that it expects further subsidy of Rs 42.6 crore in a week.
  • Alembic Pharma said it will consider raising capital via NCDs worth Rs 150 crore on March 19.
  • HDFC Life Insurance OFS: Retail issue received a 107 percent demand for shares offered. (Bloomberg News)
  • DCM Shriram commissioned 30 MW Power Plant in Uttar Pradesh and it has started selling power to the Grid with effect from Feb. 28.
  • Lemon Tree Hotels signed a non-binding agreement to acquire 100 percent stake in Key Hotels. The current portfolio of the target company stands at owning/managing 21 hotels with 1,911 rooms in 19 cities.
  • Sun Pharma arm increased its stake in Russia-based PJSC Biosintez from 85 percent to 97 percent for $3.2 million.
  • Bajaj Consumer Care appointed Bain and Company as management consultant to formulate front end strategy for growth.
  • Jet Airways said that additional five aircrafts have been grounded due to non-payment to lessors.
  • Bliss GVS Pharma board approved increasing FPI investment limit from 24 percent to 74 percent.
  • Deep Industries received an order from ONGC worth Rs 91.75 crore. ONGC has hired rig for Ahmedabad assets for three years.

Media Reports

  • Zee may sell 20 percent stake to Sony for Rs 13,000 crore. (Mint)

Offerings

  • State-Run MSTC Ltd. IPO gets 5 percent demand on first day of sale, offer closes March 15.

Bulk Deals

  • Arvind Fashions: Vanguard Funds sell 7.01 lakh shares or 1.32 percent equity at Rs 718.2 each.
  • Reliance Communications: IndusInd Bank sold 1.4 crore shares or 0.51 percent equity at Rs 4.97 each.

Pledge Share Details

  • Reliance Power: IDBI Trusteeship Services invokes pledge of 50.65 crore shares (2.21 percent) on March 13.
  • JSW Steel releases pledges of 1.96 crore shares between March 7-11.
  • Aurobindo Pharma promoter K Niiyananda Redyy creates pledge of 5 lakh shares on March 11.
  • GATI promoter group TCI Finance invokes pledge of 32.9 lakh shares on March 8.
  • Reliance Communications: Lenders sold 12 crore shares or 4.34 percent equity of promoters by invoking pledge. Promoter holding reduced to 37.57 percent.
  • Reliance Power: Lenders sold 4.1 crore shares or 1.47 percent equity of promoters by invoking pledge. Promoter holding reduced to 59.8 percent.

Trading Tweaks

  • Indo Count Industries, Manpasand Beverages price band revised to 10 percent.
  • Kwality to move into ASM Framework.
  • Asian Granito, Garden Silk Mills, Satin Creditcare Network, Mangalam Organics to move into short term ASM Framework.

Who’s Meeting Whom

  • Container Corporation of India to meet Premji Investment, Fidelity International and other investors between March 15-26.
  • DCM Shriram to meet Bajaj Allianz Life Insurance on March 18.
  • Mahindra Logistics to meet Premji Investment on March 15.

Insider Trading

  • Mukand promoter group Bachhraj Factories acquired 18,000 shares between March 8-11.
  • Bajaj Consumer Care promoter Bajaj Resources sold 1.01 crore shares on March 12.
  • Asian Granito promoter and director MukeshbhaI Patel acquired 25,000 shares on March 12.

Money Market Update

  • The rupee on Wednesday strengthened for the third straight session and closed at 69.54/$ versus Tuesday’s closing of 69.71/$.

Also read: RBI Announces Fresh Liquidity Infusion Through Forex Swaps

F&O Cues

  • Nifty March futures closed trading at 11,367, premium of 25 points.
  • Max open interest for March 28 series at 11,400 Call, (open interest at 25 lakh shares)
  • Max open interest for March 28 series at 11,000 Put, (open interest at 39.9 lakh shares)

Stocks In F&O Ban

In Ban

  • IDBI Bank
  • Jet Airways
  • Reliance infrastructure
  • Reliance Power

New in Ban

  • BEML

Put-Call Ratio

  • Nifty PCR at 1.82 versus 1.81.
  • Bank Nifty PCR at 1.6 versus 1.54 .
All You Need To Know Going Into Trade On March 14 

Brokerage Radar

CLSA on Voltas

  • Maintained ‘Sell’ with a price target of Rs 500.
  • Voltbek JV seeing good response with some offtake in summer demand.
  • Seeing a reduction in their AC inventory by approximately one month.
  • Refrigerators and Washing Machines will be the focus segments for the JV.

Macquarie on Lupin

  • Maintained ‘Underperform’ with a price target of Rs 716.
  • Expect warning letter for Mandideep Unit 1 within the next two months.
  • Believe existing US sales from this facility are 5–6 percent of Lupin’s total US sales.
  • Only solace is there are no pending DMF or ANDA filings.

CLSA on Telecom

  • Sector consolidation will compel lower spectrum prices.
  • Lower spectrum prices will boost sector returns.
  • Industry divided on spectrum; Airtel remains sector pick.

On Jubilant Foodworks

Edelweiss

  • Maintained ‘Buy’ with a price target of Rs 1,529.
  • Enthused by the launch of Chinese QSR, await granular details.
  • Mgmt. have played on Jubilant Foodworks’ strengths.
  • Menu attractively priced, offers free delivery and strategic location.

JPMorgan

  • Maintained ‘Overweight’ with a price target of Rs 1,430.
  • Foray into more formats to add to medium-to-long-term growth drivers.
  • Expect Jubilant to be prudent and utilize learnings to ensure a limited impact on financials.
  • If Jubilant decides to scale up this format, it could leverage its existing scale.

On Aviation

JPMorgan

  • Groundings will play favorably for industry yield growth.
  • Cancellation of aircraft orders would impact growth plans considerably.
  • Replacing grounded aircraft on short-term lease would drive up rental costs.

Edelweiss

  • SpiceJet faces largest immediate impact due to Boeing 737 grounding.
  • Ebitdar for 2019-20 sensitivity higher for SpiceJet compared to Jet Airways.
  • Prefer IndiGo as its recent focus on international routes to enable healthy PLF.