All You Need To Know Going Into Trade On March 16

Treasuries surged and U.S. equity futures tumbled at the start of another volatile week as investors responded to a rapidly escalating economic hit from the coronavirus and a massive emergency move by the Federal Reserve to ease policy.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell as much as 4.1 percent to 9,634 as 7:12 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

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

• The benchmark Treasury yield declined more than 30 basis points. Japanese shares fluctuated.
• Futures on the S&P 500 Index fell about 5 percent, hitting limits on trading after stocks climbed more than 9 percent on Wall Street Friday -- recouping most of their 10 percent plunge the previous day.
• The yen soared after the Fed cut its key interest rate by a full percentage point to near zero and said it will boost its bond holdings by $700 billion.
• Australian equities were about 5% lower, while the Reserve Bank of Australia said it stands ready to buy bonds, sending yields tumbling.

Get your daily fix of global markets here.

Yes Bank Reconstruction Scheme

• Cabinet approved the reconstruction scheme by RBI. SBI will invest for a 49 percent stake in the Bank, with a three-year lock-in period. Authorized capital increased from Rs 1,100 crore to Rs 6,200 crore. Lock in for SBI will be 26 percent and for other investors, lock-in will be 75 percent of the investment.

Other investors in Yes Bank include:

• ICICI Bank: To invest Rs 1,000 crore by purchasing 100 crore shares at a price of Rs 10 per share. Its shareholding will be in excess of 5 percent.
• HDFC: To invest Rs 1,000 crore by purchasing 100 crore shares at a price of Rs 10 per share. Its shareholding will be in excess of 5 percent.
• Axis Bank: To invest Rs 600 crore by purchasing 60 crore shares at a price of Rs 10 per share.
• Kotak Mahindra Bank: To invest Rs 500 crore by purchasing 50 crore shares at a price of Rs 10 per share.
• Federal Bank: To invest Rs 300 crore by purchasing 30 crore shares at a price of Rs 10 per share.

The bank will be excluded from the Nifty 50, Nifty Bank from March 18 instead of March 27.

Listing To Watch: SBI Cards & Payments Services

• SBI Cards and Payment Services to make stock market debut after IPO gets over 25 times demand

Economic Data to Watch

• Feb Wholesale Prices Inflation, estimate 2.3 percent, prior 3.1 percent.

Bulk Deals

• Dhanlaxmi Bank: ESAF Small Finance Bank acquired 14.6 lakh shares (0.58 percent) at Rs 10.14 per share.
• India Energy Exchange: Ward Ferry Asia Fund acquired 38.56 lakh shares (1.29 percent) at Rs 144.34 per share and Amansa Investments sold 47.25 lakh shares (1.58 percent) at Rs 144.53 per share.
• Tata Motors DVR: Promoter Tata Sons acquired 82.3 lakh shares (1.62 percent) at Rs 46.97 per share and Societe Generale sold 28.03 lakh shares (0.55 percent) at Rs 47.04 per share.
• Tata Steel: Promoter Tata Sons acquired 77.95 lakh shares (0.7 percent) at Rs 300.56 per share.
• Varroc Engineering: Reliance Mutual Fund acquired 12.92 lakh shares (0.96 percent) at Rs 232 per share.
• ADF Foods: Aditya Birla Finance sold 1.5 lakh shares (0.75 percent) at Rs 154.51 per share.
• Ashoka Buildcon: Bajaj Finance sold 15.04 lakh shares (0.54 percent) at Rs 50.6 per share.
• GHCL: Bajaj Finance sold 18.31 lakh shares (1.86 percent) at Rs 88.06 per share.
• TRF: Edelweiss Custodial Services sold 1.31 lakh shares (1.19 percent) at Rs 53.83 per share.
• Triveni Engineering: Bajaj Finance sold 29.21 lakh shares (1.18 percent) at Rs 37.27 per share.

Brokerage Radar

CLSA On Phoenix Mills

• Downgrade to outperform from buy
• Price target maintained at Rs 850
• Mall shutdown can impact near-term earnings
• 8-10 percent of revenue at risk
• Downgrade on near-term uncertainty

Investec On V-Guard

• Upgrade to buy from hold
• Price target raised to Rs 235 from Rs 220
• Dealer inventory inching up; demand improving
• Recent correction provides attractive entry point

Investec On NBFCs

• RBI guidelines remove management subjectivity on Ind-AS accounting
• Likely to see reduction in regulatory tier-1 capital
• Tier-II capital on the other hand may be higher
• Most impacted names: M&M Finance, Repco, Shriram Transport, LIC Housing

Investec On Steel

• Focus on cash flows, debt repayment schedule
• Find risk-reward favourable
• Find valuations inexpensive despite factoring in demand-destruction chewing away quarter's cash flows
• Upgrade JSPL, NMDC, SAIL to buy on inexpensive valuations
• Low valuation multiple for JSW Steel due to uncertainty on Bhushan Power event

Axis Capital On Telecom

• Government can announce relief measures in near-term to ensure viability of Vodafone Idea
• DoT may accept self-assessment of telcos and provide moratorium for payout
• Continue to prefer Bharti Airtel and Reliance Industries
• See strong possibility of Vodafone Idea continuing as a going concern

Morgan Stanley on Bajaj Finance

• Maintain Equal-weight rating
• Price target of Rs 4,250
• The economy is on the mend, as per the management
• COVID-19 could become a risk to the improvement
• Drawing up contingency plans and is monitoring the risk

Macquarie On SBI Cards

• Initiate coverage with outperform rating
• Price target of Rs 1,025
• Well-placed to capitalise on opportunity
• Pure play on discretionary consumption, retail credit & digital payments
• Regulatory risks, asset quality are inevitable but not imminent

Pledged Share Details

• UFO Moviez promoter Apollo International created pledge of 12 lakh shares on March 12
• Delta Corp promoter Aarti Pandit created pledge of 35 lakh shares between March 12-13
• Gati promoter Mahendra Investments created pledge of 2.86 lakh shares on March 9
• Sun Pharma Advanced Research promoter Raksha Valia revoked pledge of 31 lakh shares on March 11
• JSW Energy promoters created pledge of 3.75 crore shares between March 9-11
• Future Retail promoter Future Corporate Resource created pledge of 37.56 lakh shares on March 11

(As Reported On March 13)

Trading Tweaks

• Gayatri Highways, Adani Transmission, Spicejet, GHCL, Wockhardt, Welspun Corp, Triveni Engineering & Industries, Take Solutions, The Investment Trust Of India, Future Retail, Solara Active Pharma Sciences, Orient Refractories, Indo Count Industries, Future Supply Chain Solutions, CESC Ventures to move into short-term ASM framework
• Adani Green Energy, Sadbhav Infrastructure Project, Reliance Communications to move into ASM framework
• Reliance Home Finance to move out of short-term ASM framework
• Dishman Carbogen Amcis, IIFL Securities, Indiabulls Real Estate, Simplex Infrastructures, Uttam Value Steels, Vakrangee to move out of ASM framework
• GHCL, TRF, Walchandnagar Industries, Titagarh Wagons, GPT Infraprojects, Future Retail, UFO Moviez India, Future Supply Chain Solutions, Varroc Engineering, Prince Pipes and Fittings, Graphite India, GIC Housing Finance, Adf Foods, Mastek price band revised to 10 percent
• Dish TV India, BF Utilities, Omax Autos, Camlin Fine Sciences price band revised to 5 percent

Who’s Meeting Whom

• Mahindra & Mahindra to meet Southeastern Asset Management on March 16
• Tata Motors to meet ITI Asset Management and BFAM Partners from March 16-17
• Mahindra Logistics to meet Carnelian Capital, Ocean Dial Management and Chanakya Capital on March 19

Insider Trading

• MRF promoter Braga Industries acquired 661 shares on March 12
• Anant Raj promoter Ashok Sarin acquired 5.13 lakh shares on March 12
• Sanghi Industries promoter Alok Sanghi acquired 7.2 lakh shares on March 13
• Vaibhav Global promoter Deepti Agrawal acquired 50,000 shares on March 11
• Axis Bank promoter United India Assurance acquired 55,000 shares on March 12
• Century Plyboards promoters acquired 1.5 lakh shares between March 12-13
• GMR Infra promoter GMR Enterprises acquired 1.45 crore shares between March 9-12
• LT Foods promoter Raghuvesh Holdings acquired 7 lakh shares on March 12
• Bajaj Auto promoter Jamnalal Sons acquired 2.35 lakh shares on March 11
• Just Dial promoter Anita Mano acquired 1.07 lakh shares on March 12

(As Reported On March 13)

Money Market Update

• The rupee ended stronger at Rs 73.90 against the dollar on Friday versus Rs 74.21 against the dollar on Thursday.