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All You Need To Know Going Into Trade On March 18
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
18 Mar 2020, 08:26 AM IST 
Newspapers at a distribution center in New Delhi, India, on November 10, 2016. (Photographer: Anindito Mukherjee/Bloomberg)
U.S. stock futures dropped and the yen advanced, retracing some of the previous day’s moves as traders continue to test where fundamental valuations lie amid rapidly changing news flow.
Asian stocks were mixed, with the Sydney market down more than 4 percent and Hong Kong equities opening lower, while shares in Tokyo edged higher. S&P 500 futures were about 3 percent down after the index gained 6 percent. Australian and Japanese bond yields tracked the sell-off in Treasuries from Tuesday.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, climbed 0.1 percent to 9,014 as of 7:00 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
- U.S. stocks rebounded from the biggest rout since 1987 as the U.S. government stepped up its efforts to offset the financial damage caused by the coronavirus.
- The Trump administration moved to send cheques to Americans as soon as in two weeks to stave off the financial effects of an unprecedented upheaval in social interactions that looks set to plunge the world into recession.
- It also asked Congress for hundreds of billions in aid.
- The Federal Reserve reintroduced additional crisis-era tools to stabilize financial markets.
- Treasuries cooled off, erasing all of the 25 basis points decline in yields on Monday.
- West Texas Intermediate crude fell 6.4 percent to 26.87 per barrel, the lowest settlement price since 2003.
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Stocks To Watch
- IndusInd Bank: Says it is financially strong, well-capitalised, profitable, and a growing entity with strong governance. The bank expects net NPA to drop below 1 percent in March ended quarter. Post the Yes Bank fiasco, some state government entities have made withdrawals up to 2 percent of the bank's deposit base. The bank is engaging with these entities to reiterate RBI's stance that their deposits are safe with private banks.
- Syndicate Bank: Board approved equity share exchange ratio of 158 equity shares of Rs 10 each of Canara Bank for every 1000 equity shares of Rs 10 each of Syndicate Bank, for the amalgamation of the Bank into Canara Bank.
- Yes Bank: CEO-designate Prashant Kumar said that deposit outflows have been less than what was permitted. Only one-third of customers who could have withdrawn up Rs 50,000 withdrew that maximum amount and last since last 4 days the bank saw higher inflows than outflows, in a press conference on March 17. SBI has nominated Partha Pratim Sengupta and J Swaminathan as board members for Yes Bank board.
- Metropolis Healthcare, Dr. Lal PathLabs, Thyrocare Technologies: The government urges private labs to provide virus tests at no cost. ICMR to engage high-quality private labs which are NABL accredited labs. Private labs in India yet to acquire probes to test for coronavirus and are in the process of doing so.
- Café Coffee Day Enterprises clarified that it has not received any investigation report from authorities, and the process of investigation is currently still on for investigating the circumstances leading to statements made in the letter of former Chairman late V.G.Siddhartha dated July 27, 2019, and to scrutinize the books of accounts of the company and its subsidiaries.
- Tata Consumer Product: Mitsubishi UFJ Financial Group reduced stake from 5.6 percent to 3.59 percent on March 13.
- HSIL: HDFC Mutual Fund reduced its stake from 5.17 percent to 3.14 percent on March 16.
- Apollo Tyres: HDFC Mutual Fund increased its stake from 5.05 percent to 7.05 percent.
- Sterling and Wilson Solar: Board of directors approved amalgamation of wholly-owned arm Sterling and Wilson Waaree into the company. The appointed date for the scheme set on April 1.
- Alkem Laboratories clarified that an individual has contested against the company for breaching provisions of the Competition Act, 2002 for indulging in anti-competitive practices. The company and its officials said that it shall file appeals to the order before the NCLAT within the prescribed time.
- Reliance Naval & Engineering has received a termination and evacuation notice from Gujarat Pipavav Port for termination of sub-concession agreement executed for land parcels owned by the Gujarat Maritime Board and sub-leased by Gujarat Pipavav Port to the company for shipbuilding activity.
- Wipro: Gets deal to implement core banking solution for Canara Bank sponsored Regional Rural Bank.
Brokerage Radar
Morgan Stanley On Indian Life Insurers
- Earnings outlook getting tougher amid volatility
- Lower rates, negative impact from COVID-19 key risks
- Reduce VNB by 3-10 percent over FY21-22
- Full blown impact likely in Q1 which is seasonally weak
Emkay On ICICI Bank
- Buy rating maintained
- Price target cut to Rs 600 from Rs 650
- Immediate focus on business continuity plan
- Focus on retail remains un-wavered
- Better operating profits, Provision Coverage Ratio to help absorb shocks
- Cut earnings estimates, valuations given the risk-off environment
Citi On Indian Media
- COVID-19 adding to near-term market challenges
- Currently see low single-digit ad revenue decline in Q4
- See high single-digit growth in FY21 for Zee & Sun TV
- Delays in movie production to temporarily impact Zee & Sun TV
- Valuations are attractive
- Market worried about different risks associated with Zee's stock
Credit Suisse On HUL
- Upgrade to Outperform from Neutral
- Price target raised to Rs 2,400 from Rs 2,200
- GSK acquisition to be key driver over next 3-5 years
- Expect media efficiency, staff cost reduction, distribution efficiency & lower overheads to aid margins by 1,000 basis points
- See margin tailwinds as crude forms 35% of input costs
Morgan Stanley On HDFC AMC
- Equalweight rating maintained
- Price target cut to Rs 2,235 from Rs 3,300
- Cut target to factor-in sharp market drawdown and uncertain outlook
- Market could face prolonged challenges
- Cut EPS estimates for FY20/21/22 by 1, 15 and 14 percent respectively
Bulk Deals
- Mphasis: Marble II acquired 30.49 lakh shares (1.64 percent) at Rs 699.68 per share.
- Oberoi Realty: Wellington Trust sold 27.2 lakh shares (0.75 percent) at Rs 430.38 per share and Invesco Fund acquired 50.24 lakh shares (1.38 percent) at Rs 430.38 per share.
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Opinion
Yes Bank Crisis: RBI Cannot Differentiate Between AT-1 Bondholders And Promoters, Axis Trustee Says
Pledged Share Details
- Ramkrishna Forgings promoter Riddhi Portfolio created a pledge of 14.5 lakh shares on March 12.
- Arvind promoter Aura Securities revoked 42.5 lakh pledged shares on March 16
- AGC Networks promoter Onir Metallics revoked 43 lakh pledged shares on February 28
- Aurobindo Pharma promoter K Nityananda Reddy created a pledge of 20.58 lakh shares between March 12-13
- Emami promoters created a pledge of 1.5 crore shares between March 11-13
- Ajanta Pharma promoter Aayush Agrawal created a pledge of 2.2 lakh shares on March 16
- DB Corp promoter DB Consolidated created a pledge of 36.52 lakh shares on March 16
- Adani Green Energy promoter SB Adani Family Trust created a pledge of 79 lakh shares on March 16
(As Reported On March 17)
Trading Tweaks
- Arvind Fashions record date for rights issue at 16:47 at a premium of Rs 146 per share
- Karnataka Bank record date for bonus issue at 1:10
- Move Into ASM Framework: Olectra Greentech, Paisalo Digital
- Move Into Short-Term ASM Framework: Intellect Design Arena, Emmbi Industries, Newgen Software Technologies, Allsec Technologies
- Price Band Revised To 10 Percent: Future ENterprises, Mahindra CIE, VA Tech Wabag, MEP Infra, Munjal Showa, JM Financial, Tourism Finance Corporation, Jubilant Life, GOCL Corporation
- Price Band Revised To 5 Percent: Hindustan Foods, Tanla Solutions, Welspun Corp, Olectra Greentech
Who’s Meeting Whom
- Dr Lal Pathlabs to meet ICICI Securities and HDFC Standard Life Insurance on March 18
- Shriram City Union Finance to meet IIFL Securities on March 18
- Eicher Motors to meet Nikko Asset Management, Bajaj Allianz Insurance and Janchor Partners between March 18-19
- Affle (India) to meet Kotak Mahindra Asset Management and B&K Securities on March 18
Insider Trading
- NCC promoters acquired 15.75 lakh shares between March 11-13
- Great Eastern Shipping promoter Ravi Seth acquired 1.1 lakh shares on March 13
- Welspun India promoter Welspun Group Master Trust acquired 9.36 lakh shares on March 13
- JMC Projects promoter Kalpataru Power Transmission acquired 92,801 shares between March 13-16
(As Reported On March 17)
Money Market Update
- The rupee ended stronger at Rs 74.21 against the dollar on Tuesday versus Rs 74.27 against the dollar on Monday.
Opinion
Weak Rupee Is Bad for India Inc. Facing Record Foreign Debt
F&O Cues
Futures
- Nifty March futures end at 8,915.6; a discount of 51.4 points Vs 78.9 points
- Open Interest for Nifty March futures down 7 percent, shed 11 lakh shares in open interest
- Nifty Bank March futures end at 22,037; a discount of 118 points Vs 140 points
- Open Interest for Nifty Bank March futures unchanged
Options
Nifty Put-Call Ratio at 1.02 Vs 0.98 across all series
Nifty: March 19 Expiry
- Maximum Open Interest on Call side at 10,000 strike which adds 15.3 lakh shares
- Maximum Open Interest on Put side at 8,100 strike which adds 9.8 lakh shares
- 7,700 Put (5 lakh shares), 9,500 Call (4.2 lakh shares), 9,700 Call (3.8 lakh shares) see addition in Open Interest
Nifty: March 26 Expiry
- Maximum Open Interest on Call side at 12,000 strike which adds 22.6 lakh shares
- Maximum Open Interest on Put side at 8,500 strike which adds 21.7 lakh shares
