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All You Need To Know Going Into Trade On March 20
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
20 Mar 2020, 09:22 AM IST 
A man reads a newspaper outside Chhatrapati Shivaji Terminal in Mumbai, India, on October 5, 2016. (Photographer: Dhiraj Singh/Bloomberg)
U.S. stock futures declined in early trade across Asia while the Dollar continued to gain, showing that the recent dash for cash is showing little signs of easing.
Markets in Australia and South Korea are trading with gains while futures in Hong Kong point to a positive open. Japanese markets are shut today on account of a holiday.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.7 percent to 8,125 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. Markets edged higher on Thursday as central banks along with the government pledged support for the economic shocks from the Coronavirus pandemic.
- The Dow Jones ended with gains of 1 percent while the NASDAQ composite gained 2.3 percent in another volatile session of trade. Futures on the Dow Jones are trading 200 points lower as of 7:00 a.m.
- Sovereign bonds surged in Italy, Spain and Portugal after the ECB boosted efforts to stabilise the economy and capital markets.
- Yield on the U.S. 10-year treasuries fell about six basis points to 1.14 percent.
- West Texas Intermediate crude trades higher after a record surge on Thursday. U.S. President Donald Trump said that he would get involved in the oil price war at the 'appropriate time.'
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Stocks To Watch
- Indiabulls Housing Finance: Company clarifies that it has no loan outstanding from Yes Bank. Rana Kapoor and family had mortgaged a property to the company in November 2017 for a loan of Rs 285 crore. Additionally, the company had also taken a personal guarantee of Rana Kapoor and family, whose net worth at the time of taking the loan was over Rs 7,000 crore as per their holding in Yes Bank.
- Tata Motors: Jaguar Land Rover to temporarily suspend production in U.K. Operations at plants in Brazil and India will continue.
- Hero Moto: Commences commercial operations of its new manufacturing facility in Chittoor. The facility is its eighth manufacturing plant and the sixth in India. The company has also filed an application with the Supreme Court seeking relaxation of the March 31 deadline for the sale or registration of BS-IV vehicles.
- Bandhan Bank: The lender in a conference call said that it will stop disbursements and collections in a worst-case scenario of a complete lockdown for 15-20 days. It also said that there have been some withdrawals in deposits from government entities which amounts to less than 1 percent of the total deposit base.
- SBI: Board to consider extension of approval for raising equity capital up to Rs 20,000 crore till March 2021 on March 27.
- Sobha: Board approved the issue of debentures up to Rs 270 crore by way of a private placement.
- CreditAccess Grameen has completed the acquisition of 75.64 percent stake in Madura Micro Finance.
- Praj Industries to consider share buyback on March 27.
- RITES: Board has decided to close its joint venture agreement with BNV Gujarat Rail.
- Reliance ADAG Group: Anil Ambani clarifies on the group's exposure to Yes Bank to ED officials. The group's entire exposure to Yes Bank is fully secured and transacted in the ordinary course of business, according to their press statement. The statement also clarifies that the group has no direct or indirect exposure to Rana Kapoor or his family or to any entity controlled by them.
- IndInfravit Trust has completed 100 percent acquisition in eight operational road projects of Sadbhav Infra, which has an enterprise value of Rs 6,300 crore. The acquisition of one additional road project is subject to regulatory approvals.
- Jindal Stainless clarified that there is no loan raised against promoter’s pledged shares and the current erosion in its share price has not triggered any margin requirements or calls by lenders.
- Bank of Baroda has announced zero charges on digital transactions for 3 months.
- V-Mart Retail opens three new stores in Rajasthan and Uttar Pradesh.
- Syngene International has commenced operations at its new manufacturing facility at Mangalore.
- ICICI Lombard Insurance has launched a dedicated insurance cover for coronavirus, in group insurance mode. The health cover is priced at a premium of Rs 149 and provides a sum insured of Rs 25,000 for ages 18-75. The company will pay the entire sum insured, in a lump sum in the event of the first diagnosis of COVID-19 during the policy period.
Brokerage Radar
Edelweiss On Ashok Leyland
- Buy rating maintained
- Price target cut to Rs 75 from Rs 92
- Street would have preferred a more conservative approach in Hinduja Leyland Finance stake buy.
- Timing, quantum and valuation of deal will pressure cash flows and valuations in a weak demand environment.
Emkay On CESC
- Upgrade to buy from hold
- Price target cut to Rs 698 from Rs 846
- Management aims for breakeven in Malegaon circle by FY23.
- Cut price target to factor in weak market sentiment due to Covid-19 concerns.
Emkay On Accenture's Quarter Ending February
- Results were better than consensus
- Order booking picks up from modest weakness seen in Q1
- Guidance cut confirms fears of possible negative impact on demand for Indian I.T. in Q1FY21 at the least.
Bulk Deals
- Mphasis: Promoter Marble II acquired 38.71 lakh shares (2.08 percent) at Rs 699.81 per share
- Justdial: Copthall Mauritius Investment acquired 3.92 lakh shares (0.60 percent) at Rs 331.19 per share
Trading Tweaks
- Granules India: Record date for share buyback
- Syndicate Bank, Allahabad Bank, Andhra Bank, Corporation Bank: Ex-date for amalgamation
- Move Into ASM Framework: Avadh Sugar & Energy, MPS
- Move Into Short-Term ASM Framework: Gujarat Apollo Industries, Shriram City Union, Arvind Fashions, IFGL Refractories, KPIT Technologies, JSW Holdings, Greenpanel Industries.
- Price Band Revised To 5 Percent: Spicejet, Shakti Pumps, Take Solutions, Mastek, Magma Fincorp, Adani Transmission, Delta Corp
- Price Band Revised To 10 Percent: Speciality Restaurants, Repco Home Finance, Future Lifestyle Fashions, Greenlam Industries, Inox Wind, Power Mech Projects, AU Small Finance Bank, Aditya Birla Capital, MAS Financial Services, Aster DM Healthcare, KPIT Technologies, MAS Financial Services, Tata Motors (DVR), IIFL Wealth, ITD Cementation, SML Isuzu, VIP Industries, TV18 Broadcast, NBCC, Inox Leisure, Premier Explosives, Lumax Industries, Jai Corp, Heritage Foods.
Who’s Meeting Whom
- Affle (India) to meet Edelweiss AMC and Malabar Investment on March 20
- Great Eastern Shipping to meet Franklin Templeton on March 20
Insider Trading
- NCC promoters acquired 2 lakh shares on March 16
- JMC Projects promoter Kalpataru Power Transmission acquired 72,771 shares on March 18
- Hubtown promoter group Khilen Shah acquired 1.60 lakh shares on March 17
- Man Infra promoter Parag Shah acquired 1.75 lakh shares on March 18
(As Reported On March 19)
Money Market Update
The rupee ended weaker at an all-time closing low of 75.07 against the dollar on Thursday versus Wednesday’s close of 74.26.
F&O Cues
Index Futures
- Nifty March futures closed at 8205.9, a discount of 57.5 points versus 35 points
- Nifty March futures open interest feel 6 percent, shed 8.7 lakh shares in open interest
- Nifty Bank March futures closed at 20,028.5, a discount of 55 points versus 62 points
- Nifty Bank March futures open interest fell 12 percent, shed 1.5 lakh shares in open interest
Options
- Nifty Put-Call Ratio at 1.14 versus 0.95 (across all series)
Nifty: March 26 Expiry
- Maximum Open Interest on Call side at 12,000 strike (21.4 lakh shares)
- Maximum Open Interest on Put side at 9,000 strike (16.7 lakh shares)
- 7,500 Put (8 lakh shares), 9,000 Call (4.8 lakh shares) and 8,500 Call (4.6 lakh shares) see addition in open interest.
