All You Need To Know Going Into Trade On March 22

The dollar extended losses and Asian stocks eked out modest gains as traders assessed the implications of the Federal Reserve’s policy decision alongside global trade, with President Donald Trump set to announce about $50 billion of tariffs against China over intellectual-property violations on Thursday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,226 as of 7 a.m.

DayBreak

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

Global Cues

• U.S. stocks fell, while the dollar tumbled and Treasuries gained after the Federal Reserve’s first decision under Chairman Jerome Powell came in less hawkish than some investors had been anticipating.

• The dollar added to losses sparked when the U.S. made concessions in trade talks with its neighbours.
• The yield on 10-year Treasuries fell one basis point to 2.88 percent, while two-year yields dropped five basis points to 2.30 percent.

Europe Check

• European stocks fell as the euro edged higher and food and beverage firms retreated the most in more than a week.

• The euro advanced 0.8 percent to $1.2340.
• The British pound jumped 1.1 percent to $1.4145.
• Germany’s 10-year yield advanced one basis point to 0.59 percent, the highest in more than a week.
• Britain’s 10-year yield climbed four basis points to 1.53 percent, close to the highest in more than three weeks on the largest increase in more than three weeks.

Asian Cues

• Futures on Japan’s Nikkei 225 Stock Average slid 0.6 percent in Singapore.
• Australia’s S&P/ASX 200 Index slid 0.6 percent.
• Futures on the S&P 500 Index added less than 0.1 percent.
• The yen was at 105.93 per dollar.
• Australia’s 10-year yield advanced two basis points to 2.72 percent.

Here are some key events on the schedule for the remainder of this week:

• The Bank of England is expected to keep interest rates and its asset-purchase program unchanged on Thursday. Attention will be on language and the odds for a May hike, now seen as increasingly likely.
• Philippines monetary policy decision is due Thursday.
• Euro area flash PMIs come Thursday as well as Germany’s IFO gauge of business confidence.

Commodity Cues

• West Texas Intermediate crude increased 0.5 percent to $65.47 a barrel.
• Brent traded higher at $69.7 per barrel; up 0.3 percent.
• Gold was at $1,332.21 an ounce.
• Sugar traded higher at 12.7 cents per pound; up 0.9 percent.

Shanghai Exchange

• Steel trades lower; down 0.6 percent.
• Aluminium trades lower for third day; down 0.2 percent.
• Zinc snaps two-day losing streak; up 1.4 percent.
• Copper snaps four-day losing streak; up 0.4 percent.
• Rubber trades lower for fifth day; down 0.2 percent.

Indian ADR

Stocks To Watch

• Sun Pharma gets U.S. FDA approval for ILUMYA.
• Dilip Buildcon declared lowest bidder for a new EPC Project worth Rs 870 crore in Uttar Pradesh.
• NMDC commissions coke oven battery at its upcoming Nagarnar steel plant.
• Coal India allotted 11 mines that will increase annual output to 225 million tonnes.
• Axis Bank issued guarantee on behalf of Bharti Airtel. The lender has a non-funded exposure of Rs 9,220 crore to telecom companies.
• Zensar Technologies acquires Cynosure India for Rs 13 crore and Cynosure U.S. for $31 million.
• Essar Steel lenders to reopen bidding after rejecting bids from Arcelormittal and VTB Capital.
• Oil India enters into an agreement with Assam for Methanol, Formaldehyde project.
• Omax Auto board approves partial closure of its Manesar plant.
• GE Power received order worth Rs 230 crore from NTPC.
• Jindal Drilling wins arbitration award of $9.1 million.
• IDFC looks to exit asset management business in Rs 4,000 crore deal (Times of India).

Bulk Deals

• GHCL: Hypnos Fund bought 14.33 lakh shares or 1.5 percent equity at Rs 285.7 each.
• Electrosteel Steels: Sciil Steel Cast Iron Investments Cyprus Ltd. sold 1.7 crore shares or 0.7 percent equity at Rs 2.3 each.
• Sequent Scientific: Agnus Capital LLP sold 39.67 lakh shares or 1.6 percent equity at Rs 81.9 each.

Trading Tweaks

• La Opala RG ex date for 1:1 bonus.
• DCM Shriram Financial Services shifted to T group.
• Alembic Ltd ex date to determine buyback eligibility.

Who’s Meeting Whom

• Magma Fincorp to meet Goldman Sachs on March 22.
• VST Tillers to meet Catamaran Capital on March 22.
• Eris Life to meet Ask Invesment Managers on March 22.
• Narayana Hrudayalaya to meet NT AM, Stewart Investors and ICICI Prudential AM from March 22-26.
• Filatex India to meet investors on March 23.
• PPAP Automotive to meet Tata AM, Axis Capital, SMC Global and others on March 23.
• Zensar Tech to meet investors in Hong Kong and Singapore on March 27-28.

Insider Trades

• Rajeev Jain director of Bajaj Finance sold 60,000 shares on March 20.
• Nath Pulp and Papers promoter buys 12,66,667 shares between Jan. 2-Feb. 27.
• Anoop Moopen, director of Aster DM Healthcare, bought 49,500 shares on March 19.
• Shanti Exports promoter of Vishal Fabrics bought 1 lakh shares on March 19-20.
• Anil Patodia promoter of Byke Hospitality bought 1 lakh shares on March 20.

New Offerings

• ICICI Securities IPO opens at Rs 519-520 per share.
• Mishra Dhatu Nigam IPO continues on day 2. The issue is subscribed 0.26 times.
• Sandhar Technologies IPO subscribed 6.14 times on last day.

Rupee

• Rupee closed at 65.21/$ on Wednesday from 65.19/$ on Tuesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty March futures closed trading at 10,180 premium of 24.9 points from 18.9 points.
• March series: Nifty open interest down 1 percent, Bank Nifty open interest down 4 percent.
• India VIX ended at 15.1, down 3.2 percent.
• Max open interest for March series at 10,500 call strike (open interest at 61 lakh, down 4 percent).
• Max open interest for March series at 10,000 Put (open interest at 57.5 lakh, down 13 percent.

F&O Ban

• In ban: HDIL, IDBI Bank, IFCI, Jindal Steel, JP Associates, Reliance Communications, SAIL.
• Out of ban: Dewan Housing.
• Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.06 from 1.05.
• Nifty Bank PCR at 1.01 from 0.92.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

IDFC Securities on Sun Pharma

• Maintained ‘Outperform’ with a price target of Rs 587.
• Sun received final FDA approval for Tildrakizumab, brand name ILUMYA.
• Approval marks a major milestone in Sun Pharma’s specialty foray.
• Ilumya to be commercialised over the next couple of quarters.
• Ilumya to face tough competition from companies like Novartis, Lilly and J&J.
• Expect revenues of $25 million and $125 million in the next two fiscals respectively.
• Expect peak revenue of $500 million by fifth or sixth year of launch.

Macquarie on Jubilant Foodworks

• Maintained ‘Outperform’ with a price target of Rs 2,581.
• Extended ‘Everyday Value’ offer to range of regular-sized pizzas.
• Everyday Value offer to impact gross margin; Operating margin to remain unaffected.
• Increasing comparative affordability to drive SSG.
• Store expansion to see uptick going forward.
• Jubilant Foodworks remains top pick in consumer discretionary space.

Deutsche Bank on IndusInd Bank

• Maintained ‘Buy’; raised price target to Rs 2,050 from Rs 1,950.
• Base business doing well; Bharat Financial to enhance growth/profitability.
• Business to be more diversified and profitable now.
• Return ratios to improve post-merger; return on assets at 2.2 percent and return on equity at 20 percent
• Benefits on fee income front to aid profitability.
• Expecting steady net interest margins on current business.
• MFI acquisition to enhance net interest margins by 50 basis points.
• No current concerns about asset quality.
• MFI business seems to be in a sweet spot.