All You Need To Know Going Into Trade On March 26   

Stocks To Watch

• Delta Corp: To consider share buyback on March 28.
• REC: Board approved increasing the market borrowing program by Rs 4,000 crore to Rs 94,000 crore for the financial year 2020. The company seeks to raise Rs 2,500 crore via capital gains tax exemption bonds.
• NTPC: Second Unit of 660 MW of Khargone Super Thermal Power Project has been added to the installed capacity of NTPC on successful completion of trial operations. Total installed capacity at the group level stands at 58,816 MW.
• Shankara Building Products: CRISIL has downgraded the rating on bank facilities to CRISIL BBB+ with a stable outlook from CRISIL A- with a negative outlook. The downgrade reflects the moderation in the group’s overall business risk profile marked by continued suppressed Return on Capital Employed and working capital intensity.
• Ashok Leyland: ICRA downgraded long-term rating to ICRA AA- from ICRA AA+ with outlook being revised to negative from stable. The rating action considers the expected deterioration in Ashok Leyland’s financial risk profile over the medium-term with the longer than expected slowdown in the domestic commercial vehicle industry and increasing investment outlay in group entities.

Covid-19 Impact

• HEG: To suspend its operations at its Madhya Pradesh plant with immediate effect.
• Dhanuka Agritech: Shuts down all of its three plants in Gujarat, Jammu and Kashmir and Rajasthan.
• Endurance Technologies: To suspend all plant operations in India until the next 21 days, or a period notified by authorities. The company also stated in the press release that its Italian arm will suspend its operations till April 3, while the German arm will also scale down its operations.
• Proctor And Gamble Health And Hygine: Said that it anticipates disruptions in operations to continue for a period of the next 3 weeks at minimum.
• GAIL: Issues force majeure notice on prompt LNG shipments. (Bloomberg News)
• Indian Oil: Has regulated crude oil throughput at most of its refineries by 25 percent to 30 percent. The company said that demand for petroleum products has fallen sharply and aviation turbine fuel has also been impacted due to the suspension of flights. The corporation is taking steps to increase LPG production in major refineries.
• TVS Motor: Indonesian arm’s one plant to resume operations from March 26.
• InterGlobe Aviation: Says it is likely that restrictions on operations of the company’s international and domestic flights will continue until April 14.
• Syngene International: To temporarily suspend part of its research activities at its facilities situated at Bangalore SEZ and Hyderabad for a period of 21 days. Company to continue to carry out operations for essential services, development, and manufacturing activities at the above facilities.
• Petronet LNG declares force majeure on LNG cargoes from Qatar for March delivery. (Bloomberg News).

Brokerage Radar

PhillipCapital On ICICI Lombard

• Upgrade to Buy from Hold
• Price target maintained at Rs 1,200
• Low balance sheet risk compared to lending business
• Low solvency, market corrections may see price rationalisation
• Lower claims ratio in motor segment to partially offset higher claim ratio in health segment
• Investment performance to be subdued in low-interest rate environment

Morgan Stanley On Info Edge

• Upgrade to Overweight from Equalweight
• Price target cut to Rs 2,200 from Rs 2,640
• Correction an opportunity to accumulate a quality stock
• Strong market positioning and good management team
• Near-term economic activity may be slow
• Market share gains likely as competitive landscape weakens

Morgan Stanley On Indian Industrials

• Covid-19 still in its early days in India
• Conducting business has become tougher
• Will be monitoring the government's response
• Sharp correction offers strong opportunities for long-term investors

Bulk Deals

• India Cements: Radhakishan Damani acquired 16 lakh shares (0.52 percent) at Rs 94.97 per share.
• Seamec: Promoter Sanjeev Agrawal acquired 1.74 lakh shares (0.68 percent) at Rs 205 per share and Algomind Capital Fund sold 1.75 lakh shares (0.69 percent) at Rs 205.08 per share.
• IndusInd Bank: Europacific Growth Fund sold 35.76 lakh shares (0.57 percent) at Rs 298.83 per share.
• Thyrocare Technologies: Nalanda Fund acquired 17.7 lakh shares (3.35 percent) at Rs 499.97 per share and Aditya Birla Sun Life MF sold 17.7 lakh shares (3.35 percent at Rs 500 per share.
• Thirumalai Chemicals: Aditya Birla Finance sold 8.54 lakh shares (0.83 percent) at Rs 32.34 per share.

Who’s Meeting Whom

• Shriram City Union Finance to meet Somerset Capital Management on March 26
• Polycab to meet T Rowe Price and Kotak MF on March 26
• Eicher Motors to meet SBI Life Insurance and Capital World Investors between March 26-27

Trading Tweaks

• Sharda Motors: Ex-date for demerger
• Move Into ASM Framework: Arvind Fashions, Gujarat Fluorochemicals, Indo Count Industries, Edelweiss, Varroc Engineering, Himatsingka Seide, Future Lifestyle, Somany Ceramics, Den Networks, Quess Corp, Dalmia Bharat, ENIL, CARE Ratings, Karur Vysya Bank, Alembic, Sobha, Raymond, Anant Raj and Ramkrishna Forgings.
• Move Into Short-Term ASM Framework: PSP Projects, Finolex Cables, PNC Infratech, KRBL, Sunteck Realty, Allcargo Logistics, DCB Bank, Lemon Tree, Tube Investments, Repco Home Finance.
• Price Band Revised To 5 Percent From 10 Percent: AU Small Finance Bank, CreditAccess Grameen, IIFL Finance, KPIT Technologies, Repco Home Finance.
• Price Band Revised To 10 Percent From 20 Percent: Astra Microwave, GATI, JK Tyre, KEC International, Mahindra Lifespaces, Mahindra Logistics, Symphony.

Insider Trading

• Transport Corporation of India: Promoter Bhoruka Supply Chain Solutions acquired 10,000 shares on March 23
• Century Plyboards: Promoters acquired 64,000 shares from March 23-24

(As Reported On March 25)

F&O Cues

Index Futures

• Nifty March futures closed at 8,362; a premium of 44 points versus 48.9 points.
• Nifty futures open interest up 6 percent across series and add 9.3 lakh shares in open interest.
• Nifty Bank March futures closed at 18,487; a premium of 6 points versus a discount of 177 points.
• Nifty Bank futures open interest across series up 2.5 percent and add 34,000 shares in open interest.
• Nifty Rollovers at 50 percent while Nifty Bank rollovers at 40 percent.

Options

• Nifty Put-Call Ratio at 1.22 versus 1.08 across all series.

Nifty Monthly Expiry: March 26

• Maximum Open Interest on Call side at 9,000 strike (19.8 lakh shares)
• Maximum Open Interest on Put side at 7,000 strike (21.7 lakh shares)
• 7,000 Put (4.9 lakh shares) and 8,000 Put (4.2 lakh shares) see Open Interest addition.
• 8,000 Call (-4.9 lakh shares) and 10,000 Call (-4.6 lakh shares) see Open Interest shedding.

Securities In Ban

In Ban:

• Jindal Steel & Power

Out of Ban:

• Adani Enterprises
• Just Dial