All You Need To Know Going Into Trade On March 29
Asian stocks looked set to round out a strong quarter with gains on Friday, while the rally in sovereign bonds ebbed as investors gauge the outlook for growth.
Shares on Friday gained in Japan, South Korea and Australia and futures on U.S. equities edged higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.23 percent to 11,643 as of 7:10 a.m.
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Here’s a quick look at all that could influence equities today.
U.S Market Check
- U.S. stocks advanced as the rally in Treasuries eased and investors looked to China for the latest developments in the standoff over trade.
- Japan’s Topix index rose 0.8 percent.
- Hang Seng futures added less than 0.1 percent overnight.
- South Korea’s Kospi added 0.3 percent.
- Australia’s S&P/ASX 200 Index rose 0.4 percent.
- The S&P 500 rose 0.4 percent. Futures added 0.2 percent.
- Brent crude traded a little changed at $67.82 per barrel.
- West Texas Intermediate crude rose 0.5 percent to $59.59 a barrel.
- Gold held at $1,291.50 an ounce after sinking 1.5 percent.
London Metal Exchange
- Aluminium ended 0.42 percent lower.
- Nickel ended lower for the second day, down 1.4 percent.
- Lead ended 0.5 percent higher.
- Copper ended 0.39 percent higher.
- Tin ended 0.33 percent higher.
- Zinc halted a three-day gains, ended 0.69 percent lower.
Key Data/Events To Watch
- India 4Q BoP Current Account Balance, est. -$16billion, prior -$19.1billion.
- India fiscal deficit in data for April-Feb. period.
- India Eight Infrastructure Industries Index for Feb. (prior +1.8 percent)
- Fed official Randal Quarles will speak Friday to the Shadow Open Market Committee on “Strategic Approaches to the Fed’s Balance Sheet and Communications.”
- Theresa May will put her Brexit divorce deal to a vote in Parliament on Friday.
Stocks To Watch
- Wabco India: Holding company said that it has entered into a definitive agreement to sell all of its outstanding shares in an all cash transaction at $136.5 per share aggregating to $7 billion to ZF Friedrichshafen. Transaction expected to close in early 2020. Wabco India to remain in focus as ZF Friedrichshafen will have to make an open offer for public shareholders, according to the SEBI guidelines.
- Tata Power signed a power purchase agreement with BEST (Mumbai Area Municipality) for supply of 676.69 MW of power for a period of five years till March 2024. Another power purchase agreement was signed between the distribution business of the company and its generation arm for 700 MW of power till March 2024.
- BNP Paribas sought to sell 5.1 percent take in SBI Life Insurance at Rs 575 apiece.(Bloomberg News)
- DLF QIP Issue: Securities Issuance Committee approved the issue price at Rs 183.4 per share, to the floor price of Rs 193.01 per share. The QIP was declared to be closed by the committee on March 28.
- Lupin launched Fluocinonide Ointment, which is used for inflammation treatment. The company had received approval for this drug by the U.S. FDA earlier.
- HT Media: NCLT gave approval for the demerger of its wholly owned arm Digicontent from the copy.
- Punjab National Bank EGM: Shareholders approved to issue and allot 80.2 crore shares aggregating to Rs 5,908 crore on preferential basis to the government of India.
- PFC-REC Deal: Power Finance Corporation stated that it had acquired a 52.63 percent stake of share capital of REC, worth Rs 14,500 crore from the government and became the holding company and the promoter of REC.
- HIL: Company’s JV with its German Arm launched showroom for wooden products in China’s Shanghai.
- Andhra Bank board approved an issue of 114.6 crore shares aggregating to Rs 3,256 crore on preferential basis to the government of India.
- EIH said its Agra’s Oberoi Amarvilas will be partially closed for renovation of 53 rooms from April 11 to Sept. 30.
- Adani Logistics arm said it will acquire 100 percent stake in InLogistics (entity controlled by private equity firm True North) for Rs 331.5 crore.
- Union Bank of India board approved to issue and allot 52.15 crore shares aggregating to Rs 4,112 crore on preferential basis to the government of India.
- Central Bank of India shareholders approved to issue and allot 68.7 crore shares aggregating to Rs 2,560 crore on preferential basis to government of India.
- Indian Overseas Bank shareholders approved to issue and allot 269.5 crore shares aggregating to Rs 3,806 crore on preferential basis to the government of India.
- Bharat Financial Inclusion completed its tenth direct assignment of Rs 837.4 crore. With this assignment, the company has completed transactions worth Rs 9,032.5 crore in financial year 2019.
- Take Solutions board re-appointed Srinivas HR as its MD for additional three years with effect from April 1.
- Indian Bank shareholders approved raising equity capital up to Rs 7,000 crore.
- HUDCO: Government of India extended the tenure of M. Ravi Kanth as CMD for a period of six months with effect from April 11.
- Wipro signed an MoU with IIT Kharagpur for research on 5G Technology and Artificial Intelligence.
- TCPL Packaging commenced commercial operation of its Goa unit from March 28.
- Fortis Healthcare: ICRA upgraded the company’s loan, fund limit rating to ‘BBB-’ from ‘B+’ (ICRA Release)
- MSTC’s shares to start trading on BSE/NSE after IPO gets 146 percent demand at Rs 120 a share.
- Metropolis Healthcare IPO price band set at Rs 877-880 per share; offer open April 3, closes April 5.
- Canadian investor Prem Watsa-led Catholic Syrian Bank Ltd.is gearing up for a listing that may involve a Rs 400 crore IPO. (read more here)
- Britannia Industries: SBI MF acquired 12.97 lakh shares or 0.54 percent equity at Rs 3,098.97 each.
- Gruh Finance: Promoter HDFC sold 1.22 crore shares or 1.67 percent equity at Rs 260.08 each.
- Morgan Stanley France SAS acquired 36 lakh shares or 0.69 percent equity at Rs 314.5 each.
- Merrill Lynch Markets Singapore sold 36 lakh shares or 0.69 percent equity at Rs 314.5 each.
Pledge Share Details
- Future Retail promoter Future Corporate Resources created a pledge of 74.05 lakh shares on March 26.
- Nifty 50 Index Rejig: Britannia comes in and HPCL goes out from the index with effect from March 29.
- Vodafone Idea ex-date for rights issue 87:38 at Rs 2.5 per share.
- Aarti Drugs record date for share buyback.
- CRISIL, Hindustan Aeronautics, BEML record date for interim dividend.
- IGSEC Heavy Engineering record date for stock split from Rs 10 to Rs 1 per share.
Who’s Meeting Whom
- Eicher Motors to meet Banyan Tree Advisors on March 29.
- Bajaj Holdings & Investment promoter Bajaj Auto acquired 90,000 shares from March 26-27
- Mangalam Organics promoter group Akshay Dujodwala acquired 36,000 shares from March 26-28.
- Jindal Stainless promoter group Abhuday Jindal acquired 1 lakh shares from March 25-26.
- Bajaj Auto promoter Bajaj Holdings & Investment acquired 2.3 lakh shares from March 25-27.
Money Market Update
- The rupee on Thursday closed at its lowest since March 14 at 69.34/$. It closed at 68.88/$ on Tuesday.
- Nifty April Futures closed trading at 11533, premium of 13 points.
- Max OI for April series at 12,000 Call, OI at 20.3 lakh shares.
- Max OI for April series at 11,000 Put, OI at 20.2 lakh shares.
Stocks In F&O Ban
- In Ban: Adani Power
- Nifty PCR at 1.96 versus 1.49.
On Indian IT
- Accenture signals strong demand for 3-months ending February 2019 (Q2FY19).
- Strong growth led by consulting, U.S. and resources.
- Strong growth in U.S. more positive for Infosys.
- Strong growth in CMT positive for Tech Mahindra, Wipro and HCL Tech.
- Accenture saw strong booking growth in quarter gone by.
- Stable to moderating budget growth in 2019, but digitization cycle to last longer.
- Growth in financial was muted; Revenue growth guidance implies a deceleration in the second half.
- Accenture: strong headline numbers with growth skew towards a couple of verticals.
- Financial services: weak banking, especially in Europe; strong insurance.
- Demand environment is reasonable; rough edges visible in weak financial services growth.
- CLSA on Varun Beverages
- Maintained ‘Buy’; hiked price target to Rs 1,175 from Rs 985.
- South and west acquisition to drive EPS by 14-20 percent for CY20-21.
- 2018 was a decent year on operational parameters.
- RoE improved by free cash flow still negative.
JPMorgan on NBFCs
- Liquidity improves, but fragility remains; Macros should be supportive.
- Growth and margin pressure likely in 2019-20.
- Expect NBFCs to explore more permanent solution to funding woes via banking license or M&A.
- Shriram Transport Finance: Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 1.400 from Rs 1,600.
- L&T Finance: Downgraded to ‘Underweight’ from ‘Neutral’; maintained price target at Rs 130.
- Bajaj Finance: Maintained ‘Overweight’; hiked price target to Rs 3,400 from Rs 2,800.
- HDFC: Maintained ‘Overweight’; hiked price target to Rs 2,300 from Rs 2,250.
- Indiabulls Housing: Maintained ‘Overweight’; cut price target to Rs 1,000 from Rs 1,350.
- LIC Housing Finance: Maintained ‘Neutral’; hiked price target to Rs 585 from Rs 580.
- PNB Housing Finance: Maintained ‘Underweight’; cut price target to Rs 800 from Rs 1,000.
Axis Capital on Cyient
- Initiated ‘Buy’ with a price target of Rs 803.
- Growing client matrix and employee addition promises future growth.
- Strong outlook across verticals; DLM business growth to be in high double digits.
- High return ratios & dividend payout makes a lucrative bet.
- Expect revenue and net profit to grow at a CAGR of 12 percent over FY18-21.
HSBC on OMCs
- Concern over marketing margins short-lived; even GRMs are normalising from lows.
- Strong earnings outlook for OMCs should drive further upside.
- Both pace and quantum of recovery in marketing margins has surprised.
- Refining should improve further in 2019-20.
- IOCL: Maintained ‘Buy’; hiked price target to Rs 199 from Rs 168.
- BPCL: Maintained ‘Buy’; hiked price target to Rs 460 from Rs 429.
- HPCL: Maintained ‘Buy’; hiked price target to Rs 341 from Rs 298.
Spark on Sun TV
- Maintained ‘Buy’; cut price target to Rs 1,150 from Rs 1,170.
- Expect slower ad revenue growth due to slowdown in overall industry.
- See minimal impact on subscription growth on Sun TV despite TRAI tariff order.
- Higher than anticipated revenues from ‘Petta’ to marginally offset impact on lower ad revenue.