ADVERTISEMENT
All You Need To Know Going Into Trade On March 30
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
30 Mar 2020, 07:18 AM IST 
A vendor waits for customers while sitting on a truck at a whole sale market during a lockdown imposed due to the coronavirus in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)
Asian markets along with U.S. equity futures are declining on Monday morning after a late-session decline on Wall Street on Friday.
The Aussie traded lower after the country limited public gatherings to only two people. The Singapore Dollar pared losses after the monetary authority reduced the slope of its currency band, reaffirming the current level.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.4 percent to 8,360 as of 6:45 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
- Japan's Topix index is down 3 percent while stocks in South Korea are on the decline as wel. Australian markets are trying to recover some of Friday's fall.
- U.S. President Donald Trump extended the Coronavirus Guidelines in the U.S. to April 30. Treasury Secretary Steve Mnuchin expects to have the small business loan program functional in the coming week while workers can expect aid from the $2 trillion stimulus package signed by Trump on Friday.
- West Texas Intermediate Crude fell below the $20 per barrel mark at one point. It currently trades 5 percent lower at $20.44. Oil prices saw their their fifth straight weekly loss while the U.S. dollar had its worst five-day drop since 2009.
- The S&P 500 posted a 10 percent gain in the last week, the best since March 2009, despite snapping a record three-day rally on Friday. The Dow Jones had its best week since 1938.
- A measure of the U.S. consumer confidence fell the most since 2008.
- The Pound sterling gained even as U.K. Prime Minister Boris Johnson said that he had tested positive for Coronavirus.
- Yield on the 10-year treasury in the U.S. fell 17 basis points to 0.67 percent.
Get your daily fix of the global markets here.
Stocks To Watch
- SBI: Cuts lending rates by 75 basis points to 7.05 percent. Repo linked lending rate reduced to 6.65 percent. New lending rates to be effective from April 1. Retail term deposit rates reduced by 20-50 basis points while bulk deposit rates cut by 50-100 basis points across maturities. Deposit rate cuts are in effect from Saturday, March 28.
- Sun Pharma: Gets OAI from U.S. FDA for its Halol facility. The OAI classification implies that the U.S. FDA may withhold the approval of any pending product applications or supplements filed from this facility till the outstanding observations are resolved. This is unlikely to have any adverse impact on current business from the facility as it continues to manufacture and distribute existing products for the U.S. Market. 19 ANDAs and 2 NDAs are pending approval from the Halol facility for the U.S. market. As of now, total supplies from Halol for the U.S. market contribute 3-4 percent of consolidated revenue.
- Coffee Day Enterprises: Gets first tranche payment of Rs 2,000 crore after divesting the Global Village Tech Park to entities belonging to Blackstone Group and Salarpuria Sattva Group for Rs 2,700 crore. The company has used these proceeds to pay off its debts in full, including principal and interest amounting to Rs 1,644 crore to the lenders. Post this payment, the consolidated debt of the company and its subsidiaries now stands at Rs 3,200 crore, including Rs 1,400 crore at Sical Logistics, where the divestment is currently in progress. These figures are as of Friday, March 27.
- Delta Corp: Board approves buyback of shares worth Rs 125 crore at a price of Rs 100 per share. The buyback price is a 68 percent premium to Friday's closing price. Total share buyback will amount to 4.61 percent of total share capital.
- IndusInd Bank: Makes timely interest payment of Rs 156.4 crore towards additional Tier-1 bonds.
- Future Retail: Clarifies that there is no such activity of Kishore Biyani selling stake. S&P Global has downgraded the company's U.S. denominated notes to B- from BB-.
- Future Supply Chain Solutions: CARE Ratings downgrades long-term banking facilities to CARE A+ from CARE AA-. Outlook has been revised to credit watch with negative implications from stable.
- Tata Power: JV with International Finance Corporation in Georgia begins commercial operation of 178MW Hydro Power Project.
- Godrej Agrovet: Signs sale deed with Godrej Properties to sell land parcel in Bengaluru for Rs 134.68 crore. Both companies had signed an agreement in June 2016 to jointly develop land parcels measuring 100 acres in Karnataka.
- Lupin: The company along with Mylan has stated that the European Medicines Agency's Committee for Medicinal Products for Human Use have recommended the approval of Nepexto, used in the treatment of Arthritis. The European Commission will consider the positive opinion. Once approved, a centralised marketing authorisation for member countries of the European Union will be granted. Decision on the approval is expected in May 2020.
- BASF India: Karnataka Appellate Tribunal has granted a stay on recovery of demand aggregating to Rs 52.17 crore pertaining to the 2010-11 stock transfer case.
- Cipla: Gets final approval for generic version of Nexium, as reported by Bloomberg News.
- Grasim: To consider NCD issue of up to Rs 1,000 crore on April 1.
- Mahindra Logistics: To attend conference call with P&Y Estates, Goldman Sachs, Axis Capital, Enam Holdings, UTI Mutual Fund and ICICI Securities.
- Motherson Sumi: Moody's assigns Ba1 corporate family rating (CFR) while outlook has been revised to 'under review' from negative.
- Muthoot Finance: Fitch revises long-term issuer default rating to BB from BB+ with outlook revised to watch negative from stable.
- Manappuram Finance: Fitch places long-term issuer default rating on Rating Watch Negative from BB-
- Shriram Transport Finance: Fitch revises long-term issuer default rating to BB from BB+
Covid-19 Impact
- Auto Stocks: The Supreme Court has relaxed the March 31 deadline for sale of all BS-IV vehicles with conditions. The court has said that only 10 percent of inventory can be sold within 10 days of the lockdown ending. The vehicles must be registered within 10 days of sale.
- Mahindra and Mahindra: Suspends all manufacturing operations across India. Duration of the shutdown will depend upon directives issued by respective government authorities.
- Maruti Suzuki: Enters into an arrangement with AgVA Healthcare to scale up production of Ventilators.
- Tata Coffee, Tata Consumer: Shut down manufacturing and plantation operations.
- Tata Metaliks: Suspends production of Pig Iron and DI Pipes at Kharagpur plant.
- IDBI Bank: Withdraws bond issue of Rs 1,000 crore due to cuts in repo rate, CRR and other measures announced on March 27 which led to significant fall in interest rates in the market.
- Indian Oil: All operating locations of the company are functioning normally. There is no shortage of petrol, diesel and LPG stocks.
- Hero Motocorp: Extends suspension of closure of its manufacturing plants till April 14.
- NIIT Tech: SEBI provides extension for dispatching letter of offer for the company's buyback and tender form till April 30.
Brokerage Radar
Haitong On Insurance And AMCs
- Consistency of operating variances and assumption changes are key metrics to determine life insurance valuations
- Focus on EVOP in Life Insurance and Float in General Insurance
Morgan Stanley On Mindtree
- Underweight rating maintained
- Price target cut to Rs 765 from Rs 850
- Elongated deal conversion cycle amidst Covid-19 outbreak to affect growth
- Top account may continue to post growth
- Growth prospects outside the top account remain key to watch
- High exposure to travel and hospitality vertical is an area of concern
Morgan Stanley On Oil & Gas
- Indian refiners have lowered utilisation rates as 21-day shutdown went into force
- Domestic fuel demand impacted
- Shutdown will result in 6-9 percent impact to FY21 earnings
- Both refining and fuel market margins are steady
- $0.6 billion is monthly fixed cost incurred by Indian refiners
Morgan Stanley On Mphasis
- Overweight rating maintained
- Price target cut to Rs 935 from Rs 1,090
- Moderate growth outlook for FY21 due to Covid-19
- Expect banking and capital markets vertical to do well
- Deal conversions may take longer
- Recent deal wins may support near-term growth rates
Morgan Stanley On Cement
- March 2020 volumes hit by Covid-19 but prices remain stable
- Prices increased selectively in the West, fell in the East and stable across other regions
- Volumes may decline 25-30 percent due to the lockdown in March
- See tailwinds to profitability in Q4FY20
- June quarter likely to be very challenging
Daiwa Capital On Havells India
- Management said revenue in January, February was strong especially in AC and fan business
- Company is financially sound to weather the on-going crisis, even if it extends beyond April 14
- Has made contingency plan to support the entire value chain
- Lloyd witnessed strong growth in AC business till the first half of March
Elara Capital On Cement
- Strong March ends abruptly
- All-India average prices fall Rs 3 per 50 kg bag
- Post lockdown revival likely to be gradual
- Cut volume estimates by 3 percent for FY20 and 7 percent for FY21
- Firms with strong balance sheet to recover first
- Risk Reward Attractive For: ACC, Ambuja and Heidelberg Cement
Elara Capital On Fortis Healthcare
- Buy rating maintained
- Price target cut to Rs 160 from Rs 180
- Hospital business to remain under pressure in the short-term
- Slowdown to impact liquidity in the near-term
- Diagnostic business witnesses 70-80 percent drop in revenue
Investec On JSW Steel
- Steel mills face a catch-22 situation - Shutdowns, forex headwinds and leverage
- Potential fixed cost absorption is a risk to deleveraging
- Stock price correction poses a risk to incremental pledge cover required
Bulk Deal
- Kaya: Radhakishan Damani-promoted Derive Investments acquired 95,032 shares or 0.73 percent stake at Rs 103.59 per share.
- Matrimony.com: Marathon Edge Partners acquired 3.88 lakh shares or 1.71 percent stake at Rs 280 per share. Goldman Sachs India sold 4.84 lakh shares or 2.13 percent stake at Rs 280.02 per share.
- MCX: WF Asian Smaller Companies Fund acquired 3 lakh shares or 0.59 percent stake at Rs 1,044.65 per share.
- Apollo Pipes: Promoter Saket Agrawal sold 1.37 lakh shares or 1.05 percent stake at Rs 265 per share.
- Suprajit Engineering: HDFC MF acquired 30 lakh shares or 2.14 percent stake at Rs 122 per share while Caisse De Depot, Scottish General, First State Indian Subcontinent sold 29.86 lakh shares or 2.14 percent stake at Rs 122 per share.
- HDFC Life: Standard Life Insurance sold 5 crore shares or 2.48 percent stake at Rs 441.24 per share.
- Lemon Tree: WF Asian Reconnaissance Fund acquired 51.67 lakh shares or 0.65 percent stake at Rs 23.64 per share.
- Eris Lifesciences: Promoter Himanshu Shah sold 19 lakh shares or 1.38 percent stake at Rs 360 per share while Emerald Investments acquired 17.94 lakh shares or 1.3 percent stake at Rs 360 per share.
Pledged Share Details
- Adani Enterprises: Promoter SB Adani Family Trust created a pledge of 2.45 crore shares on March 24.
- Adani Enterprises: Promoter Adani Tradeline LLP created a pledge of 33 lakh shares on March 24.
- Aurobindo Pharma: Promoters created a pledge of 13.5 lakh shares on March 23.
(As reported on March 27)
Trading Tweaks
- Move Into ASM Framework: 63 Moons, Triveni Engineering and Industries
- Move Out Of ASM Framework: Ashapura Minechem, Zuari Agro, Reliance Naval and Engineering
- Move Into Short-term ASM Framework: MEP Infra, CreditAccess Grameen, Everest Kanto Cylinder
- Move Out Of Short-Term ASM Framework: Siti Networks, Shriram City Union Finance, IFGL Refractories
- Price Band Revised To 5 Percent From 10 Percent: Anant Raj, Atul Auto, Greenlam Industries, Insecticides India, Polycab India, Surya Roshni
- Price Band Revised To 10 Percent From 20 Percent: Greaves Cotton, Snowman Logistics, Unichem Laboratories, Vardhaman Special Steels
Insider Trades
- JBM Auto: Promoter SMC Credits acquired 81,000 shares between March 24-25.
- Sadbhav Infra: Promoter Sadbhav Engineering acquired 36,021 shares on March 26.
Money Market Update
The rupee ends stronger at 74.92 against the U.S. dollar on Friday, as against Thursday's close of 75.16. The currency posted its longest-winning streak in a month, gaining for the third day in a row on Friday.
F&O Cues
- Nifty April futures end at 8,651; a discount of 9 points as against a premium of 35.8 points on Thursday.
- Open Interest in Nifty April futures down 4 percent with shedding of 3.8 lakh shares.
- Nifty Bank April futures end at 19,778.6; a discount of 190 points as against a discount of 275 points on Thursday.
- Open Interest in Nifty Bank April futures up 19 percent with an addition of 1.3 lakh shares.
- Nifty Put-Call Ratio at 1.23 Vs 1.42 across all series.
Nifty: April 1 Expiry
- Maximum open interest on Call side at 10,000 strike (13.6 lakh shares)
- Maximum open interest on Put side at 8,000 strike (9.9 lakh shares)
- 10,000 Call (9.3 lakh shares), 10,500 Call (6.5 lakh shares) and 7,500 Put (3 lakh shares) see addition in open interest.
Nifty: April 30 Expiry
- Maximum open interest on Call side at 10,000 strike (13.6 lakh shares)
- Maximum open interest on Put side at 7,500 strike (17.2 lakh shares)
Stocks Buzzing In The F&O Space
FIIs Buy Into Indian Market
