All You Need To Know Going Into Trade On March 9

Asian stocks rallied and the yen slumped on news of an agreement for an unprecedented summit between the leaders of the U.S. and North Korea, defusing geopolitical concerns tied to the nuclear-armed dictatorship in northeast Asia.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,290.50 as of 7:05 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

DayBreak

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

Global Cues

• U.S. stocks rose after President Donald Trump announced tariffs that were narrower than some traders had anticipated.
• Ten-year Treasury yields fell to 2.86 percent.

Europe Check

• European stocks advanced in a broad rally after European Central Bank President Mario Draghi said the improvement in the euro-area economy justifies the ECB’s decision to drop its pledge to ramp up stimulus.

Asian Cues

• The MSCI Asia Pacific Index rose 0.5 percent.
• Topix index rose 1.2 percent.
• Kospi index rose 1.2 percent.
• Australia’s S&P/ASX 200 Index rose 0.3 percent.
• Futures on the S&P 500 Index were little changed.

Here are the key events for the remainder of this week:

• The Chinese People’s Political Consultative Conference runs through March 15 and overlaps with the National People’s Congress meetings in Beijing, through March 20.
• BOJ monetary policy decision and briefing on Friday.
• U.S. monthly payrolls data come Friday.

Commodity Cues

• West Texas Intermediate crude rose 0.4 percent to $60.35 a barrel.
• Brent crude closed lower or the second day at $63.61 per barrel, down 1.1 percent.
• Gold fell 0.1 percent to $1,320.88 an ounce.
• LME copper declined 1.7 percent to $6,833.00 per metric ton.

Indian ADRs

Stocks To Watch

• PNB may be given one year to provision against Rs 12,700 crore fraud.
• India asks REC, PFC not to grant loan to discoms with heavy losses.
• Axis Bank acquires 1.84 million shares in Fortis via invocation of pledge. It held 3.55 percent in Fortis as of Feb. 23.
• InterGlobe Aviation says it is in the process of reviewing the CCI penalty and is considering an appeal.
• SpiceJet says it is examining the CCI penalty and is considering appeal.
• Gansu Bank, China goes live with TCS BaNCS for its fund and investment banking operations.
• Global Offshore receives order worth Rs 10 crore for one of its vessels for three years, starting April 2018.
• Filatex India starts commercial production of synthetic yarn at Dahej unit.
• L&T hikes stake in L&T Finance to 66.1 percent from 64.1 percent earlier.
• L&T Finance QIP opens today with a floor price of Rs 161.79 per share.
• GTL Infra says Aircel has overdue outstanding of over Rs 384 crore towards infrastructure provisioning fees and past settlements.
• Shree Renuka board signs restructuring agreement with banks.

Media Reports

• HDFC Bank has selected arrangers for a planned share sale of around Rs 15,500 crore (Bloomberg).
• Ultratech raises bid for Binani by Rs 700 crore (Economic Times).
• Adani Group, JSW, Suraksha Asset Reconstruction Company and a consortium comprising Kotak Realty Fund & Cube Highways in fray for Jaypee Infratech (Times of India).

Bulk Deals

• Ashapura Intimates Fashion: Promoter Harshad Hirji Thakkar bought 1.31 lakh shares or 0.5 percent equity at Rs 455 each.

Mayur Uniquoters

• Small Cap World Fund Inc bought 8.75 lakh shares or 1.9 percent equity at Rs 509 each
• DBS Chola MF sold 4.37 lakh shares or 1 percent equity at Rs 509 each

Navin Fluorine

• Small Cap World Fund Inc bought 24.36 lakh shares or 4.9 percent equity at Rs 814.98 each.
• Atyant Capital India Fund I sold 4.03 lakh shares or 0.8 percent equity at Rs 815 each.
• GHI LTP Ltd sold 6.75 lakh shares or 1.4 percent equity at Rs 815 each.
• Vanderbilt University sold 2.7 lakh shares or 0.5 percent equity at Rs 815 each.

Who’s Meeting Whom

• Dr. Lal Pathlabs to meet Ambit capital on March 9.
• Inox Leisure to meet Sundaram MF on March 9.
• Jubliant Life to meet Aberdeen Standard, ICICI Prudential, Goldman Sachs, White Oak Capital and others on March 9.
• Pidilite Industries to meet several fund houses including Credit Suisse, Kotak, Robeco on March 16.
• Magma Fincorp to meet SBI MF on March 12, Khazanah India Advisors on March 15 and JM Financial on March 17.

Insider Trades

• JSW Steel promoter Vividh Finvest Pvt Ltd acquired 6 lakh shares from March 6–7.
• Kalyani Steels promoter Sundaram Trading and Investment Pvt Ltd acquired 67,243 shares on March 6.
• Career Point promoter Pramod Maheshwari acquired 13,176 shares on March 7.

New Listing/IPO Watch

• HG Infra Engineering: To start trading on BSE/NSE after selling shares at Rs 270 each in IPO
• NSE expects to sell shares in IPO within fiscal 2019: Statement
• Karda Constructions plans IPO of 43 lakh shares at Rs 175-180 each starting March 16
• L&T Finance to sell up to $154 million of shares via QIP: Termsheet

Rupee

• Rupee closed at 65.15/$ on Thursday from 64.89/$ on Wednesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty March futures closed trading at 10,242.9 premium of 0.3 points versus 17.3 points.
• March series: Nifty open interest down 3 percent, Bank Nifty open interest down 3 percent.
• India VIX ended at 14.5, down 7 percent.
• Max open interest for March series at 10,500 call strike (open interest at 52.4 lakh, up 6 percent).
• Max open interest for March series at 10,000 Put (open interest at 51.5 lakh, up 26 percent).

F&O Ban

• In ban: Balrampur Chini, Dewan Housing, HDIL, IDBI.
• New in ban: Balmrampur Chini.
• Out of ban: Oriental Bank.

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.14 versus 1.08.
• Nifty Bank PCR at 0.94 versus 0.66.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

CLSA on INOX

• Maintained ‘Buy’ with price target of Rs 330.
• Inox has seen strong rebound in ad revenue growth.
• Footfall monetisation in terms of F&B spends to be next key focus area.
• Expect screen addition to accelerate in the next fiscal.
• Inox remains well placed to drive inorganic growth.
• Sustainable improvement in footfall monetisation can close valuation gap with PVR.

Macquarie on Godrej Consumer

• Maintained ‘Outperform’ with price target of Rs 1,285.
• Confident on Godrej Consumer’s ability to revive household insecticides.
• Addressing low rural penetration with more efficacious product at lower price point.
• New Goodknight product to help achieve higher penetration and revive growth.
• Top pick in consumer staples space.

Kotak Securities on Mahindra & Mahindra

• Maintained ‘Buy’; raised price target to Rs 945 from Rs 915.
• Tractor demand strong across most major states.
• Signs of recovery in rural market in general.
• M&M continues to gain market share in growing tractor market.
• Remains our preferred pick in the sector.
• Expect 10 percent compounded growth rate in volume over the fiscal 2018-2020.
• Valuations are attractive.

Kotak Securities on Indraprastha Gas

• Maintained ‘Sell’ with price target of Rs 250.
• Expect moderation of CNG growth.
• Quarterly pace of vehicle addition halved during during April-December compared to the corresponding period in 2017.
• Double-digit growth in PNG may not be enough given smaller share and lower profitability.
• Any disappointment on volumes to lead to de-rating of valuation multiple.

Kotak on Mahindra Holidays

• Initiated ‘Buy’ with price target of Rs 388.
• Positive outlook for domestic tourism with improving infrastructure and consumer spending.
• Mahindra Holidays has a unique business model in tourism sector.
• Vacation ownership model to grow manifold.
• Multiple levers to drive future growth.
• Strong cash flows to support future growth.
• Expect revenue. Operating income and net profit to compound at 10 percent, 14 percent and 14 percent respectively over the fiscal 2017-2020.
• Focus on quality members and higher share of resort income to boost earnings, cash flows and returns ratios