Sensex, Nifty Post Longest Winning Spree In Over Two Months

Indian equity benchmarks rose for fourth day in a row posting their longest winning streak in over two months led by gains in Axis Bank, ICICI Bank and Hindalco.

The S&P BSE Sensex rose 0.27 percent or 91.71 points to 33,880.25 and the NSE Nifty 50 index gained 0.22 percent or 22.90 points to 10,402.25.

Fifteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Metal index's 2 percent gain. On the other hand, the S&P BSE Auto index was the top sectoral loser, down 0.65 percent.

The mid- and small-cap shares ended on a mixed note. The S&P BSE MidCap index rose 0.18 percent while the S&P BSE SmallCap index ended little changed.

• Thermax: The Pune-based electrical power equipment maker snapped its four-day losing streak after Deutsche Bank upgraded the rating on the stock to buy for target price of Rs 1,360 per share.
• Welspun Corp: The Gujarat-based pipe maker rose as much as 4.6 percent to Rs 148.60 after it won order for supply of 4.17 lakh million tonnes of large diameter pipes for a water project in MENA, the company said in an exchange filing.
• Future Supply Chain: The Mumbai-based logistics service provider rose as much as 3.8 percent to Rs 692.10 after the Reserve Bank of India allowed raising foreign portfolio investment (FPI) limit on the company to 49 percent from 24 percent.
• Balrampur Chini: The Kolkata-based sugar maker rose as much as 9.1 percent to Rs 82.75 after report suggested that government is likely to pay cane farmers Rs 55 a tonne to help sugar mills.

Vedanta Ltd.’s Anil Agarwal said aluminium prices could rise around 50 percent after U.S. sanctions on Russia’s United Co. Rusal, the biggest producer of the base metal outside China.

Prices should vary between $2,500 and $3,000 a metric tonne if the situation (sanctions on Rusal) continues, Agarwal, chairman of metals-to-mining conglomerate Vedanta, told BloombergQuint in an interview. “India will have a great advantage due to the sanctions.”

• TI Financial Holdings: The Chennai-based holding company fell 0.1 percent to Rs 657.80. Trading volume was 14.1 times its 20-day average.
• Sudarshan Chemical Industries: The Pune-based specialty chemical maker rose as much as 10.85 percent to record high of Rs 515.90. Trading volume was 17.2 times its 20-day average.
• Himatsingka Seide: The Bangalore-based home textile products maker rose as much as 2.6 percent to Rs 389.55. Trading volume was 9.1 times its 20-day average.
• Nilkamal: The Mumbai-based plastic furniture maker rose as 7.6 percent to Rs 1,757. Trading volume was 8.7 times its 20-day average.

• Supreme Industries has 17.7 lakh shares or 1.4 percent equity change hands in a block. Stock down 0.6 percent at Rs 1,209.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of metal producers were trading higher after aluminium prices inched up in international markets after the U.S. imposed sanctions against Russian oligarchs including Oleg Deripaska and his United Co. Rusal.

A gauge of metal producers on the BSE— the S&P BSE Metal index rose 2 percent led by Hindalco, NMDC and NALCO.

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• Indian equity benchmarks held on to gains led by ICICI Bank, Axis Bank, Hindalco and Adani Ports. However, the benchmarks came off intraday highs as auto stocks were facing selling pressure.
• The S&P BSE Sensex rose 0.2 percent or 81 points to 33,869 and the NSE Nifty 50 index gained 0.19 percent or 19 points to 10,398.
• Twelve out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's 1.9 percent gain. On the other hand, the S&P BSE Auto index was the top sectoral loser, down 0.6 percent.
• The mid- and small-cap shares were trading on a muted note as both the indices on BSE were little changed.
• The overall breadth was marginally negative as 1,340 shares were declining while 1,200 were advancing on the BSE.

Top Nifty gainers

• Axis Bank
• ICICI Bank
• Hindalco
• Adani Ports
• Tata Steel

Top Nifty losers

• Indiabulls Housing Finance
• Mahindra & Mahindra
• Hero MotoCorp
• Bajaj Finserv
• Tata Motors

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Shares of the Chennai-based IT services company rose as much as 12.7 percent sharply, the most in over five months, to Rs 459.95. Trading volume was 7.9 times its 20-day average at this time of the day.

Shares of the Gujarat-based pipe maker rose as much as 4.2 percent to Rs 148.10 after it won order for supply of 4.17 lakh million tonnes of large diameter pipes for a water project in MENA, the company said in an exchange filing.

With the current order, company's order book stands at an all-time high of 1.49 million MTs valued at Rs 9,544 crore.

Shares of the Rajasthan-based lead products maker rose as much as 3.37 percent to Rs 177.90 after it started commercial production of PPCP granules from its plant situated at Chittoor in Andhra Pradesh.

Shares of the Delhi-based debt-laden steel maker rose as much as 7.2 percent, the most since April 5, to Rs 23.80 as lenders are in favour of JSW-AION bid.

JSW-AION have bid some Rs 3,700 crore for Monnet Ispat, which translates into a 76 percent haircut for lenders.

Axis Bank CEO’s request to revise down her term to Dec-18 (earlier Jun-21) has been accepted by the board. Our assessment suggests that Axis Bank will have to look for an external CEO, said Nomura in a research report.

We believe this presents a great opportunity for Kotak Bank to acquire one of the largest liability/retail asset franchises, the report added.

Kotak+ Axis Bank: Best-In-Class Franchise

• A merger would make Kotak + Axis Bank combined a close secondlargest private bank after HDFCB in terms of advances and also absolute CASA.
• Qualitatively, while Axis Bank’s loan book will require some clean-uprelated provisioning, the recent capital raise by Axis Bank and excess capital levels at Kotak Bank would aid the clean-up.
• As per estimates in FY20 (year of normalised credit costs for Axis Bank), the combined entity would generate ROAs of 1.7 percent and ROEs of 15.5-16 percent.
• At current prices, the deal would be +40% accretive to EPS/BPS of Kotak Bank This should make it possible for Kotak Bank to offer some premium to Axis Bank shareholders to make the deal attractive.

• March car sales came in at 191,082 units versus 190,236 units a year ago.
• March passenger vehicle sales came in at 300,722 units versus 282,698 units a year ago.
• March truck and bus sales at 108,681 units versus 87,258 units a year ago.
• March two-wheeler sales at 1,741,649 units versus 1,471,636 units a year ago.

Shares of the country's largest wireless telecom service provider fell for fifth day in a row, declining as much as 1.5 percent to Rs 374.50.

In the last five trading sessions the stock has fallen as much as 6.84 percent as the company is slated to report net loss in March quarter, its first in 15 years, the Economic Times newspaper reported.

Shares of the sugar manufacturers were trading higher in trade today.

• Bajaj Hindustan Sugar rose 5.3 percent
• Triveni Engineering rose 7.4 percent
• Dhampur Sugar Mills rose 4.97 percent
• Dalmia Bharat Sugar rose 6.7 percent
• Dwarikesh Sugar Industries rose 11.7 percent
• Avadh Sugar & Energy rose 8.7 percent
• Balrampiur Chini rose 6.9 percent
• Uttam Sugar Mills rose 6.9 percent
• KCP Sugar & Industries rose 2.6 percent
• Sakthi Sugars rose 9.1 percent
• Ugar Sugar Works rose 4.2 percent
• Mawana Sugars rose 5.7 percent
• Pondi Sugars rose 8.3 percent

Shares of the Azim Premji-led company fell as much as 2.6 percent, the most in over two weeks to Rs 277.75 after the company said that its profitability may be impacted by 65-75 basis points in the March quarter as one of its telecom clients is undergoing insolvency proceedings, according to a PTI report.

The stock was among the worst performers on Nifty 50 index. It has declined 10.9 percent so far this year, compared to 7.5 percent gain in NSE Nifty IT Index.

• Karur Vysya Bank has 10 lakh shares change hands in a block deal. Stock up 0.15 percent at Rs 103.10.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Hyderabad-based drugmaker rose as much as 1.96 percent to Rs 777 after its board of directors on Monday approved issuing 16.75 lakh shares of face value of Rs 10 each through qualified institutional placement (QIP).

Nifty 10,500 strike price call was among the most active call option contracts on the National Stock Exchange. The premium on the contract rose 13.1 percent to Rs 76.40 and over 1.2 lakh shares were added to the open interest of over 4 million shares.

On the other hand, the Nifty 10,400 strike price put was among the most active put option contracts on the National Stock Exchange. the premium on the contract fell 17 percent to Rs 102 and over 7.89 lakh shares were added to the open interest of 2.27 million shares.

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Shares of the Mumbai-based logistics service provider rose as much as 3.8 percent to Rs 692.10 after the Reserve Bank of India allowed raising foreign portfolio investment (FPI) limit on the company to 49 percent from 24 percent.

Shares of the Mumbai-based private sector lender rose as much as 1.4 percent to Rs 320.70 after the bank said that its board will meet on April 26 to discuss fundraising plan via share sale and will also discuss re-appointing Rana Kapoor as managing director and CEO of the bank for a period of three years.

Shares of the country's third largest private lender rose as much as 3 percent to Rs 534.85 after its managing director and CEO Shikha Sharma wanted her new term to be reduced to seven months from three-year tenure that has been approved by the bank's board.

The Axis Bank board has accepted her request for a shorter seven-month term (from June 1 to December 31, 2018), subject to the approval of the Reserve Bank of India (RBI), the bank said in a regulatory filing.

Shares of Hindalco and NALCO rose as much as 5.2 percent on speculation that supply may be disrupted after the U.S. imposed sanctions against Russian oligarchs including Oleg Deripaska and his United Co. Rusal.

Indian equity benchmarks edged higher led by gains in metal shares as Hindalco and NALCO rose after U.S. imposed sanctions on Russian tycoons.

The S&P BSE Sensex rose 0.3 percent or 100 points to 33,889 and the NSE Nifty 50 index gained 0.25 percent or 26 points to 10,405.

Nine out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's 1.7 percent gain. On the flipside, Nifty PSU Bank index was the top sectoral loser, down 0.12 percent.

The rupee rose 14 paise to 64.88 against the US dollar in early trade at the forex market today on increased selling of the greenback by exporters and banks.

Also, a higher opening of domestic equities supported the rupee, but the dollar's recovery against some currencies overseas, restricted the local unit's upmove, forex dealers said.

Yesterday, the rupee had retreated from its one-month high to close 5 paise lower at 65.02 against the US currency on fresh bouts of dollar demand from importers and corporate investors amid forex outflows.

Source: Press Trust of India

Investors will focus on a sale of Rs 19,700 crore of state bonds today even as the yield on benchmark bonds climbed for a second day. Though Indian government bonds have roared back from a seven-month selloff, state-run lenders, who are the biggest holders of sovereign debt, have remained net sellers.

The rupee is seen weakening along with other Asian currencies amid news of China evaluating the potential impact of a gradual yuan depreciation as the country’s leaders weigh their options in a trade spat with U.S. Implied opening from forwards suggests onshore spot will start trading around 64.9037 today.

The Mumbai-based airline has ruled out bidding for Air India, The Financial Times reported.

"Considering the terms of the offer in the information memorandum and based on our review, we are not participating in the process, FT reported citing CEO Amit Agarwal.

Ventura on Raymond

• Initiated ‘Buy’ rating with a price target of Rs 1,535.
• Raymond’s performance now at an inflection point.
• Well thought out strategy to propel earnings.
• Expect revenue, operating income and net profit to compound atr 12 percent, 28 percent and 81 percent respectively by March 2020.
• High growth of branded apparel segment is the primary driver.
• Apparel market presents enormous growth opportunity.
• Turnaround of non-core assets to be further growth drivers.
• Firming of strategic monetisation plans on real estate business to lead to significant re-rating.
• Value the 125-acre Thane land at Rs 3,125 crore.

Credit Suisse on Hindalco

• Maintained ‘Outperform’ with a price target of Rs 310.
• Aluminium has bounced sharply from bottom, driven by news of sanctions on Rusal.
• Impact of these sanctions is unclear.
• Hindalco's EV/EBITDA multiples near six-year lows.
• News from Syria may create an overhang

IIFL on Torrent Pharma

• Maintained ‘Buy’; raised price target to Rs 1,560 from Rs 1,400.
• No major acquisitions/capital raising planned.
• Initial trends from Unichem acquisition are in line with expectations.
• U.S. continues to be one of the key focus markets.
• Torrent remains one of the top picks in sector, driven by its strong India business.

Deutsche Bank on India Real Estate

• Godrej Properties: Initiated ‘Buy’ with a price target of Rs 1,000.
• Oberoi Realty: Initiate ‘Buy’ with a price target of Rs 650.
• Real estate sector entering a structured growth phase.
• Worst of sector specific policy drags is behind.
• Cyclical recovery momentum is beginning to turn supportive.
• Improving demand-supply dynamics in commercial segment.
• Demand-supply dynamics gradually bottoming out in residential property market.
• Sector under-owned by domestic mutual funds which is beginning to reverse now.
• Valuations appear expensive as they reflect cyclical lows in activity momentum.
• Valuations do not price in potential cyclical acceleration.

IDFC Securities on IPCA Labs

• Maintained ‘Outperform’; raised price target to Rs 920 from Rs 753.
• Believe the worst is over for IPCA.
• Domestic formulations and branded formulation exports are normalizing.
• Global Fund institutional malaria sales to resume from the current quarter.
• Expect potential resolution of FDA issues by second half of the current financial year to drive growth
• Expect revenue, operating income and net profit to compound at 16 percent, 30 percent and 37 percent over the fiscal 2018-2021.
• IPCA is one of the preferred mid-cap stock.

IDFC Securities on Axis Bank

• Maintained ‘Neutral’ with a price target of Rs 605.
• Change in top management is positive in long run.
• New CEO would join when most of the clean-up is done.
• Expect short term pressure on asset quality and growth.
• Possibility of the stress loan pool rising over reported levels.

Macquarie on Axis Bank

• Maintained ‘Outperform’ with a price target of Rs 651.
• CEO to step down in December 2018.
• Management transition needs to now be managed well.
• Appointment of credible successor will be critical for bank’s performance.
• There may be significant challenges to growth and operations.

Edelweiss on Metals

• Aluminium gained 7 percent after U.S. imposed sanctions on Rusal.
• This adds to the alumina cost push post partial closure of Alunorte.
• Believe that both Vedanta and Hindalco are likely to benefit.
• Novelis might face cost pressures in near term.
• Supply disruption, alumina cost push and low inventory to render support to aluminium prices.

CLSA on Future Lifestyle

• Initiated ‘Buy’ with a price target of Rs 535.
• Future Lifestyle is an integrated play on premium and value retailing.
• Brand Factory - Unique business model.
• Central focuses on premiumization.
• Brands business - Emerging option value.
• Expect Brand Factory and Central revenue to compound at 31 percent and 18 percent respectively over the financial years till march 2021.
• Expect 22 percent compounded growth rate in operating income over 2018-2021.
• Balance sheet on an improving trajectory.
• Possibility of stake sale in investee brands to create value.

• Shikha Sharma set to exit Axis Bank by December 2018
• Wipro says net income to be impacted by 65-75 basis points in Q4 as one of its telecom client filed for insolvency.
• Max Financial: Approved submission of various fund raising proposals including from KKR, Stanchart, TPG
• RBI allows raising FPI limit in Future Supply Chain to 49 percent from 24 percent.
• Gravita India starts commercial production of PPCP Granules at its Andhra plant.
• HDFC raises Retail Prime Lending Rate (RPLR) by 20 basis points with effect from April 1.

• Neuland Labs to issue 16.75 lakh equity shares via QIP. Proceeds of the issue to be used for debt repayment and business growth.
• Dalmia says will fight against Binani in India's top court (Bloomberg)

For a complete list of stocks to watch, click here

• Nifty April Futures closed trading at 10,393.9 with a premium of 14.6 points versus 27 points.
• April series-Nifty open interest (OI) up 2 percent, Bank Nifty OI down 2 percent.
• India VIX ended at 14.8, up 0.8 percent.
• Max OI for April series call at 10,500 strike price, OI at 39.6 lakh shares, up 6 percent
• Max OI for April series put at 10,000 strike price, OI at 46.3 lakh, down 6 percent.

ICICI Bank

• Merrill Lynch Markets Singapore Pte. Ltd bought 2.94 crore shares or 0.5 percent equity at Rs 280 each.
• Baillie Gifford Emerging Markets Fund sold 2.94 crore shares or 0.5 percent equity at Rs 280 each.

IRB Infrastructure Developers

• Ascension Healthcare Master Pension Trust bought 18.62 lakh shares or 0.5 percent equity at Rs 243 each.

Lemon Tree Hotels

• Mirae Asset Asia Sector Leader Equity Fund bought 51.5 lakh shares at Rs 65.61 each.
• DB International Asia sold 44.62 lakh shares at Rs 62.07 each.

Suven Life Sciences

• Canara Robeco Mutual Fund sold 7.14 lakh shares or 0.6 percent equity at Rs 171.48 each.

Trading Tweaks

• Powerhouse Gym & Wellness to go ex-bonus in ratio of 1:20 shares.

• Shikha Sharma to exit Axis Bank by December 2018
• Bitcoin, the biggest bubble in history, is popping
• U.S. deficit to surpass $1 trillion two years ahead of estimates
• Russian markets slide as U.S. ups ante with worst sanctions yet
• HDFC hikes lending rate by up to 20 basis points
• Axis Bank’s board has added to confusion, say investor advisory firms
• Wipro says Q4 profit may be impacted by telecom client’s insolvency proceedings
• It’s for RBI to decide on Kochhar’s term at ICICI Bank: Finance ministry sources
• U.S. sanctions targeting Russia could threaten India ties
• Facebook problems ‘my mistake,’ Zuckerberg to tell congress
• Delhi airport ousts New York’s JFK from world’s top 20 busiest airports
• ICICI Bank board divided over CEO Kochhar’s future
• Banks seek relief from RBI’s new stressed asset rules

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India rose 0.14 percent or 15 points to 10,408 as of 7:37 a.m.

Asian stocks edged lower as traders look for any response to the barrage of tariff threats from the Trump administration in a speech from China President Xi Jinping, and U.S. political risks reemerge. The dollar held losses.

Indexes fell in Japan, Australia and South Korea in a muted start to Tuesday trading. Despite gains in technology stocks driving U.S. equities higher on Monday, the S&P 500 Index erased about two-thirds of its advance amid news the FBI conducted a raid at the office of President Donald Trump’s longtime lawyer, Michael Cohen.

Here’s what is coming up this week:

• China’s Xi gives a keynote address at Boao Forum Tuesday.
• Facebook Inc. Chief Executive Officer Mark Zuckerberg testifies at two Congressional hearings Tuesday and Wednesday.
• U.S. CPI data and FOMC minutes due Wednesday.
• JPMorgan Chase & Co. and Citigroup Inc. report first-quarter earnings Friday.
• India car sales data for March

Bonds

• The yield on 10-year Treasuries was steady at 2.78 percent.
• Australia’s 10-year bond yield fell two basis points to 2.65 percent.

Commodities

• West Texas Intermediate crude fell 0.3 percent to $63.25 a barrel after climbing 2.1 percent Monday.
• Gold was little changed at $1,337.44 an ounce.
• LME aluminum fell 0.6 percent after soaring 6.6 percent, its biggest bounce since January 1992.
• The Bloomberg Commodity Index gained 1.2 percent.