Sensex, Nifty Post Worst Weekly Performance In A Month

Indian equity benchmarks resumed selloff after taking a day's breather in the previous session as state-run lenders and metal producers came under selling pressure.

The S&P BSE Sensex fell 0.13 percent or 44 points to 33,307 and the NSE Nifty 50 index declined 0.15 percent or 16 points to 10,227.

On a weekly basis, the benchmarks posted worst performance in a month. The Sensex plunged 2.17 percent and Nifty tumbled 2.2 percent.

Seven out of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty Metal index’s 1.8 percent drop. On the flipside, the Nifty IT index was the top sectoral gainer, up 0.5 percent.

• Inox Leisure: The stock rose as much as 6.14 percent to Rs 274.45 after CLSA maintained buy with a target price of Rs 330 per share.
• Videocon Industries: The stock was locked in a 5 percent upper circuit on the back of reports that it plans to raise as much as Rs 30,000 crore by selling its stakes in oil blocks in Brazil, as part of the debt-laden company’s plan to repay bank loans.
• Filatex India: The stock rose nearly 5 percent after it started commercial production of synthetic yarn from its Dahej unit.
• Central Bank: The stock gained more than 18 percent, its biggest move in 2018. As many as 59 lakh shares changed hands in multiple blocks.

• Indian equity benchmarks swung as gains in IT and banking shares were offset by losses in metal and PSU bank stocks.
• The S&P BSE Sensex rose 0.2 percent or 73 points to 33,424 and the NSE Nifty 50 index advanced 0.2 percent or 19 points to 10,263.
• Six out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty IT index's 0.5 percent gain. On the other hand, the Nifty PSU Bank index was the top sectoral loser, down 1.6 percent.

• Central Bank of India: The Mumbai-based government-owned lender rose as much as 4 percent to Rs 70.30. The trading volume was 13.5 times its 20-day average.
• Schaeffler India: The Mumbai-based fabricated metal and hardware maker rose nearly 1 percent to Rs 5,345. Trading volume was 10.5 times its 20-day average.
• VA Tech Wabag: The Chennai-based designer of water and sewage treatment plants rose 8.68 percent to Rs 519.50. Trading volume was 6.3 times its 20-day average.
• KRBL: The Delhi-based rice producer and exporter fell as much as 8.72 percent to Rs 426. Trading volume was 5.9 times its 20-day average.

A parliamentary panel has sought for hike in exemption limit on long term capital gains arising out of equities to Rs 2 lakhs.

Source: Bloomberg

Shares of the Mumbai-based specialty pharma company rose as much as 3.4 percent to Rs 2,410.70 after its board approved allotment of 74.85 lakh equity shares of face value of Rs.2 each at an issue price of Rs 2,380 per equity share to the eligible applicants of the rights issue.

Gauge of government-owned banks resumed decline after rising nearly 3 percent in the previous session.

The Nifty PSU Bank index fell as much as 2 percent to 2,851 weighed down by losses in Canara Bank and Allahabad Bank.

Shares of the Ahmedabad-based infrastructure construction company rose as much as 3.48 percent to Rs 135.35 after National Highways Authority of India awarded contract for four laning of Tumkur-Shivamogga section on NH-206. The bid price of the contract is Rs 933.82 crore, company said in an exchange filing.

Finance Minister Arun Jaitley said:

• Banks directed to ensure PNB type frauds not prevalent.
• Indian banks asked to follow up on loans above Rs 250 crore.
• RBI instructions mandate banks to strengthen SWIFT

Source: Bloomberg

Shares of the Mumbai-based sugar maker rose as much as 4.18 percent to Rs 16.20 after it signed an agreement with its banks for a debt restructuring.

As part of restructuring plan, the company has allotted 48.97 crore shares to its lenders, according to a company filing.

Shares of the country's largest steel maker fell as much as 3.87 percent from intraday highs to Rs 621.40.

In the opening deals, the stock rose 1.77 percent to Rs 646 and was among the top five gainers in the NSE Nifty 50 inex.

• Texmaco Rail has 21 lakh shares change hands in two blocks on BSE and National Stock Exchange.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Delhi-based heavy electrical equipment maker rose as much as 2.85 percent to Rs 88.55 after it won an order worth Rs 11,700 crore for a supercritical power plant.

• Trade war risk persists but probability is low.
• Market narrative changed when bond yields started upward trend.
• Not bullish on IT space.
• Aviation growth has surpassed expectations, sector looks attractive from 2-3-year perspective.

Shares of the Jaipur-based leather maker rose as much as 3.37 percent to Rs 534.40 after Small Cap World Fund Inc bought 8.75 lakh shares (1.9 percent equity) in the company at Rs 509 per share.

Meanwhile, Chola MF sold 4.37 lakh shares or 1 percent equity at Rs 509.

Shares of the Jaipur-based road construction company fell 1.85 percent to Rs 265 after rising as much as 1.74 percent to Rs 274.70 on the first day of trade against its issue price of Rs 270.

HG Infra Engineering's Rs 462 crore IPO saw huge demand for its shares as the issue was subscribed 5 times on the last day of bidding.

Shares of the Delhi-based textile maker rose as much as 4.2 percent to Rs 169.40 after it started commercial production of synthetic yarn at Dahej unit.

Shares of the Aurangabad-based consumer electronics firm rose as much as 5 percent to Rs 13.39 as it plans to raise Rs 30,000 crore by selling its stake in oil blocks in Brazil as part of plan to repay bank loans, The Mint newspaper reported citing company's chairman Venugopal Dhoot.

Shares of the Mumbai-based cement maker were locked in a 5 percent upper circuit at Rs 98.60 after UltraTech Cement raised bid to acquire Binani Industries by Rs 700 crore to Rs 7,200 crore, The Economic Times newspaper reported.

Indian equity benchmarks swung between gains and losses as gains in Vedanta, Tata Steel and Bharti Airtel were offset by losses in State Bank of India, yes bank and Axis Bank.

The S&P BSE Sensex was little changed at 33,375 and the NSE Nifty 50 index was little changed at 10,249.

Five out of 11 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty PSU Bank index's 1.3 percent drop.

Indian equity benchmarks edged higher led by gains in metal makers such as Vedanta and Tata Steel.

The S&P BSE Sensex rose 0.3 percent or 97 points to 33,448 and the NSE Nifty 50 index advanced 0.3 percent or 30 points to 10,276.

Sixteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's 1 percent gain. On the other hand, the S&P BSE Power index was the top sectoral loser, down 0.2 percent.

The broader markets were trading flat as the S&P BSE MidCap and S&P BSE SmallCap indices were little changed.

Sovereign bonds are headed for their first gain in four weeks as banking liquidity improved and the government pitched for a rating upgrade. The benchmark 10-year yield dropped 2 basis points to 7.66 percent on Thursday and is down 8 basis points so far this week.

Rates traders will now focus on the February inflation print due March 12.

The consumer price index rose 5.1 percent in January easing for the first month in seven. ING estimated in a note today that CPI may have fallen below 5 percent in February. Even at that level it will remain above the Reserve Bank's medium term target of 4 percent, meaning policy makers are unlikely to let down their guard, ING said.

The rupee fell 0.4 percent to 65.1475 on Thursday and forwards suggest it will start trading at around 65.15 today.

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.

• 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.

• 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).

• 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

• 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.

• Oil hits three-week low amid heightened supply, dollar strength
• Andhra-centre row: Two TDP ministers resign, submit letter to Modi
• Anand Mahindra says India can stand tall in a trade war
• Mnuchin says tariffs will benefit U.S. despite retaliation risk
• PNB fraud case: CBI sends fresh summons to Nirav Modi, Mehul Choksi
• India asks REC, PFC not to give loans to discoms with heavy losses
• Trump launches global race for exclusion from his steel tariffs
• HDFC Bank picks arrangers for Rs 15,500 crore sale
• India says never targeted 100% electric mobility by 2030, scales down aim
• Trump hails ‘great progress’ after agreeing to meet Kim Jong Un
• Maharashtra’s growth to hit three-year low on farm output contraction

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.4 percent to 10,283 as of 7:31 a.m.

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.

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.

Bonds

• The yield on 10-year Treasuries rose about two basis points to 2.88 percent.
• Australia’s 10-year yield was little changed at 2.80 percent.

Commodities

• West Texas Intermediate crude rose 0.5 percent to $60.43 a barrel.
• Gold fell 0.3 percent to $1,317.88 an ounce.