Sensex Closes At Record High; Nifty Settles Above 11,700

Indian equity benchmarks extended gains for the fourth consecutive trading session.

The S&P BSE Sensex ended 0.48 percent higher to close above 39,000 for the first time. The NSE Nifty 50 settled above 11,700 after gaining 0.38 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.19 percent higher.

The market breadth, however, was tilted in favour of sellers. About 899 stocks fell and 826 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 2.3 percent rally. On the flipside, the NSE Nifty Media Index was the top sectoral loser, down 0.87 percent.

Shares of Bajaj Finserv extended gains for the third consecutive trading session and rose as much as 1.7 percent to hit an all-time high at Rs 7,277.80.

ITI

• Stock rose as much as 5.9 percent to Rs 105.90.
• Trading volume was more than nine times its 20-day average.

Crompton Greaves Consumer

• Stock fell as much as 6.4 percent to Rs 215.80.
• Trading volume was more than quadruple its 20-day average.

Bajaj Holdings & Investment

• Stock rose as much as 2.9 percent to Rs 3,450.
• Trading volume was more than 14 times its 20-day average.

Godrej Agrovet

• Stock rose as much as 6.9 percent to Rs 558.
• Trading volume was more than triple its 20-day average.

Bharat Road Network

• Stock rose as much a 20 percent to Rs 12.20
• Trading volume was nearly double its 20-day average.

RattanIndia Power

• Stock rose as much as 20 percent to Rs 3.30.
• Trading volume was more than 11 times its 20-day average.

Shares of Tata Motors extended gains for the fourth consecutive trading session and rose as much as 6.7 percent to trade near a six-month high.

Europe’s stocks were little changed in early trading as U.K. Prime Minister Theresa May prepares to hold five hours of crisis talks on Brexit and European Union governments struggle to reach consensus on a mandate to begin trade talks with the U.S.

Source: Bloomberg

Shares of Odisha Cement rose as much as 16.7 percent, the most in December 2018, to Rs 1,155. The stock advanced 13 percent in the past five trading sessions and fell 4.8 percent in the past 30 days.

Nifty’s 11,700 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 1.64 percent to Rs 59.95. Over 11.07 lakh shares were added to the open interest which stood at over 25.16 lakh shares.

• Lupin: Shares of the drugmaker rose as much as 2.3 percent to Rs 783.65. The pharmaceutical company received an Establishment Inspection Report (EIR) from the U.S. drug regulator for its Pithampur (Unit-3) facility, according to its stock exchange notification. The inspection was conducted between Oct. 8, 2018 to Oct. 18, 2018.
• SH Kelkar & Co: Shares of the chemicals manufacturer and distributor rose as much as 7.7 percent to Rs 162.20. About 26 lakh shares changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.

The S&P BSE Power Index rose over 1 percent, led by the gains in Reliance Infrastructure Ltd. and Adani Power Ltd.

The Nikkei India Manufacturing Purchasing Managers’ Index fell to 52.6 in March from 54.3 in February. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

Shares of the Royal-Enfield maker snapped its four-day decline and rose as much as 5.7 percent to Rs 21,191.05.

Vinod Dasari joined the company as the CEO of Royal Enfield, according to a company filing. Siddhartha Lal will continue to be the Managing Director of the company, the filing said. Prior to joining Royal Enfield he was the CEO and MD of Ashok Leyland since 2011.

Trading volume was 24 times its 20-day average for this time of the day, according to Bloomberg data.

Shares of Endurance Technologies rose as much as 1.6 percent to Rs 1,169.70.

Brokerage and research firm Macquarie initiated coverage on the stock with an ‘Outperform’ rating and a price target of Rs 1,400, implying a potential upside of 21.6 percent form the current market price.

Here’s what Macquarie had to say about the company:

• Key beneficiary of safety regulations and premiumisation.
• New customers and rising content to drive growth outperformance.
• Expect 23 percent EPS CAGR over FY19-21; RoCE to improve to 31 percent in 2019-20.
• Strong earnings growth and high RoCE deserves premium valuations.

Shares of Godrej Properties extended gains for the second consecutive trading session and rose as much as 7.4 percent to Rs 875.

The real estate developer said that it has achieved its highest ever bookings, after the company sold over 2,900 homes with a total area of 3.75 million square feet and booking value in excess of Rs 2,100 crore. The company also stated in its press release that this record performance was achieved through the launch of for new projects combined with strong sales from existing inventory.

Trading volume was more than nine times its 20-day average, according to Bloomberg data. The stock traded at 74 times its estimated earnings per share for the coming year.

Bajaj Auto sold 3.39 units in March, an increase of 18 percent from the year ago period, the Pune-based two-and-three-wheeler maker said in a stock exchange notification. The was the highest sales growth since December 2018.

Key Sales Highlights (YoY)

• Domestic Motorcycle sales up 39 percent to 2.2 lakh units.
• Motorcycle exports fell 7 percent to 1.03 lakh units.
• Total motorcycle sales 20 percent to 3.23 lakh units.
• Domestic commercial vehicle sales declined 13 percent to 38,972 units.
• Commercial vehicle exports rose 56 percent to 30,841 units.
• Total commercial vehicle sales up 8 percent to 69,813 units.
• Total domestic sales up 27 percent to 2.59 lakh units.
• Total exports up 3 percent to 1.34 lakh units.

Shares of the company fluctuated between gains and losses to trade a little changed at Rs 2,924.90 on NSE after the announcement.

Shares of Cyient fell as much as 6.7 percent the most since Jan. 18, 2019, to Rs 606.20.

The company expects material decline in design led manufacturing revenue, as a large order delivery of $5 million has been delayed due to delay in regulatory clearances at the customer end, according to its stock exchange filing. For services segment, deferment of orders by key customers and marginal growth of 1 percent to 2 percent expected. Operating margin outlook for financial year 2019 remains the same, the statement added.

Trading volume was more than eight times its 20-day average, Bloomberg data showed.

Indian equity benchmarks extended gains for the fourth consecutive trading session.

The S&P BSE Sensex rose as much as 0.37 percent to 39,017 and the NSE Nifty 50 rose as much as 0.36 percent to 11,711.55. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.34 percent.

The market breadth was tilted in favour of buyers. About 830 stocks advanced and 582 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 1.03 percent rally. On The flipside, the NSE Nifty Media Index was the top sectoral loser, down 1.3 percent.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.29 percent to 69.36 against the greenback.

With the closely tracked South Korean won in the red, the local unit may also stay under pressure. Dealers expect to see the pair in a range of 69-69.50 a dollar.

Indian sovereign bonds are likely to fall after the central bank announced another currency swap auction, further reducing the possibility of open-market operations. A front-loaded borrowing calendar too will continue to be a drag on sentiment. Yield on the bonds maturing in 2029 may stay in a range of 7.32-7.40 percent in the day.

F&O Cues

• Nifty April futures closed trading at 11,748, premium of 78 points.
• Max open interest for April 25 series at 12,000 Call (open interest at 21.4 lakh shares).
• Max open interest for April 25 series at 11,500 Put (open interest at 17.8 lakh shares).

Stocks In Ban

• In ban: Adani Power, IDBI, Reliance Power.

Put-Call Ratio

• Nifty PCR at 1.48 versus 1.49

Macquarie on Endurance Technologies

• Initiated ‘Outperform’ with a price target of Rs 1,400.
• Key beneficiary of safety regulations and premiumisation.
• New customers and rising content to drive growth outperformance.
• Expect 23 percent EPS CAGR over FY19-21; RoCE to improve to 31 percent in 2019-20.
• Strong earnings growth and high RoCE deserves premium valuations.

Morgan Stanley on Cyient

• Maintained ‘Overweight’ with a price target of Rs 720.
• March quarter business update implies cut to revenue guidance.
• Stock to react negatively as it lacks near-term re-rating triggers.
• Still overweight due to cheap valuations and growth recovery starting 2019-20.

Morgan Stanley on Coal India

• Maintained ‘Overweight’ with a price target of Rs 268.
• Ending the year on a strong footing.
• Growth recovery in key subsidiaries helped strong production growth.
• Volume growth to remain strong in 2019-20.

Citi on Persistent Systems

• Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 605 from Rs 675.
• Downgraded to sell on concerns of sustainable profitable growth.
• Margins lower than peers, and see difficultly in improvement.
• Cut EPS estimates by 3 percent and lower valuation multiple on slower digital growth.

Morgan Stanley on SBI

• Maintained ‘Overweight’; hiked price target to Rs 425 from Rs 375.
• Expect credit cost to drop, loan growth to pick-up and NIMs to improve in 2019-20.
• Non-performing loan concerns should abate in the next financial year.
• Concerns of SBI being used to bail out weak entities is unlikely to be big.

PhillipCapital on Aarti Industries

• Maintained ‘Buy’ with a price target of Rs 2,000.
• QIP provides financial flexibility for future growth.
• QIP also provides flexibility for new products and supply opportunities.
• Expect continued earnings momentum despite high base of 2018-19.

• Bharat Gears ex-date for rights issue of equity shares.

• Future Enterprises promoter group Central Departmental Stores created at pledge of 62 lakh shares on March 28.
• Bodal Chemicals promoter Bhavin Patel acquired 4.6 lakh shares from March 28-29.
• Sun Pharma prompter group Shanghvi Finance released pledge of 21.9 lakh shares on March 28.
• Emami promote groups created pledge of 92.3 lakh shares on March 28.
• Zuari Agrochemicals promoter Zuari Management Services created a pledge of 34.75 lakh shares on March 28.
• Future Retail promoter Future Corporate Resources created a pledge of 49 lakh shares on March 28.

Pokarna

• Reliance MF acquired 11.9 lakh shares or 3.84 percent equity at Rs 180 each.
• Ashish Kacholia sold 14.6 lakh shares or 4.72 percent equity at Rs 180 each.

• Zee Entertainment: Two promoter entities together sold in 76.4 lakh shares of the company in the open market between Feb. 13 and March 29. The sale was reported to the exchanges on April 1. Cyquator Media Services Private Limited sold 53.1 lakh shares and Essel Corporate LLP sold in 23.2 lakh shares in open market as per the exchange notification. The sale accounts for 0.8 percent of total equity held by the company and 1.9 percent of the promoter holding.
• Thyssenkrup and Tata ready to sell assets to get EU merger approval reported German paper Handelsblatt. Both companies have filed a list of assets they are ready to divest in which will enable to get approval for the planned European steel activity merger. The list includes part of car body sheet production unit, which includes Spanish Thyssen Unit Galmed. Companies are also ready to sell packaging steel asset, including plant in Belgium and U.K.
• Eicher Motors: Vinod Dasari joins Eicher Motors as the CEO of Royal Enfield. Siddhartha Lal will continue to be the Managing Director of the company. Prior to joining Royal Enfield he was the CEO and MD of Ashok Leyland since 2011.
• Coal India breaches 600 million tonnes mark for the first time in production and off-take for 2018-19. In March production up 9.6 percent at 79.2 million tonnes versus 72.3 million tonnes. Offtake up 7.8 percent at 59.6 million tonnes versus 55.3 million tonnes, on a year on basis.
• Godrej Properties says it has achieved its highest ever bookings, after the company sold over 2,900 homes with a total area of 3.75 million square feet and booking value in excess of Rs 2,100 crore. The company also stated in its press release that this record performance was achieved through the launch of for new projects combined with strong sales from existing inventory.
• Cipla’s U.S. arm signed a definitive agreement for investment of $22 million for asset co-development and licensing opportunity for Pulmazole drug with Pulmatrix. This agreement is contingent upon Pulmatrix raising additional funds from the market. Upon signing the definitive agreement, the co-development cost towards development and the total free cash flow in relation to commercialisation of Pulmazole will be further shared by both the parties in a phased manner.
• Cyient: The company expects material decline in design led manufacturing revenue, as a large order delivery of $5 million has been delayed due to delay in regulatory clearances at customer end. For services segment, deferment of orders by key customers and marginal growth of 1 percent to 2 percent expected. Operating margin outlook for financial year 2019 remains the same.
• Tata Steel: S&P re-affirms long term-rating at BB-, changes outlook to positive from stable. For Tata Steel UK it affirmed the rating at BB- and revised the outlook to positive, as the rating agency says that stable outlook for Indian steel prices is likely to keep the company’s earnings robust over the next 1 month.
• Welspun Corp: A Rs 100 crore commercial tax order was set aside by tax authorities. The said order was made in respect of manufacturing unit of Gujarat’s manufacturing plant.
• Mcleod Russel executes sale of estates, plants and assets in Bargang Tea Estate with Amgoorie India Limited. The agreement was for the sale was entered on Sept. 17 last year.
• Goodricke Group says that it accepted the possession of Harchurah Tea Estates from Mcleod Russel. On Sept. 17, 2008 the deal was entered for sale of the assets.
• Aurobindo Pharma clarified on the news of drug recall in U.S. stating that the current recall is an expansion of the recall initiated in December 2018, for which the company had provided clarifications to the exchanges on Jan. 28. The value of the product recall is not material.
• Bajaj Healthcare: Board fixes April 8 as the record date for bonus share issue.
• Dr Lal PathLabs: Board approves acquisition of Bawankar Pathology for Rs 5.2 crore.
• Oriental Hotels concludes the sale transaction of Mysore land for Rs 19.3 crore.
• Strides Pharma Sciences achieves closure to convert its 50:50 joint venture with Vivimed to 100 percent ownership. The company also stated that it had achieved financial closure both in India and Singapore.
• PVR opens 2 multiplexes in Assam and Punjab.
• Hindustan Copper clarifies on the news that the new auditor seeks report on allegations provided by predecessor as factually incorrect.
• Tata Power arm hands over combat management system for the indigenous aircraft carrier to the Indian Navy
• Karnataka Bank targets a business turnover of Rs 1,44,000 crore with a growth rate of 16 percent for financial year 2020 says Mahabaleshwara M S, Managing Director & CEO of the Bank.
• NMDC says it has surpassed the 30 million tonne figure of production and sales for the third year consecutively. The company has produced 32.44MT and sales of 32.38MT during financial year 2019.
• European Union clears IBM’s deal with HCL Technologies.
• Reliance Industries received SEBI’s approval to set-up two infrastructure investment trust -Digital Fibre Infrastructure Trust and Tower Infrastructure Trust. The mentioned trust now owns 51 percent stake in Jio Digital Fibre Pvt. Ltd. and Reliance Jio Infratel Pvt. Ltd.
• MOIL: Prices of ferro grade and chemical grade have been increased by 5 percent compared to last month, while prices of silico manganese grade and Fines remained unchanged. Price discount and bulk discounts on select grades of low grade manganese ore have been withdrawn. The price of Electrolytic Manganese Dioxide (EMD) has been increased by Rs 5,000 PMT on the existing price prevailing since January 2019.

CARE Downgrades DHFL’s Credit Rating On Various Instruments

• NCDs worth Rs 46,655 crore downgraded to CARE A from CARE AA-.
• Subordinated debt worth Rs 2,205 crore downgraded to CARE A- from CARE A+.
• Perpetual debt worth Rs 1,300 crore downgraded to CARE BBB+ from CARE A.
• Non-convertible redeemable preference shares worth Rs 750 crore downgraded to CARE A- from CARE A+.
• Fixed deposit programme worth Rs 20,000 crore downgraded to CARE A from CARE AA-.
• Long term bank facilities worth Rs 42,714 crore downgraded to CARE A from CARE AA-.

Auto Sales

• Tata Motors sales down 1 percent at 68,709 units versus 69,409 units. The company stated that the sales drop was due to weak consumer sentiments.
• Hero MotoCorp sales down 26 percent at 581,279 units versus 730,473 units on a year on year basis. The company says the sales during the month of March have been lower due to conscious effort to bring down the inventory levels in the system.
• TVS Motor sales down 0.4 percent at 325,345 units versus 326,667 units. Exports up 33 percent at 14,444 units vs 10,894 units.
• Maruti Suzuki announced price hikes up to Rs 689 across various models on account of regulatory compliances with effect from April 1.

Catch all the Auto sales updates here.

Offerings

• State-Run Rail Vikas Nigam IPO gets 18 percent demand on second day sale. Offer closes tomorrow.

• 10:30am: Nikkei India Manufacturing PMI for March, prior 54.3.
• The Reserve Bank of Australia decides on monetary policy Tuesday at a time of falling growth forecasts. Then Australia will release its federal budget that evening.
• Chinese Vice Premier Liu He leads a delegation of trade negotiators to Washington on Wednesday, days after U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer traveled to Beijing.
• The monthly U.S. jobs report on Friday is projected to show nonfarm payrolls up 175,000 in March, similar to the 186,000 average over the prior three months, after recent readings whipsawed analysts. Economists think the jobless rate held at 3.8 percent with hourly earnings growing at a strong clip.

• Brent crude rose 0.4 percent to $69.29 per barrel.
• West Texas Intermediate crude oil rose 0.3 percent to $61.77 a barrel.
• Gold was at $1,288.37 an ounce.

London Metal Exchange

• Aluminium ended 0.68 percent lower.
• Nickel ended higher for the second day, up 0.95 percent.
• Copper halted a three-day rally, ended 0.18 percent lower.
• Lead ended 0.2 percent higher.
• Zinc ended higher for the second day, up 0.34 percent.
• Tin ended 0.35 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded a little changed at 11,742.50 as of 8:15 a.m.

The global stock rally lost some steam on Tuesday in Asia, and Treasury yields edged down, after notable moves Monday in the wake of better-than-expected American and Chinese manufacturing data.

Japanese shares were little changed, while benchmarks were up slightly in Shanghai, Hong Kong and Seoul. Australia outperformed ahead of the government’s pre-election budget announcement.

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