Sensex, Nifty Clock Longest Weekly Gaining Streak In 14 Months

Indian equity benchmarks extended gains for the seventh consecutive week, clocking their longest stretch of weekly gains 14 months.

The S&P BSE Sensex ended 0.49 percent higher this week to close at 38,862.23 and the NSE Nifty 50 ended at 11,655.95 after gaining 0.36 percent this week. The broader market index represented by the NSE Nifty 500 Index.

On Friday, the 31-share index and the 50-share index closed higher at 0.46 percent and 0.59 percent respectively. The 500-share index ended 0.61 percent higher.

The market breadth was tilted in favour of buyers. About 1,133 shares advanced and 611 stocks declined on the National Stock Exchange.

Nine out of eleven sectoral gauges compiled by NSE ended higher, led by the NSE Nifty Metal Index’s 1.9 percent gain. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.7 percent.

TCNS Clothing

• Stock fell as much as 1.4 percent to Rs 800.
• Trading volume was more than 20 times its 20-day average.

Balrampur Chini Mills

• Stock rose as much as 6.1 percent to Rs 145.90.
• Trading volume was more than five times its 20-day average.

Lakshmi Vilas Bank

• Stock rose as much as 4.9 percent to Rs 92.80.
• Trading volume was almost triple its 20-day average.

Forbes & Co

• Stock rose as much as 9.9 percent to Rs 2,500.
• Trading volume was double its 20-day average.

Shoppers Stop

• Stock fell as much as 4.3 percent to Rs 443.60.
• Trading volume was over six times its 20-day average.

Torrent Pharmaceuticals

• Stock fell as much as 3.6 percent to Rs 1,832.
• Trading volume was over three times its 20-day average.

Shares of Jyothy Laboratories rose as much as 6.3 percent to Rs 194.

Brokerage and research firm Macquarie initiated coverage on the stock with an ‘Outperform’ rating and a price target of Rs 250, implying a potential nearly 37 percent from the current market price. The price target is the second highest among the analysts tracked by Bloomberg.

Here’s what Macquarie had to say on the stock:

• Like diverse product portfolio with a presence in mainstay categories.
• Differentiated product positioning, new product launches and investments in key brands leading to market share gains.
• Expect net profit CAGR of 21 percent and 220 basis points increase in RoE in the next two years.

European stocks opened marginally higher as signs of progress in U.S.-China trade negotiations lifted commodities, and investors looked ahead to Friday’s U.S. jobs report.

Shares of Triveni Glass was locked in the upper circuit of 5 percent at Rs 12.31.

The company’s board has approved the sale of its Rajahmundry unit of the company subject to the approval of the shareholders, according to its stock exchange filing. It also plans to sell a part of its Allahabad land, the statement said. The company added that it will become debt free after the sale of unit.

Trading volume was almost triple its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Nifty’s 11,600 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 15.97 percent to Rs 44.05. Over 21.11 lakh shares were added to the open interest which stood at over 28.55 lakh shares.

Shares of Adani Power and Tata Power witness a sudden surge in trade. Adani Power rose as much as 4 percent, while Tata Power rose as much as 2.5 percent.

• HDFC: Shares of the housing finance company rose as much as 1 percent to hit an all-time high at Rs 2,063. The stock extended gains for the fourth consecutive trading session.
• PC Jeweller: Shares of the jewellery rose as much as 9.2 percent, the most in over three weeks, to Rs 88.50. Trading volume was five times its 20-day average, Bloomberg data showed.
• Vodafone Idea: Shares of the telecom operator rose as much as 10.2 percent to Rs 16.70. Trading volume was triple its 20-day average.

Shares of Jet Airways fell as much as 2 percent to Rs 255.25.

Jet Airways’ lenders said they would invite bids for selling stake in the airline on April 6 as part of a time-bound resolution plan, according to a statement. The consortium of lenders, led by State Bank of India, took stock of the current situation at the carrier and decided on a timeline for the stake sale. Bids would be invited on April 6 and the last date for submission would be April 9. Besides, Civil Aviation secretary told Bloomberg that the company has 26 planes flying now.

The stock fell 58 percent in the last 12 months compared with a 17 percent gain in the Sensex.

About 19.4 lakh shares of ITC changed hands in a block deal on Bombay Stock Exchange. Buyers and sellers were not known immediately.

Shares of GM Breweries fluctuated between gains and losses to trade a little changed at Rs 611.25.

The company’s profit fell 1.5 percent on a yearly basis to Rs 24.3 crore during the three months ended March, according to its stock exchange filing.

Key Earnings Highlights (YoY)

• Revenue up 4.5 percent to Rs 117.37 crore.
• Ebitda down 16.1 percent to Rs 27.91 crore.
• Margin at 23.8 percent versus 29.6 percent.
• Declares dividend of Rs 3 per share.
• RM as percent of sales at 69 percent versus 61 percent.

Shares of the luggage maker declined for the third consecutive trading session and fell as much as 1.1 percent intraday to Rs 471 per share.

The company said that there was a fire at its UP warehouse on April 3, in its notification to the stock exchanges. The company said there was no human loss and the assets that damaged by the fire were adequately covered by insurance.

The stock traded at 45 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of Godrej Properties extended gains for the second consecutive trading session to extend their record rally.

On April 2, 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.

The Relative Strength Index was at 74, indicating that the stock may be overbought.

Shares of the jewellery maker rose as much as 2.13 percent to Rs 1,129.70.

The company’s sales increased 21 percent, while Jewellery segment rose 22 percent in the previous financial year, in line with expectations, according to its stock exchange filing. The company said targeting growth of 20 percent for 2019-20, despite muted outlook for economy. Besides, it invested Rs 100 crore in arm CaratLane, thereby increasing its stake from 66 percent to 70 percent, the statement added.

The stock returned 20.6 percent so far this year and advanced 22.6 percent in the past 12 months.

Indian equity benchmarks opened higher after declining for two consecutive trading sessions.

The S&P BSE Sensex rose as much as 0.4 percent to 38,840.42 and the NSE Nifty 50 rose as much as 0.37 percent to 11,640.65. the broader market index represented by the NSE Nifty 500 Index rose as much as 0.41 percent.

The market breadth was tilted in favour of buyers. About 964 stocks advanced and 463 shares fell on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 1.3 percent rally. On the flipside, the NSE Nifty FMCG Index was the only sectoral loser, down 0.02 percent.

The Indian rupee opened a little changed against the U.S. dollar. The home currency began trading at 69.12 compared to yesterday’s close of 69.16 against the greenback.

F&O Cues

• Nifty April Futures closed trading at 11680, premium of 82 points.
• Max OI for April series at 12,000 Call, OI at 24.5 lakh shares.
• Considerable OI for April series at 11,500 Put, OI at 21.4 lakh shares.
• Max OI for Apr 25 series at 11,000 Put, OI at 25.6 lakh shares.

Stocks In F&O Ban

• In Ban: Adani Power, IDBI, Jet Airways, Reliance Power

Put-Call Ratio

• Nifty PCR at 1.21 versus 1.42

On Titan

Macquarie

• Maintained ‘Outperform’ with a price target of Rs 1,186.
• Implied Jewellery segment revenue growth in March quarter is 18 percent.
• Store addition to add meaningful growth to overall segment.
• Believe 2019-20 revenue guidance of 20 percent is most important takeaway

JPMorgan

• Maintained ‘Overweight’; hiked price target to Rs 1,200 from Rs 1,125.
• In-line Q4 update; market share gain led momentum continues.
• FY20 revenue growth guidance of 20 percent encouraging.
• Expect revenue and net profit to grow at a compounded annual growth rate of 17 percent and 22 percent respectively over FY19-21.

Morgan Stanley

• Maintained ‘Overweight’ with a price target of Rs 1,250.
• Broad-based growth; Strong end to 2018-19.
• Q4 – jewellery segment to report strong revenues.
• Next stock catalyst is operating margin expansion, which may be greater than market expects.

More Calls

Morgan Stanley on Odisha Cement

• Initiated ‘Equal-weight’ with a price target of Rs 1,176.
• Corporate restructuring is medium term positive.
• Well positioned to deliver strong volume growth.
• Net debt to remain stable; Valuations in-line.

Macquarie on Jyothy Lab

• Initiated ‘Outperform’ with a price target of Rs 250.
• Like diverse product portfolio with a presence in mainstay categories.
• Differentiated product positioning, new product launches and investments in key brands leading to market share gains.
• Expect net profit CAGR of 21 percent and 220 basis points increase in RoE in the next two years.

Haitong on HDFC Life

• Maintained ‘Buy’ with a price target of Rs 515.
• Expect VNB margin expansion; Quality of EV reporting at HDFC Life is high.
• Believe slowdown in growth over the past 4 months is temporary and due to a high base.
• Think valuations are attractive, contrary to the prevailing perception that it is overvalued.

Jefferies on City Gas Distributors

• Greater than expected price hike can help in higher margins.
• Expect higher margin expansion for MGL and IGL if rupee stays near spot levels.
• CNG is still much cheaper than petrol and diesel leaving ample headroom to drive volume growth.

Stocks Moving Into Short-Term ASM Framework

• IG Petrochemicals
• Indo Count Industries
• Matrimony.Com
• Asian Granito
• CESC Ventures
• Sadbhav Engineering
• Religare Enterprises
• Dilip Buildcon
• Arvind Fashions
• Arshiya
• Ganesha Ecosphere
• MT Educare
• Bharat Road Network
• Talwalkars Better Value Fitness

Price Band Revision

From 10 percent to 20 percent-

• Goa Carbon
• Graphite India
• HEG
• Rain Industries
• Manpasand Beverages
• Spencer's Retail
• Vakrangee
• GVK Power & Infra
• 5paisa Capital
• Dwarikesh Sugar

From 5 percent to 10 percent-

• 8K Miles Software Services
• A2Z Infra Engineering
• Aditya Birla Money
• Dhanlaxmi Bank
• GPT Infraprojects
• Gravita India
• Hotel Leela Ventures
• Indo Rama Synthetics
• Reliance Naval & Engineering
• Tata Steel BSL
• Xelpmoc Design & Tech
• Shankara Building Products

From 5 percent to 20 percent-

• Zee Media Corporation
• Thirumalai Chemicals
• Reliance Home Finance

• Adani Enterprises promoter Gautam Adani revoked pledge of 4.3 lakh shares on April 2.
• Future Enterprises promoter group Future Corporate Services released pledge of 12.14 lakh shares on April 1.
• Emami promoter group Bhanu Viniyog created pledge of 1.05 crore shares and revoked pledge of 43.21 lakh shares from March 29 to April 2 and promoter group Bhanu Vyaapar revoked pledge of 27.63 lakh shares on April 3.
• Adani Ports & SEZ promoter group Gautam Adani revoked pledge of 5 lakh shares on April 2
• JSW Energy promoter group Danta Enterprises created a pledge of 13.75 lakh shares on April 2
• DB Corp promoter group Stitex Global revoked pledge of 3.68 lakh shares on March 30
• Bajaj Consumer Care promoter Bajaj Resources created a pledge of 37k shares on April 2

(As reported on April 4)

• Varroc Engineering: Smaller World Fund sold 17.75 lakh shares or 1.32 percent equity at Rs 575 each.
• Justdial: Morgan Stanley France SAS sold 3.78 lakh shares or 0.58 percent equity at Rs 579.55 each.
• Hinduja Global Solutions: Fidelity Funds acquired 3.92 lakh shares or 1.88 percent equity at Rs 625 each.

Wipro

• LIC acquired 3.86 crore shares or 0.65 percent equity at Rs 258.9 each.
• Custodian of Enemy Property for India sold 4.44cr shares or 0.75 percent equity at Rs 258.9 each.

Redington India

• Marina IV LP acquired 45.57 lakh shares or 1.17 percent equity at Rs 97 each.
• Standard Chartered PE Mauritius sold 45.57 lakh shares or 1.17 percent equity at Rs 97 each.

GM Breweries (Q4, YoY)

• Revenue up 4.5 percent to Rs 117.37 crore.
• Net profit down 1.5 percent to Rs 24.3 crore.
• EBITDA down 16.1 percent to Rs 27.91 crore.
• Margin at 23.8 percent versus 29.6 percent.
• Declares dividend of Rs 3 per share.
• RM as percent of sales at 69 percent versus 61 percent.

• Metropolis Healthcare IPO gets 47 percent demand on second day sale, offer closes today.
• Polycab India IPO at Rs 533-538 per share open for sale. Offer closes on April 9

• Titan: Quarterly Update: Company sales increased 21 percent, while Jewellery segment rose 22 percent for 2018-19, in line with expectations. The company said targeting growth of 20 percent for 2019-20, despite muted outlook for economy. Company invested Rs 100 crore in arm CaratLane, thereby increasing its stake from 66 percent to 70 percent.
• Jet Airways (India) Ltd.’s lenders said they would invite bids for selling stake in the airline on April 6 as part of a time-bound resolution plan. The consortium of lenders, led by State Bank of India, took stock of the current situation at cash-strapped Jet Airways and decided on the timeline for the stake sale. The bids would be invited on April 6 and the last date for submission would be April 9. Besides, Civil Aviation secretary told Bloomberg that the company has 26 planes flying now.
• Zensar Technologies started operation in Mexico. The company said that operations will focus on supporting the company’s customers in North America and the local region.
• Cipla received Establishment Inspection Report on its Goa manufacturing plant by the U.S. FDA. The inspection took place between Jan. 21-28.
• Mercator: CARE Ratings revised ratings for long term facilities and short term banking facilities to ‘D’. The rating agency said that there had been ongoing delay in servicing of facilities and term loans, which was on since September 2018. The company said that it initiated discussion with lenders for resolution of debt, and the delay in servicing of debt was on account of cash flow mismatch.
• VIP Industries said that there was a fire at its UP warehouse on April 3. The company said there was no human loss and the assets that damaged by the fire were adequately covered by insurance.
• Godrej Properties’ new residential project in Navi Mumbai with almost 0.5 million square feet of saleable area. The company also increased its stake in NCR based Wonder Space Properties from 25.1 percent to 96.03 percent, this target company will become the subsidiary of Godrej Properties with effect from April 4.
• Bandhan Bank-Gruh Finance deal: Both companies filed their respective application for the scheme of amalgamation to the NCLT.
• Rallis India said that the Pollution Control Board has revoked it closure order of the company’s Gujarat unit. On March 19 the closure order was received by the company.
• Mold-Tek Packaging: Management said it will reduce the operating capacity of its UAE-based (RAK) unit and has started further withdrawal of equipment from this unit to other existing plants to feed the requirements of domestic demand in India.
• Hindustan Copper said that its copper production of 41.22 lakh tonnes is 12 percent higher than the last fiscal year 2019.
• VST Tillers Tractors March Sales: Power tiller sales were down 32 percent at 3,826 units. Tractors sales were down 45 percent at 989 units.

The monthly U.S. jobs report on Friday is projected to show non-farm payrolls up 175,000 in March, versus the 186,000 average over the prior three months, after recent readings whipsawed analysts.

• Brent crude fell 0.36 percent to $69.15 per barrel. The Asian crude benchmark crosses $70 per barrel yesterday.
• West Texas Intermediate crude was at $62.03 a barrel.
• Gold was little changed at $1,292.62 an ounce.

London Metal Exchange

• Aluminium ended 0.05 percent lower.
• Nickel halted a four-day rally, ended 1.27 percent lower.
• Copper resumed declines after a one-day rally, ended 0.63 percent lower.
• Lead ended 0.89 percent lower.
• Tin ended lower for the second day, down 0.47 percent.
• Zinc ended 1.13 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.17 percent to 11,704.50 as of 8:15 a.m.

Japanese shares and American equity futures edged up alongside Treasury yields following remarks out of both the U.S. and China that progress is being made in trade talks. Asian trading volumes were muted, with China and Hong Kong shut for a holiday.

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