HDFC Twins, RIL Drag Sensex Lower; Nifty Ends Below 11,600

Indian equity benchmarks ended lower after a volatile trade.

The benchmark indices were dragged by HDFC Ltd. and HDFC Bank Ltd. The S&P BSE Sensex ended 0.91 percent or 353.87 points lower at 38,585.35 and the NSE Nifty closed below 11,600 after declining 0.75 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.57 percent lower.

The market breadth was tilted in favour of sellers. About 974 stocks declined and 757 shares advanced on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Financial Services Index's 1.13 percent fall. On the flipside, the NSE Nifty Realty Index was the top sectoral gainer, up 1.13 percent.

Shares of Tata Motors extended gains for the second consecutive trading session and rose as much as 5.6 percent to Rs 217.40.

The company’s group global wholesales including Jaguar Land Rover fell 5 percent on a yearly basis to 1.45 lakh units, according to its stock exchange filing.

The stock returned 25 percent so far this year compared to a 7 percent advance in the Sensex.

Indiabulls Real Estate

• Stock rose as much as 13.2 percent to Rs 121.90.
• Trading volume was almost six times its 20-day average.

Coromandel International

• Stock fell as much as 5.3 percent to Rs 417.65.
• Trading volume was more than seven times its 20-day average.

Praj Industries

• Stock rose as much as 10.4 percent to Rs 152.80.
• Trading volume was triple its 20-day average.

Rain Industries

• Stock rose as much as 9.1 percent to Rs 110.30.
• Trading volume was more than triple its 20-day average.

Century Plyboard

• Stock fell as much as 4.7 percent to Rs 193.50.
• Trading volume was almost triple its 20-day average.

Shares of Blue Star fluctuated between gains and losses to trade 0.4 percent lower at 684.15.

Brokerage and research firm JM Financial initiated coverage on the stock with a ‘Hold’ rating and a price target of Rs 700, implying a potential upside of 1.9 percent form the current market price.

Here’s what the research firm had to say:

• Well placed to further increase its market share, but will be an uphill task.
• Domestic investments to rise amidst rising duties and depreciating rupee.
• Rising domestic investments and depreciating rupee may restrict margin expansion.

European shares edged higher following a mixed trading in Asia markets as investors await the latest European Central Bank decision later in the day.

Shares of Ratnamani Metals & Tubes fluctuated between gains and losses to trade 0.7 percent lower at 890.15.

The company received orders worth Rs 156 crore for pipes supple, according to its stock exchange filing.

The stock traded at 17 times its estimated earnings per share for the coming year, Bloomberg data showed.

Indian equity benchmarks traded at day’s low. Sensex fell over 200 points and Nifty traded near 11,600.

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

Premium on the contract fell 16.71 percent to Rs 31.90. Over 8.3 lakh shares were added to the open interest which stood at over 21.93 lakh shares.

Shares of the private lender fell for the second straight session and fell as much as 4.7 percent to Rs 88.25 per share.

The bank said that it will consider raising funds on April 12, in an exchange notification. The board stated in their press release that it is mulling to raise funds by preferential allotment of equity shares and additional tier I bonds.

The stock traded 41 percent below the Bloomberg consensus one-year target price.

Shares of Aditya Birla Fashion and Retail Ltd. are expected to reach Rs 260 in the next 12 months, homegrown brokerage and research firm Motilal Oswal said in a report after initiating coverage with a ‘Buy’ rating on the stock.

The price target implies a potential upside of 16.8 percent from the last regular trade. It is the highest price target among the analysts tracked by Bloomberg.

Here’s that the research firm had to say:

• Healthy portfolio mix to help sustain growth.
• Revamped Pantaloons set to drive earnings.
• Healthy balance sheet, growing cash flow.
• Expect overall Revenue and Ebitda to grow at a compounded annual growth rate of 14 percent and 23 percent over FY19-21.

Shares of the retail clothing manufacturer rose as much as 2.6 percent to Rs 223.80.

Shares of Praj Industries halted a seven-day decline and rose as much as 7.3 percent, the most in over a month, to Rs 148.50.

The company signed a construction license agreement with the U.S.-based ‘Gevo’ to commercialise technology for production of lsobutanol using sugary-based feedstocks, such as juice, syrup and molasses, according to its statement on the exchanges.

Trading volume was 7.2 times its 30-day average, Bloomberg data showed. The stock traded at 30.8 times its estimated forward earnings per share compared to a 24.8 times for the two-year historical average.

Shares of the Mumbai-based lender fell as much as 1.7 percent, the most in nearly two months, to Rs 2,249.

An undisclosed entity is likely to sell 1.1 crore shares or 0.42 percent equity in the stock via block deal at a range of Rs 2,219-2,287 per share, implying a 3 percent discount from the last regular trade, bankers involved in the deal told BloombergQuint requesting anonymity. The block deal could worth about Rs 2,500 crore, they said.

Trading volume was 50-times its 20-day average, Bloomberg data showed. The stock advanced 18 percent in the past 12 months compared to a 15 percent gain in the Sensex.

Around 11 a.m., over one crore shares of HDFC Bank changed hands in multiple block deals on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately. The total deals were worth about Rs 2,343 crore, according to BloombergQuint’s calculations.

Updates HDFC Bank block deal details.

Indian equity benchmark opened lower, following their Asian peers after a renewed concern about a global economic slowdown and an escalation in trade tensions.

The S&P BSE Sensex fell as much as 0.2 percent to 38,852 and the NSE Nifty 50 fell as much as 0.29 percent to 11,638.65. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.24 percent.

The market breadth was tilted in favour of sellers. About 773 stocks fell and 663 shares advanced on National Stock Exchange.

Eight out of 1 sectoral gauges compiled by NSE declined, led by the NSE Nifty Metal Index’s 0.6 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.07 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.1 percent to 69.2 against the greenback.

April Futures

• Nifty open interest up 1 percent adds 1.7 lakh shares in open interest.
• Bank Nifty open interest unchanged.
• Nifty futures premium at 70.4 points, closed trading at 11,742.3.
• Bank Nifty futures premium at 201 points Vs 165.56, closed trading at 30,314.8.

Options

• Nifty PCR at 1.47 versus 1.38 (across all series).

Nifty Weekly Expiry (April 11)

• Max open interest at 11,800 Call (18.3 lakh shares), 11,600 Put (18 lakh shares) and 11,500 Put (15.5 lakh shares).
• Open interest addition seen at 11,850 Call strike, adds 6.4 lakh shares in open interest.
• Open interest addition seen at 11,600 Put, adds 5.3 lakh shares.
• Open interest shedding seen at 11,700 Call strike, sheds 8 lakh shares in open interest.

Nifty Monthly Expiry (April 25)

• Max open interest at 12000 Call (28.7 lakh shares) and 11,000 Put (27.2 lakh shares).
• Open interest addition seen for put strikes 11,600 and 11,500.

Stocks In F&O Ban

In Ban:

• Adani Power
• DLF
• IDBI
• Jet Airways
• PC Jeweller
• Reliance Power
• Wockhardt

Jefferies on ICICI Prudential

• Maintained ‘Underperform’ with a price target of Rs 285.
• Growth highly cyclical, but loss of HNI customer base more worrying.
• VNB growth to be tepid & margin is peaking out.
• Upside triggers missing, near-term outlook weak.

JMFinancial on Blue Star

• Initiated ‘Hold’ with a price target of Rs 700.
• Well placed to further increase its market share, but will be an uphill task.
• Domestic investments to rise amidst rising duties and depreciating rupee.
• Rising domestic investments and depreciating rupee may restrict margin expansion.

Motilal Oswal on Aditya Birla Fashion

• Initiated ‘Buy’ with a price target of Rs 260.
• Healthy portfolio mix to help sustain growth.
• Revamped Pantaloons set to drive earnings.
• Healthy balance sheet, growing cash flow.
• Expect overall Revenue and Ebitda to grow at a compounded annual growth rate of 14 percent and 23 percent over FY19-21.

• Bajaj Healthcare record date for bonus issue at 1:1.
• HT Media record date for demerger.

Stocks Moving Into Short-Term ASM Framework:

• Indo Count Industries
• Religare Enterprises
• Dilip Buildcon
• Arvind Fashions
• Arshiya
• Ganesha Ecosphere
• MT Educare
• Bharat Road Network
• Bharat Road Network
• JBF Industries
• Matrimony.Com
• Lakshmi Vilas Bank

Stocks Moving Into ASM Framework:

• Cantabil Retail India
• Dhampure Speciality Sugars
• Mishtann Foods
• Reliance Communications
• Vikas Proppant & Granite

• Max Financial Services promoter group Max Ventures Investment Holdings created pledge of 23.3 lakh shares on April 4.
• Ashok Leyland promoter Hinduja Automotive created pledge of 3.9 crore shares on April 8.
• Adani Enterprises promoter group Gautam Adani revoked pledge of 23.2 lakh shares on April 5.
• Emami promoter groups released pledge of 12.77 lakh shares on April 5.
• Bajaj Consumer Care promoter Bajaj Resources created pledge of 35.6 lakh shares on April 5.
• Adani Transmission promote group Gautam Adani released pledge of 31.48 lakh shares on April 5.
• Max India promoter group Max Ventures Investment Holdings created a pledge of 12 lakh shares on April 4.

(As reported on April 9)

• Zee Media: IFCI sold 32.4 lakh shares (0.69 percent) at Rs. 15.23 each.

PRICOL

• AKG Finvest acquired 9.7 lakh shares (1.03 percent) at Rs.34.5 each.
• Ashmore India Opportunities Fund sold 10.9 lakh shares (1.15 percent) at Rs 34.5 each.

MEP Infra Developers

• Monarch Infra Ventures acquired 12.5 lakh shares (0.69 percent) at Rs. 40.15 each.
• Premjayanti Enterprise acquired 13.5 lakh shares (0.74 percent) at Rs. 40.15 each.
• GMO Emerging Illiquid Mauritius Fund sold 51.8 lakh shares (2.82 percent) at Rs.40.15 each.

Polycab India Ltd. was subscribed 51.9 times on the last day of its IPO offering. The capital raising exercise for the company gets demand for 91.56 crore shares versus 1.76 crore shares offered. (Bloomberg News)

• The State Bank of India reduced its MCLR and home loan rates with effect from April 10. The MCLR was reduced by five basis points across various tenors, with one-year MCLR at 8.5 percent. Home Loan interest rates were cut by 10 basis points for loans up to Rs 30 lakh, applicable interest rates for housing loans to range from 8.6 percent to 8.9 percent. Bank said that it will pass on the benefit of reduced repo rate to cash credit/ overdraft customers with effect from May 1.
• IndusInd Bank announced pricing of its inaugural dollar denominated public bond for $400 million at a coupon rate of 3.875 percent per annum, payable semi-annually. The Notes will be listed on Singapore SGX and India INX (Gift City).
• Praj Industries signed a construction license agreement with the U.S. based ‘Gevo’ to commercialize technology for production of lsobutanol using sugary-based feedstocks, such as juice, syrup and molasses.
• Vodafone Idea said the rights issue of up to Rs 25,000 crore will open from April 10 till April 24. Last date for split application form is April 17. The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible equity shareholders. The issue will be for 20 billion fully paid up shares at Rs 12.5 per share aggregating to Rs 25,000 crore.
• Tata Sponge Iron completed the acquisition of steel business including captive power plants of Usha Martin, pursuant to cash consideration of Rs 4,094 crore to Usha Martin. The decision for this corporate action was taken by the board on Oct. 24 last year through a slump sale on a going concern basis.
• Kiri Industries: Singapore Court reserved its judgement in Dystar’s minority oppression case. The company said it will update the exchanges once the verdict is made available to them.
• Lakshmi Vilas Bank said it will consider raising funds on April 12. The board stated in their press release that it is mulling to raise funds by preferential allotment of equity shares and additional tier I bonds.
• Jet Airways pilots body served a legal notice to management for salary delays and set April 14 deadline. (Press Trust of India)
• JSW Steel: Gagandeep Credit Capital increased its stake in the company from 1.91 percent to 1.97 percent, by acquiring additional 15 lakh shares, as per exchange filings.
• Panacea Biotec has done one-time settlement with consortium lenders to resolve the current debt situation of the company. The company said that all consortium lenders had approved bilateral one-time settlement at 65 percent of their outstanding debt.
• Mahindra CIE Automotive said that it completed 100 percent acquisition of Aurangabad Electricals.
• Ford Motor Co is nearing a deal with Mahindra & Mahindra to form a new joint-venture company in India, a move that will see the U.S. automaker cease its independent operations in the country. Under the terms of the deal being negotiated, Ford will form a new unit in India in which it will hold a 49 percent stake, while India’s Mahindra will own 51 percent. (Reuters)
• Indian Overseas Bank reduced its MCLR by five basis points across various tenors with effect from April 10. One Month MCLR at 8.3 percent and one-year MCLR at 8.65 percent.
• Mindtree to consider declaration of interim or special dividend on April 17. If the aforementioned dividend is approved, then the record date is set on April 27.
• IDBI to consider exercising call option for Rs 500 crore worth of tier II bonds. (Bloomberg News)
• Olectra Greentech board approved the allotment 27 lakh shares worth Rs 21.6 crore to promoter group Goldstone Power, against a conversion of balance 27 lakh warrant out 54 lakh warrants which were allotted to the promoter group in October 2017.
• IndInfravit Trust board to consider and approve operational matters on April 17.
• Info Edge increased its stake in ShoeKonnect to 29.79 percent for a consideration of Rs 6 crore.

• U.S. banks begin reporting first-quarter earnings, led by JPMorgan and Wells Fargo.
• The spring meetings of the World Bank Group and the IMF continue in Washington.
• The Federal Reserve release minutes of its March meeting Wednesday.
• The ECB will probably leave its key interest rates unchanged Wednesday. Investors will be looking for further details on TLTRO.

• Brent crude traded 0.3 percent higher at $70.83 per barrel.
• West Texas crude added 0.4 percent to $64.22 a barrel.
• Gold was little changed at $1,304.64 an ounce.

London Metal Exchange

• Aluminium halted a three-day fall, ended 0.37 percent higher.
• Copper ended higher for the second consecutive trading session, up 0.19 percent.
• Lead resumed declines after a one-day breather, ended 0.78 percent lower.
• Tin halted a five-day decline, ended 0.24 percent higher.
• Zinc ended lower for the second day, down 1.55 percent.
• Nickel ended higher for the second consecutive trade, down 0.11 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 11,713 as of 7:50 a.m.

Asian stocks declined after renewed concern about a global economic slowdown and an escalation in trade tensions. Treasuries inched higher with the dollar. Shares in Japan bore the brunt of losses, with equities seeing more modest declines in Hong Kong, Seoul and Shanghai.

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