Last Hour Rally Helps Sensex, Nifty Erase Most Of Last Two Days’ Losses

Indian equity benchmarks rallied during the last hour trade, erasing most of the losses clocked in the last two trading sessions.

The S&P BSE Sensex ended 1.12 percent or 424.50 points higher at 38,233.41, after jumping nearly 500 points intraday. The NSE Nifty 50 ended at 11,483.25, up 1.14 percent. The broader market index represented by the NSE Nifty 500 Index ended 1.18 percent higher.

The market breadth was tilted in favour of buyers. About 991 shares advanced and 754 stocks declined on National Stock Exchange. Ten out of 11 sectoral gauges compiled by NSE ended higher, led by the NSE Nifty PSU bank Index’s 3.13 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.39 percent.

About 33 lakh shares of SREI Infrastructure changed hands in two block deals, Bloomberg data showed. Buyers and sellers were not known immediately.

KAMA Holdings

• Stock rose as much as 4.3 percent to Rs 5,500.
• Trading volume was nearly double its 20-day average.

GMR Infrastructure

• Stock rose as much as 13.2 percent to Rs 19.35.
• Trading volume was six times its 20-day average.

Rupa & Co.

• Stock rose as much as 11.1 percent to Rs 362.40.
• Trading volume was more than quadruple its 20-day average.

DLF

• Stock rose as much as 8.5 percent to Rs 205.35.
• Trading volume was almost quadruple its 20-day average.

Indian equity benchmarks traded at day’s high. Sensex jumped over 400 points and Nifty inches towards 11,500.

Shares of Laurus Labs rose as much as 4.4 percent to Rs 390.35.

The company has entered into a strategic partnership agreement with Global Fund for three-and-a-half years, it said in a statement on the exchanges. “Through this long-term agreement, Laurus Labs will have the volume commitments from the Global Fund for the treatment of HIV/AIDS,” the statement added.

The stock retuned flat so far this year and fell 25 percent in the past 12 months.

Indian equity benchmarks traded at day’s high. The S&P BSE Sensex jumped over 150 points and the NSE Nifty 50 traded above 11,400.

Shares of the cement maker fell for the second consecutive trading session and declined as much as 1.3 percent to Rs 1,555.05.

Life Insurance Corporation of India cut stake in ACC to 6.78 percent from 9.89 percent, according to a stock exchange notification.

The stock gained 1.9 percent in the past 12 months compared to an 14 percent advance in the Sensex.

Shares of Kalpataru Power Transmission rose as much as to Rs 452.80, the highest level since June 2018.

The company acquired 85 percent stake in a Swedish EPC Company for $24 million, which deals in power supply solutions and services.

Trading volume was more than double its 20-day average, Bloomberg data showed. The stock traded at 17 times its estimated earnings per share for the coming year.

• Lupin: Shares of the pharmaceutical company rose as much as 1.3 percent to Rs 738.65. The company and YL Biologic, a joint venture between Lupin’s unit Atlantis Holdings SA and Yoshindo Inc. in Japan received an approval to manufacture and sell their biosimilar Etanercept in Japan, according to its stock exchange filing.
• KNR Construction: Shares of the construction company pared opening losses and rose as much as 2.1 percent to Rs 264.10. The company bagged order worth Rs 223.83 crore for the construction of flyover in Tamil Nadu, according to its stock exchange filing. The project is to be completed within a period of 24 months from the appointed date, the statement added.

Shares of the dairy products maker fluctuated between gains and losses to trade 2.8 percent lower at Rs 73.60.

The company received Competition Commission of India's approval to sell its dairy business to Tirumala Milk Products Pvt. Ltd., according to its stock exchange notification

The stock traded at 13 times its estimated earnings per share for the coming year, Bloomberg data showed.

Nifty’s 11,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract rose 7.36 percent to Rs 47.30. Over 6.7 lakh shares were added to the open interest which stood at over 30.54 lakh shares.

Shares of the construction company pared opening losses and rose as much as 0.9 percent to Rs 1,388.80.

The company’s hydrocarbon unit won an order from Oman-based Tawfiq Coke Products, according to its statement on the exchanges. “The deal is valued at around Rs 2,500-Rs 5,000 crore,” the statement added.

The stock traded at 19.3 times its estimated earnings per share compared to 21.9 times for the two year historical average, according to Bloomberg data.

Shares of the life insurance company fell as much as 3.1 percent to Rs 312.15, the lowest in a month.

Promoter Prudential Corporation Holdings said it will sell 3.73 crore shares or 2.6 percent of the equity share capital of the company with an over-subscription option of another 1.1 per stake, according to its exchange notification. The floor price has been set at Rs 300 per share which is at a discount of 6.8 percent to the current market price.

Trading volume was almost six times its 20-day average, Bloomberg data showed. The stock traded at 32 times its estimated earnings per share for the coming year.

Shares of Mindtree fluctuated between gains and losses to trade a little changed at Rs 940 on NSE.

The board of Mindtree Ltd., which on March 21 deferred a decision on share buyback, will meet again today as it faces a Rs 10,800-crore hostile takeover bid from Larsen & Toubro Ltd, according to a PTI report.

The stock advanced 22 percent in the past 12 months compared to a 14 percent gain in the Sensex.

Shares of Jet Airways extended gains for the second consecutive trading session and rose as much as 8.5 percent to Rs 275.70. The stock rose 17.5 percent intraday yesterday.

This after Naresh Goyal, a former ticketing agent who went on to build one of India’s biggest airlines, has stepped down as chairman of cash-strapped Jet Airways India Ltd. after caving in to pressure from creditors. (Read the full story here)

The following are its resolution plans:

• Conversion of Re 1 of Lenders’ debt into 11.4 crore equity shares.
• Constitution of an Interim Management Committee at the instructions of the lenders to manage and monitor the daily operations and cash flow of the company.
• Immediate funding support of up to Rs 1500 crore by lenders by way of issue of appropriate debt instrument against security of its assets which will restore normalcy to company's level of operations.
• Bidding process to be initiated by lenders for sale/issue of shares to new investor, the process expected to be completed in June quarter.

Indian equity benchmarks opened higher after declined for two consecutive trading sessions. The benchmark indices were led by the gains in Reliance Industries Ltd. and ICICI Bank Ltd.

The S&P BSE Sensex rose as much as 0.27 percent to 37,910.40 and the NSE Nifty 50 rose as much as 0.34 percent to 11,393.40. The broader market index, represented by the NSE Nifty 500 Index rose as much as 0.38 percent.

The market breadth was tilted in favour of buyers. About 949 stocks advance and 483 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE advanced, le by the NSE Nifty Realty Index’s 0.94 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 0.97 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.1 percent to 68.90 against the greenback.

F&O Cues

• Nifty March futures closed trading at 11,370, premium of 16 points.
• Max OI for March series at 11,600 Call, OI at 35.5 lakh shares.
• Max OI for March series at 11,000 Put, OI at 35 lakh shares.

Stocks In F&O Ban

• In Ban: Adani Enterprises, Adani Power, IDBI, PNB, Reliance Power
• Out of Ban: Jet Airways

Put-Call Ratio

• Nifty PCR at 1.46 versus 1.59.

Citi on Aviation

• Jet’s restructuring to provide support and help regain market share.
• This could turn negative for IndiGo on margin front.
• Jet’s resumption could result in market share loss and lower pricing power for IndiGo.

Goldman Sachs on HDFC Life

• Initiated ‘Buy’ with price target of Rs 488.
• Will remain dominant in highly profitable and competitive protection segment.
• Expect HDFC Life to deliver 27 percent growth in NBV vs 20 percent of peers over FY19-22.
• Expect margins to expand as HDFC life strengthens its diversified business model.

Goldman Sachs on ICICI Prudential Life

• Maintained ‘Buy’ with a price target of Rs 421.
• Well placed to tap into large protection business opportunity.
• See 25 percent growth in NBV over FY19-22.
• Management focused on reducing business volatility.

Goldman Sachs on SBI Life

• Initiated ‘Neutral’ with a price target of Rs 639.
• Improving bancassurance productivity gives growth upside.
• Expect 17 percent growth in NBV over FY19-22 on healthy premium growth.
• Margin upside capped given challenges in protection.

Morgan Stanley on NBFCs

• Edelweiss: Maintain Overweight; hiked price target to Rs 235 from Rs 205.
• IndoStar: Resumed Equal-weight with a price target of Rs 380.
• Edelweiss and IndoStar are making positive changes to their business models.
• Best positioned to handle this business model transition.
• Edelweiss: diverse profit pools, capabilities in differentiated segments, partnerships, recent positive developments suggest more potential upside.
• IndoStar: building a profitable and high yield retail lending business but see execution risks and muted RoE.

• GTL Infrastructure
• Indo Count Industries
• Supreme Infrastructure
• GVK Power & Infrastructure
• Matrimony.Com
• J.Kumar Infraprojects
• Asian Granito
• CESC Ventures
• Sadbhav Engineering
• Dilip Buildcon
• Prestige Estates Projects

• Reliance Power promoter Reliance Infrastructure revoked pledge of 25.39 crore shares on March 22.

Security & Intelligence Services

• Steinberg India Emerging Opportunities Fund acquired 5.25 lakh shares (0.72 percent) at Rs 829.92 each.

Kwality (Q3, YoY)

• Revenue down 80 percent to Rs 362 crore.
• Ebitda loss at Rs 1,405 crore versus Ebitda profit of Rs 127 crore.
• Net loss of Rs 1,500 crore versus net profit of Rs 20.9 crore.
• Other expenses increased due to Rs 1,434 crore provided by the company for fall in value of investments and bad debts.

Jet Airways Resolution Plan

1. Conversion of Re 1 of Lenders' debt into 11.4 crore equity shares.
2. Two nominees of promoter - Naresh Goyal and Anita Goyal, and one nominee of Etihad Airways PJSC to step down from the Board. Naresh Goyal to cease the be the Chairman of the company.
3. Constitution of an Interim Management Committee at the instructions of the lenders to manage and monitor the daily operations and cash flow of the company.
4. Immediate funding support of up to Rs 1500 crore by lenders by way of issue of appropriate debt instrument against security of its assets which will restore normalcy to company's level of operations.
5. Bidding process to be initiated by lenders for sale/issue of shares to new investor, the process expected to be completed in June quarter.

• Grasim Industries: The Bombay High Court granted a stay against the recovery demand worth Rs 5,872.13 crore on account of dividend distribution tax. The company stated in its press release that order passed by the Income Tax Department was wholly unsustainable in law and the department has sought time to file reply. The company said it received the order dated March 22 on March 25.
• Fitch maintained Tata Steel’s BB IDR on ‘Rating watch Evolving’, as the rating agency awaits completion of the process for the proposed JV with Thyssenkrup. Tata Steel also acquired 230 crore optionally convertible preference shares of Tata Steel BSL (formerly Bhushan Steel) on a private placement basis for Rs 2,300 crore.
• Newgen Software Technologies said it will incorporate Australian arm with an initial investment of 1.5 million Australian Dollars.
• Bharti Airtel said that it eliminated ISD Packs for making regular call to Bangladesh and Nepal. Prepaid user can make calls to Bangladesh at Rs 2.99 per minute and to Nepal at Rs 7.99 per minute.
• DLF said it will consider QIP issue price on March 28. QIP opens from March 25. The floor price for the issue is set at Rs 193.01 per share. On case of anonymity, the management told BloombergQuint that this QIP issue will reduce debt by Rs 3,200 crore and promoters will infuse around Rs 2,500 crore. With these moves the existing debt of Rs 7,200 crore as on December 2018, will stand reduced to Rs 1,500 crore.
• ICICI Prudential Life Insurance OFS: Promoter Prudential Corporation Holdings said it will sell 3.73 crore shares or 2.6 percent of the equity share capital of the company with an over-subscription option of another 1.1 per stake. The floor price has been set at Rs 300 per share which is at a discount of 6.8 percent to the current market price.
• UCO Bank board approved preferential issue of 175 crore shares at Rs 19.01 each, against the government’s capital infusion of Rs 3,330 crore.
• Bank of Maharashtra’s shareholders approved issue of 15.5 crore equity shares at Rs 13.25 per share aggregating to Rs 205 crore to the central government.
• Kalpataru Power Transmission acquired 85 percent stake in a Swedish EPC Company for $24 million, which deals in power supply solutions and services.
• Future Retail board approved the re-appointment of Kishore Biyani as the MD of the company and Rakesh Biyani as joint MD for a three years from May 2, respectively.
• Tourism Finance Corporation appointed Anirban Chakraborty as CMD.
• Prabhat Dairy: Competition Commission of India approved the scheme of the company’s sale of its dairy business, which is run by the company’s arm Sunfresh Agro Industries to Tirumala Milk Products.
• NHPC said that it had started power trading in IEX as trader for J&K Power Development Department with effect from March 22. Sale and purchase of power in Power Exchange is for a period of one year from the date of letter of award (Dec. 12, 2018) and for purchase of 1,000 MUs and Sale of 400 MUs through the Power Exchange.
• Shalby Multispeciality Hospitals got empanelled under “Ayushyaman Bharat Yojana” and “MAA Yojana” for joint replacement surgeries (for knee and hip) and other specified surgeries offers no cost options to the patients covered under the scheme.
• Religare Enterprises made a complaint against Singh Brothers and their entities relating issuance and redemption of preference shares.
• MEP Infra Developers arm entered into concession agreements with NHAI for three highway projects in Maharashtra. Financial closure for these project’s finance are cumulatively worth Rs 1,402.5 crore and were achieved on March 11. The Appointed date for these three HAM projects stands at March 25.
• Suzlon Energy sold balance stake in its two arms for Rs 99.1 crore.
• Aurionpro Solutions board approved the buyback of 10.8 lakh shares or 4.6 percent of equity capital at a price of Rs 185 per share aggregating to Rs 20 crore.

• U.S.-China trade talks resume, with a cabinet-level American delegation due in China.
• U.K. Parliament is likely to stage several key votes on Brexit.
• China’s Boao Forum for Asia holds its annual conference this week. A top Chinese government leader will deliver a keynote speech, and officials including Central Bank Governor Yi Gang and Finance Minister Liu Kun are scheduled to speak.
• Fed Governor Randal Quarles will speak Friday to the Shadow Open Market Committee on “Strategic Approaches to the Fed’s Balance Sheet and Communications.”

• Brent crude traded 0.39 percent higher at $67.47 per barrel.
• West Texas Intermediate crude steadied at $59.27 a barrel.
• Gold was flat at $1,321.63 an ounce.

London Metal Exchange

• Aluminium resumed declines after a one-day rally, ended 1.1 percent lower.
• Nickel ended lower for the third day, down 0.2 percent.
• Lead ended lower for the third day, down 1.03 percent.
• Tin halted a five-day rally, ended 0.35 percent lower.
• Copper halted a three-day fall, ended 0.44 percent lower.
• Zinc halted a two-day fall, ended 0.6 percent higher.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade a little changed at Rs 11,372 as of 8:30 a.m.

Asian stocks saw a mixed performance at the open on Tuesday after their biggest slide this year. Japanese shares climbed at the open, while Australian and Korean benchmarks were flat. U.S. futures were little changed.

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