Sensex, Nifty Clock Longest Weekly Gaining Streak Of 2019

Indian equity benchmarks ended higher for the fifth straight week despite a sharp fall in today’s trade. The benchmark indices clocked this year’s longest stretch of weekly gains.

The S&P BSE Sensex closed nearly 0.4 percent higher this week at 38,164.61 and the NSE Nifty 50 ended the week at 11,456.90 after gaining nearly 0.3 percent. The broader market index represented by the NSE Nifty 500 Index ended a little changed this week.

The 31-share index fell 0.58 percent or 222.14 points in today’s trade, while the 50-stock index ended 0.56 percent lower. The 500-share gauge ended 0.55 percent lower today.

The market breadth was tilted in favour of sellers. About 1,132 shares fell and 625 stocks advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower today, led by the NSE Nifty PSU Bank Index’s 2.15 percent fall. On the flipside, the NSE Nifty Realty Index was the only sectoral gainer, up 0.47 percent.

Ratnamani Metals & Tubes

• Stock fell as much as 2.6 percent to Rs 886.10.
• Trading volume was almost 40 times its 20-day average.

Securities & Intelligence Services

• Stock fell as much as 6.8 percent to Rs 880.05.
• Trading volume was almost 18 times its 20-day average.

SpiceJet

• Stock rose as much as 14.2 percent to Rs 104.70.
• Trading volume was more than 13 times its 20-day average.

Godrej Properties

• Stock rose as much as 5.1 percent to Rs 853.
• Trading volume was almost five times its 20-day average.

NTPC

• Stock rose as much as 3.8 percent to Rs 134.15.
• Trading volume as more than triple its 20-day average.

Indian equity benchmarks were trading at day’s low. Sensex fell over 400 points from intraday high and Nifty surrendered 11,500.

The Indian rupee erased reversed morning gains and was trading at day’s low. The home currency depreciated as much as 0.3 percent to trade below 69 against the U.S. dollar.

The recent rally in the baking stocks stocks with the NSE Nifty Bank index touching an all-time high of 30,008 today.

The gains have been led by:

• Strong foreign inflows of around Rs 26,000 crore in the cash segment.
• Select PSU bank stocks exiting the PCA framework.
• Recapitalisation of PSU banks
• The recoveries seen under to the insolvency and bankruptcy process.

As most of the large accounts under stress have already been referred to NCLT, analysts believe that worst of the asset quality stress is behind us.

Brokerage Prabhudas Lilladher said: “We believe that post initial recoveries, asset quality getting back to the normalized levels (like last cycle) will take time. But with higher PCR, banks should start seeing lower credit costs.”

State-owned lenders’ balance sheets have improved materially over past year, Morgan Stanley said in a research note adding, the downside risks are capped right now.

About 16.7 lakh shares of HFCL changed hands in a block deal on Bombay Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of Titan rose as much as 2 percent to hit an all-time high at Rs 1,124. The company is set to cross Rs 1 lakh crore in market capitalisation.

The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data.

• Alembic Pharma: Shares of the drugmaker fell as much as 1 percent to Rs 535.70. The company received U.S. FDA approval for Azelastine Hydrochloride Ophthalmic Solution, used for conjunctivitis treatment.
• Kansai Nerolac: Shares of the paintmaker fell as much as 4.9 percent to Rs 436.30. Brokerage and research firm CLSA Downgraded the stock rating to ‘Sell’ from ‘Underperform’ and cut price target to Rs 385 from Rs 450.
• Tata Power: Shares of the electricity supplier rose as much as 2.4 percent to Rs 73.80. The company signed a deal with the Ministry of Defence, Government of India, to supply 23 ship-borne 3D Air Surveillance Radars to the Indian Navy over the next 10 years, according to its stock exchange filing. The contract is estimated at about Rs 1,200 crore.

Shares of Federal-Mogul Goetze fell as much as 3.8 percent to Rs 553.10.

The U.S.-based Tenneco Inc. announced an open offer for acquisition of up to 25.02 percent of the total shares in the company at a price set by SEBI—Rs 608.46 apiece, according to its stock exchange filing. The price is nearly 6 percent above the last regular trade.

Trading volume was almost 10 times its 20-day average, Bloomberg data showed. The stock advanced 30 percent in the past 12 months outperforming Sensex, which rose 16 percent during the period.

Shares of the drugmaker rose for the fifth-day in a row, their longest gaining streak in nearly two months. The stock rose as much as 1 percent to Rs 2,779.

Dr. Reddy’s received U.S. FDA’s tentative approval for its pain killer drug pregabalin, according to the drug regulator’s website.

The shares gained 31 percent in the past 12 months compared to an 17 percent advance in the Sensex.

Nifty’s 11,500 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract rose 12.77 percent to Rs 63.60. Over 8.16 lakh shares were added to the open interest which stood at over 34.49 lakh shares.

The NSE Nifty Bank Index hit an all-time high, crossing 30,000-mark. The index extended gains for the ninth consecutive trading session.

Shares of SpiceJet extended gains for the fourth consecutive trading session and rose as much as 14.2 percent to Rs 104.70, their highest level since July 2018. The stock jumped 20 percent intraday on Wednesday.

“The government is said to consider a proposal for SpiceJet to acquire as many as 40 grounded planes of debt-laden Jet Airways,” Bloomberg reported.

Trading volume was almost 40 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70 indicating that the stock may be overbought.

Shares of HDFC Bank extended gains for the fifth consecutive trading session and rose as much as 0.35 percent to hit an all-time high.

The stock traded at 29 times estimated earnings per share for the coming year, according to Bloomberg data.

Indian equity benchmarks opened higher and are set for their longest stretch of weekly gains in over six months.

The S&P BSE Sensex rose as much as 0.36 percent to 38,524.09 and the NSE Nifty 50 rose as much as 0.39 percent to 11,566.10.

The market breadth was tilted in favour of buyers. About 913 stocks advanced and 533 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Pharma Index’s 0.72 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.17 percent.

The Indian rupee opened higher against the U.S. dollar and is set for its sixth straight week of gains. The home currency appreciated as much as 0.3 percent to 68.62 against the greenback.

The local legal tender is headed to cap a sixth straight week of gains as strong foreign fund inflows boost the currency. With the dollar coming under pressure after the Federal Reserve signaled it was unlikely to raise interest rates this year, the rupee is seen opening at 68.725 on Friday, up from 68.83 per dollar on Wednesday when it rose 0.2 percent. Foreigners have bought more than $3 billon of stocks and bonds this month and this has been one of the main driving forces behind the resurgence of the rupee.

In the bond market, sovereign bonds may gain, tracking a slide in U.S. yields after a dovish Fed statement. The Reserve Bank will auction Rs 18,000 crore of govt bonds, including Rs 8,000 crore of 7.26 percent 2029 debt. The yield on the most actively traded bond maturing in January 2028 fell two basis points to 7.52 percent on Wednesday while the yield on the 10-year debt was down one basis point to end at 7.36 percent.

F&O Cues

• Nifty March futures closed trading at 11,553, premium of 31 points.
• Max open interest for March 28 series at 11,500 Call (open interest at 26.9 lakh shares).
• Max open interest for March 28 series at 11,000 Put (open interest at 42.5 lakh shares).

Stocks In F&O Ban

• In ban: Adani Enterprises, Adani Power, IDBI, Jet Airways, Reliance Power
• New in ban: Adani Power
• Out of ban: BEML, Just Dial, Reliance Capital

On Vodafone Idea

Citi

• Maintained ‘Neutral’ with a price target of Rs 39.
• Attractive rights issue pricing to ensure successful capital raise.
• Steep discount to drive healthy minority participation.
• Continue to have neutral rating as uncertainties still remain.

CLSA

• Maintained ‘Sell’ with a price target of Rs 27.
• Rights issue at steep discount resulting into huge dilution.
• Rights issue to help fund interest and capex spend in near term.
• Further capital infusion will likely be needed beyond 2020-21.

On Maruti Suzuki

Nomura

• Global collaboration between Toyota and Suzuki deeper and wider than expected.
• Key benefit is availability of hybrid technology in India without making much investment.
• Will become more relevant in India as emission norms tighten to BS-6 in 2020.
• Agreement should be win-win for both Maruti Suzuki and Toyota in India.

Jefferies

• Maintained ‘Buy’ with a price target of Rs 7,600.
• Suzuki & Toyota expanded partnership to new areas including supply of Ciaz & Ertiga to Toyota India.
• Access to Toyota's technology will be key to Maruti's long-term prospects, particularly in EVs.
• This means concessions by Maruti’s crown jewel in various forms which investors need to factor.

More Calls

CLSA on Kansai Nerolac

• Downgraded to ‘Sell’ from ‘Underperform’; cut price target to Rs 385 from Rs 450.
• Demand headwinds as auto sector reels under pressure.
• Weak macroeconomic environment raises concern over decorative demand.
• Concern over margin with rise in crude, though strong rupee and price hikes are positive.

CLSA on ICICI Prudential

• Maintained ‘Buy’; hiked price target to Rs 450 from Rs 430.
• Protection to be largest contributor to VNB by 2020-21.
• VNB volatility will be significantly lower than premium volatility.
• Lift VNB estimates for FY20-21 based on higher premiums and wider margins.

Jefferies on Finolex Cables

• Downgraded to ‘Hold’ from ‘Buy’; maintained price target at Rs 525.
• Positives seems priced in, post sharp rally.
• Cautious on tepid ramp-up in 'New Products.
• Expect revenue and net profit to grow at a compounded annual growth rate of 14 percent and 12 percent respectively over FY18-21.

HSBC on Indian Aviation

• Domestic traffic growth slowest as fares seem to have moved north, denting demand.
• Load factor down despite capacity (seats) growth.
• SpiceJet leasing Jet’s plane means capacity would remain which could accelerate competition and bring yield under pressure.

Jefferies on Consumer

• Channel checks suggest some moderation in demand.
• High base post GST rate cuts coupled with near term disruption in trade impacting demand.
• Continue to expect underlying demand to be stable but do not expect significant pick up.
• No further increase in competitive intensity and benign RMs are breathers.

• Nandan Denim: Polus Global Fund sold 12.65 lakh shares or 2.63 percent equity at Rs 55.03 each.
• Jubilant Life Science: Jubilant Employees Welfare Trust sold 34.74 lakh shares or 2.18 percent equity at Rs 784.17 each.
• Carborundum Universal: Sundaram Mutual Fund acquired 13.04 lakh shares or 0.69 percent equity at Rs 357.55 each.

• Mindtree board will meet again on March 26. The company said no decision was taken on proposed share buyback on March 20.
• Power Finance Corporation: CCEA has given final approval for sale of REC’s 52.6 stake, or 104 crore shares, to PFC at Rs 139.50 per share aggregating to Rs 14,500 crore. On Dec. 6, CCEA had given in-principle approval for the deal.
• Adani Transmission approves buyback of NCDs worth Rs 1,000 crore.
• Fortis Healthcare: SEBI has ordered both Fortis Healthcare and Fortis Hospitals to continue pursuing measures to recall the outstanding Rs 403 crore amount along with due interest from Singh Brothers and related entities.
• SpiceJet is considering taking control of 40 Jet Airways aircraft after being tapped in by the Indian government: Bloomberg News
• Sun TV Network: Chief executive and managing director K. Vijay Kumar has resigned with effect from March 31. He will continue to be the executive director from April 1 onwards. The company stated in its press release that R. Mahesh Kumar will be the new MD for a period of five years.
• IDFC First Bank sells its entire stake of 8.73 percent in Asset Reconstruction Company (India) Ltd.
• Dr Reddy’s Laboratories gets U.S. FDA’s approval for its ANDA Pregabalin: Bloomberg News
• GMR Infrastructure’s JV Delhi International Airport awards commercial development rights at Delhi’s Aerocity to a consortium led by Bharti Group’s arm. The infra company has awarded non-transfer assets to the extent of 9 lakh square meters and ‘Bharti Realty’ will pay annual lease rent of Rs 363.5 crore per annum till 2036 and other one-time payments worth Rs 1,837 crore.
• Bosch India executes a JV agreement with Prettl India with total investment of Rs 20 crore. Sixty percent stake will be held by Prettl India while the remaining will be held by Bosch’s listed Indian arm. This JV has been done to carry out business of manufacturing and supply of automobile components.
• European Union extends Tata Steel-Thyssenkrup review by 8 working days to May 13: Bloomberg News
• S&P affirms GMR Hyderabad International Airport with BB+ Rating: Bloomberg News
• Tata Steel says no production impact from blast at Ijumuiden: Bloomberg News. Besides, the company acquired non-convertible preference shares of Tata Steel BSL worth Rs 10,700 crore.
• Vedanta’s Zambia unit halts work at shaft after death of worker: Bloomberg News
• Jet Airways clarifies on the news of Etihad selling it stake to SBI saying that it is contemplating various options on the debt-equity mix and proportion of equity infusion.
• GE&TD India says that to maximise the level of costs the company has decided right size the scale of operations in its Uttar Pradesh plant. The activity would involve rationalising the workforce to match the current order backlog, the company also stated in its press release that this move will not disrupt the commercial operation of any unit of the company.
• HUDCO says its Medium-Term Note Program for issuances of unsecured bonds/ notes amounting to Rs 5,000 crore in overseas market has been established in Singapore Exchange and India International Exchange. Credit rating for this program is aligned by the company’s long-term issuer ratings of Baa2 and BBB- by Moody's Investor Services and Fitch Ratings, respectively.
• CG Power and Industrial Solutions arm installs electricals work and voltage equipment for Northlands Powers offshore wind farm substation.
• Infosys signs 3-year technology partnership with Roland Garros, Besides, the company consider March quarter results and final dividend on April 12.
• Wipro arm launches crowdsourced software for testing solutions.

Offerings

• Reliance Nippon Life AMC-managed CPSE ETF fourth FFO to close March 22.
• India’s MSTC IPO gets 146 percent demand after offer extended by three days.

Aviation Data

• Domestic air passenger traffic grew 5.6 percent to 113.49 lakh – growth slowest in last 59 months.
• IndiGo’s passenger traffic grew 15 percent to 49.31 lakh.
• Jet Group’s passenger traffic fell 28 percent to 12.92 lakh.
• SpiceJet’s passenger traffic grew 17 percent to 15.58 lakh.

Telecom Data

• Telecom industry lost 38.9 lakh active subscribers in January 2019.
• Reliance Jio added 63.2 lakh active subscribers.
• Bharti Airtel and Vodafone Idea lost 45.6 lakh and 62.1 lakh active subscribers.

• Brent crude traded a little changed at $67.86 per barrel.
• West Texas Intermediate crude fell 0.1 percent to $59.93 a barrel.
• Gold dipped 0.1 percent to $1,308.59 an ounce.

London Metal Exchange

• Aluminium extended decline for the second day, ended nearly 2 percent lower.
• Nickel snapped its four-day gaining streak and ended 1.68 percent lower.
• Lead ended 0.17 percent lower.
• Tin ended flat Tin ended flat.
• Copper fell for the second-straight session.. ending to 0.56 percent lower.
• Zinc halted a two-day gain, ending close to a 1 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.07 percent lower to 11,583.50 as of 8:30 a.m.

Asian stocks headed for a fresh five-month high, while bond yields slumped to multi-year lows as investors predict major central banks ending their monetary-policy normalisation.

Equities saw a mixed performance, with little change in Tokyo and modest gains in Hong Kong and Korea and Australia outperforming.

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