Sensex Clocks Best Fiscal Since FY15

Indian equity benchmark Sensex clocked its best fiscal returns in four years.

The S&P BSE Sensex advanced 17.30 percent this financial year, the highest since 2014-15. The NSE Nifty 50 returned 14.93 percent during the period, the highest since the financial year ended March 2017.

On Friday, the 31-share index closed 0.33 percent higher at 38,672.91 and the 50-stock index closed at 11,623.90, up 0.47 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.64 percent higher.

The market breadth was tilted in favour of buyers. About 970 shares advanced and 772 stocks declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 2.37 percent advance. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral loser, down 0.21 percent.

Iron ore is heading for the biggest quarterly gain since last 2016 as Vale SA finally detailed the extent of the hit to full-year sales from its Dam Burst; Australia warned the impact from that disruption will be felt for years; and Rio Tinto Group said a cyclone prompted a force majeure notice.

Futures in Singapore rallied as much 4.7 percent on Friday after the series of announcements, while shares in Australian mining companies jumped. In Sydney, Rio stock advanced to the highest level since 2008, while Fortescue Metals Group Ltd. posted a a quarterly climb of 70 percent.

The NSE Nifty Metal Index jumped over 2 percent, led by the gains in Jindal Steel & Power and Steel Authority of India.

Shares of the oil marketing companies rallied in today’s trade after brokerage and research firm HSBC hiked price target.

Here’s what HSBC had to say:

• Concern over marketing margins short-lived; even GRMs are normalising from lows.
• Strong earnings outlook for OMCs should drive further upside.
• Both pace and quantum of recovery in marketing margins has surprised.
• Refining should improve further in 2019-20.
• IOCL: Maintained ‘Buy’; hiked price target to Rs 199 from Rs 168.
• BPCL: Maintained ‘Buy’; hiked price target to Rs 460 from Rs 429.
• HPCL: Maintained ‘Buy’; hiked price target to Rs 341 from Rs 298.

Shares of the Adani group companies rallied in today’s trade. Adani Gas surged over 11 percent.

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

Premium on the contract fell 5.06 percent to Rs 45.95. Over 2.6 lakh shares were added to the open interest which stood at over 11.85 lakh shares.

• GMR Infra: Shares of the infrastructure company erased gains and fell as much as 1.3 percent to Rs 19.75. The Supreme Court suspended green nod to the new airport in Goa’s Mapa, according to Bloomberg report. The top court said that a panel will make recommendations on the airport in a month and that no other court would entertain challenge to new recommendation, the report added.
• Lakshmi Vilas Bank: Shares of the lender rose as much as 7.4 percent to Rs 69.30. Bajaj Finance Ltd. acquired 1.8 percent more stake in Lakshmi Vilas Bank, according to a stock exchange filing.
• Vodafone Idea: Shares of the telecom operator rose as much as 16.8 percent, the most in over four months, to Rs 20.45. The final eligibility date has approached for the company’s rights issue.

Shares of IndoStar Capital Finance extended gains for the fifth consecutive trading session, its longest gaining streak in over three weeks. The stock rose as much as 10.7 percent, the most in over three months, to Rs 422.40.

Trading volume was almost 11 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.

State-run MSTC was listed at discount of 5.4 percent at Rs 111 per share on the BSE Ltd. compared to its issue price of Rs 120 apiece. The stock hit an upper circuit of 5 percent thereafter.

Shares of the state-run lender fluctuated between gains and losses to trade 0.58 percent higher at Rs 95.95

The PSU Bank plans entered into an agreement to sell 1.08 crore shares in PNB Housing Finance to General Atlantic Group at Rs 850 apiece, according to its stock exchange filing. The bank also plans to sell 1.08 crore shares in PNB Housing Finance to Varde Partners at Rs 850 a piece, it said, adding that the total stake sale is worth about Rs 1,851.6 crore.

“PNB would continue to hold strategic stake of 19.78 percent of the paid up capital of PNB Housing Finance (as on December 2018) and shall continue as a promoter and strategic shareholder of the housing finance company.”

Shares of SBI Life Insurance fell as much as 5.6 percent to Rs 581.60.

About 3.79 crore shares of the company changed hands in 14 block deals on Bombay Stock Exchange, according to Bloomberg data.

While and sellers were not known immediately, Bloomberg reported, “BNP Paribas plans to sell 30 lakh shares of the company at a fixed price of Rs 575 apiece,” quoting the the terms of the deal that it obtained.

Trading volume as more than 20 times its 20-day average, according to Bloomberg data. The stock traded at 8 times its last reported book value compared to a 9.3 times for the two-year historical average.

Shares of WABCO India rose as much as 12.1 percent, the most since March 24, 2017, to Rs 7,100.

The automotive parts maker’s holding company said that it has entered into a definitive agreement to sell all of its outstanding shares in an all cash transaction at $136.5 per share aggregating to $7 billion to ZF Friedrichshafen. The transaction expected to close in early 2020.

The stock is also expected to remain in focus as ZF Friedrichshafen will have to make an open offer for public shareholders, according to the SEBI guidelines.

Trading volume was more than 12 times its 20-day average, Bloomberg data showed. The stock fell 2.9 percent so far this year and declined 14.6 percent in the past 12 months.

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

The S&P BSE Sensex rose as much rose as much as 0.53 percent to 38,748.54 and the NSE Nifty 50 rose as much as 0.52 percent to 11,630.20. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.54 percent.

The market breadth was tilted in favour of buyers. About 980 stocks advanced and 467 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE rose, led by the NSE Nifty Metal Index’s 1 percent advance. On the flipside, the NSE Nifty Private Bank was the top sectoral loser, down 0.17 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.23 percent to 69.18 against the greenback.

• MSTC’s shares to start trading on BSE/NSE after IPO, gets 146 percent demand at Rs 120 per share after the offer extended by three days.
• Metropolis Healthcare IPO price band set at Rs 877-880 per share. Offer opens on April 3 and closes on April 5. (More details here)
• State-run Rail Vikas Nigam IPO at Rs 17-19 per share open for sale, close on April 3.

F&O Cues

• Nifty April Futures closed trading at 11533, premium of 13 points.
• Max OI for April series at 12,000 Call, OI at 20.3 lakh shares.
• Max OI for April series at 11,000 Put, OI at 20.2 lakh shares.

Stocks In F&O Ban

• In Ban: Adani Power

Put-Call Ratio

• Nifty PCR at 1.96 versus 1.49.

On Indian IT

CLSA

• Accenture signals strong demand for 3-months ending February 2019 (Q2FY19).
• Strong growth led by consulting, U.S. and resources.
• Strong growth in U.S. more positive for Infosys.
• Strong growth in CMT positive for Tech Mahindra, Wipro and HCL Tech.

Morgan Stanley

• Accenture saw strong booking growth in quarter gone by.
• Stable to moderating budget growth in 2019, but digitization cycle to last longer.
• Growth in financial was muted; Revenue growth guidance implies a deceleration in the second half.

Kotak

• Accenture: strong headline numbers with growth skew towards a couple of verticals.
• Financial services: weak banking, especially in Europe; strong insurance.
• Demand environment is reasonable; rough edges visible in weak financial services growth.

More Calls

• CLSA on Varun Beverages
• Maintained ‘Buy’; hiked price target to Rs 1,175 from Rs 985.
• South and west acquisition to drive EPS by 14-20 percent for CY20-21.
• 2018 was a decent year on operational parameters.
• RoE improved by free cash flow still negative.

JPMorgan on NBFCs

• Liquidity improves, but fragility remains; Macros should be supportive.
• Growth and margin pressure likely in 2019-20.
• Expect NBFCs to explore more permanent solution to funding woes via banking license or M&A.
• Shriram Transport Finance: Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 1.400 from Rs 1,600.
• L&T Finance: Downgraded to ‘Underweight’ from ‘Neutral’; maintained price target at Rs 130.
• Bajaj Finance: Maintained ‘Overweight’; hiked price target to Rs 3,400 from Rs 2,800.
• HDFC: Maintained ‘Overweight’; hiked price target to Rs 2,300 from Rs 2,250.
• Indiabulls Housing: Maintained ‘Overweight’; cut price target to Rs 1,000 from Rs 1,350.
• LIC Housing Finance: Maintained ‘Neutral’; hiked price target to Rs 585 from Rs 580.
• PNB Housing Finance: Maintained ‘Underweight’; cut price target to Rs 800 from Rs 1,000.

Axis Capital on Cyient

• Initiated ‘Buy’ with a price target of Rs 803.
• Growing client matrix and employee addition promises future growth.
• Strong outlook across verticals; DLM business growth to be in high double digits.
• High return ratios & dividend payout makes a lucrative bet.
• Expect revenue and net profit to grow at a CAGR of 12 percent over FY18-21.

HSBC on OMCs

• Concern over marketing margins short-lived; even GRMs are normalising from lows.
• Strong earnings outlook for OMCs should drive further upside.
• Both pace and quantum of recovery in marketing margins has surprised.
• Refining should improve further in 2019-20.
• IOCL: Maintained ‘Buy’; hiked price target to Rs 199 from Rs 168.
• BPCL: Maintained ‘Buy’; hiked price target to Rs 460 from Rs 429.
• HPCL: Maintained ‘Buy’; hiked price target to Rs 341 from Rs 298.

Spark on Sun TV

• Maintained ‘Buy’; cut price target to Rs 1,150 from Rs 1,170.
• Expect slower ad revenue growth due to slowdown in overall industry.
• See minimal impact on subscription growth on Sun TV despite TRAI tariff order.
• Higher than anticipated revenues from ‘Petta’ to marginally offset impact on lower ad revenue.

• Nifty 50 Index Rejig: Britannia comes in and HPCL goes out from the index with effect from March 29.
• Vodafone Idea ex-date for rights issue 87:38 at Rs 2.5 per share.
• Aarti Drugs record date for share buyback.
• CRISIL, Hindustan Aeronautics, BEML record date for interim dividend.
• IGSEC Heavy Engineering record date for stock split from Rs 10 to Rs 1 per share.

• Future Retail promoter Future Corporate Resources created a pledge of 74.05 lakh shares on March 26.

• Britannia Industries: SBI MF acquired 12.97 lakh shares or 0.54 percent equity at Rs 3,098.97 each.
• Gruh Finance: Promoter HDFC sold 1.22 crore shares or 1.67 percent equity at Rs 260.08 each.

Indiabulls Venture

• Morgan Stanley France SAS acquired 36 lakh shares or 0.69 percent equity at Rs 314.5 each.
• Merrill Lynch Markets Singapore sold 36 lakh shares or 0.69 percent equity at Rs 314.5 each.

• WABCO India: Holding company said that it has entered into a definitive agreement to sell all of its outstanding shares in an all cash transaction at $136.5 per share aggregating to $7 billion to ZF Friedrichshafen. Transaction expected to close in early 2020. Wabco India to remain in focus as ZF Friedrichshafen will have to make an open offer for public shareholders, according to the SEBI guidelines.
• Tata Power signed a power purchase agreement with BEST (Mumbai Area Municipality) for supply of 676.69 MW of power for a period of five years till March 2024. Another power purchase agreement was signed between the distribution business of the company and its generation arm for 700 MW of power till March 2024.
• BNP Paribas sought to sell 5.1 percent take in SBI Life Insurance at Rs 575 apiece.(Bloomberg News)
• DLF QIP Issue: Securities Issuance Committee approved the issue price at Rs 183.4 per share, to the floor price of Rs 193.01 per share. The QIP was declared to be closed by the committee on March 28.
• Lupin launched Fluocinonide Ointment, which is used for inflammation treatment. The company had received approval for this drug by the U.S. FDA earlier.
• HT Media: NCLT gave approval for the demerger of its wholly owned arm Digicontent from the copy.
• Punjab National Bank EGM: Shareholders approved to issue and allot 80.2 crore shares aggregating to Rs 5,908 crore on preferential basis to the government of India.
• PFC-REC Deal: Power Finance Corporation stated that it had acquired a 52.63 percent stake of share capital of REC, worth Rs 14,500 crore from the government and became the holding company and the promoter of REC.
• HIL: Company’s JV with its German Arm launched showroom for wooden products in China’s Shanghai.
• Andhra Bank board approved an issue of 114.6 crore shares aggregating to Rs 3,256 crore on preferential basis to the government of India.
• EIH said its Agra’s Oberoi Amarvilas will be partially closed for renovation of 53 rooms from April 11 to Sept. 30.
• Adani Logistics arm said it will acquire 100 percent stake in InLogistics (entity controlled by private equity firm True North) for Rs 331.5 crore.
• Union Bank of India board approved to issue and allot 52.15 crore shares aggregating to Rs 4,112 crore on preferential basis to the government of India.
• Central Bank of India shareholders approved to issue and allot 68.7 crore shares aggregating to Rs 2,560 crore on preferential basis to government of India.
• Indian Overseas Bank shareholders approved to issue and allot 269.5 crore shares aggregating to Rs 3,806 crore on preferential basis to the government of India.
• Bharat Financial Inclusion completed its tenth direct assignment of Rs 837.4 crore. With this assignment, the company has completed transactions worth Rs 9,032.5 crore in financial year 2019.
• Take Solutions board re-appointed Srinivas HR as its MD for additional three years with effect from April 1.
• Indian Bank shareholders approved raising equity capital up to Rs 7,000 crore.
• HUDCO: Government of India extended the tenure of M. Ravi Kanth as CMD for a period of six months with effect from April 11.
• Wipro signed an MoU with IIT Kharagpur for research on 5G Technology and Artificial Intelligence.
• TCPL Packaging commenced commercial operation of its Goa unit from March 28.
• Fortis Healthcare: ICRA upgraded the company’s loan, fund limit rating to ‘BBB-’ from ‘B+’ (ICRA Release)

• India 4Q BoP Current Account Balance, est. -$16billion, prior -$19.1billion.
• India fiscal deficit in data for April-Feb. period.
• India Eight Infrastructure Industries Index for Feb. (prior +1.8 percent)
• Fed official Randal Quarles will speak Friday to the Shadow Open Market Committee on “Strategic Approaches to the Fed’s Balance Sheet and Communications.”
• Theresa May will put her Brexit divorce deal to a vote in Parliament on Friday.

• Brent crude traded a little changed at $67.82 per barrel.
• West Texas Intermediate crude rose 0.5 percent to $59.59 a barrel.
• Gold held at $1,291.50 an ounce after sinking 1.5 percent.

London Metal Exchange

• Aluminium ended 0.42 percent lower.
• Nickel ended lower for the second day, down 1.4 percent.
• Lead ended 0.5 percent higher.
• Copper ended 0.39 percent higher.
• Tin ended 0.33 percent higher.
• Zinc halted a three-day gains, ended 0.69 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.17 percent to 11,650.50 as of 8 a.m.

Asian stocks looked set to round out a strong quarter with modest gains on Friday, while the rally in sovereign bonds ebbed as investors gauge the outlook for growth.

Shares rose in Japan and China. Korea and Hong Kong were flat, as were U.S. equity futures.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.