Sensex, Nifty Clock Their Best Two-Day Rally In Over A Month

Indian equity benchmarks ended higher for the second consecutive trading session, closing their best two-day rally in over a month.

The S&P BSE Sensex ended 1.05 percent or 378 points higher today at 36,442.54 and the NSE Nifty 50 ended at 10,987.45, up 1.14 percent.

About 1,493 stocks advanced and 290 stocks declined on National Stock Exchange. Ten out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Auto Index’s 3.13 percent gain. On the flipside, the NSE Nifty IT Index was the only sectoral loser, down 1.16 percent.

Solar Industries

• Stock rose as much as 6.8 percent to Rs 1,042.
• Trading volume was more than 13 times its 20-day average.

Symphony

• Stock rose as much as 8.5 percent to Rs 1,385.40.
• Trading volume was more than 11 times its 20-day average.

Sadbhav Engineering

• Stock rose as much as 9.1 percent to Rs 225.70.
• Trading volume was almost nine times its 20-day average.

Excel Crop Care

• Stock rose as much as 12.6 percent to Rs 3,699.
• Trading volume was more than triple its 20-day average.

About 10 lakh shares of Indian hotels changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

The Indian rupee strengthened further to trade at day’s high. The home currency appreciated as much as 0.39 percent to 70.63 against the greenback.

European equities trade marginally higher as investors await details regarding a potential trade deal.

Shares of ICICI Lombard extended gains for the fourth consecutive trading session and rose as much as 6.8 percent to hit a new all-time high at Rs 1,014.80.

Trading volume was almost five times its 20-day average, Bloomberg data showed.

• Indian equity benchmarks traded at day’s high.
• The S&P BSE Sensex rose as much as 0.45 percent to 36,226.25 and the NSE Nifty 50 Index rose as much as 0.53 percent to 10,921.
• About 1,466 shares advanced and 272 stocks declined on NSE.

Watch the full conversation here:

Nifty’s 10,900 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 15.46 percent to Rs 49.20. Over 7.56 lakh shares were added to the open interest which stood at over 16.7 lakh shares.

Shares of Dilip Buildcon extended gains for the fourth consecutive trading session and rose as much as 10.3 percent to Rs 492.95.

Trading volume was almost triple its 20-day average, Bloomberg data showed. The Relative Strength Index was at 74, indicating that the stock may be overbought.

Shares of the two-and-three-wheeler maker fell as much as 1.7 percent to Rs 2,814.80.

Brokerage firm Credit Suisse downgraded its recommendation on the stock to ‘Neutral’ from ‘Outperform’ and lowered price target to Rs 2,700 from Rs 2,950, indicating a potential downside of 5.71 percent from Friday’s close.

Here’s what the brokerage firm had to say on the stock:

• Believe domestic business will face headwinds going forward.
• Bajaj is currently pushing inventory of Pulsar before ABS norms implementation.
• Domestic two-wheeler volumes to be impacted by safety regulations.
• Trading at steep premium to peers despite upcoming risks.

The trading volume was more than seven times the 20-day average for this time of the day, according to Bloomberg data.

Key highlights from the conversation:

• Selective mid- and small-cap stocks are looking attractive at current levels.
• Economic activity will gather momentum post elections.
• We have an ‘Overweight’ view on private sector banks in financial space and ‘Neutral’ view on IT sector.
• We remain positive in cement sector. The volume growth has been positive since in the past few months.

Watch the full conversation here:

• Bharti Airtel: About 10.9 lakh shares changed hands in a single block.
• Gujarat Pipavav: About 10 lakh shares changed hands in a single block.

Buyers and sellers were not known immediately.

Source: Bloomberg

The Nikkei India Services Business Activity Index rose to 52.5 last month from 52.2 in January, according to a statement by research firm IHS Markit, which compiles the index. A reading below 50 indicates contraction in activity, while a number above it signals expansion.

Eicher Motors

• Stock fell as much as 3.2 percent to Rs 19,320.
• February sales down 14 percent at 62,630 units. Exports up 49 percent at 2,564 units. Company said that during the period of strike at Oragadam facilty from February 13-22, total impact on production was approximately 3200 motorcycles. From Feb. 23, company has started normal manufacturing operations.

TVS Motor

• Stock rose as much as 1.7 percent to Rs 475.50.
• February sales up 3 percent at 2.99 lakh units. Exports up 14 percent at 66,570 units . Two wheelers sales up 2 percent at 2.8 lakh units. Three-wheeler sales up 41 percent at 13,742 units. Total exports up 14 percent at 66,570 units.

Hero MotoCorp

• Stock rose as much as 1.3 percent to Rs 2,708.
• February sales down 2 percent at 6.1 lakh units. The company said first two months on this quarter has lower than expected pickup in demand.

Tata Motors

• Stock rose as much as 2.5 percent to Rs 184.80.
• February domestic sales down 3 percent at 57,221 units. Commercial Vehicles sales down 5 percent at 39,111 units. Passenger Vehicle sales up 2 percent at 18,110 units, due a good demand seen new generation vehicles. Exports down 39 percent at 2,930 units.
• JLR U.S. retail sales jump 29 percent YoY, Jaguar February sales up 59 percent and Land Rover sales up 19 percent YoY.

VST Tillers Tractors

• Stock rose as much as 2.3 percent to Rs 1,448.
• February Power Tillers sales down 41 percent at 1,495 units. Tractor sales down 39 percent at 581 units.

Force Motors

• Stock rose as much as 5.3 percent to Rs 1,684.
• February sales down 13.4 percent to 2,563 units.

Larsen & Toubro Ltd. secured 2 orders from the Tamil Nadu Government’s Water Resources Department, according to its statement on the exchanges.

The first order is for the execution of the Athikadavu-Avinashi Scheme and the second, order is for the construction of a new Regulator across the southern and northern arms of the Coleroon river on the downstream side of the existing regulator at Mukkombu (Upper Anaicut) near Tiruchirappalli, the statement said, adding that the orders were valued around Rs 5,000 -7,000 crore.

Shares of the country’s largest construction company traded 1.1 percent lower at 1,294.70 apiece.

Shares of the New Delhi-based company gained for the third-straight session and rose as much as 3.5 percent to Rs 40 per share.

HT Media acquired 48.6 percent stake in Next Radio for Rs 171 crore. The media company stated the object of the acquisition is to derive synergy of FM operations of the company with Next Radio.

The stock traded 14 times its estimated earnings per share for the coming year, according to data compiled by Bloomberg.

Shares of ship building company extended gains for the fourth consecutive trading session and are poised for their longest winning streak in over two months. The stock rose as much as 4.1 percent to Rs 378.80.

Cochin Shipyard signed a contract with JSW arm for construction and delivery of four Mini Bulk Carriers. They will be delivered within December 2020.

Trading volume was more than 20 times its 20-day average, Bloomberg data showed.

Shares of the cash-strapped airline declined 4.3 percent to Rs 224 per share.

Lessors grounded six more Jet Airways’ aircraft due to non-payment, according to its notification to the exchanges. With this the total number of aircraft grounded increased to 25 and fleet size stands reduced to 99. The company said it is making all efforts to minimise disruption to its network.

The stock had declined 68 percent in the past 12 months compared to a 5.9 percent gain in the Sensex.

Indian equity benchmarks resumed declines after a one-day gain on Friday.

The S&P BSE Sensex fell as much as 0.38 percent to 35,926.44 and the NSE Nifty 50 fell as much as 0.43 percent to 10,817.85.

The market breadth was tilted in favour of sellers. About 890 stocks advanced and 469 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty IT Index’s 0.49 percent decline. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 0.56 percent.

The Indian rupee opened marginally lower at 70.95 against the U.S. dollar.

F&O Cues

• Nifty March futures closed trading at 10917, premium of 54 points.
• Max OI for March 28 series at 11,000 Call, OI at 18.8 lakh shares.
• Max OI for March 28 series at 10,700 Put, OI at 25.2 lakh shares.

Put-Call Ratio

• Nifty PCR at 1.69 versus 1.71.
• Bank Nifty PCR at 1.57 versus 1.39.

Credit Suisse on Bajaj Auto

• Downgraded to ‘Neutral’ from ‘Outperform’; cut price target to Rs 2,700 from Rs 2,950.
• Believe domestic business will face headwinds going forward.
• Bajaj is currently pushing inventory of Pulsar before ABS norms implementation.
• Domestic two wheeler volumes to be impacted by safety regulations.
• Trading at steep premium to peers despite upcoming risks.

Edelweiss on Metals

• High China inventory is a concern amidst slowdown.
• Domestic price in China is still at a premium to export price.
• Could see a spurt in exports from China if demand does not pick.
• Stay cautious on the space as elevated imports could mar domestic steel sector.

HSBC on SBI Life

• Maintained ‘Buy’ with a price target of Rs 770.
• Stake sale by BNP Paribas Cardif lessens overhang on stock.
• The lessening of this overhang is positive for the stock.
• Prefer SBI Life within the insurance space given its distribution advantage.

Jefferies on February Auto Sales

• Auto wholesales were weak across segments continuing the trend of last few months.
• M&M's growth likely due to XUV300 launch; Tractor sales a disappointment.
• LCV remained the relative outperformer amongst auto segments.

Jefferies on Consumer Sector

• Expect demand trends to be stable, led by rural in 2019-20.
• Expect companies to focus on top-line growth and find new growth drivers.
• Margins to make new highs given limited cost pressures, but watch out for rising competitive intensity.
• Valuations–overall still stretched but divergence increasing.

• Tech Mahindra ex-date for share buyback.

• Anup Engineering (No Shareholding Pattern Given): Enam AMC sold 54,800 shares at Rs 472.5 each.

SBI Life Insurance

• Ca Emerald Investments acquired 9 crore shares or 9 percent equity at Rs 515 each.
• BNP Paribas Cardif sold 9.23 crore shares at 9.23 percent at Rs 515.01 each.

Aavas Financiers

• Matthews International Funds acquired 4.05 lakh shares or 0.52 percent equity at Rs 1,070.1 each.
• Amundi Funds sold 4.47 lakh shares or 0.57 percent equity at Rs 1,070.1 each.

Spencer’s Retail (No Shareholding Pattern Given)

• Promoter Rainbow Investments acquired 10 lakh shares at Rs 143 each.
• HDFC Mutual Fund sold 14.51 lakh shares at Rs 144.32 each.

Hindustan Foods

• Westbridge AIF acquired 2.17 lakh shares or 1.61 percent equity at Rs 360 each.
• Jwalamukhi Investment Holdings acquired 13.4 lakh shares or 9.93 percent equity at Rs 360 each.
• Sixth Sense India Opportunities sold 15 lakh shares or 12.12 percent equity at Rs 360 each.

• Tata Motors clarified that there is no truth on the news of company looking to divest its stake in JLR and the company will not comment further on any market speculation.
• Cochin Shipyard signed a contract with JSW arm for construction and delivery of four Mini Bulk Carriers. They will be delivered within December 2020.
• SBI said that the frauds have amounted to Rs 7951.3 crores during the first nine months of financial year 2019, due to declaration of frauds in a few large value advances. All the accounts have become NPAs and most of the portfolio is already provided with 100 percent provision. All regulatory processes are being followed as stated by the bank in its press release.
• Coal India’s production up 6.5 percent at 58.05MT versus 54.48MT. Offtake up 3 percent at 51.45MT versus 49.94MT.
• Jindal Steel & Power clarified that the company has been the lowest bidder of rail supply order from RVLN but the tender is still under the process and the company stated that it will make appropriate disclosure of getting the receipt of award from RVNL.
• HT Media acquired 48.6 percent stake in Next Radio for Rs 171 crore. The media company stated the object of the acquisition is to derive synergy of FM operations of the company with Next Radio.
• HPCL appointed R Kesavan as the CFO with effect from March 1, to replace J Ramaswamy who has vacated the post due to retirement.
• Aster DM Healthcare increased stake in Malabar Institute of Medical Sciences by 2.54 percent to 73.22 percent for Rs 44.8 crore.
• Union Bank reduced MCLR by 10 basis points across various tenors with effect from March. Six-Month MCLR stands at 8.5 percent. Even the base rate stands at 9 percent now.
• India Court admired Vedanta plea to restart Copper plant. The next hearing on the plea is on March 27. (Bloomberg News).
• Hasmukh Adia named non-executive chairman of Bank of Barodafor a period of three years.
• Biocon named Dr. Christiane Hamacher as CEO of Biocon Biologics.
• Lessors grounded six more Jet Airways’ aircraft due to non-payment. With this the total number of aircraft grounded increased to 25 and fleet size stands reduced to 99. The company said it making so making all efforts to minimise disruption to its network.
• JSW Steel signed an advance payment and supply agreement with Duferco International Trading Holding of $700 million for five years. The deal provides JSW with long term funding to complement its plans for future growth secured by committed exports of steel products to DITH. For DITH the transaction assures a captive supply of various steel products from JSW.
• Hindustan Fluorocarbons to hold board meet on March 11 to consider approve the valuation report and sale of the 66 acres of surplus vacant land.
• The Indian Hume Pipe received three Letters of Intent related to different works worth Rs 187.06 crore from Vidarbha Irrigation Development Corporation, Nagpur.
• Mishra Dhatu Nigam won an order worth Rs 475 crore. The order book stands at Rs 1,800 crore.
• Phillips Carbon Black said in an investor investor presentation that it has plans to increase capacity by 2,38,000 MTPA by 2021. Total carbon black capacity would stand increased to 7,53,000 MTPA.
• Talwalkars Healthclubs various promoters pledged 13.86 percent of the total shareholding in relation to a personal loan availed.
• Reliance Infrastructure’s lenders sold 82.8 lakh shares (3.15 percent) of promoter from Feb 25 to March 1.
• Reliance Power’s lenders sold 5.6 crore shares (2 percent) of promoter from Feb 25 to March 1.
• Delta Corp to invest Rs 15.5 crore in Halaplay Technologies in two tranches for 15.52 percent stake. Separately its subsidiary will transfer its online fantasy gaming business to Halaplay for 4.03 percent stake. Deal expected to complete by May 1, 2019.
• Hindustan Oil Exploration Company won a contract to operate and develop an oil block in North East in consortium with Indian Oil Corporation Limited (IOC) under the Discovered Small Field Policy Bid Round II. HOEC’s stake in the block will be 10 percent and IOC will hold 90 percent.
• NLC India commissioned 200 MW of Solar PV Power Projects in Tamil Nadu.
• Spencer Retail’s promoter group company acquired 10 lakh equity shares (1.26 percent) on March 1 from open market.
• Som Distilleries allotted 12.88 lakh equity shares to promoters on preferential basis. Promoter holding stands increased to 24.06 percent from 20.1 percent.
• Kolte Patil Developers to invest Rs 70 crore in its subsidiary which is developing its township project, Life Republic in Pune.
• HFCL bagged order for Rs 527.44 crore from Jharkhand Communication Network Limited for implementing Bharat Net Phase-11 in the State of Jharkhand. The term of the project is five years - one year for implementation and 4 years for operation and maintenance.

Reliance Industries’ Investment Plans

• Company to invest Rs 22 crore in C-Square Info Solutions. It will further invest Rs 60 crore by March 2021. Post these investments, it will hold 82 percent stake.
• Company to invest Rs 106 crore in Grab A Grub Services. It will further invest Rs 40 crore by March 2021. Post these investments, it will hold 83 percent stake.

February Auto Sales

• Eicher Motors sales down 14 percent at 62,630 units. Exports up 49 percent at 2,564 units. Company said that during the period of strike at Oragadam facilty from February 13-22, total impact on production was approximately 3200 motorcycles. From Feb. 23, company has started normal manufacturing operations.
• TVS Motor sales up 3 percent at 2.99 lakh units. Exports up 14 percent at 66,570 units . Two wheelers sales up 2 percent at 2.8 lakh units. Three-wheeler sales up 41 percent at 13,742 units. Total exports up 14 percent at 66,570 units.
• Hero MotoCorp sales down 2 percent at 6.1 lakh units. The company said first two months on this quarter has lower tha expected pickup in demand.
• Tata Motors domestic sales down 3 percent at 57,221 units. Commercial Vehicles sales down 5 percent at 39,111 units. Passenger Vehicle sales up 2 percent at 18,110 units, due a good demand seen new generation vehicles. Exports down 39 percent at 2,930 units.
• VST Tillers Tractors: Power Tillers sales down 41 percent at 1,495 units. Tractor sales down 39 percent at 581 units.
• Force Motors sales down 13.4 percent to 2,563 units.

• China’s National People’s Congress opens in Beijing on Tuesday. Premier Li Keqiang will announce an economic growth target. The Chinese People’s Political Consultative Conference runs concurrently. Through March 15.
• Australia’s central bank sets policy on Tuesday, then Governor Philip Lowe will give a speech on the housing market Wednesday.
• Bank of Canada Governor Stephen Poloz is expected to keep rates on hold Wednesday due to lingering uncertainty on housing and investment, while sticking to his message that borrowing costs eventually need to head higher.
• European Central Bank policy makers are expected to leave rates unchanged amid a deteriorating outlook. President Mario Draghi will hold a news conference on Thursday after the decision.
• The U.S. jobs report Friday may show hiring moderated in February. Nonfarm payrolls may have increased by 185,000 while the jobless rate fell to 3.9 percent, according to estimates.

• Brent crude ended 0.92 percent higher at $65.67 per barrel.
• West Texas Intermediate crude fell 0.4 percent to $56.35 a barrel.
• Gold was little change at $1,286.22 an ounce.

London Metal Exchange

• Nickel ended higher for the second consecutive trading session, up 0.45 percent.
• Aluminium ended 2.2 percent lower.
• Copper ended lower for the second day, down 1.1 percent.
• Lead ended lower for the second consecutive trading session, down 1.4 percent.
• Zinc halted a four-day rally, ended 1.2 percent lower.
• Tin ended lower for the second day, down 0.79 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.17 percent to 10,829.50 as of 8 a.m.

Asian stocks tracked U.S. shares lower as investors looked for details of a possible trade deal between the U.S. and China.

Equities fell in Japan, Korea, Australia and Hong Kong after the S&P 500 Index declined the most in a month, though the benchmark did pare the worst of its losses late in the session. Chinese stocks fluctuated and the yuan drifted after the country lowered its goal for economic growth and announced a major tax cut.

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