Sensex Clocks Best Four-Day Rally In Over A Month; Nifty Ends Flat

Indian equity benchmark S&P BSE Sensex ended higher for the fourth consecutive trading session, its longest gaining streak since Feb. 6.

The 31-share index closed 0.24 percent higher at 36,725.42 and the NSE Nifty 50 ended a little changed at 11,058.20.

The market breadth, however, was tilted in favour of sellers. About 889 stocks fell and 853 shares advanced on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Media Index’s 1.85 percent fall. On the Flipside, the NSE Nifty PSU Bank Index was the top sectoral gainer, up 1.4 percent.

Welspun India

• Stock rose as much as 6.7 percent to Rs 60.40.
• Trading volume was more than double its 20-day average.

TCI Express

• Stock rose as much as 8.9 percent to Rs 749.
• Trading volume was more than quadruple its 20-day average.

Endurance Technologies

• Stock rose as much as 5.5 percent to Rs 1,209.
• Trading volume was more than 20 times its 20-day average.

Gujarat Gas

• Stock rose as much as 6.8 percent to Rs 132.
• Trading volume was more than 11 times its 20-day average.

Shares of Suzlon Energy halted a five-day rally and fell as much as 13.3 percent to Rs 6.85.

Trading in the company’s call options totaled 1,154 contracts, compared with the average of 408 over the past 20 days, Bloomberg data showed. Trading in the company’s put options totaled 487 contracts, compared with an average of 124 over the same period.

Shares of Axis Bank rose as much as 2.4 percent to hit a new all-time high.

The stock traded at 41 times its estimated earnings per share for the coming year, Bloomberg data showed.

Nifty’s 11,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 75.86 percent to Rs 2.10. Over 21 lakh shares were added to the open interest which stood at over 38 lakh shares.

Shares of Oil & Natural Gas Corporation fell as much as 1.9 percent to Rs 151.80.

About 44.5 lakh shares of the company changed hands in three block deals, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the carmaker rose as much as 2.1 percent to Rs 192.75 per share.

The company signed an agreement with Wise Travel to supply Tigor Electric Vehicles, according to Bloomberg.

The consensus one-year target of analysts tracked by Bloomberg was Rs 210.75, indicating a potential return of 10 percent.

Shares of Avanti Feeds extended gains for the fifth consecutive trading session and rose as much as 8.4 percent to Rs 416.90.

Trading volume was almost 10 times its 20-day average, Bloomberg data showed. The stock traded at 18 times estimated earnings per share for the coming year.

Shares of the telecom equipment manufacturer gained for the fourth straight day and rose as much as 3 percent to Rs 24.50. The stock has returned over 10 percent in the past four sessions.

The company bagged orders worth Rs 117 crore for the supply of optical fibre cables from Tata Project Ltd. under Bharat Net Phase-II project in Chhattisgarh, according to its exchange filing. The order will be executed over 24 months.

The stock has declined 16 percent in the past 12 months compared with a 10 percent increase in BSE Sensex.

About 20.4 lakh shares of Ambuja Cements changed hands in a single block, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of JSW Energy rose as much as 5.7 percent, the most since Jan. 30, to Rs 72.40.

Trading volume was almost quadruple its 20-day average, Bloomberg data showed. The stock returned 2.3 percent so far this year and fell 9.8 percent in the past 12 months.

Shares of the pharmaceutical company fell as much as 3 percent to Rs 607.05.

The drugmaker received six observations under form 483 by the U.S. drug regulator for its Bengaluru facility, according to its stock exchange filing.

Form 483 is used by the FDA to document and communicate concerns discovered during plant inspections.

Trading volume was almost 15 times its 20-day average, Bloomberg data showed. The stock traded at 49 times its estimated earnings per share for the coming year.

Shares of the oil marketing companies gained after the brokerage and research firm UBS hiked price target.

Here’s what UBS had to say:

• IOCL: Maintained ‘Buy’; hiked price target to Rs 185 from Rs 170.
• BPCL: Maintained ‘Buy’; hiked price target to Rs 415 from Rs 380.
• HPCL: Maintained ‘Buy’; hiked price target to Rs 315 from Rs 290.
• Near all-time high marketing margin should lead to re-rating.
• Higher marketing margins to help offset lower refining margins.

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

The S&P BSE Sensex rose as much as 0.31 percent to 36,749.30 and the NSE Nifty 50 rose as much as 0.23 percent to 11,077.95.

The market breadth was tilted in favour of buyers. About 891 stocks advanced and 561 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Metal Index’s 1.02 percent decline. On the flipside, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.39 percent.

JPMorgan on Crompton Consumer

• Maintained ‘Neutral’ with a price target of Rs 240.
• Lighting segment: moderation in price erosion to aid value growth.
• Fans segment: premiumisation and market share gain led growth strategy in place.
• Pumps segment: economy and agri foray gaining traction.

CLSA on Zee Entertainment

• Maintained ‘Buy’ with a price target of Rs 670.
• Management change unlikely post stake sale.
• Strategic stake sale poses limited risks.
• Stake sale to allay risk of promoter pledges.

UBS on Oil Marketing Companies

• IOCL: Maintained ‘Buy’; hiked price target to Rs 185 from Rs 170.
• BPCL: Maintained ‘Buy’; hiked price target to Rs 415 from Rs 380.
• HPCL: Maintained ‘Buy’; hiked price target to Rs 315 from Rs 290.
• Near all-time high marketing margin should lead to re-rating.
• Higher marketing margins to help offset lower refining margins.

Morgan Stanley on IDFC First Bank

• Maintained ‘Underweight’; cut price target to Rs 30 from Rs 35.
• Mgmt. guided RoE of 13-15 percent is 5-6 years away.
• Valuation is expensive and leaves no margin for error; risk reward is poor.
• Cut price target owing large dilution due to merger.

Antique on NBFCs

• CanFin Homes: Initiated ‘Buy’ with a price target of Rs 373.
• LIC Housing: Downgraded to ‘Sell’ from ‘Hold’; maintained price target at Rs 440.
• PNB Housing: Maintained ‘Hold’; cut price target to Rs 966 from Rs 1,340
• Repco Home: Maintained ‘Hold’; cut price target to Rs 487 from Rs 375
• HDFC: Maintained ‘Hold’ with price target of Rs 2,159.
• LIC and PNB: Believe that it may have to either raise capital in 2019 or slowdown its growth rate.
• CanFin Homes: One of the few HFCs which will be able to deliver RoEs in excess of 18 percent.

F&O Cues

• Nifty March Futures closed trading at 11087, premium of 34 points.
• Max open interest for March 28 series at 11,500 call. (open interest at 20.8 lakh shares.)
• Max open interest for March 28 series at 11,000 put. (open interest at 29.2 lakh shares)

Stocks In F&O Ban

• Reliance Power
• Wockhardt
• IDBI Bank (new)

Put-Call Ratio

• Nifty PCR at 1.8 versus 1.76.
• Bank Nifty PCR at 1.53 versus 1.87 .

• Sunteck Realty Limited: BNP Paribas Arbitrage bought 41.26 lakh shares or 2.8 percent equity at Rs 370 each.
• Relaxo Footwears: AFIS a/c American funds insurance series growth income fund bought 8.67 lakh shares or 0.7 percent equity at Rs 715 each.
• Dewan Housing Fin Corp: India Infoline Investment Services Pvt Ltd sold 35.76 lakh shares or 1.1 percent equity at Rs 150.44 each.

Eveready Industries India

• India Opportunities Growth Fund Ltd-Pinewood Strategy bought 7 lakh shares or 1 percent equity at Rs 200 each.
• OHM Enterprises bought 6 lakh shares or 0.8 percent equity at Rs 200 each.
• OHM Juniper Longterm Fund Ltd bought 5 lakh shares or 0.7 percent equity at Rs 200 each.
• DSP Mutual Fund A/C DSP Small Cap Fund sold 21.7 lakh shares or 3 percent equity at Rs 200 each.

Lux Industries Limited

• Abakkus Growth Fund – 1 bought 3 lakh shares or 1.2 percent equity at Rs 1,228.04 each.
• Monet Securities Private Ltd sold 2.46 lakh shares or 1 percent equity at Rs 1,230.08 each.

• Apollo Tricoat Tubes started production at Karnataka manufacturing facility having installed capacity of 75,000 MTPA.
• Tata Motors signed an accord with Wise travels to supply Tigor EVs (Source: Bloomberg News)
• HDFC said it will pay Rs 3.5 per share as interim dividend and has set March 18 as record date.
• HUDCO said it will set up MTN program to raise foreign currency loan.
• Endurance Technologies OFS: Non-retail quota subscribed 4.61 times
• NELCO secured in-flight and maritime connectivity licence from Department of Telecommunications.
• Salora International Board said it will consider de-listing shares from the NSE on March 9.
• NCLT approved scheme of amalgamation of Shriram Automotive Products Ltd with Shriram Pistons and Rings Ltd.
• LT Foods to invest Rs 20 crore via preference shares in subsidiary Daawat Food Ltd to strengthen the balance sheet of DFL and improve its current ratio. Daawat Foods Limited serves as manufacturing arm of LT Foods Limited.
• Asahi Songwon Colors resumed operation at CPC Crude Blue Plant after planned shutdown for maintenance.
• Raymond Ltd. terminated development management agreement with subsidiary Colorplus Realty Ltd.
• Cyient selected by U.K. Power Networks to develop an outage planning portal. (Press release does not disclose order size or details)
• Oriental Bank Of Commerce said that the Reserve Bank of India levied a penalty of Rs 2 crore delayed implementation of SWIFT related operational controls.
• HFCL bagged orders of Rs 117 crore for supply of optical fibre cables from Tata Project Ltd. under Bharat Net Phase-II project in the state of Chhattisgarh. The order will be executed over a period of 24 months.
• Biocon received six observations under form 483 for its Bengaluru facility.
• Varroc Lighting Systems opened a new research and development centre In Poland.
• Asian Granito raised Rs 90 crore by way of issue of convertible warrants to promoter and non-promoter group entities.
• Vedanta declared second interim dividend of Rs 1.85 per share. The record date for the purpose of payment of dividend is March 14. The total payout is Rs 685 crore.

Tata Power crossed the seven-lakh consumer base milestone in Mumbai. The company said it is expanding into new business to meet the changing needs of customers such as:

1. Residential solar rooftop services: It has launched the services in Mumbai and many other key cities such as Delhi, Bangalore, Cochin, Ajmer, Bhubaneshwar, Hyderabad and Ahmedabad.
2. EV infrastructure: The Company has made Mumbai EV ready by setting up 15 charging stations and also set up charging stations in Delhi & Hyderabad.
3. Solar micro grids and home automation.

• ECB 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 traded 0.11 percent lower at $65.92 per barrel.
• WTI crude fell 0.2 percent to $56.12 a barrel.
• Gold rose 0.1 percent to $1,287.78 an ounce.

London Metal Exchange

• Nickel ended 0.48 percent lower after rallying for three consecutive trading sessions.
• Aluminium ended lower for the third day, down 0.43 percent.
• Tin ended 0.77 percent lower.
• Zinc ended higher for the second day, down 0.29 percent.
• Copper ended 0.15 percent lower.
• Lead ended lower for the fourth day, down 0.1 percent.

Good Morning!

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 11,094 as of 8:15 a.m.

Asian stocks were mixed Thursday as global growth concerns resurfaced and U.S. equities fell back.

Shares in Japan and Hong Kong dropped, fluctuated in Shanghai and posted modest gains in Australia.

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