Sensex, Nifty End Higher For Third Day

Indian equity benchmarks ended higher for the third consecutive trading session, closing at a fresh 2019 high.

The S&P BSE Sensex ended 0.58 percent or 216 points higher at 37,752.17 and the NSE Nifty 50 ended at 11,341.70, up 0.36 percent.

The market breadth, however, was tilted in favour of sellers. About 1,132 stocks fell and 609 shares ended higher on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 2 percent decline. On the flipside, the NSE Nifty PSU Bank Index was the top sectoral gainer, up 1.6 percent.

The ban of is likely to Boeing 737 Max impact over 15,000 passengers initially over the next few days, CARE Ratings said. “Only one Indian operator has an operational fleet of 12 Boeing 737 Max aircraft. The airline would have to accordingly reschedule, accommodate or cancel tickets depending upon availability,” The research firm said.

“The ban is likely to lead to an increase in airfares across major domestic destinations till there are further developments related to the ban.”

Just Dial

• Stock rose as much as 14.8 percent to Rs 637.95.
• Trading volume was almost seven times its 20-day average.

Arvind Fashions

• Stock rose as much as 5 percent to Rs 718.20.
• Trading volume was more than 60 times its 20-day average.

Bombay Dyeing

• Stock rose as much as 6 percent to Rs 137.20.
• Trading volume was more than quadruple its 20-day average.

IndusInd Bank

• Stock rose as much as 4.5 percent to Rs 1,640.
• Trading volume was more than quadruple its 20-day average.

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

European equities opened little changed with retail shares pacing the declines as Adidas AG to Inditex SA spooked investors.

Shares of Bajaj Finserv fluctuated between gains and losses to trade a little changed at Rs 6,856.

The company said that Rahul Bajaj as resigned as Chairman, according to its statement on the exchanges. Bajaj has been appointed as chairman of Emeritus.

“In view of resignation, the Board of Directors of the Company has appointed Nanoo Pamnani, as an Independent Non-Executive Chairman of the Company, in place of Rahul Bajaj, with effect from May 17,” the statement said.

• Infibeam Avenues: About 22 lakh shares changed hands in a single block.
• Indiabulls Real Estate: Abut 16 lakh shares changed hands in a block deal on BSE.

Buyers and sellers were not known immediately.

Source: Bloomberg

Nifty’s 11,300 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 11.3 percent to Rs 36.10. Over 8.48 lakh shares were added to the open interest which stood at over 20.39 lakh shares.

Shares of HDFC Bank extended gains for the fifth consecutive trading session, its longest gaining streak in over a month. The stock surged to a record.

The Relative Strength Index was at 71, indicating that the stock may be overbought.The

Shares of Reliance Industries extended gains for the third consecutive trading session to hit an all-time high.

Trading volume was 1.8 times its 30-day average, Bloomberg data showed. The Relative Strength Index was at 72, indicating that the stock may be overbought.

• ONGC: About 38.2 lakh shares changed hands in a block deal.
• South Indian Bank: About 20 lakh shares changed hands in two block deals on BSE.

Buyers and sellers were not known immediately.

Source: Bloomberg

Shares of Axis Bank extended gains for the third consecutive trading session and rose as much as 1.1 percent to hit an all-time high.

The lender named Rakesh Makhija as non-executive chairman of the bank for a period of three years with effect from July 18. He will replace Dr. Sanjiv Mishra as his tenure expires. Rakesh Makhija is existing chairman of SKF India and director of two TATA group companies and an arm of Axis Bank.

The stock had returned 20.7 percent so far this year and advanced 40.8 percent in the past 12 months.

Shares of Bajaj Consumer Care fell as much as 12.1 percent, the most since November 2016, to Rs 307.80.

On Tuesday, the company’s promoter Bajaj Resources sold 1.01 crore shares or 6.85 percent equity at Rs 316.42 each. Bajaj Resources were holding 66.76 percent stake in the company as on December 2018, according to the data available on BSE.

Besides, ICICI Prudential Mutual Fund acquired 9 lakh shares or 0.61 percent equity at Rs 314.8 each.

Trading volume was more than 1,370 times its 20-day average, Bloomberg data showed. The Relative Strength Index was below 30, indicating that the stock may be overbought.

Shares of Kotak Mahindra Bank halted a three-day rally and fell as much as 1.8 percent to Rs 1,272.

The Mumbai-based lender sought the court’s interim protection on founder stake issue. The bank’s lawyer Harish Salve stated that the bank can give an undertaking that founders won’t vote in excess of 20 percent until May 2020. The hearing has been deferred till April by the Bombay High Court.

The stock traded at 33 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of IndusInd Bank rose as much as 1.1 percent to Rs 1,585.90.

About 10 lakh shares of the lender changed hands in a block deal on NSE, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was nearly 5 times its 20-day average, according to Bloomberg data. The stock declined 9 percent in the past 12 months compared to an 11 percent advance in the Sensex.

Shares of Jet Airways and SpiceJet decline after Directorate General of Civil Aviation grounded the Boeing 737 Max aircraft with immediate effect, after the deadly Ethiopian Airlines plane crash.

Besides, Jet Airways said that four more aircraft had been grounded due to non-payment to lessors.

SpiceJet, with 12 operational Max aircraft in its fleet, has to ground the Max fleet. Jet airways has already grounded five such Max aircraft. IndiGo and JetAirways have already estimated to have cancelled more than 100 daily flights. This could add 70-80 more cancellations, SBICAP Securities’ Aviation Analyst Santosh Hiredesai

“According to the current ongoing winter schedule, the number of daily departures in the domestic market estimated at around 3,200. The cancellations should further drive tightness in the market taking up fares/pulling down growth rates,” Hiredesai said in a note to his clients.

Hiredesai also noted that if the issue prolong for SpiceJet, it could result in loss of profits in the impending peak season for the industry.

Indian equity benchmarks fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex traded a little changed at 37,577 and the NSE Nifty 50 Index hovered around 11,300.

The market breadth was tilted in favour of buyers. About 811 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 percent decline. On the flipside, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.34 percent.

The Indian rupee strengthened for the third consecutive trading session against the U.S. dollar. The home currency appreciated as much as 0.07 percent to 69.65 against the greenback.

F&O Cues

• Nifty March futures closed trading at 11,337, premium of 37 points.
• Max open interest for March 28 series at 11,400 Call, open interest at 22.6 lakh shares.
• Max open interest for March 28 series at 11,000 Put, open interest at 39.3 lakh shares.

Stocks In F&O Ban

• IDBI Bank
• Jet Airways
• Reliance Infrastructure
• Reliance Power

Put-Call Ratio

• Nifty PCR at 1.81 versus 1.73.
• Bank Nifty PCR at 1.54 versus 1.29.

Credit Suisse on Pidilite

• Maintained ‘Neutral’; hiked price target to Rs 1,125 from Rs 950.
• Strong outlook for 2019-20 as margin pressures are behind.
• Gross margins should see a significant improvement starting March quarter
• Price hikes and lower input cost to aid margins.

HSBC on Ramco Cement

• Initiated ‘Reduce’ with a price target of Rs 540.
• Pricing power is elusive, along with the rest of the industry.
• Will struggle to raise prices much above cost inflation to improve returns.
• Capex programme to raise grinding capacity does not improve backward integration.

CLSA on DLF

• Upgraded to ‘Buy’ from ‘Sell’; hiked price target to Rs 229 from Rs 167.
• Leasing business to deliver double-digit growth with stable balance sheet.
• Development business has achieved stability.
• Higher price target reflects higher value to land-bank and lower capital rates.

CLSA on Nestle

• Maintained ‘Outperform’; hiked price target to Rs 11,750 from Rs 11,500.
• Annual report shows advertisement spends at a 15-year high.
• Multi-year high return ratios; double-digit growth in FCF.
• Commentary suggests that virtuous cycle of growth has begun at Nestle.

Citi on Kotak Mahindra Bank

• Maintained ‘Neutral’ with a price target of Rs 1,340.
• Promoters willing to cut stake by May 2020.
• RBI concerned about its authority being undermined.
• Believe that potential options for dilution are raise capital, stake sale or acquisition.

Citi on Maruti Suzuki

• Maintained ‘Buy’; hiked price target to Rs 8,300 from Rs 7,600.
• Increase valuation multiple as we believe that earnings downgrades could trough over 2019-20.
• Falling fuel prices and interest rates also bolster confidence.
• Expect slight volume pick up post elections and into the festive season.

HSBC on Tata Motors

• Maintained ‘Hold’; hiked price target to Rs 190 from Rs 170.
• See limited downside to FY20/21 JLR volume estimates now.
• Margins remain highly contingent on cost-cutting and Brexit.
• Valuing JLR at a premium to peers such as BMW.

HSBC on CG Power

• Maintained ‘Hold’ with a rice target of Rs 34.
• CG Power made a series of announcements oriented towards generating greater investor confidence.
• Step in right direction, but it leaves some ambiguity and there is still a lot to be done.
• Investors still looking for clarity on sale of Hungary operations.

Citi on Dilip Buildcon

• Maintained ‘Buy’; hiked price target to Rs 761 from Rs 725.
• Guidance for 2019-20: Margins in 17-18 percent band; sales at Rs 11500 crore.
• Mgmt. expects significant order wins in the second half of the next financial year.
• Expects improvement in balance sheet with net debt to equity guidance of 0.7-0.8 times in 2019-20.

• Matrimony.com price band revised to 10 percent.
• Sadhana Nitro Chem price band revised to 2 percent.

Stocks Short-listed In ASM Framework

• IL&FS Transportation Networks
• SPL Industries
• Shankara Building Products
• Siti Networks
• Excel Realty N Infra
• Reliance Communications
• Mahamaya Steel Industries
• Cantabil Retail
• Kwality

Stocks Short-Listed In Short-term ASM Framework

• Zee Media Corporation
• J.Kumar Infraprojects

Bajaj Consumer Care

• Promoter Bajaj Resources sold 1.01 crore shares or 6.85 percent equity at Rs 316.42 each.
• ICICI Pru MF acquired 9 lakh shares or 0.61 percent equity at Rs 314.8 each.

Nandan Denim

• Polus Global Fund sold 6 lakh shares or 1.25 percent equity at Rs 54.75 each.
• Anil Dhanuka acquired 6 lakh shares or 1.25 percent equity at Rs 54.75 each.

Pledge Share Details

• JSW Steel Promoter Groups release pledge of 1.5 crore shares from March 7-8.

(As reported on March 12)

• Kotak Mahindra Bank sought the court’s interim protection on founder stake issue. The bank’s lawyer Harish Salve stated that the bank can give an undertaking that founders won’t vote in excess of 20 percent until May 2020. The hearing has been deferred till April by the Bombay High Court.
• Axis Bank named Rakesh Makhija as non-executive chairman of the bank for a period of three years with effect from July 18. He will replace Dr. Sanjiv Mishra as his tenure expires. Rakesh Makhija is existing chairman of SKF India and director of two TATA group companies and an arm of Axis Bank.
• HDFC Life Insurance OFS to non-retail investors received 2.6 times demand on the first day. Bids were received at indicative price of Rs 365.2 per share. Offer for retail investors opens on March 13. Standard Life will go for the over-subscription option for the OFS, where it will additionally sell 2.95 crore shares or 1.46 percent of equity of HDFC Life Insurance.
• Alkem Labs: USFDA approved a new generic of Diovan (valsartan) by Alkem Labs to help relieve the recent shortage of this medicine. Shortages were the result of multiple recalls of generic valsartan products, as certain lots contained nitrosamine impurities.
• Biocon received FDA Form 483 with two observations. First observation stated procedures designed to prevent microbiological contamination is not being followed. Second observation stated that written records of investigations into unexplained discrepancies don’t have adequate conclusion. (Bloomberg News)
• Raymond clarified that termination of development management agreement with Corpus Realty for its realty project is because the company itself wants to undertake the development due to operational efficiencies. The project is expected to progress as per schedule.
• Bharti Airtel clarified that the board’s approval for 32 percent stake sale in Bharti Infratel to its arm Nettle was already informed to the exchanges and intimations where given to the exchanges.
• NMDC board declared an interim dividend of Rs 5.52 per share. Record date set at March 25.
• TVS Motors increased its stake to 10.29 percent in its credit services arm for Rs 30 crore.
• Radico Khaitan clarified that the company has a number of operational plants at Rampur and has sent representations, taken steps as per the pollution control board. The company stated that impact on closure of the plant can be made upon the response from the pollution control board on response from the company.
• Reliance Communications: India appeal court deferred the company’s plea to release tax refund money to March 13. The company needs the tax refund money to honor Supreme Court’s order for payment to Ericsson and it has no other means to pay, lawyer Kapil Sibal told the Court.
• CMI executed its maiden export order from Mauritius for the supply of underground power cables.
• V-Mart opened three new stores in Himachal Pradesh, Jharkhand and UP, taking the total store count to 207.
• Jet Airways said that four more aircraft had been grounded due to non-payment to lessors.

Media Reports

• L&T prepares for hostile takeover of Mindtree (Mint)

• Chinese retail sales and industrial production data are scheduled for release this week. The National People’s Congress is set to wrap up on Friday.
• Bank of Japan Governor Haruhiko Kuroda will speak on Friday, after he and his board meet to decide on monetary policy.

• Brent crude traded 0.37 percent higher at $66.92 per barrel.
• Gold held at $1,302.09 an ounce.
• West Texas Intermediate crude gained 0.5 percent to $57.17 a barrel.

London Metal Exchange

• Aluminium ended 1.4 percent higher.
• Nickel halted a four-day decline, ended 1.6 percent higher.
• Lead halted a two-day fall, ended 0.48 percent higher.
• Tin ended a two-day decline, up 1.3 percent.
• Zinc ended higher for the second day, up 3.6 percent.
• Copper ended higher for the second day, up 1 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 11,323 as of 7:15 a.m.

Stocks in Asia dropped Wednesday as the positive sentiment at the start of the week faded for lack of fresh data alleviating global growth concerns.

Shares posted modest losses across the region and U.S. futures slipped.

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