Sensex, Nifty Post Longest Stretch Of Weekly Gains In Over Six Months

Indian equity benchmarks registered their best week since November, after posting their longest stretch of weekly gains in over six months.

The S&P BSE Sensex ended 3.7 percent higher this week to close at 38,024 and the NSE Nifty 50 ended at 11,426.85, up 3.5 percent. Both the benchmarks ended the week at a fresh 2019 high.

On Friday, both the 31-share index and the 50-stock gauge closed at 0.71 percent and 0.74 percent respectively.

The market breadth, however, was tilted in favour of sellers. About 1,004 stocks declined and 734 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty IT Index’s 1.88 percent rally. On the flipside, the NSE Nifty FMCG Index was the top sectoral loser, down 1.69 percent.

Shares of Reliance Industries erased gains and fell as much as 2.3 percent to Rs 1,311.

• TTK Prestige: Stock fell as much as 7 percent to Rs 8,481.05.
• Dilip Buildcon: Stock rose as much as 10 percent to Rs 664.
• IDFC: Stock rose as much as 7.9 percent to Rs 45.25.

Adani Transmission

• Stock rose as much as 16.8 percent to Rs 241.30.
• Trading volume was more than five times its 20-day average.

CRISIL

• Stock fell as much as 2.1 percent to Rs 1,434.90.
• Trading volume was almost 30 times its 20-day average.

Sharda Cropchem

• Stock fell as much as 2.8 percent to Rs 369.
• Trading volume was more than 10 times its 20-day average.

Gillette India

• Stock rose as much as 2.2 percent to Rs 6,649.50.
• Trading volume was more than seven times its 20-day average.

Shares of Sterlite Technologies fell as much as 11.3 percent, the most in over a month, to Rs 229.

Trading volume was more than six times its 20-day average, according to Bloomberg data. The stock has declined 31 percent in the past 12 months compared to a 13 percent gain in the Sensex.

European equities traded higher and are poised for the biggest weekly gain in a month, as all eyes remain on the trade talks.

Shares of Tube Investments rose as much as 13.4 percent, the most in nearly a year, to hit an all-time high.

Trading volume was 8.8 times its 20-day average, Bloomberg data showed. The Relative Strength Index was at 78, indicating that the stock may be overbought. The stock returned 11 percent in the past five days and rose 26 percent in the past 30 days.

Shares of Kotak Mahindra Bank rose as much as 5 percent to Rs 1,332.70.

The stock was the best performer on Sensex and Nifty and is headed for its best two-day rally in nearly four months. Trading volume was nearly 2 times its 30-day average, according to Bloomberg data. The Relative Strength Index was at 71, indicating that the stock may be overbought.

• Indian equity benchmarks traded at day’s high.
• The S&P BSE Sensex rose as much as 0.73 percent to 38,029.76 and the NSE Nifty 50 rose as much as 0.76 percent to 11,429.60.
• About 911 stocks advanced and 764 shares declined on National Stock Exchange.

Shares of RBL Bank rose as much as 2.4 percent to Rs 651.90.

Brokerage and research firm Citi hiked price target to Rs 670 from Rs 585, implying a potential upside of 5.2 percent from the last regular trade.

Here’s what Citi had to say about RBL Bank:

• Maintained ‘Neutral’.
• Well placed to scale-up but low visibility of ROA expansion.
• RBL Bank is well placed for expansion in its CASA franchise.
• Healthy growth in saving deposits aided by a high rate offered and low base.

Shares of A2Z Infra Engineering rose as much as 4.9 percent to Rs 17.95.

“The infrastructure company had availed financial assistance as term loan from ICICI Bank and the lender has assigned all the rights, title and interests in the financial assistance granted by it to the Company, in favour of Edelweiss Asset Reconstruction Company Limited (the "Lender”), acting in its capacity as trustee of EARC Trust SC 217 vide Assignment Agreement executed in favour of EARC on June 29, 2016,” it said in a statement on the exchanges.

The company was in discussion with Edelweiss for One Time Settlement (OTS) and sent its proposal to Edelweiss. Edelweiss has accepted the Company's proposal vide its acceptance letter dated March 14, 2019,” the statement added.

Nifty’s 11,400 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract rose 50.7 percent to Rs 76.85. Over 1.23 lakh shares were added to the open interest which stood at over 9.83 lakh shares.

Shares of Titan rose as much as 2.5 percent to hit an all-time high at Rs 1,113.80. The Relative Strength Index was above 70, indicating that the stock may be overbought, according to Bloomberg data.

Shares of Hindustan Unilever fell as much as 1.9 percent to Rs 1,704.

The FMCG company expects volume growth in the fourth quarter to drop below 10 percent for the first time in one-and-half years. (Read the full story here)

Following the company’s disclosure at a recent call with analysts, brokerages, including Bank of America Merrill Lynch and Deutsche Bank, expect volume growth—which has averaged around 11 percent in the last five quarters—to range between 6 percent and 7.5 percent.

The stock traded at 60 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of 3i Infotech rose as much as 10 percent to Rs 3.85.

Private equity firm Samara Capital is in talks to acquire 3i Infotech in a transaction pegged at an enterprise value of $140-150 million, Times of India reported quoting two sources familiar with the development.

Trading volume was more than 12 times its 20-day average, Bloomberg data showed. The stock declined 23 percent in the past 12 months compared to an 13 percent advance in the Sensex.

Shares of ICICI Bank rose as much as 1.8 percent to hit an all-time high at Rs 394.85.

About 14.4 lakh shares of the lender changed hands in a block deal, Bloomberg data showed. Buyer and sellers were not known immediately.

The stock was the top gainer on Sensex and Nifty. The Relative Strength Index was above 70, indicating that the stock may be overbought.

Shares of Coal India fell as much as 2.1 percent to Rs 238.

The coal miner declared a dividend of Rs 5.85 per share, with record date set at March 25. This dividend will be second interim dividend for financial year 2019, according to its stock exchange notification. The date of payment of this interim dividend is on or after March 29, the statement said.

Trading volume was 5.5 times its 30-day average, Bloomberg data showed. The stock is testing its 100-day moving average resistance at Rs 241.46.

Indian equity benchmarks open higher, following gains in Asian peers. The benchmark indices are set for their longest stretch of weekly gains in over six months.

The S&P BSE Sensex rose as much as 37,962.66 and the NSE Nifty 50 rose as much as 0.55 percent to reclaim 11,400 level for the first time in nearly six months.

The market breadth was tilted in favour of buyers, about 933 stocks advanced and 500 shares declined on National Stock Exchange.

Eight out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Private Bank Index’s 0.98 percent gains. On the flipside, the NSE Nifty Media Index ws the top sectoral loser, down 0.37 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.13 percent to 69.26 against the greenback.

F&O Cues

• Nifty March futures closed trading at 11,382, premium of 38 points.
• Max open interest for March 28 series at 11,500 Call, (open interest at 26.5 lakh share).
• Max open interest for March 28 series at 11,000 Put, (open interest at 39.9 lakh shares)

Stocks In F&O Ban

In Ban

• IDBI Bank
• Jet Airways
• Reliance infrastructure
• Reliance Power
• BEML

New in Ban

• Adani Enterprises

Put-Call Ratio

• Nifty PCR at 1.68 versus 1.81.
• Bank Nifty PCR at 1.26 versus 1.6.

HSBC on India

• Overweight on India; Sensex index target for year-end 2019 is 40,300.
• See strongest earnings growth in India across region.
• Buy Stocks: Avenue Supermarts, Asian Paints, Bajaj Finance, HDFC Bank, GAIL.
• Buy Stocks: Divi's Laboratories, Axis Bank, Jubilant Foodworks, Bajaj Auto.
• Buy Stocks: Kajaria Ceramics, Indusind Bank, ITC, Hindalco, Prestige Estates.
• Buy Stocks: Godrej Properties, HPCL.

BofAML on Aurobido Pharma.

• Maintained ‘Buy’; cut price target to Rs 895 from Rs 900.
• Injectables portfolio launches to gain steam.
• Facility diversification, product pipeline to help.
• Five plants in injectables, facility diversification adequate.

Credit Suisse on Bajaj Auto

• Maintained ‘Neutral’ with a price target of Rs 2,700.
• One of the few Indian auto stocks to now trade at a premium to five year avg PE.
• Volumes could decline 5 percent in H1FY20 on ABS cost and normalising channel inventory.
• Bajaj Holdings has been increasing its stake in Bajaj Auto.
• More perplexing fact is Bajaj Auto spending Rs 78,000 crore in buying BHIL stock.

Nomura on BHEL

• Downgraded to ‘Reduce’ from ‘Neutral’; cut price target to Rs 63 from Rs 86.
• Longer-term baseload thermal power demand recovery unlikely to be strong.
• Recently secured orders’ restrictive cash flows could impact working capital.
• Thermal power demand related uptick post FY22 may not be large.

Citi on RBL Bank

• Maintained ‘Neutral’; hiked price target to Rs 670 from Rs 585.
• Well placed to scale-up but low visibility of ROA expansion.
• RBL Bank is well placed for expansion in its CASA franchise.
• Healthy growth in saving deposits aided by a high rate offered and low base.

CLSA on TTK Prestige

• Downgraded to ‘Sell’ from ‘Buy’; maintained price target at Rs 9,000.
• Valuations now adequately factor in growth triggers going ahead.
• See limited scope for further earnings surprise going ahead.
• Large capacities coming on stream focused on relatively lower-margin exports.

Investec on L&T Infotech and Mindtree

• Acquisition would appear compelling when one looks at the potential benefits.
• Likely earnings dilutive by 13 percent for L&T Infotech in year one.
• Such big acquisition increases the risk profile of the deal.
• Deal is ambitious and would require flawless execution.
• Any deal of this nature will be negative for L&T Infotech in medium term and positive for Mindtree.

HDFC Securities on Gujarat State Petronet

• Initiated ‘Buy’ with a price target of Rs 207.
• Volume boost expected from upcoming LNG terminals.
• Investments in CGD to pay-off strongly.
• Likely to remain in sweet spot; Rising FCF to reduce its net debt position.

Antique on ONGC

• Maintained ‘Buy’ with a price target of Rs 205.
• Poised to end the year with perhaps a 'never seen before' profitability.
• Crude oil and natural gas production expected to look up.
• Attractive valuations, strong dividend yield key trigger.

• CESC Ventures to move into short term ASM Framework.
• LAKHP Finance price band revised to 5 percent.

• Max Financial Services promoter group Max Ventures Investment Holding creates pledge of 24.1 lakh shares on March 8.
• GTPL Hathway promoter Kanksinh Bhurubha Rana creates a pledge of 5.62 lakh shares.

(As reported on March 14)

Jubilant Foodworks

• Kotak Mahindra MF acquired 8 lakh shares or 0.6 percent equity at Rs 1,312.4 each.
• ICICI Pru AMC acquired 8.2 lakh shares or 0.6 percent equity at Rs 1,312.4 each.
• Promoter Jubilant Consumer sold 39.6 lakh shares or 3 percent equity at Rs 1,312.4 each.

Laurus Labs

• Amansa Holdings acquired 33 lakh shares or 3.1 percent equity at Rs 351 each.
• FIL Capital Management (Mauritius) sold 61.2 lakh shares or 5.7 percent equity at Rs 351.2 each.

ICRA

• Reliance MF acquired 2.3 lakh shares or 2.4 percent equity at Rs 2,877 each.
• Smallcap World Fund sold 2.3 lakh shares or 2.4 percent equity at Rs 2,877 each.
• ISGEC Heavy Engineering
• Canara Robeco Mutual Fund acquired 52,500 shares or 0.7 percent equity at Rs 5,499.8 each.

• Coal India declared a dividend of Rs 5.85 per share, with record date set at March 25. This dividend will be 2nd interim dividend for financial year 2019. Date of Payment of this Interim Dividend is on or after March 29.
• Vedanta’s Zambia unit halted copper-shaft operations after the contractor failed to secure funds to pay workers. The contractor has failed in its efforts to secure funding from banks, as reported newspaper News Digger. (Bloomberg News).
• The SEBI ordered Religare Finvest Ltd. and Religare Enterprises Ltd. to recall loans worth over Rs 2,300 crore that were diverted to promoters Shivinder Mohan Singh, Malvinder Mohan Singh and 21 other entities after finding preliminary evidence of fund diversion.
• Reliance Industries sought to raise 150 million euros via debt instruments. (Bloomberg News)
• Delhi High Court stayed an order of National Anti-Profiteering Authority against Jubilant Foodworks and penalty proceeding, subject to deposit of Rs 20 crores on Central Consumer Fund.
• Hindustan Unilever: Sanjiv Mehta named president of Unilever South Asia with effect from May 1. He will continue to be CMD of HUL.
• The Reserve Bank of India categorized IDBI Bank as private sector bank with effect from Jan. 21, consequently upon LIC acquiring 51 percent of the total equity capital of the bank.
• Tech Mahindra’s arm acquired 100 percent stake in Japan’s K-Vision for $1.5 million. The target is engaged in providing network services for mobile communication carriers in Japan.
• Tide Water Oil declared a dividend of Rs 85 per share with March 25 as the record date.
• CMI said that it received vendor approval for power cables from four government entities for the third quarter of this financial year and expects the manufacturing capacity of its Himachal Pradesh plant to improve in 2019.
• Adani Transmission board said it will consider raising capital via NCDs on March 20.
• NCLT approved merger of Explosoft Tech Solutions with Axiscades Engineering.
• India Investment Trust, sponsored by Canadian investor Brookfield, will buy Mukesh Ambani’s privately owned East West Pipeline Ltd. for Rs 13,000 crore. RIL will have to offtake at least 22 MMSCMD of gas from this pipeline. If it fails to do so, then RIL will be liable to pay the differential amount to Pipeline Infrastructure. The amount payable by RIL will be the difference between Rs 500 crore per quarter and the actual revenue earned by Pipeline Infrastructure.

ICRA Revised The Rating Outlook Of Six PSU Banks

• IDBI Bank- From ‘Developing Implications’ to ‘Negative Outlook’ driven by the pressure on asset quality and credit provisioning.
• Bank of India- From ‘Negative’ to ‘Stable’ due expectations of profitable operations, reduced asset quality pressures and improving solvency levels in financial year 2020.
• Punjab National Bank- From ‘Negative’ to ‘Stable’ due to improvement in reduced asset quality pressure and a capital infusion of Rs 14,156 crore by the GOI.
• Oriental Bank of Commerce, Bank of Maharashtra- From ‘Negative’ to ‘Stable’
• Punjab and Sindh Bank- From ‘Stable’ to ‘Negative’ due to sizeable capital requirement, weak solvency levels and sustained losses expected in financial year 2020.

• China’s 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 conclude their discussions on monetary policy.

• Brent Crude traded a little changed at $67.21 per barrel.
• West Texas Intermediate crude slid 0.1 percent to $58.56 a barrel.
• Gold steadied at $1,295.99 an ounce after slumping 1 percent.

London Metal Exchange

• Nickel halted a two-day rally, ended 2.4 percent lower.
• Aluminium halted a two-day rally, ended 0.1 percent lower.
• Lead ended 0.73 percent lower after rallying for two days.
• Tin ended 0.09 percent higher.
• Copper halted a three-day rally, ended 1.1 percent lower.
• Zinc halted a three-day rally, ended 0.7 percent lower.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, flucutated between gains adn losses to trade 0.1 percent higher at 11,398 as of 8:20 a.m.

Asian stocks were mostly higher Friday, building on this week’s gains despite concerns over a delayed U.S.-China trade deal.

Equities in Japan and Korea rose, were little changed in Australia and futures pointed to small declines when Hong Kong opens.

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