Sensex, Nifty End Lower As Weak Global Cues Weigh

Indian equity benchmarks declined as investors wait for more clarity on Donald Trump's proposed tariff imposition on Chinese imports and its impact on the world economy.

The S&P BSE Sensex Index closed 0.4 percent lower at 33,001.78. while NSE Nifty 50 Index closed at 10.108.10, down 0.5 percent.

The market breadth was tilted in favour of sellers. Ten out of 11 sectoral gauges compiled by NSE fell, led by NSE Nifty PSU Bank Index's 2.2 percent decline. On the flipside, NSE Nifty Metal Index was the only sectoral gainer after raising marginally by 0.04 percent.

National Aluminium

• Stock rose as much as 8.3 percent.
• Trading volume was 2.7 times its 20-day average.

JM Financials

• Stock fell as much as 5.4 percent to Rs 118.75.
• Trading volume was 1.6 times its 20-day average.

Garnet International

• Stock fell as much as 5 percent to Rs 274.10.
• Trading volume was 6.3 times its 20-day average.

HOEC

• Stock rose as much as 8.7 perrcent to Rs 118.80.
• Trading volume was 4.3 times its 20-day average.

Responsive Industries

• Stock rose as much as 11.3 percent to Rs 41.90.
• Trading volume was 1.7 times its 20-day average.

Indian equity benchmarks erased gains and declined, after shares of automakers and banks weighed on the indices.

The S&P BSE Sensex Index fell as much as 0.5 percent to 32,984.69, while the NSE Nifty 50 Index fell as much as 0.5 percent to 10,107.25.

Ten out of 11 sectoral gauges compiled by NSE fell, led by NSE Nifty PSU Bank Index's 1.5 percent decline. On the flipside, NSE Nifty Metal Index was the only sectoral gainer, up 0.3 percent.

Binani Cement insolvency case hearing is underway at the Kolkata National Company Law Tribunal. At least 13 petitions have been filed by different stakeholders. The arguments started at 11:00 a.m., and here are the latest updates:

Binani Industries To NCLT

• Directors not allowed to attend meetings.
• Resolution professional misused insurance fund.

Resolution Professional To NCLT

• Binani did not send any representative for meetings.
• UltraTech did not submit revised plan on March 8, only sent an email.

NCLT’S Observations

• Complaints against resolution professional to be addressed by Insolvency and Bankruptcy Board of India.
• Have limited power for approval & rejection.

India may allow more time for the restructuring plans of defaulting companies to be approved, Bloomberg reported citing people with knowledge of the matter. The move comes as a slew of lawsuits from owners, lenders and bidders slows the insolvency process and tests a new bankruptcy law.

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Shares of the Bengaluru-based communications equipment manufacturer rose as much as 6.8 percent to Rs 124.9.

The Cabinet cleared selling of 18 crore equity shares of ITI Ltd through a follow-on public offer (FPO), which will help the telecom PSU meet the minimum 25 percent public shareholding norm.

The FPO would help ITI Ltd raise working capital for new projects, reduce its debt obligations and meet Sebi's requirement of minimum 25 percent public shareholding, the company said. The government currently holds 92.59 percent stake in ITI.

The stock rose for the third consecutive session although it has given negative returns of 11.9 percent so far this year as compared to Sensex’s returns of 2.3 percent.

Shares of the Pune-based application software developer rose as much as 2.7 percent to Rs 947.

Zensar Technologies Ltd. will acquire U.S.-based insurance-tech company Cynosure for $33 million, to expand its foothold in the fast-growing property and casualty insurance space. A combination of internal accrual and debt will be used to finance the entire deal, the midcap I.T. firm said in an exchange filing.

The stock has been rising for three consecutive trading sessions. Trading volume was 6.2 times the 20-day average.

• IDFC: About 14 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.

Source: Bloomberg

While luck plays a big part in stock market investments, knowledge, courage and patience are the cornerstones. investor-trader Vijay Kedia, in fact, likes it when stocks don’t move too quickly after he has made the first purchase. “I usually buy a stock that I know will not gain for the next six months.”

Kedia has crunched all that into what he called the SMILE approach to investing. (Click here to read more).

Indian equity benchmarks erased gains clocked during today's trade. The S&P BSE Sensex Index fell as much as 0.1 percent to 33,281.77, while the NSE Nifty 50 Index fell as much as 0.1 percent to Rs 10,207.85.

The market breadth was firmly tilted in favour of sellers. About 1,221 stocks declined, and 439 shares advanced on NSE.

Key highlights from the conversation:

• Expect the cost of funds to increase by 20-30 basis points in the current quarter.
• Company looking to pass the incremental cost to customers.
• Expect to maintain Net Interest Margins around 6-7 percent.
• Promoters not looking to exit the business.
• Expect long runway for all three businesses- NBFC, Wealth and Capital Markets.
• Demerger to enhance cross-selling opportunities.
• NBFC contributed 50 percent of the net profit during April-December period, while Wealth and Capital Markets added 30 percent and 20 percent respectively.

The Indian market is yet to price in what could be a ‘political storm’ in the run-up to the general elections next year as the opposition seeks to regain lost ground.

That’s the word from Japanese financial major Nomura which expects a “grand coalition" of opposition parties to take on the might of the ruling Bharatiya Janata Party. (click here to read more).

Shares of the construction company extended decline for the fifth straight trading session, its longest losing streak in a month. The stock fell as much as 15.5 percent, the most since November 2016, to hit a 20-month low at Rs 24.35.

The company’s unit, Lavasa Corporation is considering to approach National Company Law Tribunal, or NCLT, due to challenges faced in raising money for projects, DNA reported.

Trading volume was 21.5 times, its 30-day average. The Relative Strength Index was 18, indicating that the stock may be oversold.

Shares of the biopharmaceutical company extended gains for the second day and rose as much as 3.3 percent to Rs 175.30.

The company secured product patents in Norway, South Korea and Singapore, used for the treatment of disorders associated with Neurodegenerative diseases.

Suven Life trades at 25.4 times trailing 12-month earnings per share and 21 times its estimates for the coming year. The stock declined 14 percent so far this year and advanced 6.6 percent in the past 52 weeks.

Shares of the highway construction company rose as much as 2.1 percent to Rs 995. The company won an order from National Highways Authority of India for an EPC project worth Rs. 677.07 crore, according to its stock exchange notification.

The stock rose 183.3 percent in the last 12 months, compared to 15.4 percent advance in Sensex.

Indian equity benchmarks extended gains for the third trading session after a volatile open.

The S&P BSE Sensex index rose as much as 0.4 percent to 33,281.77, while the NSE NIfty 50 Index rose as much as 0.5 percent to 10,207.50.

The market breadth, however, was tilted in favour of buyers. About 888 stocks declined, and 714 shares advanced on NSE.

The Indian rupee halted five-day losing streak in today’s trade. It rose nine paise against the U.S. dollar to 65.12 in early trade at the interbank forex market today amid weakness in the greenback after the U.S. Fed raised benchmark lending rate by 25 basis points.

The central bank’s Chairman Jerome Powell forecast a steeper path of rate hikes in 2019 and 2020, citing improving economic outlook.

Forex dealers said persistent inflows of foreign funds and weakness in the dollar against other currencies overseas supported the domestic unit.

(From PTI)

Key highlights from the conversation:

• Focusing on maintaining or improving current margins.
• Capacity utilisation will go up to 90 percent in the the financial year-ending 2019.
• Changed strategy to quarterly contracting, will protect margins going forward.
• Contracts for FY18-19 are underway but not doing yearly contracts now.
• Graphite prices are still on the higher side and are able to realise as of now.

Shares of the Anil Agarwal-led company snapped six-day losing streak after Bank of America Merrill Lynch (BofAML) initiated coverage with a 'Buy' rating, according to Bloomberg report.

Shares of Vedanta is expected to reach Rs 380 in the next 12 months, according to BofAML. The price target implies a potential upside of 32 percent from the last regular trade.

The stock is 27 percent below the Bloomberg consensus one-year price target. It has declined 5.9 percent so far this year, compared to the gain of 27 percent in the last 12 months.

The country’s largest oil refiner is planning to invest as much as $3.5 billion in the year beginning April 1, or about a fifth more than the previous year, to expand and upgrade its refineries and boost its marketing network, Bloomberg reported, quoting people familiar with the matter.

• PC Jeweller: About 13 lakh shares changed hands in a block.
• Essar Shipping: About 10 lakh shares changed hands in a block.

Buyers and sellers were not known immediately

Source: Bloomberg

Shares of the country’s largest drugmaker rose as much as 3.3 percent, the most in a month, to Rs 521.

The pharmaceutical company received a green signal from the U.S. drug regulator ILUMYA, used to treat moderate-to-severe plaque psoriasis, according to its stock exchange notification.

Trading volume was 2.6 times its 20-day average. The stock declined 10 percent so far this year.

Indian equity benchmarks fluctuated in early trade, as Reliance Industries and ONGC gained while ICICI Bank and SBI declined.

The S&P BSE Sensex Index opened 0.2 percent higher at 32,206.99, while the NSE Nifty 50 Index opened at 10,167.50, up 0.1 percent.

The market breadth was tilted in favour of buyers. Six out of 11 sectoral gauges compiled by NSE Ltd. advanced, led by NSE Nifty Pharma Index's 0.9 percent gain. On the flipside, NIfty PSU Bank Index was the top sectoral loser, down 0.5 percent.

The Indian rupee may gain tracking advances in its Asian peers after the Federal Reserve refrained from accelerating its tightening schedule for this year.

The Fed raised the benchmark lending rate by 25 basis points and stuck to its outlook of three rate hikes this year. Implied opening from forwards suggests spot may start trading around 65.13 today.

Sovereign bonds are also seen extending Wednesday’s gains as underwriters pitch for more shorter-dated bond issuances in meeting with government.

Bonds with shorter tenor will boost demand and lower mark-to-market losses, a government official said Wednesday after the finance ministry met primary dealers to discuss borrowing plans for the new fiscal year.

• Nifty March futures closed trading at 10,180 premium of 24.9 points from 18.9 points.
• March series: Nifty open interest down 1 percent, Bank Nifty open interest down 4 percent.
• India VIX ended at 15.1, down 3.2 percent.
• Max open interest for March series at 10,500 call strike (open interest at 61 lakh, down 4 percent).
• Max open interest for March series at 10,000 Put (open interest at 57.5 lakh, down 13 percent.

F&O Ban

• In ban: HDIL, IDBI Bank, IFCI, Jindal Steel, JP Associates, Reliance Communications, SAIL.
• Out of ban: Dewan Housing.
• Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.06 from 1.05.
• Nifty Bank PCR at 1.01 from 0.92.

• ICICI Securities IPO opens at Rs 519-520 per share.
• Mishra Dhatu Nigam IPO continues on day 2. The issue is subscribed 0.26 times.
• Sandhar Technologies IPO subscribed 6.14 times on last day.

IDFC Securities on Sun Pharma

• Maintained ‘Outperform’ with a price target of Rs 587.
• Sun received final FDA approval for Tildrakizumab, brand name ILUMYA.
• Approval marks a major milestone in Sun Pharma’s specialty foray.
• Ilumya to be commercialised over the next couple of quarters.
• Ilumya to face tough competition from companies like Novartis, Lilly and J&J.
• Expect revenues of $25 million and $125 million in the next two fiscals respectively.
• Expect peak revenue of $500 million by fifth or sixth year of launch.

Macquarie on Jubilant Foodworks

• Maintained ‘Outperform’ with a price target of Rs 2,581.
• Extended ‘Everyday Value’ offer to range of regular-sized pizzas.
• Everyday Value offer to impact gross margin; Operating margin to remain unaffected.
• Increasing comparative affordability to drive SSG.
• Store expansion to see uptick going forward.
• Jubilant Foodworks remains top pick in consumer discretionary space.

Deutsche Bank on IndusInd Bank

• Maintained ‘Buy’; raised price target to Rs 2,050 from Rs 1,950.
• Base business doing well; Bharat Financial to enhance growth/profitability.
• Business to be more diversified and profitable now.
• Return ratios to improve post-merger; return on assets at 2.2 percent and return on equity at 20 percent
• Benefits on fee income front to aid profitability.
• Expecting steady net interest margins on current business.
• MFI acquisition to enhance net interest margins by 50 basis points.
• No current concerns about asset quality.
• MFI business seems to be in a sweet spot.

Elara Capital on Tata Metaliks

• Initiated ‘Accumulate’ with a price target of Rs 838.
• Superior management and prudent capital allocation turnaround the company.
• PCI plant to aid cost reduction; Profitability to improve with cost-savings measures.
• Expect revenue, operating margins and net profit to compound at 11.5 percent, 18 percent and 24 percent respectively over the fiscal 2017-2020.
• Operating margin to expand to 20 percent by March 2020, led by higher operating leverage and cost efficiency.
• Expect moderate volume growth owing to capacity constraints.
• Expect DI pipes volumes and Pig Iron volumes to compound at 6.4 percent and 15 percent respectively over the fiscal 2017-2020.
• Likely to announce organic or inorganic capex.
• Maintain stable dividend policy; Dividend per share of Rs 3 over through the financial years till March 2020.
• Given significant improvement in profitability, assign a higher multiple.

• La Opala RG ex date for 1:1 bonus.
• DCM Shriram Financial Services shifted to T group.
• Alembic Ltd ex date to determine buyback eligibility.

• GHCL: Hypnos Fund bought 14.33 lakh shares or 1.5 percent equity at Rs 285.7 each.
• Electrosteel Steels: Sciil Steel Cast Iron Investments Cyprus Ltd. sold 1.7 crore shares or 0.7 percent equity at Rs 2.3 each.
• Sequent Scientific: Agnus Capital LLP sold 39.67 lakh shares or 1.6 percent equity at Rs 81.9 each.

• Fed raises rates, steepens path of hikes as outlook strengthens.
• Dalmia Bharat affidavit says UltraTech - Binani agreement is illegal.
• SEBI plans amending norms for companies undergoing insolvency proceedings.
• Rajya Sabha polls: Amit Shah, Akhilesh Yadav make every MLA ‘count’.
• All you need to know about this week’s Rajya Sabha polls.
• A guide to last-minute tax saving.
• Facebook sued over data disclosure to Cambridge Analytica.

• Sun Pharma gets U.S. FDA approval for ILUMYA.
• Dilip Buildcon declared lowest bidder for a new EPC Project worth Rs 870 crore in Uttar Pradesh.
• NMDC commissions coke oven battery at its upcoming Nagarnar steel plant.
• Coal India allotted 11 mines that will increase annual output to 225 million tonnes.
• Axis Bank issued guarantee on behalf of Bharti Airtel. The lender has a non-funded exposure of Rs 9,220 crore to telecom companies.
• Zensar Technologies acquires Cynosure India for Rs 13 crore and Cynosure U.S. for $31 million.
• Essar Steel lenders to reopen bidding after rejecting bids from Arcelormittal and VTB Capital.
• Oil India enters into an agreement with Assam for Methanol, Formaldehyde project.
• Omax Auto board approves partial closure of its Manesar plant.
• GE Power received order worth Rs 230 crore from NTPC.
• Jindal Drilling wins arbitration award of $9.1 million.
• IDFC looks to exit asset management business in Rs 4,000 crore deal (Times of India).

• West Texas Intermediate crude rose 0.2 percent to $65.30 a barrel.
• Brent traded higher at $69.7 per barrel; up 0.3 percent.
• Gold fell less than 0.05 percent to $1,331.87 an ounce.
• LME copper jumped 0.7 percent to $6,840.50 per metric ton.
• Sugar traded higher at 12.7 cents per pound; up 0.9 percent.

Shanghai Exchange

• Steel trades lower; down 0.6 percent.
• Aluminium trades lower for third day; down 0.2 percent.
• Zinc snaps two-day losing streak; up 1.4 percent.
• Copper snaps four-day losing streak; up 0.4 percent.
• Rubber trades lower for fifth day; down 0.2 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 10,209 as of 8:10 a.m.

The dollar extended losses and Asian stocks gained as traders assessed the implications of higher borrowing costs in the U.S. and China alongside global trade tensions, with President Donald Trump set to announce tariffs against Asia’s largest economy on Thursday.

Here are some key events on the schedule for the remainder of this week:

• The Bank of England is expected to keep interest rates and its asset-purchase program unchanged on Thursday. Attention will be on language and the odds for a May hike, now seen as increasingly likely.
• Philippines monetary policy decision is due Thursday.
• Euro area flash PMIs come Thursday as well as Germany’s IFO gauge of business confidence.