Nifty Clocks Best One-Day Gain In Two Years On RBI Outlook

Indian equity benchmarks rebounded sharply from yesterday's drop led by banking and metal shares after RBI raised growth outlook for 2018-19 while keeping rates unchanged and maintaining a neutral stance.

The NSE Nifty 50 index rose 1.9 percent or 197 points, the most since May 26, 2016, to 10,325 and the S&P BSE Sensex surged 577.73 points or 1.75 percent to 33,596.80.

Today's rally also got a boost from global cues as concerns about a trade war between the world’s two largest economies eased after the U.S. and China signaled room for talks.

All sector gauges compiled by the National Stock Exchange ended higher led by the Nifty PSU Bank index's 5 percent surge. Metal stocks also logged in stellar gains and the Nifty Metal index climbed 4 percent.

• Tata Motors has 11 lakh shares change hands in a block. Stock up 1.8 percent at Rs 362.

Buyers and sellers were not immediately known

Source: Bloomberg

Gauge of banking shares on the National Stock Exchange — Nifty Bank index surged as much as 2.88 percent, the most in nearly six months, to 24,824 after the Reserve Bank of India kept policy rates unchanged and maintained its neutral stance.

• Indian equity benchmarks were headed for their highest close in three weeks after the Reserve Bank of India raised growth outlook while keeping policy rates unchanged and maintaining neutral stance.
• The S&P BSE Sensex rose 1.7 percent or 575 points to 33,598 and the NSE Nifty 50 index surged 1.8 percent or 188 points to 10,317.
• All sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's 4 percent surge. Banking stocks also logged in gains as the Nifty Bank and Nifty PSU Bank index rose 2.3 and 3.5 percent respectively.

• Mandatory loan component in working capital facilities.
• Not necessary to activate counter cyclical capital buffer at this point.
• All payments systems data will be stored only in India, companies required to ensure compliance within 6 months.
• RBI proposes to permit NRIs to invest in rupee interest rate swaps.
• With immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling virtual currencies.
• RBI proposes to permit interest rate swaptions in rupees so as to enable better timing flexibility for those seeking to hedge interest rate risk.

Gauge of banking shares on the National Stock Exchange — Nifty Bank index was trading near day's highest level after the Reserve Bank of India kept policy rates unchanged and maintained neutral stance.

• Yield on India’s 10-year bond dropped 7 basis points to 7.22 percent after the Reserve Bank of India kept policy rates unchanged and maintained its neutral stance.

• The Reserve Bank of India maintains repo rate at 6 percent
• RBI says monetary policy stance 'neutral'
• RBI sees inflation at 4.7-5.1 percent in first half of FY19
• One out of six members in MPC voted for raising rates by 25 basis points
• Long term growth potential to be reinforced by structural reforms undertaken
• High frequency indicators point to a further strengthening of demand conditions
• Private consumption seems to be improving on the back of strong growth in domestic air passenger traffic
• The growth in sales of two-wheelers and tractors reflects buoyant rural consumption
• GDP growth is projected to strengthen from 6.6 per cent in 2017-18 to 7.4 per cent in 2018-19

The monetary policy committee will meet today to set course for the new financial year. The economy is entering the new year on a steady note, with growth rebounding and inflation remaining moderate. As such, most economists expect the MPC to maintain the benchmark rate at 6 percent and also maintain a neutral stance, which allows it to move in either direction should economic indicators turn.

• Indian equity benchmarks continue to trade on a strong note going into current financial year's first Reserve Bank of India's Monetary Policy Review.
• The S&P BSE Sensex rose 1.4 percent or 472 points to 33,492 and the NSE Nifty 50 index gained 155 points or 1.55 percent to 10,285.
• All sector gauges on the BSE were trading higher led by the S&P BSE Metal index's 3.6 percent surge.

Shares of fertiliser companies were trading higher for second day in a row after private weather forecasting agency Skymet predicted normal monsoon rains.

• Deepak Fertilisers up 5 percent
• Balaji Amines up 2.4 percent
• Rashtriya Chemical Fertilisers up 1.7 percent
• Mangalore Chemical up 1.7 percent
• Gujarat State Fertilisers Company up 3 percent

Shares of the Mumbai-based garment maker fell as much as 22 percent from day's high to Rs 111 after a court in Rajasthan convicted actor Salman Khan in blackbuck poaching case.

Mandhana Retail Ventures makes Being Human clothing line which is backed by actor Salman Khan’s The Salman Khan Foundation.

Tata Motors 380 strike price call option was among the most active options contract on the National Stock Exchange. The premium on the contract surged 105 percent to Rs 7.90.

Over 12.9 lakh shares were added to open interest of 27.6 lakh shares.

Click here to see complete options chain

• Supreme Industries has over 13.19 lakh shares change hands in four blocks on the National Stock Exchange and BSE. Stock up 1.23 percent at Rs 1,205.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Delhi-based cable TV service provider rose as much as 3.95 percent to Rs 108 after it expanded its broadband internet services to 100 cities, Den Networks said in an exchange notification.

• Daiichi has objected to Fortis-Manipal deal in Delhi High Court
• Court has sought reply from Fortis on Daiichi plea against the deal
• Court to hear Daiichi plea against Fortis-Manipal deal on April 25
• Court also seeks Singh brothers’ affidavit detailing assets
• Shares of Fortis Healthcare were trading 3.5 percent higher at Rs 133.10.

Source: Bloomberg

• Indian equities held on to gains as benchmarks rebounded sharply from yesterday's drop as trade tensions between U.S. and China eased ahead of RBI’s monetary policy decision.
• The S&P BSE Sensex rose 1.3 percent or 429 points to 33,447 and the NSE Nifty 50 index surged 139 points to 10,267.
• All sector gauges compiled by BSE were trading higher led by the S&P BSE Metal index's 3.6 percent gain.
• The mid- and small-cap indices were in-line with their large-cap counterparts as the S&P BSE MidCap index rose 1.4 percent and the S&P BSE SmallCapp index advanced 1.55 percent.
• Gauge of volatility on the NSE — India VIX index fell 8 percent 15.03.

Top Nifty Gainers

• Hindalco up 5.4 percent
• Vedanta up 4.6 percent
• Tata Motors up 4.4 percent
• Tata Steel up 3.3 percent
• UPL up 3 percent

Top Nifty losers

• Bharti Infratel down 0.5 percent
• Cipla down 0.3 percent
• Bharti Airtel down 0.1 percent

Click here for more stock market data

Shares of the Delhi-based heavy electrical equipment maker rose as much as 2.5 percent to Rs 87.25 after it commissioned 330 MW Kishanganga Hydro-Electric Project (HEP) in Jammu & Kashmir.

The project is located on the river Kishanganga, a tributary of the river Jhelum, in Bandipora district of J&K.

Shares of the metal companies rebounded sharply from yesterday's decline as concerns about a trade war between the world’s two largest economies eased after the U.S. and China signaled room for talks.

A gauge of metal shares on BSE — the S&P BSE Metal index rose 3.3 percent led by strong gains in Hindal Steel, Hindalco and Vedanta.

Click here for more stock market data

Shares of the Goa-based networking products maker were locked in a 20 percent upper circuit at Rs 107.50 after it informed exchanges that its board will meet on April 7 to consider propsal to buyback its shares.

India's services activity stabilised in March after contracting in the previous month aided by improving business sentiment rose as firms raised their staffing levels at the fastest pace since June 2011.

The Nikkei India Services Purchasing Managers’ Index rose to 50.3 in March from 47.8 in February, according to a statement by research firm Markit. A reading above 50 indicates economic expansion, while a reading below it signals contraction.

Shares of the Pune-based light commercial vehicles maker rose as much as 5.8 percent, most in two weeks, to Rs 2,950.

Force Motors sold 4,364 units domestically, up 54 percent from the previous month and exported 154 units as compared with February’s 120 units.

Nifty 10,300 strike price call was the most active call option contract on the NSE. Premium on the contract surged 81 percent to Rs 145.75.

Open interest in the contract fell by over 1 lakh shares to 36 lakh shares.

On the other hand, the Nifty 10,200 put was the most active put options contract on the NSE. Premium fell 50 percent to Rs 90.60 and over 10 lakh shares were added to the open interest of 33.5 lakh shares.

Click here to see complete options chain

Shares of the Mumbai-based telecom service provider rose as much as 2.5 percent to Rs 653.80 after the Cabinet cleared transfer of administrative control of Hemisphere Properties India Ltd. from the telecom ministry to the housing and urban development ministry after equity infusion of Rs 700 crore and Rs 51 crore secured loan into the company.

As a special purpose vehicle, HPIL is managing the transfer of surplus land from Tata Communications, formerly VSNL, to the government. The decision brings about one-and-half decade old case in its final lap.

The transfer will be executed after infusion of equity amounting to Rs 700 crore, and Rs 51 crore secured loan from government into the company and implementation of scheme of arrangement for demerger of surplus land, it said.

Shares of the Mumbai-based drug maker rose as much as 5 percent to Rs 229.50 after Japanese drug regulator granted accreditation to its active pharmaceutical ingredient (API) plant at Patalganga until May 2023.

• Strong case for RBI to cut rates to support growth
• Expect inflation to jump back to 5-5.5 percent in June
• Growth remains weak and liquidity is tight
• Inflation impact of MSP hike to be marginal
• Markets to watch what RBI says on inflation peaking off
• Macro risks in bond markets are grossly overdone
• Expect GDP to grow at 7.5 percent in FY19

Shares of private and government-owned lenders were trading higher after the Reserve Bank of India provided relief to lenders by allowing them to reduce provisioning on NCLT accounts for March quarter ahead of the monetary policy decision.

Gauge of banking shares on the NSE — Nifty Bank index rose 1.2 percent with all the shares trading higher.

Banks are required to provide for only 40 percent on secure loans, as compared with 50 percent earlier and the breather will be available to banks only for March quarter.

• Ashok Leyland has 13 lakh shares change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

• Reasonably sure of some talks between U.S. and China
• Imposition of tariff on not concerning to economic growth
• Global growth would take a hit in case of escalation of tariffs
• Believe dollar is still over valued
• Weaker dollar to benefit emerging markets
• FII's have been taking money out of India for some time now
• Indian market was driven higher last year backed by domestic flows

Indian equity benchmarks opened higher ahead of the Reserve Bank of India policy decision later in the day.

The S&P BSE Sensex Index rose as much as 1.2 percent to 33,417.31, while the NSE Nifty 50 Index rose as much as 1.3 percent to 10,257.45.

The market breadth was firmly tilted in favour of buyers. All the 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Metal Index's 2.3 percent gain.

Indian bonds are likely to trade steady after posting gains for a second straight day on Wednesday. The focus is on the RBI's monetary policy meeting today. The MPC is widely expected to keep rates unchanged, but traders will focus on the central bank's outlook on inflation.

Inflation has been ticking lower, but the RBI expects it to inch up in coming months amid rising fuel and vegetable prices. Traders will also watch out for whether the central bank allows foreigners to up their investments in government bonds, a move which is likely to fuel a further rally in the market.

The benchmark 10-year bond yield fell four basis points to 7.29 percent on Tuesday, and it fell 29 basis points since March 27 when the government announced a smaller and than expected borrowing program.

Meanwhile, the rupee is expected to open at 65 per dollar having closed higher at 65.14 on Wednesday.

• Nifty April futures closed trading at 10,146.6 with a premium of 18 points from 40 points.
• April series: Nifty open interest up 13 percent, Bank Nifty open interest up 16 percent.
• India VIX ended at 16.3, up 7.6 percent.
• Max open interest for April series at 10,500 call strike (open interest at 38.8 lakh, up 17 percent).
• Max open interest for April series at 10,000 Put (open interest at 44.2 lakh).

F&O Ban

No stocks in ban.

Put-Call Ratio

• Nifty PCR at 1.33 from 1.42.
• Nifty Bank PCR at 0.99 from 1.43.

HDFC Securities on Symphony

• Initiated ‘Buy’ with a price target of Rs 2,150.
• Branded air coolers offer a huge opportunity.
• Power availability to drive penetration.
• Strong summers to support air coolers demand.
• Expect revenue, operating income and net profit to compound at 22 percent, 28 percent and 29 percent respectively over the fiscal 2018-2020.
• High RoCE, market leadership and multi-year growth visibility warrants high valuations.

Goldman Sachs on Aster DM

• Initiated ‘Buy’ with a price target of Rs 213.
• Aster to now enter a phase to sweat assets, improve cash flows and leverage.
• Solid demand across GCC and India to drive utilisations.
• Expect utilisations to improve to 65 percent over the next three years.
• Expect 17 percent compounded growth rate in revenue over the next three years
• Expect 500 basis points margin expansion over the fiscal 2017-2020.
• Valuations attractive; Stock trading at discount to Indian/GCC peers.

CLSA on Oil India

• Maintained ‘Underperform’; cut price target to Rs 230 from Rs 250.
• Oil India is the best performing stock since budget.
• A clear shifting opportunity.
• Oil India to lose more than ONGC if subsidy burden returns.
• Subsidy burden scenarios suggest 36-50 percent downside from current levels.
• ONGC to see bigger gains if subsidy exemption continues.
• ONGC is much better placed.

• Aditya Birla Money circuit filter revised to 10 percent.
• Marathon Nextgen ex-date for 2:1 stock split.
• Adani Enterprises ex-date for demerger. Shareholders to get 761 shares of Re 10 each of Adani Green Energy Ltd for every 1,000 shares of Re 1 of Adani Enterprise.
• Strides Shasun last trading day before demerger. All F&O contracts will expire today.
• Sequent Scientific Ltd. last trading day before demerger.

• Sunil Hitech Engineers: Reliance Financial sold 38.87 lakh shares or 0.8 percent equity at Rs 7.65 each.

Mishra Dhatu Nigam

• Canara Bank sold 9.69 lakh shares at Rs 89 each.
• Union Bank of India sold 10 lakh shares at Rs 90.03 each.

• Cabinet approved demerger and transfer of surplus land from Tata Communications to Hemisphere Properties.
• ICICI Bank clarified that it did not give individual loans to any of five companies.
• Adani Enterprises unit bagged order worth Rs 1,140 crore from NHAI in Chhattisgarh.
• BHEL commissioned 330MW Kishangana HEP in Jammu and Kashmir.
• Indoco’s API plant at Patalganga received Japanese accreditation, valid till May 2023.
• Natco Pharma launched first generic version of oral tablets for multiple sclerosis in India.
• HFCL foray into defence manufacturing.
• BEPL completed expansion of ABS capacity from 80 KTPA to 100 KTPA at its Abu Road unit.
• Force Motors March domestic sales at 4,364 units; exports at 154 units.
• Smartlink Network Systems to consider share buyback on April 7.
• Jet Airways signed up additional 75 Boeing 737 Max aircraft taking the total order to 150.
• Kansai Nerolac to acquire Marpol Pvt for Rs 36 crore.
• IFGL refractories says foreign promoter has requested for classification of its entire 15.51 percent stake to public category.

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• Maharashtra eases plastic ban on bottles but with recycling rider
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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1.6 percent at 10,299 as of 7:55 a.m.

Stocks in Asia followed U.S. equities higher as investors reassessed the danger of a trade-damaging spiral of tariff increases in the world’s top two economies.

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

• It’s policy day! Find out what to look for in the MPC’s first meet of the new fiscal here.
• U.S. employment data are due Friday; the jobless rate probably fell in March after holding at 4.1 percent for five straight months.