Closing Bell
Indian equity benchmarks advanced with the benchmarks trimming its biggest monthly loss in 15 months led by private sector lenders and car makers.
The S&P BSE Sensex rose 304 points or 0.89 percent to 34,335.75 and the NSE Nifty 50 Index climbed 0.87 percent or 92 points to 10,583.
Sixteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Realty Index's 3.3 percent gain. On the other hand, the S&P BSE IT Index was the sectoral loser, down 1.1 percent.
Gains were broad-based as the S&P BSE MidCap Index advanced 0.7 percent and the S&P BSE SmallCap Index rose 0.9 percent.
Countdown
Reliance Infrastructure Gains On Winning Arbitration Award
Shares of the Anil Ambani-led company rose as much as 3.8 percent to Rs 472.20 after it won arbitration award against the Goa government.
Reliance Infra will get Rs 292 crore from the Goa government by April 2018. The company's claim was against prolonged non-payment by the Goa government towards supply of electricity from its 48-megawatt Goa power plant.
BQ Exclusive: HDFC To Raise Rs 1,900 Crore; Shares Rise
India's largest mortgage lender Housing Development Finance Corporation Ltd. is set to sell shares to institutional investors to raise about Rs 1,900 crore as part of its Rs 13,000-crore plan to mop up funds to invest in its banking and other subsidiaries.
The housing finance company will launch a qualified institutional placement this week, two people privy to the proposed transaction told BloombergQuint on condition of anonymity. The demand and initial feedback from large marquee investors is quite strong, one of them said.
Shares of HDFC were trading 1 percent higher at Rs 1,844.
Reliance Communications Surges After Block Deal
- Shares of the Anil Ambani-led company rose as much as 8.5 percent to Rs 29.90 after 20 lakh shares changed hands in a block deal.
Buyers and sellers were not immediately known
Source: Bloomberg
Europe Stocks Kick Off Week With Gains As Miners, Oil Shares Up
European stocks start the week with a broad advance across the board, with miners and energy shares leading gains.
Market Check
- Indian equity benchmarks extended gains led by private sector lenders, car makers and energy shares.
- The S&P BSE Sensex rose 0.9 percent or 313 points to 34,455 and the NSE Nifty 50 Index gained 0.87 percent or 92 points to 10,583.
- Seventeen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Realty Index's 2 percent gain. On the other hand, the S&P BSE IT index was the top sectoral loser, down 0.7 percent.
- Gains were broad-based as the S&P BSE MidCap Index rose 0.8 percent and the S&P BSE SmallCap Index advanced 0.9 percent.
Block Deal Alert
- Motherson Sumi has 23 lakh shares change hands in a block deal.
Buyers and sellers were not immediately known
Source: Bloomberg
Power Lunch
#Ask BQ
Pidilite Industries Announces Share Buyback Plan Of Worth Rs 500 Crore
Shares of the adhesive maker were trading 0.7 percent higher at Rs 903 after the board of directors announced share buyback offer of 50 lakh equity shares at Rs 1,000 each amounting to Rs 500 crore.
Sakuma Exports Gains On Submitting EoI To Acquire Ruchi Soya
Shares of the Mumbai-based agricultural commodities importer and exporter rose as much as 2.59 percent to Rs 205.30 after it submitted expression of interest to acquire debt ridden Ruchi Soya Industries.
Hot Money
Strides Shasun Gain On New Drug Launch
Shares of the Bangalore-based drug maker rose as much as 2.8 percent to Rs 712.50 after the company launched Rantidine OTC tablets, it said in a press release.
Ranitidine tablet is the generic form of the popular brand Zantac and is used to treat peptic ulcers of stomach and intestines.
The drug has market of $200 million in U.S. according to IRI data and will be manufactured from its 50:50 joint venture facility with Vivimed Labs in Chennai.
TVS Motor Gains Ahead Of Fund Houses Meeting With Management
Shares of the Chennai-based two-wheeler maker rose as much as 1.7 percent to Rs 678.20 ahead of its meeting of its board members with fund managers on March 2.
Trend Spotting
Venky's India At Record High As Trading Volumes Rise
Shares of the Pune-based poultry products maker rose as much as 5.5 percent to record high of Rs 3,385 on the back of heavy volumes after company reported December quarter earnings.
As many as 37,000 shares changed hands on the BSE compared with an average of 17,000 shares traded daily in the past two weeks.
Key earnings highlights:
- Revenue up 12.7 percent at Rs 696 crore versus Rs 617.4 crore
- EBITDA up 46 percent at Rs 123 crore versus Rs 84.3 crore
- EBITDA margin at 17.7 percent vs 13.7 percent
- Net profit up 66.4 percent at Rs 69.4 crore vs Rs 41.7 crore
Market Check
- Indian equity benchmarks extended gains led by HDFC Bank, HDFC, Larsen & Toubro and Reliance Industries.
- The S&P BSE Sensex rose 249 points or 0.7 percent to 34,391 and the NSE Nifty 50 Index gained 0.67 percent or 71 points to 10,562.
- The gains were broad-based as the S&P BSE MidCap Index gained 0.6 percent and the S&P BSE SmallCap Index climbed 0.7 percent.
- Sixteen out of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Realty Index's 2 percent gain. On the other hand, the S&P BSE IT Index was the top sectoral loser, down 0.7 percent.
- The overall market breadth was positive as 1,564 shares were advancing while 703 were declining.
Sterlite Technologies Gains On Rs 3,500 Crore Order Win
Shares of the Pune-based optical fibre communications equipment maker rose as much as 10.22 percent to Rs 378.75 after it secured Rs 3,500 crore advance purchase order to design, build and manage Indian Navy’s communications network.
Aster DM Healthcare Makes Weak Debut
Shares of Aster DM Healthcare got listed at Rs 182, at a discount of 4.2 percent, against its issue price of Rs 190.
The stock fell as much as 7.36 percent to Rs 176.45.
Aster DM Healthcare Ltd.’s Rs 980-crore initial public offering was subscribed 1.3 times on the third and final day of bidding so far.
The F&O Show
Oriental Bank Of Commerce Slumps 12.5%
Shares of the state-run lender fell as much as 12.5 percent to Rs 92.50 after the CBI registered a case of fraud against a loan provided by the bank to Simbhaoli Sugars.
Aster DM Settles At Discount In Pre-Open Trade
Shares of Aster DM settled at Rs 182/share on BSE versus its issue price of Rs 190/share in pre-open trade.
Dr. Reddy's Labs Falls As U.S. FDA Maintains OAI Status
Shares of the Hyderabad-based drug maker fell as much as 4.11 percent to Rs 2,080 after the U.S. drug regulator issued establishment inspection report (EIR) for its formulations facility in Srikakulam, Andhra Pradesh.
The company, without mentioning the contents of the EIR, said the USFDA has maintained OAI (Official Action Indicated) status at its API manufacturing plant in Srikakulam.
Simbhaoli Sugars Plunges 20% After CBI Registers FIR Against Management
Shares of the Hapur-based sugar maker fell as much as 20 percent to Rs 13.50 after the Central Bureau of Investigation registered FIR against Simbhaoli Sugar and its top management for causing loss of Rs 109 crore to government-owned Oriental Bank of Commerce.
Block Deal Alerts
- Bharti Infratel has 37.5 lakh shares change hands in a block deal.
- Coffe Day Enterprises has 55 lakh shares change hands in a block deal.
Buyers and sellers were not immediately known
Source: Bloomberg
Opening Bell
Indian equity benchmarks edged higher led by gains in Reliance Industries, ICICI Bank and HDFC Bank tracking higher Asian peers.
The S&P BSE Sensex rose 0.3 percent or 108 points to 34,350 and the NSENifty 50 Index gained 0.4 percent or 44 points to 10,535.
The broader market indices were in line with the benchmarks as the S&P BSE MidCap and S&P BSE SmallCap Indices climbed 0.6 percent each.
Nine out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Realty Index's 1 percent gain. On the flipside, Nifty Pharma Index was the top sectoral loser, down 0.4 percent.
IndianOpen
BQ Heads Up!
Money Market Heads Up!
In focus this week is the GDP data which is likely to show that Indian economy grew at 6.9 percent in October-December, at a pace faster than the previous quarter. Also, all eyes will be on new U.S. Fed chairman Jerome Powell who has two appearances this week. There is a growing view that the new Fed chief may stick to the path of gradual rate increases as was set out by his predecessor Janet Yellen. On the home front, higher inflation may lead RBI to hike rates which is keeping bond traders on the edge.
Benchmark yields fell 8 basis points on Friday, but traders don't expect further rally from here. Yield on the 10-year note may stay in a range of 7.64 percent-7.74 percent.
In the currency market, rupee's implied opening from forwards suggest a level of 64.85 a dollar. Local equities are trading strong that may help support the unit. A range of 64.60-65 a dollar is expected in the session.
Brokerage Radar
HSBC on ICICI Lombard
- Initiated ‘Reduce’ with price target of Rs 610; implying a potential downside of 25 percent form last regular trade.
- Gross written premium to grow slower than industry rate due to competition.
- High dependency on three segments – motor, crop and health insurance.
- Life players could enter the health market.
- Three regions account for 48 percent of its premiums.
- Emergence of a stronger competitor is a possibility.
- Profitability to improve due to fall in the loss ratio.
- Expect net income to compound at 29 percent over the fiscal 2017-2020.
- Passage of the motor vehicle bill is the key upside risk.
- Stock trades at a high valuation.
CLSA on Supreme Industries
- Initiated ‘Buy’ with price target of Rs 1,482; implying a potential upside of 25 percent from yesterday’s close.
- Impressive growth track record with superlative capital returns.
- Diversified product offering; Focusing on value-added products.
- Efficient capital allocation; Generated superlative ROCEs in capital-intensive industry.
- Expect free cash flow with balance sheet to turn net cash by March 2020.
- Expect earnings per share to compound at 25 percent through the financial years till March 2020.
- Deserves to trade at premium.
Nomura on Sun Pharma
- Maintained ‘Neutral’ with price target of Rs 479.
- Number of observations limited to three for a large plant inspected over two weeks.
- Appears to be a good outcome.
- Difficult to predict timelines for FDA action; Expect issuance of EIR to take six months.
- Outcome of Halol FDA inspection is not a significant positive, given current expectations.
- Key for Sun Pharma is trajectory of the specialty business.
Jefferies on Sun Pharma
- Maintained ‘Hold’ with price target of Rs 520.
- Halol gets 3 observations; Severity unknown.
- Halol resolution is a key near-term trigger for Sun Pharma.
- Halol is key driver to earnings recovery; Expect resolution in current quarter.
- Earnings recovery to be gradual as investment in specialty to continue.
IDFC Securities United Spirits
- Maintained ‘Neutral’ with price target of Rs 3,336.
- Impact from route to market (RTM) to recede in the current quarter.
- Franchise benefits to accrue through March 2018.
- Lower molasses prices to benefit near term margins.
- Remain positive on broader premiumisation and return and margin-accretive growth strategy.
- Valuations leave little room for upside; Await better entry point.
IDFC Securities on Redington India
- Maintained ‘Outperform’ with price target of Rs 224.
- India IT enterprise business could pick up pace.
- Change in leadership at Apple India would be positive.
- India business to be driven by Enterprise/non-Apple Mobility.
- India Working capital (WC) to improve; Overseas WC not sustainable.
- Scaling up a priority for ProConnect; Open to listing ProConnect.
IDFC Securities on United Breweries
- Maintained ‘Outperform’ with price target of Rs 1,333
- Volume trajectory to remain healthy in the current quarter.
- Early signs of rationalising competitive intensity.
- Market share gains could continue.
- Expect strong double-digit volume growth over next two quarters.
- Healthy growth outlook; attractive valuations.
Stocks To Watch
- U.S. FDA maintains OAI (Official Action Indicated) status on Dr. Reddy’s Srikakulam plant.
- Idea Cellular said it will continue to evaluate options to monetise Indus stake (Bloomberg).
- Bharti Airtel, Motorola partner to offer 4G smartphone.
- DCM Shriram to invest Rs 113 crore for expansion of Caustic soda capacity at its Bharuch facility.
- Sakuma Exports have submitted an expression of interest to acquire Ruchi Soya.
- Sadbhav Infra unit Bhilwara-Rajsamanad tollway completes debt refinancing.
- Idea Cellular raises Rs 3,500 crore via QIP.
- Dena Bank sets issue price at Rs 26.89 per share for issue of shares to the government.
- PNB denies report that PWC is engaged in probing alleged fraud.
- Welspun Enterprises said it is lowest bidder for NHAI Tamil Nadu road project.
F&O Cues
- Nifty March Futures closed trading at 10,504.5, premium of 13 points versus 6 points.
- All series-Nifty OI up 5 percent, Bank Nifty OI up 5 percent.
- India VIX ended at 14.2, down 4 percent.
- Max OI for March series at 10,700 call strike , OI at 29 lakh, OI up 16 percent.
- Max OI for March series at 10,000 Put, OI at 35.4 lakh, up 9 percent.
New Offerings/Listing
- H.G. Infra Engineering IPO opens today with an issue Price: Rs 263 - Rs 270 per equity share.
- Hindcon Chemicals: Seeks to raise Rs 7.73 crore in an initial public offering that will close on Feb. 28
- Aster DM Healthcare lists today with a base price of Rs 190 per share. Its IPO was subscribed 1.3 times.
Bulk Deals
- Fortis Healthcare: BNP Paribas Arbitrage bought 42.75 lakh shares or 0.8 percent equity stake at Rs 154.91 each.
- Apollo Pipes: Laburnum capital advisors bought 67,000 shares, or 0.6 percent equity at Rs 561.99 each.
- Finolex Industries: Prescient Wealth Management Private Limited sold 7.98 lakh shares, or 0.6 percent equity at Rs 629 each.
- Chembond Chemicals: Promoter Perviz Homi Dastur sold 1.30 lakh shares, or 1 percent equity at Rs 297.4 each.
- Jaypee Infratech: IndusInd Bank Ltd. Client A/c sold 1.1 crore shares, or 0.8 percent equity at Rs 13.65 each.
- Dollar Industries: Shakuntala Exim Pvt Ltd. sold 3 lakh shares, or 0.5 percent equity at Rs 420.3 each.
Jubilant Lifesciences
- Copthall Mauritius Investment bought 27.50 lakh shares, or 1.7 percent equity at Rs 914 each.
- Promoter Jubilant Advisors LLP sold 22.38 lakh shares, or 1.4 percent equity at Rs 917.43 each.
- Promoter Jubilant Consumer Pvt Ltd sold 27.36 lakh shares, or 1.7 percent equity at Rs 914 each.
Shiva Texyarn
- Care Portfolio managers bought 78,000 shares, or 0.6 percent equity at Rs 540 each.
- Promoter S V Kandasami sold 1.31 lakh shares, or 1 percent equity at Rs 543.11 each.
DayBreak
Talking Points
- Dr. Reddy’s gets EIR from USFDA for Srikakulam plant
- Government asks HUL to explain math behind Rs 119 crore profiteered sum
- Lawyer Says he will advise Nirav Modi not to return to India for investigation
- JSW set to acquire Italian Aferpi for Rs 600 crore
- Government awaits Idea-Vodafone tower sale closure for green signal to merger
- Government slaps anti-dumping duty on ceramicware from China
- Samsung takes on iPhone X with Galaxy S9
- World’s highest paid expats are booking a passage to India
- Buffett stresses patience in a world where deals look expensive
- 02/25-02/28: Eight infrastructure industries index for Jan. (prior +4.0%)
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.35 percent or 36 points to 10,566 as of 7:30 a.m.
Asian equities rose, extending a two-week rally in global stocks, after U.S. stocks posted strong gains and Treasury yields steadied. U.S. monetary policy is back in focus in a week that includes two appearances from Federal Reserve Chairman Jerome Powell.
Here are some key events scheduled for this week:
- Bank of Korea’s policy decision and briefing on Tuesday.
- Powell testifies before a House panel on Tuesday. He’ll discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy. Powell returns on March 1 before a Senate committee.
- Companies announcing earnings this week include: Vale, BASF, Standard Chartered, Bayer, Lowe’s, Galaxy Entertainment Group, Anheuser-Busch InBev, Peugeot, WPP, and London Stock Exchange Group.
- U.K. Prime Minister Theresa May delivers a speech on Britain’s relationship with the European Union after Brexit.
- A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, capital spending Thursday and unemployment and household spending Friday.
- In China, the official and Caixin purchasing managers’ indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays.
Commodities
- West Texas Intermediate crude was little changed at $63.58 a barrel.
- Gold futures was steady $1,327.58 an ounce.
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