Closing Bell
India's stock benchmarks logged best day in a week ahead of U.S. Federal Reserve's rate decision, in which Jerome Powell is likely to dial in 25bps hike to check the surge in inflation. Metals, realty, banking and information technology stocks led the surge as moderation in crude prices aided sentiment.
The S&P BSE Sensex rose 1.86% (equivalent of 1,040 points) to 56,816.65. The 30-stock gauge rose 1.94% to an intraday high of 56,860.89.
The NSE Nifty 50 also advanced by similar magnitude to 16,975.35. This is the best close for the 50-stock gauge in three weeks since Feb. 23.
UltraTech Cement Ltd. had the largest increase, rising 4.7%. Today, 46 of 50 shares rose, while 4 fell.
The S&P BSE MidCap almost mirrored Sensex and Nifty while the S&P BSE SmallCap underperformed, rising 1.5%. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty, Metal, Basic Materials, Finance, Auto, Bankex, Consumer Durables, Oil & Gas and Teck indices gaining over 2%.
The market breadth was skewed in the favour of bulls. About 2,308 stocks advanced, 1,125 declined and 101 remained unchanged.
"Nifty has staged a strong recover with a combination of value and momentum. We expect the uptrend to sustain for the medium term. The March series expect limited downside with resistance placed at 17200-17300 levels; on the downside support is seen at 16500-16600 levels", Sahaj Agrawal, Head of Research - Derivatives at Kotak Securities in a note, and added, "buying on Dips is advisable with focus on Cement, NBFC and Consumption space. Metals are expected to consolidate with high volatility".
I.T. Stocks Surge Ahead Of Accenture Earnings
Shares of information technology stocks rallied ahead of global tech giant Accenture's Q2 earnings before market open on March 17.
Source: Bloomberg
Nomura on Infosys
Maintains 'buy' with the taget price set at Rs 2,440, an implied return of 28.98%
Strong demand environment for I.T. services visibler.
Company's focus on digital offering, re-skilling employees, large deals and cloud offerings have aided rapid revenue growth.
Company's capital allocation policy continue to remain discipline
Infosys is the top pick in the largecap Indian I.T. Services space
Macrotech Developers Jump The Most In A Week
Macrotech Developers Ltd. informed that the credit rating of the USD Senior notes, issued by its subsidiary Lodha Developers International Ltd. has been upgraded to B2 with positive outlook by Moody's Investors Service.
Shares of Macrotech Developers rose 4.92%, the biggest intraday gain in a week.
Source: Exchange Filing
Sensex, Nifty On Course To Log Best Day In A Week
Broader Indices Almost Mirror Their Larger Peers
Top Sectoral Gainers
Analyst Actions: Brigade Enterprises
Brigade Enterprises: Equirus Securities initiated coverage with a recommendation of 'buy'; price target set at Rs 538.
Source: Bloomberg
Paper Stocks Rally On Surging Demand, Scrap Shortage
Shares of JK Paper led the rally among paper manufacturers as prices surge on back of demand-supply mismatch and shortage of waste paper.
Demand normalisation, higher level of demand at channels and favourable price have led to the surge in top mills such as JK Paper, West Coast and Andhra Paper, according to Centrum Broking.
Analysts expect paper stocks to see windfall gains over next few quarters.
JK Paper rose 11%, the most in three days, on course to extend gains for the seventh day, the longest winning streak in 44 months since July 2018.
Shares of West Coast Paper, Andhra Paper, Huhtamaki India, Orient Paper, Seshasayee Paper also surged in today's session.
Source: Bloomberg
ATF Price Hiked By Steepest Ever 18% To All-Time High
Jet fuel prices were hiked by 18% to all-time high levels after international oil price surged to a multi-year high.
This is the sixth straight hike in ATF price this year.
Jet fuel makes up for almost 40% of the running cost of an airline.
Source: PTI
U.S. FDA Raises Three Observations At Zydus Lifesciences' Injectables Facility In Gujarat
Blue-Chip Cement Stocks Rise Amid Fall In Crude Prices
Bhagwant Mann Takes Oath As Punjab Chief Minister
Aam Aadmi Party’s Bhagwant Mann has been sworn in as the 17th Chief Minister of Punjab.
Aam Aadmi Party won 92 out of 117 seats in the Punjab assembly elections.
European Markets Advance Ahead Of U.S. Federal Reserve's Rate Decision
Tata Communications Jumps The Most In Nearly Three Weeks On Multi-Year Strategic Deal With Formula1
Shares of Tata Communications rose 4.8%, the most in nearly three weeks after the firm announced a strategic deal with Formula1. Trading volume on the stock was more than twice the 30-day average volume at this time of the day.
The deal marks the return of Tata Communications to the sport as the official broadcast connectivity provider of Formula1.
Tata Communications will empower Formula1 with network services for video contribution to transform the motorsport experience for the viewer, through this deal.
Of the nine analysts tracking the company, seven maintain 'buy' and two recommend 'hold'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 39.3%.
Source: Bloomberg
Hindustan Aeronautics Climbs The Most In Five Months
Shares of Hindustan Aeronautics Ltd. rose over 7.57%, the most in five months after the company announced new facility for its joint venture with French firm Safran, Helicopter Engines MRO Pvt.
The facility will be operational by the end of 2023 and will have a capacity to repair 50 engines a year.
HAL said that the construction planned earlier was delayed due to crisis in helicopter market followed by the pandemic.
HAL also signed an MoU with Bengaluru-based SASMOS to collaborate on advanced electronics, electrical and fibre optic interconnections in aerospace domain.
Source: PTI
Fuel Hoarding In India Boosts Sales Before Expected Price Hike, Reports Bloomberg
Sales of diesel and gasoline jumped during first half of March as more fuel was hoarded ahead of expected price hike after end of local elections.
Diesel sales by the three biggest retailers during March 1-15 rose 33% YoY
Diesel sales during March 1-15 is more than in the first half of any month over the last two years.
Source: Officials with knowledge of the matter.
Persistent Jumps Most In Two Weeks As Analyst Expect MediaAgility Acquisition To Enhance Cloud Capabilities
Shares of Persistent Systems rose over 3%, the most in nearly two weeks as analysts expected the acquisition of MediaAgility to enhance the company's partnership with Google.
The deal will help Persistent to offer verticalised solutions around the Google cloud ecosystem.
Analysts expect the deal to accelerate, deepen Persistet's cloud competencies and bolster capabilities within Google cloud ecosystem.
Brokerages also expect the transaction to contribute to 3% revenue in FY23.
Deal closure is likely in 6-8 weeks.
Persistent will also acquire MediaAgility's units in India, UK, Singapore and Mexico.
Source: Brokerage notes, Bloomberg
Mid-Day Market Update: Sensex Adds Nearly 900 Points; Nifty Reclaims 16,900
India's stock benchmarks advanced in Wednesday's session, aided by gains in consumer durables, metal, realty and energy stocks. Rising crude prices aided the sentiment. Focus shifts to U.S. Federal Reserve Meeting in the evening where the U.S. central bank is expected to dial in a 25bps correction to keep inflation under check.
The Sensex shed over 850 points to 56,688.59. The 30-stock gauge rose to an intraday high of 56,761.01. The NSE Nifty advanced by similar magnitude to 16,894.70.
The broader indices almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Metal, Consumer Durables, Realty and Basic Materials rising over 2%.
The market breadth was skewed in the favour of bulls. About 2,306 stocks advanced, 980 fell and 111 remained unchanged
Voltas Jumps The Most In Over Nine Months
Shares of Voltas jumped 6.4%, the biggest intraday gain in nine months.
Over the last two days, the stock has risen nearly 8%. Trading volume on the stock was more than twice the 30-day average volume.
On Monday, Dolat Capital reiterated 'buy' and kept the target price unchanged at Rs 1,400, an implied return of 17.5%.
Dolat Capital has identified Voltas as the pick of the AC space due to its leadership in Residential air-conditioner business.
Source: Bloomberg, Dolat Capital note.
Future Group Vs Amazon: SC Adjourns Hearing On Amazon's Plea Seeking Resumption Of Arbitration
Amazon today filed the application seeking interim orders until the arbitration resumes.
Future Group agreed to resumption of arbitration but opposed the request for any interim orders.
The top court will hear the application on March 23.
JK Cement Jumps As JM Financial Upgrades Stock To 'Buy'
Shares of JK Cement rose 7.6%, the most in almost a week, after the company was upgraded to 'buy' from 'hold' at JM Financial.
The brokerage cut the target price from Rs 3,200 to Rs 2,750, still an implied upside of 19.4%
Current correction in the stock is overdone while the foray into paint sector was necessary to sustain growth, according to the note.
Trading volume on the stock was quadruple the 30-day average volume at this time of the day.
Of the 28 analysts tracking the company, 16 maintain 'buy', 10 suggest 'hold' and two recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 33.3%.
Source: Bloomberg
TCS To Help Route More Than 2 Lakh SGX Nifty Trades In India
Tata Consultancy Services announced that TCS BaNCS has been selected by Singapore Exchange (SGX) to power the trading link program, known as NSE IFSC-SGX Connect (Gift Connect) -- with subsidiary of NSE of India.
TCS' trading software will power the transition of over 2,000 daily Singapore Exchange's Nifty trades to India's Gift city in H2CY2022
This will enable Singapore traders and other international investors to trade in Nifty derivatives in real time.
Global Head, BFSI Platforms and Products at TCS R Vivekanand said that the move has the potential to shift trade to India.
Source: Exchange Filing, Bloomberg
Shoppers Stop Surges As Motilal Oswal Expects Profitability To Improve Due To Focus On Smaller Stores
Shares of Shoppers Stop Ltd. rose nearly 6.4%, the most in three sessions after Motilal Oswal pegged the company's profitability to improve due to the focus on smaller stores.
Motilal Oswal maintains 'neutral' on the stock with the target price cut to Rs 400 from Rs 430, still an upside of 11%/
Addition of new stores, revival of Same Store Sales Growth, focus in beauty segment and e-Commerce initiatives are expected to aid growth, according to Motilal Oswal Note.
Trading volume on the stock is twice the 30-day average volume at this time of the day.
Of the 13 analysts tracking the company, eight maintain 'buy', four suggest 'hold' and one recommends 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 10.4%.
Source: Bloomberg, Motilal Oswal Note
Unichem Climbs Most In Three Weeks On Receiving U.S. FDA Nod For Drug To Treat Hypertension
Shares of Unichem Laboratories Ltd. rose over 4.3%, the most in nearly three weeks after the company received U.S. FDA approval for its Nebivolol tablets 2.5mg, 5 mg, 10 mg and 20 mg.
Nebivolol tablets are used in the treatment of hypertension.
The drug will be commercialised from Unichem's Ghaziabad Plant, the company said in an exchange filing.
Trading volume on the stock was over 2.5 times the 30-day average volume at this time of the day.
Source: Exchange Filing, Bloomberg
India Yield Curve Steady, Stocks Up
Maturities across the India sovereign yield curve were little changed in Wednesday morning trading.
The 4-year yield rose 1.1bps to 6.013%
The 10-year yield remained unchanged at 6.821%
The 18-year yield remained unchanged at 7.18%
The 4-year-10-year yield spread was 80.8bps, vs previous close 81.9bp
Source: Bloomberg
Media Sector To Offer Major Opportunities For Investors, Says CIO & Co-Founder Of Karma Capital Rushabh Sheth
Rupee Leads Emerging Asian Currencies On Lower Oil
The Indian rupee advanced, outperforming regional peers as oil prices eased below $100 a barrel. Bonds were steady ahead of a 370b rupee ($4.8b) Treasury-bill auction.
USD/INR falls 0.3% to 76.3900, the most among emerging market Asian currencies
10-year yields steady at 6.82%
Source: Bloomberg
Zomato Slips To Record Low
Shares of Zomato fell 1.27% in intraday trade to a record low of 75.5 apiece. The food-delivery firm is weighing an all-stock takeover deal for Blinkit, according to Bloomberg.
Zomato has also agreed to acquire 16.66% stake in Mukunda Foods.
Trading volume on the stock is 3.5 times the 30-day average volume at this time of the day.
Source: Bloomberg, Exchange Filing
Rupee Appreciates Against The U.S. Dollar
United Spirits Jumps After Announcing Review Of Popular Brands
Shares of United Spirits Ltd. rose 3% after the company announced that it is carrying out a review of some popular brands.
The review is set to be completed by the end of the month, United Spirits said in an exchange filing.
Shares of other liquor stocks like as Radico Khaitan, Globus Spirits, Associated Alcohols and Tilaknagar Industries also advanced.
Source: Bloomberg, Exchange Filing
Coforge Leads The Gains In NSE Nifty IT Index
All Constituents Of NSE Nifty Auto Index Advance
TCS Has 1 Million Shares Change Hands In A Large Trade
Tata Consultancy Services had 1 million shares change in a large trade.
Details of buyers, sellers are not immediately known.
Source: Bloomberg
Wockhardt Jumps As NIH Agrees To Conduct Human Phase 1 Trial Of Antibiotic
Shares of Wockhardt Ltd. rose over 3%, the most in nearly a week, to Rs 298.25.
The National Institute of Allergy and Infectious Diseases, part of NIH, USA will support a phase 1 clinical trial of Wockhardt's antibiotic.
The drug is shown to be active against many Gram-negative pathogen.
Source: Bloomberg, Exchange filing
All The Constituents Of NSE Nifty Bank Index Advance
Opening Bell: Sensex Adds 750 Points, Nifty Hovers Around 16,900
India's stock benchmarks edged higher, ahead of the looming Federal Reserve rate hike, aided by decline in oil prices. Auto, banking, information technology and realty stocks aided the advance
The S&P BSE Sensex rose 1.4% to 56.562.85. The Nifty 50 also advanced by similar magnitude to 16,890.75.
The broader indices underperformed their larger peers with S&P BSE MidCap gaining 1.2% and S&P BSE SmallCap adding 1.3%. All the 19 sectoral indices compiled by the BSE Ltd. advanced with S&P BSE Finance and Bankex rising nearly 2%.
The market breadth was skewed in the favour of bulls. About 2,041 stocks advanced, 323 declined and 61 remained unchanged.
Nomura Believes Recent Correction Have Turned Risk/Reward Favourable For Bandhan Bank
Nomura
Upgrades from 'neutral' to 'buy' with the target price raised to Rs 375 from Rs 330; an implied return of 33.38%.
Recent corrections have turned risk/reward favourable for Bandhan Bank.
Multiple reasons to turn positive on the stock such as the cyclical recovery in microfinance, sharp recovery in growth-disbursement, normalisation of collection trends and reduced competitive intensity.
Micro factors remains intact for MFIs despite a weakening macro environment.
Sees upside risks to earnings estimates.
Do not rule out further re-rating of the stock to 3x book from 2.5x book.
Expects stress pool to start reducing sharply.
Any reversal in provisions can be used to build counter-cyclical buffers, which could trigger further re-rating.
Source: Bloomberg
Rupee, Bonds May Add To Recent Gains On Lower Oil
Indian rupee and government bonds could gain as crude oil prices ease below $100 a barrel. Traders in the net oil importing nation also await a Rs 37,000 crore ($4.8b) Treasury-bill auction
USD/INR advanced 0.1% on Tuesday
10-year yields fell 4bps to 6.82% on Tuesday
Global funds sold net Rs 1,250 crore of India Stocks Tuesday: NSE
They sold Rs 419 crore of sovereign bonds under limits available to foreign investors, and added Rs 436 crore of corporate debt
State-run banks sold Rs 1,260 crore of sovereign bonds on March 15: CCIL data. Foreign banks sold Rs 368 crore of bonds.
Source: Bloomberg
In Focus: India Liquor Stocks As United Spirits Reviews Popular Brands
Stocks of alcohol makers in India may be active after United Spirits said it plans to complete the review of some popular brands by the end of this month.
In Focus: Radico Khaitan, Globus Spirits, Associated Alcohols, Tilaknagar Industries
Source: Bloomberg
Analyst Actions
Jubilant Food Cut to Reduce at Dolat Capital; price target set at Rs 2,761.
Pidilite Industries Cut to Reduce at Dolat Capital
Hindustan Unilever Cut to Reduce at Dolat Capital
Berger Paints Cut to Reduce at Dolat Capital; price target set at Rs 708.
Bata India Cut to Reduce at Dolat Capital; price target set at Rs 1,907.
Page Industries Cut to Reduce at Dolat Capital; price target set at Rs 41,465.
Godrej Consumer Raised to Accumulate at Dolat Capital
Emami Cut to Accumulate at Dolat Capital; price target set at Rs 548.
Dabur India Cut to Reduce at Dolat Capital; price target set at Rs 578.
Marico Cut to Reduce at Dolat Capital; price target set at Rs 539.
Bajaj Consumer Cut to Sell at Dolat Capital; price target set at Rs 164.
Nestle India Cut to Reduce at Dolat Capital; price target set at Rs 18,184.
MapmyIndia Rated New Outperform at DAM Capital; price target set at Rs 1,860.
Source: Bloomberg
Bitcoin Reclaims $40,000
Government May Infuse Rs 5,000 Crore To Bolster Three Insurers, Reports Mint
India government may infuse Rs 5,000 crore ($652.65m) into three loss-making state-owned insurance firms this month to help them meet requirements for listing, Mint reports, citing two government officials aware of the plan.
National Insurance Co. Ltd, Oriental Insurance Co. Ltd and United India Insurance Co. Ltd need money to strengthen operations, improve solvency ratios and become profitable: report
Government may consider listing National Insurance and Oriental Insurance while United India may be a candidate for privatization: report
Government had provided Rs 12,450 crore to these three insurers in FY21.
Barring Asia In Talks To Sell Citiustech Stake, Reports The Economic Times
Baring Private Equity Asia in talks to sell its controlling stake in healthcare analytics firm Citiustech Healthcare Technology in a deal valuing company at $2 billion - $2.2 billion, Economic Times reports citing people aware of the development.
Baring Asia in talks with funds including Blackstone, TPG and KKR to sell Citiustech: report.
KKR spokesperson declined to comment, while mails sent to Baring Asia, TPG and Blackstone were unanswered: report.
Brent Crude Opens At Sub-$100 Levels For The First Time Since March 1
National Institutes of Health (NIH), USA To Conduct Human Phase 1 Trial Of Wockhardt's Antibiotic
The National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health, USA will support a Phase 1 clinical trial of Wockhardt's novel once-a-day, multidrug resistant Gram-negative target antibiotic WCK 6777.
NIAID will sponsor the investigational new drug application for the study.
WCK 6777 is shown to be active against several Gram-negative pathogens like Escherichia coli and Klebsiella, which cause community and hospital infections like Urinary Tract Infections (UTI). UTI accounts for 3 million annual hospitalisations in the country and led to healthcare cost above $2.8 billion.
Source: Exchange Filing
Trade Setup For Wednesday
United Spirits To Consider All Options On Review Of Brands
United Spirits initiated a strategic review of selected popular brands on Feb. 23, 2021.
The company is considering all options to deliver sustainable long-term profitable growth. The review is expected to be completed by March 31, United Spirits said in a clarification on news item to exchanges.
Source: Exchange Filing
Motilal Oswal Expects Focus On Smaller Stores To Improve Shopper Stop's Productivity
Motilal Oswal
Maintains 'neutral' on the stock with the target price reduced to Rs 400 from Rs 430, still an upside of 11%
Revenue, which was adversely impacted due to Omicron variant in January 2022, recovered to almost pre-covid levels in February.
Early trend in March hints at revenue surpassing pre-covid levels.
New smaller compact feature stores enjoy better revenue than existing bigger stories.
Steps to double revenue over the next 4 years are backed by strategy to add 10-12% new stores every year, revival of SSSG (Same Store Sales Growth) to high single or double digit, growth in beauty segment and e-Commerce initiatives.
Pace of the store additions and SSSG remain key monitorables.
Even if the company achieves 60-70% of its growth guidance, it would significantly surprise street expectations.
Source: Motilal Oswal Note
In Focus: Aluminum Shares After Base Metals Slip On China Lockdown
Aluminum stocks may be active after base metals slid as coronavirus outbreaks in China threatened to curtail the country’s economic output.
Aluminum led declines on the London Metal Exchange, falling 3% after declining on Monday as well.
In focus: Hindalco Industries, National Aluminum Co.
Source: Bloomberg
Analyst Actions: Oil India, JK Cement
Oil India's long-term issuer default rating was upgraded to 'BBB' from 'BBB-' by Fitch
JK Cement raised to 'buy' from 'hold' at JM Financial; price target set at Rs 2,750.
Source: Bloomberg
Stocks To Watch
ITC: The company acquired 1,040 compulsorily convertible preference shares of Rs 10 each of Mother Sparsh Baby Care.
Punjab National Bank: The bank reported a fraud of Rs 2,060.14 crore in NPA account of IL&FS Tamil Nadu Power Co. at corporate branch in Delhi. The bank has already made provisions amounting to Rs 824.06 crore.
Zomato: The company approved acquisition of 16.66% stake in Mukunda Food by way of subscription of 13,289 Series B1 compulsorily convertible preference shares and 10 equity shares for $5 million. It also approved grant of loan of $150 million to Grofers India to support its capital requirements. The company is also mulling all-stock takeover deal for Blinkit, Bloomberg reported.
One97 Communications: Munish Ravinder Varma, Non-executive, Non-Independent Director (also Managing Partner at SoftBank Vision Fund) has tendered his resignation.
PB Fintech: Munish Ravinder Varma, Non-executive, Non-Independent Director (also Managing Partner at SoftBank Vision Fund) has tendered his resignation from board of the company.
Future Enterprise: The company has defaulted on interest of Rs 9.91 crore on non-convertible debentures that was due on March 14.
IL&FS Transportation: The company entered into share purchase agreement with Axis Trustee Services to sell 100% of its paid-up capital of Sikar Bikaner Highways, a wholly owned subsidiary of the company for a consideration of Rs 375.5 crore to be received in the form of units of the Trust. It also assigned its debts owed to Sikar Bikaner Highways of Rs. 207,81,19,081 by executing a Deed of Assignment with Axis Trustee Services Limited against which a consideration to the equivalent amount is to be received in the form of units of the Trust.
Shyam Metalics: The company approved capital expenditure of Rs 990 crore for setting up of further capacities at Sambalpur and its plant at Jamuria.
Infibeam Avenues: The company has appointed Sunil Bhagat as the Chief Financial Officer after Hiren Padhya’s resignation.
Sangam India: The company received the NCLT approval for scheme of amalgamation of Sangarn Lifestyle Ventures, a wholly owned subsidiary with Sangam India.
EKI Energy Services: The company is in advanced discussions with some of the European oil and gas majors, to launch an initiative to supply free improved cook stoves to rural households to reduce carbon footprint and generate carbon offsets.
Future Retail: Non-executive director Rahul Garg has resigned from the company board.
United Spirits: Inbrew is said to emerge as lead bidder for Diageo Indian brands.
Indiabulls Housing Finance: Approves reclassification of Founder, Gehlaut and firm to become public shareholders.
SGX Nifty Hints At 1.5% Gains; ITC, PNB, Zomato, PB Fintech, Paytm, United Spirits In Focus
Stocks rose in Asia on Wednesday amid lower oil prices ahead of the looming Federal Reserve decision.
Shares advanced in Japan, South Korea and Australia. S&P 500 and Nasdaq 100 contracts fell following a rebound in Wall Street on Tuesday. The Singapore-traded SGX Nifty, an early barometer of India's benchmark Nifty 50 index, rose 1.71% to 16,937.50 points as of 6:45 a.m.
Treasuries were little changed ahead of the Fed decision Wednesday. The dollar was steady. Gold inched up, while bitcoin slipped to $39,200 levels
Crude fluctuated after dropping below $100 a barrel. Signs that Iran nuclear talks may resume point to the possibility of more supply, while Covid lockdowns in China may curb demand.
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