Closing Bell
Indian equity benchmarks rebounded strongly from their worst week in a month led by ITC, HDFC, Bharti Airtel and Reliance Industries amid strong global cues.
The S&P BSE Sensex rose 1.83 percent or 610.80 points to 33,918 and the NSE Nifty 50 index climbed 1.9 percent or 194.55 points to 10,421.
All sector gauges compiled by BSE ended higher led by the S&P BSE Telecom index's 2.57 percent gain.
Mid and small cap shares underperformed their large cap counterparts as the S&P BSE MidCap index rose 0.76 percent and the S&P BSE SmallCap index gained 0.56 percent.
Countdown
Nifty PSU Bank Index Off Day's Low Led By Indian Bank, Canara Bank
Gauge of the government-owned lenders recovered from intraday losses and turned flat led by gains in Indian Bank, Canara Bank and Syndicate Bank.
Sensex Extends Gains, Rallies Over 500 Points
Fab Four Stocks Of The Day
- Man Infraconstruction: The Mumbai-based infrastructure construction company rose as much as 3.7 percent to Rs 56 after it received orders worth Rs 220.75 crore from Pimpri Chinchwad Municipal Corporation (PCMC) under the Pradhan Mantri Awas Yojna (PMAY).
- United Spirits: The Bangalore-based liquor maker rose as much as 6.2 percent to Rs 3,163 after the GST Council did not consider taxing extra neutral alcohol (ENA) in its meeting on Saturday.
- ITC: The country’s largest cigarette maker rose over 4 percent, the most in over a month, to Rs 269.95 after the GST Council kept cess on cigarettes unchanged at its meeting on Saturday.
- Goa Carbon: The Goa-based chemical maker rose as much as 4.16 percent to Rs 921 after the Goa State Pollution Control Board revoked its earlier order to suspend plant operations.
Bharti Airtel Top Gainer After Board Approves Foreign Currency Bond Sale
Shares of the telecom operator rose as much as 4.86 percent, the most in over a month, to Rs 421.70.
The Sunil Mittal-led company’s board approved the issuance of foreign currency bond of $1 billion or equivalent in one or more tranches, according to its stock exchange notification. The board also approved privately placing up to Rs 10,000 crore of bonds in tranches, the filing added.
Bharti Airtel trades at 102 times its estimated forward earnings per share for the coming year. The stock declined 20 percent so far this year.
EON-RWE Deal Helps European Stocks to Rise for Sixth Day
European stocks gain ground in early trading, rising for the sixth session in a row and tracking a sharp rally on Wall Street on Friday; utilities lead gains following a bid by EON for RWE’s Innogy.
Indian Equity Benchmarks Near Day's Highs
- Indian equity benchmarks rebounded strongly from the worst week in a month led by ITC, HDFC, Infosys and Reliance Industries.
- The S&P BSE Sensex rose 1.3 percent or 422 points to 33,730 and the NSE Nifty 50 index climbed 1.28 percent or 131 points to 10,360.
Power Lunch
IDBI Bank Slumps Most In Nearly Three Years
Shares of the government-owned lender fell as much as 11.67 percent, the most since Aug. 2015, to Rs 62.45.
Market Check
Indian equity benchmarks held on to gains led by ITC, Infosys, HDFC and Reliance Industries.
The S&P BSE Sensex rose 1 percent or 328 points to 33,636 and the NSE Nifty 50 index climbed 1.03 percent or 105 points to 10,332.
Nine out of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty FMCG index's 1.8 percent gain. On the flipside, the Nifty PSU Bank index was the top sectoral loser, down 2.3 percent.
Broader markets were underperforming their large-cap counterparts as the S&P BSE MidCap and S&P BSE SmallCap indices were little changed.
Block Deal Alert
- Avanti Feeds had 44 lakh shares change hands (10 percent equity) at 9:00 a.m.
Buyers and sellers were not immediately known
Source: Bloomberg
#Ask BQ
Stocks Moving on Heavy Volumes
- Central Bank of India: The Mumbai-based government-owned bank fell as much as 5.5 percent to Rs 71.10. Trading volume was 22.4 times its 20-day average.
- Hatsun Agro: The Chennai-based dairy products maker rose as much as 0.95 percent to Rs 734. Trading volume was 16.7 times its 20-day average.
- VRL Logistics: The Hubli-based logistics service provider fell 0.5 percent to Rs 400.50. Trading volume was 31.9 times its 20-day average.
- Andhra Bank: The Hyderabad-based government-owned bank plunged as much as 14 percent to Rs 33.15, its lowest level since May 2004. Trading volume was 12.6 times its 20-day average.
Hot Money
L&T JV Bags Rs 442 Crore Order For Nuclear Generator Forgings
Shares of the country's largest infrastructure construction company were trading 0.9 percent higher at Rs 1,301 after its joint venture won an order worth Rs 442 crore for nuclear steam generator forgings, the company said in an exchange filing.
Earlier in the day, L&T had informed exchanges that its construction arm won orders worth Rs 2,597 crore.
Trend Spotting
PSU Banks Extend Decline To Second Day
Shares of the government-owned banks extended decline to second day in a row. Gauge of PSU banks on the National Stock Exchange — the Nifty PSU Bank index fell over 2 percent dragged down by Andhra Bank's 12 percent drop.
Aarti Drugs Falls After Unit Gets Affected By Explosion
Shares of the Mumbai-based drug maker fell as much as 3.2 percent to Rs 540.85 after it said that its unit in Tarapur MIDC got affected by explosion in an adjoining unit. The affected plant contributed about 16 percent to the company's total revenue as of Dec. 31.
Total Vehicle Sales Rise 23% In February
- Feb total domestic sales up 22.8 percent at 21.11 lakh units versus 17.19 lakh units (YoY).
- Feb passenger car sales 179,122 units, up 3.7 percent on year.
- Feb total vehicle exports 358,001 units, up 26 percent on year.
- Feb commercial vehicle sales 87,777 units, up 31 percent on year.
- Feb two-wheeler sales 17 lakh units, up 23.8 percent on year.
Suzlon Energy Gains On Order Win
Shares of the Pune-based renewable power producer rose as much as 3.6 percent to Rs 11.40 after it won 75 MW wind power project from a leading independent power producer through Maharashtra State Electricity Distribution Company Limited (MSEDCL) bid.
Block Deal Alert
- Bharti Infratel has 41 lakh shares change hands in two blocks.
Buyers and sellers were not immediately known
Source: Bloomberg
Emkay Global To BloombergQuint
- Private sector banks have corrected, see some emergence of value there
- Private banks, NBFCs will see increase in market share
- Global liquidity tightening due to hardening of yields
Shrimp Makers Fall As U.S. Hikes Anti-Dumping Duty On Indian Exports
Shares of companies related to shrimp production like Avanti Feeds, Apex Frozen Foods and Waterbase fell up to 5 percent after the U.S.' Department of Commerce hiked anti-dumping duty on Indian shrimp exports to 2.34 percent from earlier 0.84 percent.
The F&O Show
Man Infraconstruction Gains On Order Win
Shares of the Mumbai-based infrastructure construction company rose as much as 3.7 percent to Rs 56 after it received orders worth Rs 220.75 crore from Pimpri Chinchwad Municipal Corporation (PCMC) under the Pradhan Mantri Awas Yojna (PMAY).
Andhra Bank Plunges 14%, Falls Most In Over Two Years
Shares of the Hyderabad-based government-owned lender fell as much as 14 percent, the most in over two years, to Rs 33.20, also its lowest level in over 13 years.
The Enforcement Directorate (ED) which had arrested its former director Anup Prakash Garg in January for receiving bribes from the Sterling Biotech, laundered the money through shell companies arranged by Kolkata-based entry operators, The Hindu newspaper reported citing an ED official.
The report added that during Garg's tenure Sterling Biotech got Rs 235 crore in loans from Andhra Bank and he received over Rs 1.52 crore during 2009-2010 for facilitating the loan.
Bharti Infratel Up After Morgan Stanley Says Valuations Are Cheap
Shares of the Gurugram-based telecom infrastructure company rose 2.1 percent to Rs 340.15 after Morgan Stanley in a note said Bharti Infratel valuations are cheap and stock maybe getting close to buy territory.
It added that Bharti Infratel’s under-performance led by impact of tenancy deletions.
ITC Gains As Cigarette Cess Kept Unchanged At GST Council Meet
Shares of the country's largest cigarette maker rose as much as 3 percent, the most in over a month, to Rs 267.05 after the government kept cess on cigarettes unchanged at its GST Council meeting on Saturday.
Shares of other cigarette makers like VST Industries and Godfrey Philips also rose over 2 percent each.
Opening Bell
Indian equity benchmarks moved sharply higher led by ITC, Bharti Airtel and Bharti Infratel amid strong global cues.
The S&P BSE Sensex rose 0.85 percent or 284 points to 33,591 and the NSE Nifty 50 index climbed 0.83 percent or 85 points to 10,311.
All sector gauges compiled by BSE were trading higher led by the S&P BSE Telecom index's 1.2 percent gain.
The gains were broad-based as the S&P BSE MidCap and S&P BSE SmallCap indices rose 0.6 percent each.
From the Nifty 50 basket of shares, 47 were advancing while only three were declining.
IndianOpen
Rupee Gains Against U.S. Dollar
- Rupee opens higher at 64.96 per dollar against Friday's close of 65.16.
Money Market Heads Up!
Indian bonds are seen steady ahead of consumer inflation data due at 5:30 p.m. this evening. Inflation probably rose to 4.7 percent in February from a year a Bloomberg Survey showed, slowing from 5.07 percent in January.
That will be a huge relief to bond traders who have endured the worst sell off in decades amid tightening liquidity and a worse than expected budget deficit.
Industrial production data is also due later in the day. Benchmark bonds advanced last week for the first time in four weeks on the back of improving banking liquidity and the Indian government’s pitch for a rating upgrade. The 10-year yield fell 7 basis point to 7.67 percent.
Meanwhile, the rupee is seen to be opening with a firm bias, with forwards indicating it will open at 64.924 per dollar, up from 65.17 on Friday. Emerging market currencies and riskier assets have done rather well on the back of a good U.S. Jobs report.
BQ Heads Up!
Nifty Futures Indicate Opening Above 10,300
IPO Market Update
All You Need To Know
Brokerage Radar
Morgan Stanley On Telecom
- ARPUs will trend down over the next few quarters; will start improving from the second half of next fiscal.
- Airtel best positioned as valuations have corrected.
- Airtel’s leverage is less of concern as it has enough options to raise cash.
- Expect limited impact on the back of the JioPhone offering.
- If Jio significantly drops upfront payment, then that could be a potential risk.
- Bharti Infratel’s under-performance led by impact of tenancy deletions.
- Bharti Infratel valuations are cheap and stock maybe getting close to buy territory.
Jefferies On Oil & Gas
- India’s oil demand strong again in February.
- Margins are more important for downstream companies.
- Current quarter looks strong helped by recovery in fuel margins.
- Prefer cheaper, more resilient IOC and ONGC to BPCL and HPCL.
Motilal Oswal On SH Kelkar
- Maintained ‘Buy’; cut price target to Rs 318 from Rs 343.
- Structurally secure, but near-term headwinds exist.
- Supply-side disruptions from Germany, U.S. and China to pressurise margins.
- Cut operating income estimates for the next fiscal, owing to raw material supply disruptions.
- CFF acquisition brings in cross-selling opportunities.
- New launches in FMCG to pave way for improved growth.
Stocks To Watch
- CCI approved the acquisition of Reliance Communication’s towers, optic fibre cable, right to use spectrum and media convergence nodes by Reliance Jio.
- JSW Group unit to buy 50 percent stake in GMR owned IPL cricket team - Delhi Daredevils.
- Bhushan Steel clarified that Chairman BB Singhal appeared before SFIO on March 8.
- Wilmar Sugar to make an open offer to acquire additional 49.8 crore shares, representing 26 percent equity in Shree Renuka Sugars at a price of Rs 16.29 each (premium of 4.75 percent from Friday's closing price).
- Dolphin Offshore Enterprises bagged order worth Rs 6.75 crore from RAL, Malaysia.
- Power Grid won contract to establish transmission system for “New WR-NR 765 kV Inter-Regional Corridor”.
- RBI imposed penalty of Rs 5 crore on Airtel Payments Bank.
- Bharat Wire Ropes seeks to raise Rs 50 crore via equity or debt.
- Tata Motors’ group global wholesales up 18 percent YoY to 1.21 lakh units in February.
- Bharti Airtel received NCLT approval for merger of Telenor with self.
- ARSS Infrastructure bagged work order worth Rs 15.44 crore.
- Amber Enterprises to acquire 70 percent in Ever Electronics.
- MOIL approved the setting up ferro alloy plants at Balaghat and Gumgaon for Rs 418.8 crore.
- Oriental Bank Of Commerce to increase some marginal cost loan rates by 5-15 basis points from March 12.
- Peninsula Land to acquire additional 6.4 percent stake in Hem Infra for Rs 13.79 crore.
- IFC and IFC FIG to sell 1.2 percent of total 5 percent stake in Bandhan Bank through the proposed IPO of the lender that opens from March 15, reported PTI.
- Aarti Drugs said that its unit in Tarapur MIDC got affected by explosion in an adjoining unit. The affected plant contributed about 16 percent to the company's total revenue as of Dec. 31.
- ONGC to sell stake in Gujarat Petrochem project to fund HPCL acquisition.
- Arvind promoter Aura Securities pledged 42.50 lakh shares, or 1.64 percent stake in favor of Bajaj Finance against loan to be availed.
- Avanti Feeds, Apex Frozen Foods, Waterbase: U.S. Department of Commerce has suggested a hike in anti-dumping duty on Indian shrimp to 2.34 percent from 0.84 percent. Indian shrimp exporters subject to new rates.
- Consortium of Jet Airways, France-KLM and Delta is understood to have expressed interest in national carrier Air India (PTI).
F&O Cues
- Nifty March futures closed trading at 10,216.4 at a discount of 10.3 points.
- March series-Nifty Open Interest down 1 percent, Bank Nifty Open Interest down 1 percent.
- India VIX ended at 14.52, down 0.4 percent.
- Maximum Open Interest for March series at 10,500 call strike, Open Interest at 54.8 lakh, Open Interest up 5 percent.
- Maximum Open Interest for March series at 10,000 Put, Open Interest at 49.1 lakh, down 5 percent.
Daybreak
Bulk Deals
KSK Energy Ventures
- IFCI sold 23.80 shares (0.6 percent) at Rs 8.78 each.
Talking Points
- SpiceJet, CFM sign $12.5 billion engine, service deal
- RBI initiates special audit of state-run lenders with focus on trade finance
- Indian Bank, Union Bank classify State Trading Corporation account as NPA
- How Blackstone turned India into its most profitable market
- Foreign investors’ bearish stance continues; March outflow at Rs 6,000 crore
- SBI, UCO Bank look for buyers to clear-off Rs 1,245 crore NPAs
- Commerce ministry studying impact of U.S. decision to raise tariff
- India, France commit to increase bilateral trade to €15 billion by 2022
- Creditors’ panel yet to approve Dalmia’s bid for Binani Cement, says UltraTech
- Time to consider holding companies for state-owned lenders, says SS Mundra
- China ties future to Xi as lawmakers repeal term limits
- Aditya Thackeray, NCP join farmers protest, RSS voices support
- U.S. anti-dumping duty on Indian shrimps not to hit trade: Apex Frozen Food
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 1.2 percent to 10,328 as of 7:25 a.m.
Asian stocks gained as trade war concerns took a backseat to economic optimism following a U.S. jobs report on Friday that showed the American economy continued to strengthen without the prior month’s rapid wage gains that stoked inflation fears.
The MSCI Asia Pacific Index of stocks climbed with markets in Tokyo, Sydney and Seoul higher. Futures in Hong Kong pointed to gains.
Here’s what’s coming up this week:
- China data on industrial production, retail sales and fixed-asset investment all out on Wednesday are likely to point to slower growth, according to Bloomberg Economics forecasts.
- Retail sales probably rose 10 percent from a year earlier, while industrial production growth is expected to have slowed to 6.2 percent.
- Key indicators for the Fed dominate the economic agenda in the coming week. Headline inflation may have edged up to 2.2 percent in February from 2.1 percent, though consensus before Tuesday’s report is for core inflation to remain at 1.8 percent. The other main data point will be Wednesday’s retail sales numbers, which is expected to show a significant rebound from weather-induced declines in January.
- New Zealand GDP data is out Thursday.
Bonds
- The yield on 10-year Treasuries rose almost one basis point to 2.90 percent, extending a four basis point advance on Friday.
- Australia’s 10-year bond yield rose four basis points to 2.82 percent.
Commodities
- West Texas Intermediate crude was up 0.1 percent to $62.12 a barrel. It climbed 3.2 percent on Friday.
- Brent traded higher at $65.7 per barrel; up 0.3 percent.
- Gold was steady at $1,323.01 an ounce.
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