All You Need To Know Going Into Trade On April 3

Asian stocks declined as a sell-off in once much-favored U.S. technology shares deepened and volatility soared.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.6 percent to 10,205 as of 7:05 a.m.

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BQ Live

Global Cues

• The deepening rout in once high-flying technology shares sent U.S. stocks tumbling to start the second quarter, as fresh presidential criticism of Amazon.com and retaliatory tariffs from China rattled markets.

#BQMarketsNow | Tech rout sinks U.S. stocks as lines of defense crumble.https://t.co/stTDvynuVo pic.twitter.com/YTcoeZQI6e

April 3, 2018

• The euro was virtually unchanged at $1.2303, while the yen rose 0.3 percent to 105.92.
• The British pound increased 0.2 percent to $1.4046, the first advance in a week.

Asian Cues

• The Topix index fell 0.9 percent.
• Australia's S&P/ASX 200 Index lost 0.3 percent.
• South Korea's Kospi index declined 0.8 percent.
• Futures on the S&P 500 Index were 0.4 percent higher.
• The MSCI Asia Pacific Index decreased 0.4 percent.

Here are some key events coming up this week:

• Nikkei India Manufacturing PMI for March; prior 52.1.
• The Reserve Bank of Australia's monetary policy decision is due Tuesday.
• The New York Fed debuts the Secured Overnight Financing Rate on Tuesday.
• The Reserve Bank of India decides on policy Thursday.
• U.S. employment data are due Friday; the jobless rate probably fell in March after holding at 4.1 percent for five straight months.

Stocks lose critical buyer at worst time.https://t.co/QxIRrO3oIG pic.twitter.com/0mmAlP8TBg

April 2, 2018

Commodity Cues

• West Texas Intermediate crude rose 0.2 percent to $63.15 a barrel. It lost 3 percent on Monday.
• Brent ended 2.5 percent lower.
• Gold was at $1,341.64 an ounce after jumping 1.2 percent.
• Sugar ended higher for second day at 12.5 cents per pound; up 1.4 percent.

Shanghai Exchange

• Steel traded higher for sixth day; up 0.2 percent.
• Aluminium traded higher for second day; up 1.2 percent.
• Zinc snapped two-day winning streak; down 0.7 percent.
• Copper traded higher for fifth day; up 0.1 percent.
• Rubber traded lower for third day; up 0.1 percent.

Numetal, ArcelorMittal and Vedanta submit fresh bids for Essar Steel. @visshy_it reports.https://t.co/XHRQQNBkai pic.twitter.com/KnKz8o1JOr

April 2, 2018

Indian ADRs

Stocks To Watch

• RBI lets banks spread bond losses over four quarters.
• Tata Steel to pay Rs 35,200 crore cash for Bhushan Steel; to convert remaining debt to equity.
• JSW Steel-Numetal, Vedanta and ArcelorMittal enter race for Essar Steel.
• Motherson Sumi signed deal to acquire Reydel Automotive Group for $201 million from Cerberus.
• VST Tillers March sales up 22.8 percent year-on-year to 7,399 units; commissions new power tiller plant in Karnataka.
• Karnataka Bank turnover cross Rs 1.1 lakh crore; reduces interest rate on loans offered to MSMEs.
• Rolta India said it amended and restated restructuring support pact. The amended RSA pact accelerates dates of certain fee payments.
• Akzo Nobel completed sale of specialty chemicals division.
• RPP Infra received orders worth Rs 264 crore.
• Fire at Saregama's Bhiwandi warehouse; quantum of losses yet to be assessed.
• Galaxy Surfactants received 13 observations from U.S. FDA under Form 483 for its facilities located at Tarapur.
• Fortis Healthcare seeks shareholders nod for purchase of RHT Health's assets.
• Info Edge: Zomato revenue rose 45 percent in FY18 to $74 million.
• Hindustan Aeronautics recorded highest-ever turnover of Rs 18,000 crore (provisional and unaudited) in FY18. It had a turnover of Rs 17,605 crore in the previous year.

Here's how automakers fared in March 2018.https://t.co/lQJ411c4dl pic.twitter.com/I10EJu0TrV

April 3, 2018

Bulk Deals

• Jayashree Tea: Promoter Kesoram Industries sold 2.05 lakh shares or 0.7 percent equity at Rs 86.57 each.
• WPIL: Promoter VN Enterprises bought 1.97 lakh shares or 2 percent equity at Rs 509.03 each.

Infibeam

• Smaller Cap World Fund Inc bought 1.89 crore shares or 3.5 percent equity at Rs 152 each.
• Affluence Gems Private Limited sold 30 lakh shares or 0.6 percent equity at Rs 152 each.

.@Bioconlimited expects early-mover bonanza in biosimilars.https://t.co/QpywmmVfpU pic.twitter.com/ToCtJrJiGT

April 2, 2018

Trading Tweaks

• Arrow Greentech circuit filter revised to 10 percent.
• JBF Industries circuit filter revised to 5 percent.

Who's Meeting Whom

• MGL to meet Axis Capital and Vontobel AM on April 3.
• Grasim to meet various fund houses on April 3.
• ACC to meet GSIC, State Street and Eastspring Investment on April 3 in Singapore.
• ACC to meet Capital World and JF AMC in Hong Kong on April 4.
• Magma Fincorp to meet Tata MF, New Horizon, Ashmore and Crador on April 3-4.
• Visaka Industries to meet investors on April 5.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty April futures closed trading at 10,264 with a premium of 52.2 points versus 38.2 points.
• April series: Nifty open interest down 1 percent, Bank Nifty open interest up 8 percent.
• India VIX ended at 15.3, down 2.6 percent.
• Max open interest for April series at 11,000 call strike (open interest at 34.9 lakh, up 4 percent).
• Max open interest for April series at 10,000 put (open interest at 40.6 lakh, up 25 percent).

#BQOpinion | The government's current PSU bank plan is a 25 year-old band aid trying to cure cancer, writes @Raghav_Bahl.https://t.co/Xoxz06w5zP pic.twitter.com/CL1aWF1m55

April 2, 2018

F&O Ban

• No stocks in ban list.

Put-Call Ratio

• Nifty PCR at 1.41 versus 1.10.
• Nifty Bank PCR at 1.35 versus 1.41.

Stocks Seeing High Open Interest

Fund Flows

Brokerage Radar

JPMorgan on RBI Norms

• RBI allowed banks to amortise mark-to-market losses for third and fourth quarter of the previous fiscal over four quarters.
• To ease pressure on March quarter earnings and reverse 50 percent losses of December quarter.
• Move to encourage PSU banks to re-enter bond market.
• Use PSU banks trading rally to exit.
• NBFCs/HFCs a better play on falling yields.
• Prefer Bajaj Finance and HDFC over SBI, Bank of Baroda and PNB.

BofAML on Motherson Sumi

• Maintained ‘Buy' with a price target of Rs 420.
• Reydel strengthens interiors vertical; Expect synergies across clients and geographies.
• Deal to provide more avenues for in-sourcing and margin improvement.
• Deal appears inexpensive and EPS accretive.
• Acquisition to take Motherson one step closer to meet revenue target for the next financial year.

Citi on NTPC

• Maintained ‘Buy' with a price target of Rs 196.
• Poor coal supply situation could to impact March quarter results.
• March quarter end regulated equity would be similar to December quarter.
• 2260MW difference between commissioned and commercial capacity provides visibility for commercialisation in the next financial year.

Investec on Can Fin Homes

• Maintained ‘Buy' with a price target of Rs 575.
• Expect stock to further drop as divestment process called off.
• Business likely to remain weak in the previous quarter.
• Right issues to be key driver for stock performance.

IDFC Securities on NIIT

• Consolidated financial performance has improved over past 12 months.
• Corporate training business drives overall revenues; Growing at 15 percent.
• Skills and Careers business is a drag; Management focussing to maintain breakeven.
• Consistent execution to aid earnings upgrades and help drive re-rating.
• Valuations cheap; Provide high margin of safety.

Motilal Oswal on Tata Chemicals

• Initiated ‘Buy' with a price target of Rs 940; implying a potential upside of 36 percent from the last regular trade.
• To use cash cows to invest in growth businesses.
• To focus on consumer and specialty products.
• Existing salt distribution network to boost consumer business.
• To be net debt-free by March 2020; RoCE to improve considerably.
• Reduction in debt via sale of fertilizer business and investments.
• Expect revenue and net profit to compound at 9 percent and 22 percent respectively over the fiscal 2018-2020.
• Bull Case price target of Rs 1,147.

Edelweiss on SpiceJet

• Maintained ‘Buy' with a price target of Rs 166.
• Enthused about the growth prospects of the company.
• Robust domestic passenger growth to outstrip capacity addition.
• Profit to grow with improving yields.
• Addition of new planes to prune costs.
• Expect volume and earnings per share to compound at 22 percent and 37 percent respectively over the fiscal 2017-2020.

Kotak Securities on Air India Divestment

• International slots available are valuable.
• Debt reduction not enough for Air India to become profitable.
• Believe Air India Express and Air India's international business to be a good fit for IndiGo.
• Acquirer would need to bring significant amount of operational improvement to generate value.

Credit Suisse on Air India Divestment

• Cost ex-fuel double of IndiGo suggesting strong inefficiencies.
• Large multi-dimensional asset can have varied interests.
• Increase in competition is likely.
• Indian airlines, except Indigo, may have to form JVs to qualify.

RBI allows banks to stagger hit on bond portfolios.https://t.co/hbUuc2PSUX pic.twitter.com/deMziy3yY4

April 2, 2018

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